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


To: elmatador who wrote (88010)10/27/2007 10:54:32 AM
From: Mike Johnston  Read Replies (1) | Respond to of 110194
 
The money will be printed , because interest rates are negative and getting constantly more negative.

Rates were minus 5% last year, this year minus 6 %, what happens if they go to -10% next year and -15% the next ?

Who is going to hold a currency with interest rates -10 or -15 ?

The only thing that can prevent hyperinflation are positive interest rates and a free market in long term rates.
The US bond market is a fraud. Long term rates are held at 4% because of central bank fraud.
Because of the above, US dollar is a fraud and one by one people will abandon it.

All savings will be wiped out, all pensions and annuities.
All life insurance will be worthless.
Real wages will go down at least 50%.



To: elmatador who wrote (88010)10/27/2007 10:29:43 PM
From: THE ANT  Respond to of 110194
 
Elmat,the difference is the US with a low value currency and debt inflated off will be lean and mean.There will be no need for further inflation.Just like Brazil, hyperinflation can be stopped when no longer needed and US will never reach hyperinflation(inflation of 20%-30% a month)The US just needs 30% inflation period(and will claim it was only 10%)
By the way, why is a low value currency bad? We want the Chinese to revalue and they will not.They aint dumb.No hyperinflation in China.Dont worry, be happy