Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: orkrious who wrote (17730)	8/14/2004 2:08:55 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

IMO Rates go down until US consumers are no longer needed for growth. As long as the world is dependent on US consumers, foreign govts will take US$ and buy US treasuries. They may not be happy about ity, but they will do it. If and when there is demand in China, Brazil, India etc etc etc for all the crapola that we buy, that's when there is hell to pay. Given that I believe a worldwide recession is coming up, led by the US consumer, that turning point could easily be years off. Internal demand inside China is the key. China will eventually do what the US has been asking: Float the RMB but we will no longer want that when China does it. Too much credit needs to be destroyed in the US before strong inflation has a chance IMO. Heinz would say the same thing I believe but I am not sure if that is what Succo is saying at all (but I do think he aknowleges the possibility something that I do not think Russ give much chance at all to. I believe Heinz sees deflation persisting for potentially as much as 10 more years. Mish