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To: Ironyman who wrote (3687)3/15/2003 9:55:50 AM
From: loantech  Respond to of 5423
 
Eric,
Rates actually took a big hit on Thursday with the stock market rally. 18 months is a long time to hold rates down but if the powers that be want the dollar to slide you may be right. But I see the treasury competing for dollars too so there could be upward pressure on rates. Tough call, I would not bet either way but we have also seen a huge rate rally so maybe the next direction is up, it will be fun to watch.
Tom



To: Ironyman who wrote (3687)3/17/2003 2:36:27 PM
From: Jim Willie CB  Read Replies (2) | Respond to of 5423
 
you are right on the effect, but off on the cause
up to the point where this recession takes root, bonds will rally and rates will head to zero
while investors move into ultra-highpriced bonds
furthering the Bond Bubble
then comes the inflationary consequences
I refer to the monetary expansion running at 20% annually

then comes the imported price inflation from Asia
when China revalues the yuan upward
all Asian nations will then allow their currency to rise also
we in the USA then get bigtime 5% price inflation

at that point longterm rates will be up around 6%
for TENS on Trez
mortgage rates will be up toward 7% by then
the RE boom will turn to bust

and the USEconomy will see its first INFLATIONARY RECESSION

COURTESY OF THE USDOLLAR DECLINE VICIOUS CIRCLE

/ jim