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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 (9620)3/7/2004 12:29:12 PM
From: philv  Respond to of 110194
 
The old debate continues and both sides are gaining evidence, but no resolution yet. There obviously is a great danger of deflation/recession otherwise interest rates wouldn't be as low as they are. Also, the prospect of a bubble bursting could bring about a depression.

But on the other side, rising prices of all kinds are evident, and the FED seems determined not to let the bubbles burst. The price increases will be paid through the ever increasing debt bubble. This is what has been going on for some time, and the FED is determined to continue in this path, hoping for a miraculous recovery and hoping for job creation. Meanwhile, distortions of all kinds are building and the standard of living is slowly eroding.

Which will it be, a sudden collapse or a continuation of the same? One is sudden, the other, without a final solution, is delayed until universal inflation takes hold, and the US dollar is trashed.