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

To: kris b who wrote (75572)	12/14/2006 3:14:26 AM
From: Mike Johnston	Read Replies (2) \| Respond to of 110194

So, it still boils down to the simple question how will the FED/Government get that money to the masses There is plenty of money around, just not for everybody. You keep saying that the consumer is on the verge of collapse. Some are, but not because there is too little money in the economy, but because there is too much and they are not getting their share of this excess money and are falling behind the inflation curve. -Did you read about 10, 20, 30 up to $50 million Christmas bonuses at GS ? The fact is around 200,000 Wall street employees will get record bonuses this year. -How about 1% rise in retail sales ( i believe the gain is due to rising prices and not real sales going up ) -how about a bubble in commercial real estate where price records are being set -how about a bubble in buyouts -how about stock market setting records ? -how about foreign markets surging 50%-70% or more this year ? -Why are billions of dollars a week being added to reserves worldwide ? Too many of them around ? -how about record corporate profits -why is the dollar going down ? Because there are too many of them around ? -why are long term interest rates negative ? Is it because people are stupid or somebody is monetizing debt ? -How did Fannie Mae got "fixed" almost overnight ? Bottom line: There is tons of money around fanning the fires of inflation. The Fed has been giving "free" money to the masses for a while now. Which is why the dolar will eventually collapse.

To: kris b who wrote (75572)	12/14/2006 3:32:42 AM
From: Mike Johnston	Read Replies (1) \| Respond to of 110194

Now, can you explain to me point by point how will FED reliquify the households so they can start shopping again, creating your hyperinflation in the process. As you well know, hyperinflation is as much a psychological as a monetary phenomenon. It is not a question of when they start shopping again, it is a question of faith in the currency here and on the world markets. They will start shopping for everything in sight as soon as they get their paychecks once they lose faith in the currency after years of seeing prices go up. Right now this process is delayed because foreign governments are printing their own currency to support the dollar, fanning inflation locally and accumulating tons of dollar reserves. How long can that go on ? Couple of years ago, i got out of the dollar completely. 1.I trade US dollar denominated instruments only in euro and australian dollar denominated accounts. 2.I switched all my savings out of the dollar ( wish had done it sooner) 3. I bought gold. Now let me ask you this, what would have happened if suddenly 90%+ of population did exactly what i did ? Here is your answer. And another question: when do the masses wise up to the fact that their labor and savings which are denominated in dollars is losing value much faster than what is being reported ? How many years of 10%+ inflation will it take before people will have enough of it? Or will it take 20% inflation ?