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Strategies & Market Trends : Natural Resource Stocks -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (1607)	10/8/2003 9:50:52 AM
From: Jim Willie CB	Read Replies (1) \| Respond to of 108712

the USD decline from 120 to 91 so far is NOTHING it has been a transfer to Europe of a high currency most lending comes from mortgages, which surely hedge but their hedging has convexity risk on the REFI side which will gaurantee Fanny's destruction the wild card is Asian currencies just today an economist on CNBC said multinationals will benefit greatly he believes we have big benefits from a falling yen "the benefit is going to pack a wallop" he said he cited Japan as having twice the foreign subsidiary revenues for US firms as France and Germany combined that is all well and good but these hack economists have a blind eye they ignore the back door price inflation issue completely they point like morons to the multinationals and completely miss the Asian import pricing system we are set next year to have price inflation with no profit margins we are well along the greatest inflationary period since the Federal Reserve was created I refer to money supply and the Monetary Futility Index it takes $6.5 new money to generate $1 new GDP early last year that figure was $5.0 it will get to $10 in a couple years for 20 years, that ratio was stuck at $1.4 to $1.6 whatever GreenScrotum harps about, he has backwards now he harps on price deflation we have PRICE INFLATION all around us e.g. stock market, trez bond market, mortgage bonds, real estate, service costs, commodities, energy he calls them bull markets I see them as clear evidence of inflation and rising production costs with China constantly present, we will have no pricing power thus no profit margins eventually we will see an inflation risk premium priced into bonds of all kinds that is when the music stops and the chairs are pursued / jim