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To: orkrious who wrote (4530)5/24/2003 3:09:56 AM
From: Jim Willie CB  Read Replies (4) | Respond to of 5423
 
the Fed will keep pumping until imported price inflation arrives
and that will not occur until asian currencies go up vs US$
I mean JYen and Chinese Yuan

or until Asia cannot keep pace with our external funding needs

we are seeing the slowmotion transformation of our stock market and bond market into a bloated pig like Japan's govt bond market
with true earnings so low, we have earnings yields near 2%
and our fed shorterm yields are now 1.0%

as the money printing machine spins, it will not be permitted to stop
securities (paper) assets can be held in levitation
but jobs will not stop in their gradual losses

because the real pool of funding is getting drained
like Shostak keeps saying

think bloated pigs requiring constant artificial life support
damn, this whole thing is becoming unrecognizable because of the refusal to let the markets go their corrective courses
I remember a threat made in 1999 that we cannot allow a recession, because it would turn into a depression from the excessive debt
an incredible 50% of the USEconomy's debt was written since 1990
the Clinton Era

how true on the threat !

/ jim