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

To: Wyätt Gwyön who wrote (13126)	10/8/2004 11:25:25 AM
From: mishedlo	Read Replies (1) \| Respond to of 116555

OK name a currency that is better. Euro? They have a bigger demographic problem than we do. The YEN? Huge demographic problem. Is Japan's debt worth anything? How about Europe's. The British Pound? Is the debt of any of these countries ultimately any good? That is the bottom line isn't it? That bodes well for commodities but the dollar can really only far so far before some other currency is worse. I leave out the C$ and the OZ$ and the NZ$ as those are strong, but there just are not enough from those economies to form reserve currencies or the like. So yes, they can continue to rally. For someone to sell US$ where do you want the money to go? Europe? UK? Japan? Where? If there is a hiding place other than gold or oil tell me where it is. There are no hiding places and for someone living in the US, if stocks do as most of us expect, a 4% return on treasuries is going to look dam good compared to holding RIMM, CSCO, INTC or whatever other garbage people are buying. In short, domestic demand can easily reduce the impact of loss (if any) of foreign demand for US treasuries. Worldwide interest rates are headed to zero. That remains my call. This was a temporary blip of "fake inflation" on the path to a destruction of debt everywhere. Mish