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

To: KyrosL who wrote (87986)	10/26/2007 6:07:45 PM
From: GST	Read Replies (2) \| Respond to of 110194

The dollar is an asset -- lots of people hod that asset. You can hold that asset as well as any other asset. When you buy a house you short the asset called the dollar and go long the asset called housing. You hope that you picked the right asset and that the price of the house asset goes up more than what you could have obtained from the dollar asset. In the past few years people went beyond that and used appreciation of their their house asset as vehicle to continue to short the dollar and fund consumption -- as a bright person you must understand that. It worked like magic for a few years, but now both house assets and dollar asset are plunging in value in relation to commodities and internationally traded goods and services -- AND THAT IS INFLATION. Neither your house nor the dollar is holding its value in relation to oil or much of anything else that is traded on international markets. Is that also poverty -- of course! Inflation breeds poverty.