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

To: YanivBA who wrote (69121)	8/30/2006 4:29:17 PM
From: John Vosilla	Read Replies (1) \| Respond to of 110194

So federal debts have ballooned at very high compounding rates the past five or so years and money creation has slowed dramatically while at the same time long term treasury yields trend down and significant inflationary pressures resurface from the deflation scare of 2001-02. An effort to dump much of our debt on foreign holders of our devaluing paper and hoping nobody notices?

To: YanivBA who wrote (69121)	8/30/2006 8:29:52 PM
From: russwinter	Read Replies (1) \| Respond to of 110194

Credit can expand while money contracts (monetary tightening into a boom)> I think we are in a situation where credit is still expanding briskly just to service old credit. This is Ponzi finance, and it is oddly strong because of carry trades, and the ability of so many financial institutions to create credit so easily. It's right out of 19th century wildcat finance, when small state banks ran amok in the US with credit for land and railroad speculation, etc. In otherwords credit conditions today are still shockingly loose, much more than I would have ever thought at this late stage. This does show up in bank credit and broader money supply data. But actual money that individual in particular have,shows up largely in M1 and M2 as a flatting. Ironically, this "running out of money" is caused by inflationary pressures. Real people run out of money in inflations.