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To: carranza2 who wrote (83875)5/1/2007 6:42:10 PM
From: JimisJim  Read Replies (1) | Respond to of 206334
 
How can markets continue up when... easy: central banks just keep printing more and more money so that the world's money supply GROWS 10% a year (which is roughly what it's been doing the past several years)... that means the world is awash in ever increasing amounts of liquidity chasing fewer opportunities, creating one asset bubble after another.

There is no sign that the world's central banks plan on slowing the printing presses for at least another year or so...

Yes, the longer the world keeps growing money supply at double digit rates, the worse things will be when they stop...

But that fact hasn't stopped the central banks yet.

Keep your eyes on US M3 growth (still tracked by independents even though the FED no longer publishes the data), as well as the money supply growth in other developed countries... when it begins to slow significantly, that will be the time many many markets and asset bubbles collapse.

Jim
(is Jim)