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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: russwinter who wrote (4380)4/15/2004 8:44:33 PM
From: gregor_us  Respond to of 116555
 
Russ: I Agree With You About the Resumption of USD Weakness

...but only in the sense this is what should happen. Have you reflected on the possibility that the strong dollar and tighter money via a regurgitating bond market are the Face of Deflation? Think of the USD strength and rising interest rates as a mechanism, like a monster, that wants to be fed. It wants to be fed weak borrowers--millions of them.

Again, there is absolutely no reason for the dollar to strengthen for any sustainable amount of time.

Except this: to hurt as many people as possible, which is of course the way of the markets.