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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 (53906)	2/15/2006 1:40:51 PM
From: GST	Read Replies (2) \| Respond to of 110194

This is the bond bubble thread. I believe there is a massive dollar bubble and it is indeed related to the bond bubble which in turn is very much a function of money supply. I also believe that a single minded focus on the USA and its money supply leaves people completely blind to the real dynamics of the bond and dollar bubble because it totally masks the impact of a billion new consumers and savers. It leads people to conclude that we are on the brink of deflation -- nothing could be further from the truth. This unfounded conclusion is based on the profound confusion introduced on this thread concerning the role of money supply in the USA in a global market. Money supply in the USA will not be the sole or even the most decisive determinant of inflation and deflation in the global economy or in the USA in coming years. I am not interested in how many angels can dance on the head of a pin. I am not interested in the deep desire of some fringe elements to bring back the good old days and reintroduce the "gold standard". I am interested in how we go from where we are today and find our way into a future in which we prosper rather than blow up our economy, our environment or each other. Money supply, while important, is not the central issue. The massive imbalances in the world economy and how they will be resolved are the issue.