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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (69634)	9/28/2007 9:23:33 AM
From: Arran Yuan	Read Replies (1) \| Respond to of 116555

The NRSRO is a SEC sponsored cartel that should be abolished in favor of free market competition.<i/> Considering the general trends in many aspects of the current affairs, the proposal has no, if any, probability to be even touched, IMHHO, although it is such a wonderful idea.

To: mishedlo who wrote (69634)	9/28/2007 10:13:37 AM
From: sea_biscuit	Read Replies (1) \| Respond to of 116555

Good article. Thanks. Btw, have you seen this (on itulip) : FIRE Economy Failure? When we interviewed Dr. Hudson, he didn't buy our Next Bubble idea. He believes that the FIRE Economy will gradually fail. He calls it the "slow crash." In that case demand declines within the P/C Economy as Japan experienced. Does that mean the US experiences deflation as Japan did? Japan was a net creditor when its FIRE Economy began a slow crash starting in 1992. The US was also a net creditor when its FIRE Economy crashed hard in the 1930s. For net creditors, as asset price deflation within the FIRE Economy spills over into the P/C Economy, the impact on interest rates and currency values is deflationary for wage and goods prices. For net debtors, on the other hand, the impact is the opposite : interest rates rise and currency values fall as capital flows reverse, ala Ka-Poom Theory. We believe failure of the FIRE Economy therefor[e] means inflation.