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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 (6445)	1/29/2004 3:27:50 PM
From: Jim Willie CB	Respond to of 110194

keep a mishedlo device handy a quote from part#3 of article upcoming "Broken Cycle: Spinning Gears" a guy has to have some fun / jim Little did Greenspasm realize in 1996, when he changed policy to allow monetary growth to far exceed the GDP growth levels, that such colossal disruption, dislocation, and devastation would befall the US Economy and our financial markets. Globalization, technology, debts, foreign dependence, and systemic monetary inflation have combined to make a witch’s brew, only to wreak havoc. Financial engineering has aimed a canon squarely at our nation, yet only the gold bugs seem aware. Our financial devices of leveraged futures contracts, options, interest rate swaps, spreads, carry trades, strangles, straddles, collars, hedges, these are being turned against their makers. Let us not forget the Plunge Protection Team intervention and their many tools. This will be the most challenging and exciting period for the US Treasury Bond market in its entire history. We are entering the next stage of a grand liquidity trap, but with foreign bagholders in control of our burgeoning Treasury debt. This new chapter of stagflation (compared to 1970 decade) will prove to be more deadly. Huge offsetting forces are now aligning. I plan to keep a mishedlo device close by for consultation. Like most weather systems, where large low-pressure zones encounter large high-pressure zones, big storms await us. As UPI Business and Economics Editor Hutchinson concludes, “that is what comes of getting your economic policy from Charles Ponzi.”