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


To: crdesign who wrote (4240)12/31/2003 3:16:08 PM
From: Haim R. Branisteanu  Respond to of 110194
 
The US population grows above 1% a year or around 2.9 million people each year.

Each person needs for living a minimum of around $15,000 a year.

This is quite substantial money of around 50 billion each year and growing.

Germany has a population growth close to ZERO as are other EZ countries - they do not need more money but still the social entitlements are growing much faster than in the US (about 2 to 2.5 time) Europe money supply grows at similar pace as the US.

Now this may explain why EZ can not get below the 2% yearly inflation. But all those facts do not deter the "monkey's " going GAGA for the EUR for all the wrong reasons.

I wonder which country has a solid fiscal and monetary policy ? Would like to move my EUR there



To: crdesign who wrote (4240)12/31/2003 3:41:04 PM
From: Jim Willie CB  Respond to of 110194
 
yes, $6 per day per man woman and child
but it is not the USGovt that needs it
the entire federal, banking, commerce, mortgage, household system needs it

we are a debt-based debt-driven nation
our world reserve currency is backed (by default) by USGovt debts
when our debt levels grow so large that the rest of the world considers us a problem that can keep at arm's length by financial moats...

THEN WE SINK INTO A DEEP HOLE, INTO THE ABYSS
I fully expect eventually in the near future that the USA will be the only nation on earth suffering from serious price inflation and a ravaged currency and bond market
such is the inevitable but regrettable consequence of an unbelievably abused privilege to manage the world's reserve currency, the USDollar

I expect the process will accelerate later into 2004
and start to become a nightmare in 2005 and 2006
I will not matter who the president will be
not one bit
this is a banking and credit issue, not political

I will say this though regarding the 2004 Prez election
politics and politically motivated decisions will do serious damage to the USDollar, to USTBonds, and the US Economy, and lift GOLD


also, the resolution of China's overhang of debts and excess mfg capacity will also hurt the world economy, hurt the USDollar, and cause serious geopolitical problems

expect a tumultuous year, esp the second half

/ jim