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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: John Madarasz who wrote (264)	8/20/2001 9:11:30 PM
From: t4texas	Read Replies (1) \| Respond to of 36161

link not working? the link for the microfiche says it is not available. geocities.com

To: John Madarasz who wrote (264)	8/21/2001 3:01:27 PM
From: isopatch	Respond to of 36161

<How much is enough> How bout "the countdown to Zero"?! Hi John. Good article with additional urls of interest. Slider posted the James Turk article about a wk or two ago. Really great detective work by James. About the Fed comments, I'd only add one very important point: As US real interest approach zero and eventually go negative, (and the desperation of the Fed to reflate the global economy guarantees that) foreign as well as US investors will begin the next big exodus from the US bond market. Think about it people. Why would anyone hold paper that, on an inflation adjusted basis, is paying nothing when real rates hit zip and is loses money vs inflation when real rates move negative?! GOODBYE bond market!!!! That's when the dollar cracks and cracks BIG TIME. Remember, as Steven Roach has pointed out 40% of our Treasury paper is now owned by foreign investors! The only reason they forsake their own currency to own the dollar is because they want to get the good safe returns our bonds and stocks WERE giving them. But as the "countdown to zero" real rates winds down? HASTA LA VISTA, el gringo Dollar!<G> AND.... The store of value protection offered by gold and other real assets, against currency debasement and the inflation that follows it, will draw in billions fleeing the bond market in the world like a magnet! HELLO GOLD MARKET!! Tic toc indeed. Isopatch