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

To: Proud Deplorable who wrote (73328)	11/1/2006 1:03:15 AM
From: mishedlo	Read Replies (1) \| Respond to of 110194

A report in The Sydney Morning Herald stated, “Australia’s Treasurer Peter Costello has called on East Asia’s central bankers to ‘telegraph’ their intentions to diversify out of American investments and ensure an ‘orderly adjustment’….Central banks in China, Japan, Taiwan, South Korea, and Hong Kong have channeled immense foreign reserves into American government bonds, helping to prop up the US dollar and hold down interest rates,’ said Costello, but ‘the strategy has changed.’” It can not be done. The only way to get rid if US dollars is to buy American assets

To: Proud Deplorable who wrote (73328)	11/1/2006 4:25:29 AM
From: GST	Respond to of 110194

Dead dollar = US inflation. Inflation = higher interest rates. Higher interest rates = slower growth. Slower growth = dead dollar. Rinse and Repeat. We are headed into prolonged stagflation.