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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 (20967)10/29/2004 10:51:58 AM
From: russwinter  Read Replies (1) | Respond to of 110194
 
No doubt a good portion, and I'd also add food and medical, but still don't get your point? If the CBs print money from nothing it gets monetized (*), is inflationary, and in turn runs the risk of Crack-up Boom, flight into real goods (flucht in die sachwerte) and currency collapse. And if there is a USD collapse we won't be having this inflation/deflation debate trust me.

(*) If the CBs weren't engaging in this behavior, then I would say a deflationary outcome might be a possibility well down the road. I say well down the road, because too much inflation is already in the pipeline. But the proof is in the pudding, they are going nuts, it's the only way they can pass on Old Maid Cards at huge negative real rates.
Message 20700078



To: mishedlo who wrote (20967)10/29/2004 10:55:28 AM
From: Jim Willie CB  Respond to of 110194
 
and higher spending for cement
for rerod and plywood in construction
for furniture in McMansions
for plasma TV's

GDP growth correlates well with consumer credit growth and Asian import growth

we as a nation do not differentiate on spending quality
whether on retail for junk which produces debt
or for plant and equipment which produce jobs

we are fast becoming a nation of economic morons

/ jim