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

To: ild who wrote (23008)	12/7/2004 1:59:58 PM
From: loantech	Read Replies (1) \| Respond to of 110194

Ild, And gold in 2005? thanks.

To: ild who wrote (23008)	12/7/2004 2:14:03 PM
From: John Vosilla	Read Replies (3) \| Respond to of 110194

<In other words 4% fed funds are just not possible. With the whole US economy so leveraged on low fed funds even 2% FF are high. I see some ugly variant of Japanese scenario: fed prints at will (this is the only thing they can do) but asset prices continue sliding.> Big difference today is the US and its consumers today are the largest creditor nation ever along with having the biggest trade deficit in history. If they can't attract investors at the artificially low interest rates won't they have to monetize the debt even more which will lead to even higher inflation and interest rates even if assets are collapsing at the same time? Seems to be a far worse position for US today versus Japan 1989 which had overinflated assets as well but high savings, little debt and a trade surplus (kind of like US 1929)