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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 (4744)	1/11/2004 10:55:19 AM
From: Rarebird	Read Replies (1) \| Respond to of 110194

<The Fed will indeed keep rates low (but low does not necessarily mean 1%) as long as it can.> There is NO WAY that the Fed will even be allowed to raise its official rates to 2%, let alone 3.5 - 4%. One reason is that US household debt alone now stands at $US 9.3 TRILLION, $US 6 TRILLION of which is the principal on mortgages. US disposable personal income totals $US 7.8 TRILLION. The White House knows this, the US Treasury knows this, Congress and the Federal Reserve know it too, along with the POG, the XAU and HUI. The sum of their knowledge amounts to this: Any increase in US interest rates to a height sufficient to support the US Dollar internationally would ensure - a national tidal wave of personal and household bankruptcies - after about a six month delay - rolling along for the next two to five years. That has inherently in it the grave danger of breaking the US financial and banking system. The other reason why the Fed won't be allowed to raise rates is simple. 2004 is an ELECTION year. Since August 15, 1971, when President Nixon disconnected the US Dollar from Gold because of the massive Kennedy/Johnson credit expansions, everything has been a LIE! It has been a HUGE monetary lie which says that if you print a lot of paper money and borrow an even bigger amount of money, everyone in the nation can get rich. The TRUTH is all it really does is to DESTROY the currency.