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


To: Tommaso who wrote (49063)1/8/2006 10:26:14 AM
From: Claude Cormier  Read Replies (1) | Respond to of 110194
 
- Money is one of the hardest things to think clearly about that I know.

I assume you mean fiat money. I have no problem thinking straight about gold. Its long term future is very clear in my mind.



To: Tommaso who wrote (49063)1/8/2006 2:55:26 PM
From: GST  Read Replies (1) | Respond to of 110194
 
What works for me is purchasing power. If I want to maintain my purchasing power, the last thing I want to own right now is the dollar or dollar-denominated financial assets. Relative values change. Last year, owning Japanese financial assets paid off despite some weakness in the yen:

finance.yahoo.com

In the future, US stocks and bonds and the dollar itself are all likely to slide in relation to gold and foreign financial assets, financial instruments and commodities. That makes the dollar the place to flee from. And fleeing from the dollar cannot possibly do anything but depress its trading value.



To: Tommaso who wrote (49063)1/8/2006 8:08:20 PM
From: NOW  Respond to of 110194
 
good post



To: Tommaso who wrote (49063)1/8/2006 9:13:40 PM
From: mishedlo  Read Replies (1) | Respond to of 110194
 
Money is one of the hardest things to think clearly about that I know.

I think we have proven that!

Mish



To: Tommaso who wrote (49063)1/8/2006 11:50:12 PM
From: benwood  Respond to of 110194
 
"I think that stratification of U. S. society in terms of wealth and privilege is among the things that the Bush administration has aimed at"

I concur completely -- it's not a coincidence that the Red/pro-slavery states are those of the old Confederacy/aristocracy. Lincoln smashed it in 1863-5, but now it has clawed its way back and it has the big army this time.



To: Tommaso who wrote (49063)1/9/2006 8:55:57 AM
From: russwinter  Read Replies (2) | Respond to of 110194
 
and that loss of value would simply vanish for the time being, not exactly going to "money heaven" as loss of stock values does, since the bonds are guaranteed to be paid off in currency, or at least in money.>

There are trillions in MBS, ABS, junk bonds, bank repos, commercial paper, that will evaporate, default or have credit downgrades, even if the credit of US Treasuries is not strongly affected.