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

To: russwinter who wrote (76044)	12/19/2006 1:11:35 PM
From: NOW	Read Replies (1) \| Respond to of 110194

so you agree with Mish then?

To: russwinter who wrote (76044)	12/19/2006 4:26:40 PM
From: bond_bubble	Respond to of 110194

What if CPI/inflation starts soaring as the currency flowing into Thailand spills over into commodities? Under that scenario, the Fed has to reign in the credit growth (like Volcker did to curtail money growth) isnt it? Raising the interest rate is the only scenario that will reign in Credit/ponzi growth. And the interest rates can be raised ONLY if the inflation starts showing up. At this time, looks like money is having trouble finding a home (thailand smacked it out). And more and more credit are being created in the world. I'm not sure what these "fictitous capital" are going to do. I dont see the sign of inflation waning at all....It is all temporary set backs... Sure steel prices might fall in US (because US lifts ban on imports) - but ore prices are not at all falling, the gas and other costs are still rising. People are willing to buy the cars produced at cheap interest payment (the cost of steel/car prices dont matter, just the interest payment) ... steelonthenet.com