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

To: mishedlo who wrote (7341)	2/8/2004 12:37:53 PM
From: loantech	Read Replies (1) \| Respond to of 110194

mish if Japan is buying dollars and now Europe is going to buy dollars (??) then it is down for gold next week?

To: mishedlo who wrote (7341)	2/8/2004 1:04:37 PM
From: Rarebird	Read Replies (3) \| Respond to of 110194

<in case Japan "gets tired".> If Japan does NOT buy up a very large part of the massive flow of US Dollars coming out of the USA, the US Dollar will fall, the Yen will rise, and Japan's export industries will mostly die. For close to a decade, the people there have been hauling items to buttress the huge US debt tree so it would not fall either on them or on the US itself. Having almost given up on preventing the tree from falling, the Japanese people are still desperately trying to deflect the fall. The entire US economy was sustained on a full GDP basis by borrowing about 25% of the entire GDP. Do you know that this is the first thing that the US has to STOP doing, and to stop it, the US will have to shut down their internal credit taps which will take higher US interest rates, both numerical and REAL? Do you know that the US will have to bring its budget deficits under control and there is no way to do this other than a combination of higher taxes and lower spending? Finally, do you know that the Bush Administration is NOT prepared to do these things. To do them would mean that the much postponed real US economic recession could no longer be either disguised or delayed. It would also require a full military pull out of Iraq and a vast scaling down of US worldwide military bases and other deployments.