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

To: John Vosilla who wrote (88022)	10/27/2007 12:29:08 PM
From: Mike Johnston	Read Replies (5) \| Respond to of 110194

This is the key question that you asked. An answer will determine whether we will get a depression at some point or the payback will be in terms of hyperinflation. IMO once the decision is made to rig the bond market, they cannot have that decision reversed as the minute the bonds are allowed to trade in a free market ,it would cause a rapid 100% rise in yields to reflect a true inflation rate in the economy. In this case a Great Depression 2 starts soon thereafter with 12 % interest rates, 20% unemployment and 10 million foreclosures, but the value of the dollar is preserved. On the other hand, continuing rigging of the bond market will assure the hyperinflationary outcome as rates stay artificially low in the face of ever increasing inflation, the dollar keeps plunging all the way to 0.