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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 (30977)	4/20/2005 1:07:51 PM
From: mishedlo	Respond to of 110194

beautiful - thanks That goes into tonight's blog Mish

To: ild who wrote (30977)	4/20/2005 1:27:25 PM
From: ild	Read Replies (2) \| Respond to of 110194

Date: Wed Apr 20 2005 12:40 trotsky (P.Yorkie) ID#248269: Copyright © 2002 trotsky/Kitco Inc. All rights reserved "Prospects of deflation in the USA will cause even lower US bond yields. That is good for stocks and puts even more strain on the foreign central banks surporting the US dollar." i've mentioned it before...low bond yields are NOT automatically 'good for stocks'. if that were true, the Nikkei would trade at 100,000 points ( since its 1989 high bond yields have come down dramatically ) . in a deflationary era, low bond yields and falling stock prices manage to perfectly coincide. the foreign central banks are not under any 'strain' whatsoever. they simply print up the money that they need to buy up dollars. it is clear though that this fiat money perpetual motion pyramid scheme has real economic consequences - those however usually only become apparent with a considerable lag. in that sense there is 'strain' - the structural distortions in all the economies involved in this game are becoming greater by the day.