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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 (67954)	8/10/2006 1:27:25 PM
From: Jack of All Trades	Read Replies (2) \| Respond to of 110194

<Hoarding pulls the demand forward causing prices to increase further. > We agree on that. But at what pt does demand fall when the ones hoarding stop hoarding and work off their supply? You can only hoard so much, only have so much reserve $$ to purchase, only so much storage. Won't the reduction in demand from working off the hoarded supply cause prices to fall? Or are you saying by then the reduction in the value of the currency does not allow that to happen?

To: Mike Johnston who wrote (67954)	8/10/2006 1:52:02 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

Hyperinflation always starts with hoarding as people prefer to hold hoarded goods instead of depreciating currency. Hyperinflation starts with govt printing Hoarding is the result You have cause and effect ass backwards Mish

To: Mike Johnston who wrote (67954)	8/10/2006 2:22:28 PM
From: shades	Read Replies (1) \| Respond to of 110194

Once faith in the currency is lost, it is difficult to restore. I don't think that matters - people mistrust lots of things - but what choice do they have? Millions mistrust that crack dealer making thier hamburger at mcdonalds - but they only get an hour for lunch and don't have time to go home and cook a 3 hour meal from the vegetables they grew in their own garden eh? Trust or Mistrust has little to do with their real world choices and options. How many here mistrust the gubbment and wallstreet yet to survive or thrive still must play by the rules of the casino within that system? I mistrust air travel - when I worked in the corporate world I had to fly to keep my job - trust had nothing to do with anything. Past the point of no return it is impossible to restore as people being burned for years will no longer believe what the government says and would be afraid to hold money even with 10% real rates. Peoples gold was seized in this very country not too long ago - but it wouldn't have mattered if they were trading seashells or beads - when the men with guns say do this or do that - most comply - not because of trust. I see lots of criminals everyday on that TV show COPS try to do it THIER WAY - but the COPS always seem to win in the end. I predcit if you try to do it YOUR WAY and MISTRUST the gubbment you also will be facing guys with guns - and I really don't expect you to lift your gun against them saying FUGG your way - I am doing it my way - some people in that TV show do it their way for a time - but usually in the end they either get a bullet in the head or locked up in jail with lice covered assassins - hehe.