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

To: futures speculator who wrote (37090)	7/27/2005 1:06:54 PM
From: Mike Johnston	Respond to of 110194

This is strange, for the past 6 days SP is trading at 1235 with a few short lived spikes +-2 points. And today, almost all day 1235.

To: futures speculator who wrote (37090)	7/27/2005 2:51:53 PM
From: Crusader	Read Replies (1) \| Respond to of 110194

I think the third alternative is the best one. Let the piper be paid!

To: futures speculator who wrote (37090)	7/28/2005 2:15:08 AM
From: shades	Read Replies (1) \| Respond to of 110194

The alternative would be a agreement between US and Asia, where a large part of US debt will be forgiven, like it's done with third world countries. We didn't forgive germany debts - that gave rise to hitler according to some and the wiemer folks, but america did forgive many war debts from ww2 - and we have not had a world war since eh? I think those at the top levels see forgiving debt as a good thing, will the rest of the world take it easy on america and her debts? The third alternative, would be a deflationary collapse which NO GOVERNMENT IN THE WORLD would choose, unless it was powerless to prevent it (which would be the case if we had a "honest money" - gold-pegged system). Especially since all those dollar cash/bonds, more valuable in a deflation, are in the hands of foreigners. They would then come over in 3yr from now and shop US assets at 50% discount from current valuations. I have heard talk there would be a currency made for inside our borders, and then a currency made for all the suckers holding it outside our borders. Would this not protect the US assets from all those foriegn holders? "Do you think US policymakers and voters will like that? I know it would be the "ethical" thing to do, i.e. pay one's debts. But I very much doubt it'll happen." Lack of debt forgiveness seemed to hurt countries in the past, forgiving debt seems to help them, I hear people say our money, your problem - so who knows how it will break down - buffet is betting against the currency - if he expected monetary deflation and holding dollars to buy cheap us assets in the future - maybe I would favor that outcome more - but that doesn't seem to be the bet he is making. The dollar must be taken to the sacrificial altar and slaughtered no? Otherwise china and friends will be able to buy all those good resources out from under us that the american bush/saud oilmen don't want them to control. During the 29 stock crash and resultant depression a lot of people were saying we gave america to our foreign holders of debt - this upset a lot of people. I hate a party time grasshopper and something deep down inside me likes to see that kind of person pay the consequences as justice to the worker ant - but I also have many american assets and want my government to protect me. Here is a thought experiment - would you rather be an american in the hungry 1840's when we stuck it to european investors and defaulted on the debt and pissed them off so badly charles dickens wrote about it in his tale A Christmas Carol - or would you rather live in 1930's America where we tried to do the right things?