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


To: Mike Johnston who wrote (49528)1/12/2006 4:06:56 AM
From: westpacific  Read Replies (3) | Respond to of 110194
 
Mike, it all hinges on our government.

If we go to war with Iraq - China will sell its US debt, Iran is their future energy partner. Also Russia is a massive supporter of both Iran and China.

The event that blows all this up is not in the hands of the FED imo. It is in the hands of those willing to support our debt bubble.

And also I feel going forward - the further this asset bubble stays levitated, the greater the risks become.

Face it - what a mess.

The end game of money approaches.

West



To: Mike Johnston who wrote (49528)1/12/2006 12:21:10 PM
From: kris b  Respond to of 110194
 
Here are a few things that would happen:

This will be the end game regardless whether it will be inflationary or deflationary collapse. Deflationary outcome is better, because unlike hyperinflation (destroys capital) it preserves whatever capital is left.

In the midst of the hyperinflation you were able to buy the entire Mercedes Benz company for the price of 600 cars. Not a bad deal for anybody with US dollars,pounds, swiss francs etc.

You might want to read:

Bresciani-Turoni " The economics of inflation, a study of currency depreciation in post-war Germany" Fairly technical book, but full of very good information.