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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 (6791)	2/2/2004 10:15:56 PM
From: philv	Read Replies (1) \| Respond to of 110194

That Pimco article seems to sum it up. Bill Gross calls the US a finance based economy. "In a finance-based economy this IS productivity. Instead of cheaper and cheaper labor per unit of output, we have cheaper and cheaper interest rates per unit of debt." "When you have negative real interest rates, even a half awake vigilante will “someday” demand redress, or a half awake Fed Chairman will “someday” be forced to rebalance, or a half asleep foreign central bank will “someday” switch to a basket of currencies which offer more protection via higher real rates of interest." This guy isn't your average talking head. He is sounding alarm bells loud and clear, and has been for some time as you all know. There isn't a nation on earth which isn't aware of all of that, and they know they are all part of the problem and they know they will share in its solution or resolution "someday".