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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Jim Fleming who wrote (34002)	7/21/2005 9:51:13 PM
From: Tommaso	Read Replies (1) \| Respond to of 116555

>>>This is the script for what will happen in the next couple of years IMO. It is not fun when you can't get a bid for a AAA bond and I've been there.<<< Yes, just as the period 1870-1930 and beyond was an era of reoccurring deflations (because of a gold-based currency), the period since 1945 has been an era of reocurring inflation (because of an irregularly-administered fiat currency). A decline of bond prices and high interest rates, resulting from inflation, is not a wildly improbable scenario. In fact, it already happened (1970-1980), though the U.S. was rescued from the worst consequences by the heroic action of Paul Volcker. This time, the inflationary groundwork is more insidious. I am grateful that, as a private citizen, I have the freedom to try to protect myself from this mismanagement by owning commodity-based investments, and the freedom to try to protect myself against the decline of my own country's currency by owning assets denominated in other currencies.