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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 (11034)	3/31/2004 10:34:50 AM
From: Jim Willie CB	Respond to of 110194

dup, sorry

To: russwinter who wrote (11034)	3/31/2004 10:36:57 AM
From: Jim Willie CB	Read Replies (2) \| Respond to of 110194

BOJ actions turn out to be deflationary, Russ it is all about where the money goes in the USA, it goes into poorly established new debt that is not inflationary it is monetary inflation directed toward clear deflationary positions in no way does continued consumer spending on credit create a case for inflationary forces on prices no way we are seeing the 20-30 yr delayed effects of massive inflation it comes with huge debt overhang and its deflationary forces now the marginal new debt is piling onto that huge debt overhang, while commodity prices are rising from foreign demand even that foreign demand originates from exported inflation from the USA, held in the form of trade surpluses US Economists have no grasp of this concept in no way does continued mortgage creation and cashout refis create a case for inflationary forces either, when the money is used to consume and pay for household necessities I agree it cannot continue and when it stops, you will have debt default and consumption cutbacks and bankruptcies for a long time not to mention a slow fizz in real estate this is a massive curve ball monetary expansion is accentuating deflationary forces in a huge way I know you are gonna shoot back that commodity and shipping prices are skyrocketing they are tell me how that translates into price inflation we are only beginning to see passed on higher costs into prices I rest with the story of the Orange County large construction contractors they complete the projects they bear higher material costs along the way they lose money on the project they lay off workers afterwards this story is being repeated nationwide / jim