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


To: UncleBigs who wrote (63924)6/16/2006 3:59:22 PM
From: Real Man  Read Replies (1) | Respond to of 110194
 
Technically I can see this happening, but what would be the
fundamental reason for foreigners to accumulate even more
dollars as US goes into recession?



To: UncleBigs who wrote (63924)6/17/2006 8:04:32 PM
From: John Vosilla  Read Replies (1) | Respond to of 110194
 
'eventually the dollar will be worthless but not before a crunching debt deflation sends all prices lower.'

Shouldn't we be looking at the chart of long term treasuries for the answer? Three possible scenarios from here. I tend to think muddle through on rates or break out to much higher rates is much more likely in coming years than deflation and much lower rates.