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

To: Jim McMannis who wrote (66454)	7/19/2006 11:21:48 PM
From: yard_man	Read Replies (1) \| Respond to of 110194

look at this article from Kasriel -- safehaven.com Like Bernanke isn't following this and tuned in full time?? I mean c'mon -- it's in his policy, for sure.

To: Jim McMannis who wrote (66454)	7/20/2006 7:10:51 AM
From: Mike Johnston	Read Replies (3) \| Respond to of 110194

Some economists have expressed the opinion, that high oil and commodity prices are a result of a boom in Asia and therefore cannot be controlled by rate hikes in the US. They argue further, that since the Fed cannot control commodity prices, they should cut rates so that a stronger economy that follows can put more money in worker's pockets so that they can afford to pay those increasing prices. Incredible ! That is a recipe for much higher inflation down the road. Very few people mention that the boom in Asia and commodities was started when the Fed and BOJ started printing hundreds of billions of dollars and trillions of yen. Resulting real estate bubble has put several hundred grand into the pockets of many people, that in the old days had never had more than 10 grand in their checking account. A triple in house prices was caused by massive monetary inflation, but elevated prices in itself are a source of further inflationary pressures for years to come.