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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 (9339)	3/4/2004 2:36:25 PM
From: Crimson Ghost	Read Replies (1) \| Respond to of 110194

That is my point. If they are willing to tolerate a massive infaltionary surge, they can prevent any threatening deflation. Depends on what they fear most. Debt burdens can be reduced either by deflationary collapse or massive inflation. The latter is far more likely than the former in the American empire IMHO.

To: mishedlo who wrote (9339)	3/4/2004 3:08:30 PM
From: Umunhum	Read Replies (1) \| Respond to of 110194

<Unless someone borrows it, it goes nowhere and does nothing.> As long as the gov't continues to deficit spend and japan is all too happy to buy the debt, then dollars will continue to enter the system. We don't need the consumer.

To: mishedlo who wrote (9339)	3/4/2004 4:23:03 PM
From: Jim Willie CB	Read Replies (1) \| Respond to of 110194

isnt that what helicopters are for? <G> / jw

To: mishedlo who wrote (9339)	3/4/2004 4:24:57 PM
From: Jim Willie CB	Read Replies (1) \| Respond to of 110194

help: need URL link to BMO article "Will China Revalue?" excellent article appeared either here or the Mish new thread by Tim O'Neill, chief economist of BMO Financial Group it is a PDF file, whose URL does not appear on base of printed page the article link was posted last week by someone much appreciated, jim

To: mishedlo who wrote (9339)	3/4/2004 4:39:52 PM
From: Jim Willie CB	Read Replies (1) \| Respond to of 110194

the Fed has threatened to monetize in two key areas 1. the federal budget deficit 2. existing longterm trez debt already floating your argument about needing a borrower misses the mark the customer (borrower) can be the govt itself I like to settle marginal arguments by taking to the extreme what would happen if the Fed monetized suddenly $7000 in Treasury bonds ??? a little bit of price inflation, I would say what would happen if the Fed monetized the entire 2004 budget deficit ??? a little bit of price inflation, I would say in late 1999, all the capgain tax revenue rendered the fed budget operating deficit almost nill we saw a stock explosion upside, then bust if the Fed monetizes on a large scale, LOOK OUT we will get something ugly and not foreseen we will witness some colossal price inflation from demand coming from two sources: 1. buyers of USTBonds redirecting their money elsewhere 2. bond holders being redeemed with ready cash HOWEVER, the location of the price inflation is most important it will be more of the same: COMMODITIES which will amplify the pressure on the crackup boom and stall economic recoveries worldwide, except in China, where they have a pegged noose around the US/Fed neck / jim