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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 (3705)	12/21/2003 12:36:02 PM
From: eddieww	Read Replies (2) \| Respond to of 110194

I left out that target for the magical disappearing Ms, but I think you are probably right up to a point. It's the old rule of what is good for the group isn't the same as what is good for the individual. The CBs try to act for the group and hold up the dollar, but the private sector is scared to keep a low-yield asset that is declining in value every day vs. their own currency. I just wonder how big a portion of the decline of the Ms could be represented since most of the foreign money would be in bonds, agencies and stocks, which aren't part of the Ms. I still think that most of what we're seeing with the Ms is the result of many doing just what I did: I re-fied last spring for some cash-out, and spent that money over the summer remodeling my house. Others probably spent their accounts down by shifting into stocks or maintaining lifestyle.

To: russwinter who wrote (3705)	12/24/2003 12:04:03 PM
From: Jim Willie CB	Respond to of 110194

with electronic flight, impossible to stop capital exodus excellent points, Russ a major story in early 2004 will be adequately explaining the declining money supply phenomenon the story is nonexistent in the press it has perhaps a dozen explanatory factors absurdly low interest rates assist speculation in financial markets domestically but in the more dominant and important currency and bond markets, it assists capital flight and exodus this is precisely what I warned about in my spring article "Japan, Argentina, Weimar, or Muddle?" financialsense.com check it out, still highly relevant we are at high risk of fast rising interest rates as capital flees the USGovt will counter with monetization of bonds, long and short dated but that will sacrifice the USDollar I have said all along... THE DOLLAR WILL BE SACRIFICED IT WILL BE BRUTAL THE USGOVT WILL KILL THE DOLLAR UNTIL IT IS CLEAR TO THE WORLD THAT THE DOLLAR IS OFFICIALLY MORTALLY WOUNDED AS IN, NEVER TO RECOVER, EVER EVER EVER THE USGOVT WILL CONTINUE UNTIL CONFIDENCE WORLDWIDE IS DEAD THEN CONFIDENCE WILL REQUIRE A GOLD STANDARD hack economists still maintain the lunatic notion that we are invulnerable to a declining USDollar they point to exporter advantages and multi-natl benefits they miss the capital flight risk they miss the backdoor asian import price inflation effect they miss the domestic commodity and energy price inflation effect this is sad we as a nation are rudderless, having NO ECONOMISTS instead, we have political apologists who comment on the economy and comment incorrectly who have not gotten much of anything correct in decades they totally miss the debt faulty foundation both in the currency and the economy itself they totally miss the roundtrip monetary inflation export (and now import) story / jim