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

To: mishedlo who wrote (20953)	10/29/2004 10:16:35 AM
From: russwinter	Read Replies (2) \| Respond to of 110194

I think a critical question I would like you to address is why it's necessary for the CBs to print money at this shocking rate? Message 20700078 My hypothesis is that real private demand for US debt and the USD is so low right now, that the $3 billion a day in new USD debt can only be sold to the money printer CBs, they (and the leveraged spec/fund/"dealer" crowd) are now virtually the only buyers. Although it's hard to predict on a weekly, or even monthly basis, there is absolutely no way this kind of excess money creation doesn't leak into something, even if this week it is mostly GOOG (which as you have pointed out in turn will be monetized soon for even more money creation out of thin air). You don't think the GOOG insiders getting these money for nothing windfalls don't have an effect on the maladjusted Train Wreck economy? Message 20701945 Tomorrow it might be oil again, and perhaps today it might be copper, I see it's up four cents, and next week, who knows?. The point is this kind of excessive monetary creation will find an inflationary path somewhere. And at some point (and I think soon) you risk a widespread inflationary panic, when people just give up totally on the USD and USD issued credit instruments.