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

To: austrieconomist who wrote (10754)	3/23/2004 9:57:39 PM
From: Jim Willie CB	Respond to of 110194

right, pick your poison if price inflation, then bonds get hit and stock valuations come down if lower profits and lower employment, then stocks get hit and bonds enjoy the distress if China passes on higher costs more than on an isolated basis, then we get both damaging effects down bonds, down stocks as with inflation vs deflation, I continue to think we get both all over the place the dominant theme is world deflation in product sector and world inflation in commodity sector but I will say this with all considered thought the USA eventually will be the only nation on earth with severe inflation inflation inflation if not this year, then next if not next year, then two years out our foreign obligations are too great our foreign dependence is too great this is the worst of both Japan and Argentina we follow Japan into the Liquidity Trap until foreigners have had enough I have no idea how long fools running foreign CB's will continue to feed alcohol to their Uncle Sam if some choose to dismiss my points because I cannot define SOON or EVENTUALLY, so be it check out this nice piece from last autumn its points will be appropriate to examine for some time in fact, I intend to resurrect it a second time SOON I cannot define soon, but I mean someday soon a new fresh look at the forces still active and relevant "Japan, Argentina, Weimar, or Muddle?" financialsense.com We in the USA have far more similarities than we want to admit with the fading Asian powerhouse. However, critically dangerous differences will prevent the muddle process from occurring smoothly in our economy. We actually compare poorly in differences listed in this article. No, the USA is not as bad as Japan. WE ARE MUCH MORE DANGEROUSLY WORSE. Apply strong Weimar tools within a stubborn Japan quagmire, when addicted to foreign capital, and you risk shock-ridden Argentine outcomes, not a sloppy Muddle. The shock waves may have begun with the July bond market revolt. Fallout has been seen in bonds, gold, silver, and refinance of mortgages. Is retail consumption next? / jim