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

To: Little Joe who wrote (11688)	4/10/2004 10:12:32 PM
From: gregor	Respond to of 110194

And there is the propensity of those in power to want to stay in power. If the cost is in giving away free money then so be it.

To: Little Joe who wrote (11688)	4/10/2004 10:49:10 PM
From: Wade	Respond to of 110194

The last oil crisis? I think it was due to reduction of oil production by OPEC countries, which caused worldwide inflation. The coming $50 oil would be caused by weak USD, which only impact USD and those countries holding too much reserves in USD. Yes, we can keep on printing USD until no one wants it. We will see the copper price go through the roof in the US, but relatively stable in Europe. The article at Goldmoney about unchanged oil prices in Euro is a good example for us to digest. We are going down the same path to those banana republic's hyperinflation if we keep on printing. I remembered those countries lowering their interest rates to stimulate their growth for preventing deflation. What they got was hyperinflation when those efforts failed. They rest of world watched them with disbelieve, and laughed at them as banana republics. Of course, US has much stronger industrial backbone and more natural resources, however, it does not give us the luxury to waste for decades. We may not see hyperinflation, but any big inflation is going to hurt us badly. We just saw Japanese's change of attitude toward USD. They finally realized the possible unpleasant future of owning USD.