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


To: russwinter who wrote (2452)11/19/2003 6:19:01 PM
From: Crimson Ghost  Read Replies (1) | Respond to of 110194
 
If the Fed keeps it up they may before long be facing a situation where raising rates will be the least of the evils. That would happen if we will reach a point where the dollar threatens to collapse completely and/or lose its status ( or part of its status) as the reserve currency. This would trigger a huge drop in US living standards and massive inflation.

If we reach this point bond prices will PLUNGE regardless of what the Fed does.

Obviously we are not here yet, but we are closer to this than many think IMHO.