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

To: westpacific who wrote (62217)	5/30/2006 2:39:36 PM
From: Mike Johnston	Read Replies (2) \| Respond to of 110194

While housing and stocks may be killed, retail prices will not go down,in fact they will go up, due to a rapidly declining dollar.

To: westpacific who wrote (62217)	5/30/2006 2:57:36 PM
From: GST	Read Replies (2) \| Respond to of 110194

The US dollar has dropped 40% against the Canadian dollar in the last 3 years. I bought some simple paneling for my house yesterday -- each little bundle costs $8.93 US -- the new shipment came in and I bought 20 bundles -- the price? 13.73 per bundle. That is a 40% jump in one step. Don't kid yourself, the world will not cut prices to reflect the total destruction of the dollar. Saudi Arabia, Russiea and Venezuala won't say, "gosh, your dollar is toilet paper so we will give you a price break". Nor will dollar denominated assets automatically drop in dollar terms -- the Fed will use all the taps they can flip open to try to keep the mighty USS economy afloat. There is only one answer to the dollar bubble -- leave the US.