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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: SouthFloridaGuy who wrote (71379)	2/4/2007 12:11:43 PM
From: orkrious	Read Replies (1) \| Respond to of 306849

BTW, I googled "bond revolt" out of curiousity. Seems like this has been discussed a number of times by the doom and gloom wannabe hedge fund crowd plus wackos like Lyndon LaRouche. Gotta love it. I didn't read your links because I am sure you are right. People have talked about the unsustainability of our trade deficits for a long time and nothing bad has happened. In a post subsequent to your earlier reply to me you said the 70s stagflation was because of a supply shock. That's true to the extent that at that time there wasn't the global wage competition that exists today so the cost increases could get passed through the supply chain. Now, with global competition, those kinds of pass throughs can't happen. We've always been able to think like you are doing because the dollar is the world's reserve currency. My thought is that our problems are now so great that everything is going to change. The old rules aren't going to apply anymore. Are we going to end up like Argentina or Zimbabwe? Who knows? The problem is that no one knows exactly how it's all going to unwind, just that it will. We can sit here all day and discuss it and it really doesn't get us anywhere. In my mind the only sensible approach is to buy precious metals and ride out the ups and the downs. If one believes that we're in the cycle where the dollar is going to lose value over time, and concurrently all governments want to debase their currencies, there's nothing else to own. Five or so years ago Richard Russell said that the hardest thing to do is recognize early that you're in a bull market, take a big position in it, and ride it out. That's what I've done.