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

To: NOW who wrote (33501)	5/30/2005 2:10:53 AM
From: glenn_a	Read Replies (1) \| Respond to of 110194

Hi tooearly. ((<continuing inflationary montary goosing> why? if the bilderbergers comments are accurate, these are the feds masters no?)) That's a very good question/point. Firstly, yes these are the Fed's masters - in that at the heart of the Bilderberg group is Rothschild and Rockefeller money interests, and the industrial and banking combines that they ultimately control or influence. And significantly their game is about further/continuing concentration/consolidation of wealth. That is where the lever of central banking and speculative finance is such a powerful mechanism. However, this objective can be achieved to my mind by many monetary scenarios - including severe deflation, severe inflation, or more moderate economic/monetary scenarios. If indeed "peak oil" and resource scarcity is a serious concern amongst global geopolitical and financial elites, and there is a policy goal emerging to slow aggregate demand to effect a slowing of global resource consumption, then I expect raw materials to become much more expensive in real terms. However, both inflation and deflation are plausible monetary scenarios for achieving this economic effect. In this regard, as I've stated in the past, I really appreciate Russ's incredible diligence in monitoring "real-time" supply/demand and pricing pressures in the "real-world". I think it's important to be flexible in the inflation/deflation debate. That's why I want to be hedged for either the inflationary or deflationary scenario - which means to me (i) liquidity in a strong currency, or (ii) precious metal bullion or equities as a investment in sound money, or (iii) natural resource equities, or (iv) a short position on anything that is excessively dependent on easy money, cheap commodity prices, and the real purchasing power of the American consumer. And if one can take establish one's investment positions at contrary sentiment extremes, I think that's about the best one can do (or I can do at any rate) to position oneself going forward. That Bilderberg-type geopolitical elites would plan a global recession/depression as a means for solidifying geopolitical control in their interests is entirely plausible, but I'm not ready place a 1-way bet that the monetary effect won't be significant inflationary to a US$ based investor/consumer. What are your thoughts on the matter tooearly? Best regards, and nice to hear from you. Glenn

To: NOW who wrote (33501)	5/30/2005 2:23:37 AM
From: glenn_a	Respond to of 110194

One more point. Along with pretty much everyone else on this board, I do expect a severe, prolonged period of financial asset deflation. Just not sure about the timing of such an event, and it's entirely possible that we have continuing monetary accommodation and consequent inflation for some time to come. When financial asset deflation finally occurs, I would expect that this will have a corresponding effect on raw materials. Precious metals should be an exception here for their unique monetary attributes. However, because of the secular rise of China and India and tight commodity inventories, it is possible that commodity price deflation will not be as severe as previous secular K-wave type busts. JM2C on the matter. Glenn