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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: stockman_scott who wrote (859)	6/28/2002 2:39:18 PM
From: Jim Willie CB	Read Replies (2) \| Respond to of 89467

no more tax refunds, no more refis, no more corp bonuses the economy will have to face its dreaded pair of scourges: debt -- household, corporations, federal return of inflation -- from dollar via backdoor of imports the liquidation process is 20% along, imho remaining available credit to be used and abused is diminishing the inflation is due to arrive by late autumn some may wonder if the markets have anticipated its arrival yes, it has, but in a quiet way that frustrated the Fed in Feb-March-April of 2001, the longbond refused to come down in yield we saw several Fed rate cuts, but the 10-yr and 30-yr TBonds refused to come down in interest rate yield that is precisely why the Fed attempted to kill the 30-yr TBond the Fed wanted the combined demand for 10-yr and 30-yr to produce a lower yield it failed to do so, stubbornly and correctly now we have FedFunds at 1.75% and 3-mo TBill yield at 1.75-1.85% but the 10-yr TBond yield is stuck near 5% this eats at GreenMan's soiled boxer undies BUT A SIMPLE EXPLANATION EXISTS FOR WHY WITH LOWER SHORTERM RATES, THE DOLLAR WOULD BE ATTACKED IT WAS AND IS ATTACKED NOW A LOWER DOLLAR WOULD ALLOW BACKDOOR INFLATION TO RETURN THE TIME LAG FROM JAN 2001 TO ITS ARRIVAL IS ABOUT 2 YEARS WELL WITHIN THE RELEVANT TIMEFRAME FOR 10-YR TBONDS gold is only a signal of its inevitability and it serves as the ultimate historical hedge for protection / jim