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

To: Crimson Ghost who wrote (21945)	11/17/2004 9:23:18 PM
From: mishedlo	Read Replies (2) \| Respond to of 110194

Factors Behind Today's Perplexing Bond Rally [another viewpoint - far different than mine - but here goes - mish] Message 20777763

To: Crimson Ghost who wrote (21945)	11/17/2004 10:49:04 PM
From: Jim McMannis	Respond to of 110194

This is almost a perfect scenario for gold and international stock funds.

To: Crimson Ghost who wrote (21945)	11/19/2004 9:49:42 AM
From: Rarebird	Respond to of 110194

<Bond market action continues to amaze me> Don't you think that in the Fed and Treasury, as well as inside DC, they are well aware that for at least the past three years, the entire US economy has been held up mainly by the Asian Central Banks? "They" must also know this situation will eventually end. Don't you think that the Asians are well aware that if they actually started a massive sell off of US Dollars that the Bush Administration would most likely initiate a full scale freeze of Asian financial assets inside the US. If this took place, the Asians would be able to sell but not take their money out of the US. There is historical precedence for this: that is what the US did to Japan in June 1941, when it "froze" Japan's US assets. Japan, being strangled economically, attacked the US on December 7, 1941. An Asian asset freeze would leave foreign accounts frozen inside the US financial system. Were this to happen, all other nations around the world would live in fear that it could happen to them. If the US does act in this manner, the US Dollar would promptly lose its present global reserve currency status. Then the US would find itself in the same position as the rest of the world. It would have to pay for imports in foreign currencies, not in US Dollars. The resultant economic recession inside the US would be massive. But Americans would be told that it was the fault of "foreigners". Nothing would be said about the real cause - US borrowing or credit policy.