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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 (62253)	5/30/2006 8:04:19 PM
From: GST	Read Replies (1) \| Respond to of 110194

Show me how a country with a trollion dollar current account deficit can maintain its value over time and I will believe there is a chance to save the dollar. If the dollar cannot be saved, show me a country that experienced a sharp downward move in their currency without experiencing inflation. The deflationists seem to think that a slowdown in consumer demand will send prices lower. They seem to think that a few million people in trouble on their mortgages is the most important thing going on in the US economy. They seem to think that the US housing bubble is large by historic standards. What is large is the dollar bubble -- almost beyond comprehension. And for that there is no cure in sight -- it is far too late to prevent the dollar from dropping to its long run value and wiping out American "wealth" en masse -- all our assets, our incomes and our cash rendered worthless.

To: Mike Johnston who wrote (62253)	5/30/2006 8:56:23 PM
From: mishedlo	Respond to of 110194

How to buy a home globaleconomicanalysis.blogspot.com Mish

To: Mike Johnston who wrote (62253)	5/30/2006 9:00:58 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

it takes solid economic fundamentals for any currency to get stronger. It does? Please explain the rally in the US$ to the all time high vs the Euro. I say you can't do it (not on the basis of "solid fundamnentals". Please explain the weakness in the Yen. There are lots of factors other than "solid economic fundamentals" at play most notably interst rate differntials and carry trades. Mish