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

To: Broward Horne who wrote (80253)	3/23/2007 2:55:08 AM
From: roguedolphin	Read Replies (1) \| Respond to of 110194

Straight talk from Rogue on the US economy...... The "engine" of the US economy since the popping of the "technology bubble" in 2000 has been the real estate market. That market turned into a bubble itself. It may not be apparent to those not so close to the action......but believe me it was another example of massive amounts of liquidity doing stupid things, just like the technology bubble. Lot's of fraud and greed and delusion and there are many more shoes to drop before that market is ever healthy again. We've had a "false economic prosperity" in the USA. It's a rickety economy built on debt and increased government(local and national) spending to keep it propped up. Detroit Michigan is an example of the gutting going on over the years in the "free economy". Truly sad what's been going on and has been going on for years. Here's a link to some pics of former proud industrial powerhouse Detroit, Michigan(click on the pic to see more).. Message 23390978 The government numbers on US economic growth are a complete JOKE! If you take into account that inflation (The government stealth tax and robbery from the common man) is severely understated by government......and plug in the "REAL INFLATION" numbers, you would find that the US economy has actually been contracting the past several years EVEN with the last speculative bubble in real estate due to official government UNDER-REPORTED inflation!! I won't even go into the absolutely HORRIFIC ramifications to the US citizens "standard of living" and US economic numbers if the US$/Chinese Yuan cross rate ever becomes freely traded(politicians have prevented it so far)and the "over-valued" US dollar collapses against the Chinese currency. The value of US economy would shrivel up like a "raisan in the sun" and China's economy would look like the powerhouse that is! So much for the garbage and delusion we've been "sold" on the strong US economy. Now that the bubble has burst in the "false economic prosperity".... the Fed may goose liquidity even further(???) and inflation and money growth will probably be kept well above the US interest rates (whatever happened to the old Bond Vigilantes of past?). Where does US capital and world capital go now? How do we play this possible inflation and end game by the Fed? Maybe this chart gives us a clue.....it is the 2 yr. performance of Gold vs. the Standard & Poors 500 Index finance.yahoo.com. While Rogue is in no way bullish on the US economy at this time....maybe inflation will lift all boats??? Even the US stock market may rise as the economy falters? Maybe not? But if the market does continue upward ..... Gold for one should CONTINUE to outperform to the upside as it has been. Rogue