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

To: Jim Willie CB who wrote (8706)	11/1/2002 3:31:50 PM
From: SOROS	Read Replies (2) \| Respond to of 89467

It is really unbelievable how blind the masses are. I think after not making any money the past 2 years, they're willing to grasp at anything. I think I read somewhere that the default rate on junk bonds is now about 40%. I don't know a lot about this area, but if this is true, it is historical and bodes of a coming recession or depression almost. I think the typical default rate is about 2-3%. If low-quality paper is experiencing this major default rate, it is inevitable that the "higher-quality" paper default rate will skyrocket next. Then, as you have been saying, I would assume that would spark a decline in government paper which would serve as static electricity in a gas-fumed gold/silver market. People would be fleeing paper because they would finally realize Greensputum's jig was up -- that is, paper IS paper afterall, and stocks are paper that has been decorated and sold as fine art by con-artists for a long time now. People don't realize what is happening. The LAST DITCH effort of a government that runs on a debt-based monetary system that is in trouble and sees DEFLATION ahead is WAR. The Fed can lower rates to increase the money supply to take care of most problems and postpone the inevitable (ie. the collapse of a debt-based system with paper currency), but if deflation takes hold (ala Japan), the Fed will be helpless. When the government see deflation on the horizon even as a possibility, and they have used all their rate-cut bullets to no avail, they must stimulate the economy or risk complete catastrophe. They begin to lower taxes (is anyone listening?) and create more government programs. If this looks like failure, they GO TO WAR. Is anyone listening? What do Alan Greenspeak and Georgie Porgey and Puplava and JimWillie know that the masses totally ignore? Look at them chasing stocks again with PE ratios at BUBBLE levels. Look at them ignore the data and the facts. The IDIOT MASSES always chase things right before they collapse. J6P: "Yeah, but look how long they chased prices in the 1990's. Only idiot bears sat on the sidelines and missed all that free money." Debt is higher NOW! War is being considered. Hello? I guess I'm just an old batty fool. I remain, SOROS