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

To: Crimson Ghost who wrote (1771)	11/3/2003 9:54:30 AM
From: philv	Read Replies (2) \| Respond to of 110194

I agree with your statements. The Fed is not acting alone, and has plenty of support from abroad, and those who don't support the US are subject to much pressure. The ECB is no stranger to that, being constantly pressured to lower their interest rates to keep in line with the US, and recently, China has offered to buy treasuries to muffle the trade criticism. And Japan doesn't need any convincing. But I really can't understand the commodity price surge. These commodities are either going into world wide manufacturing or are being stockpiled. If it is the former, it means that demand and spending is up, which is evidence of near future expansion and inflation. If the later is the case, or if it is simply a case of catch-up, I would expect commodity prices to come back down quickly. I suppose the last possibility is that the increased commodity demands are being absorbed by NEW third world demand, as well as the attendant production, mainly for internal consumption in S.E. Asia. Maybe the third world will have to be elevated and re-named to second world? gg If that is the case, there really has been a huge sudden shift.