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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 (87988)	10/26/2007 6:31:17 PM
From: GST	Read Replies (2) \| Respond to of 110194

<but they definitely do not contribute to inflation yet> Wow -- I guess you do not drive or eat or wear clothing or have medical insurance -- etc., etc. As for the dollar and housing - both are heading downhill fast -- but to date the dollar has been on a much steeper and deeper decline. The decline of the dollar and the decline of house prices are joined at the hip as they are mediated to some degree by the cost of shorting one versus the other -- I take no comfort in knowing that one is going down faster than the other. By making it cheaper to short the dollar in a vain attempt to prop up housing asset prices, the Fed has added to the international run on the dollar and has had little or no impact on house prices. If the Fed decides to send the dollar plunging even more steeply then it is possible that house prices denominated in dollars could go up in relation to the dollar. But for now they are both headed south -- and that spells inflation in the extreme. As oil approaches 100 per barrel, and as our deficits soar into the stratosphere, it must be nice to live some place as you do where there is little inflation. When did you leave the USA?

To: KyrosL who wrote (87988)	10/26/2007 9:59:29 PM
From: andiron	Respond to of 110194

why we have asset Hyperinflation.. ------------------ Charles Goodhart, of the London School of Economics, and a former member of the Bank of England's Monetary Policy Committee, thinks the debate would shift if inflation were properly measured. Monetary growth is more likely to go with rapid rises in asset prices than with inflation in goods and services. “If inflation is (incorrectly) measured to exclude all asset-price inflation,” Mr Goodhart concludes, “then the links between money growth and (true) inflation may be understated economist.com