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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: glenn_a who wrote (1018)	9/25/2003 1:24:06 AM
From: glenn_a	Respond to of 110194

Actually, to clarify a previous post: "However, in an absolute global scramble to monetary liquidity, and potentially significantly rising US interest rates to defend the US$, I can't see gold soaring in value. Actually, that's not quite accurate. I actually CAN see how gold could soar in value. And I think there's a reasonable chance of this occurring ... if a global elite consensus emerges to inflate all currencies ... or if the absence of global elite consensus leads to outright economic warfare, and all parties inflate their currencies. However, this would be the absolutely worst possible outcome, and would be the equivalent of hoping for a catastrophe. Much preferable to my mind would be global elite consensus to maintain some integrity in the bond markets, discipline the US so that it has to make good on a significant amount of present value of its current debts, but does allow the US to gradually inflate its currency so as to relieve the extremely onerous burden of its existing foreign debts. However, this would require the U.S. to surrender substantial geopolitical control, and its not yet clear to me that Bush and the interests that back him would not prefer outright global warfare to surrendering of political control. Regards, Glenn