Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: mishedlo who wrote (72699)	12/23/2007 4:55:42 PM
From: Steve Lokness	Read Replies (1) \| Respond to of 116555

Mish; Money supply does not increase by money coming home nor is it guaranteed to be a bullish thing if it happens. How can you say that dollars coming here from overseas would not increase the money supply? Our money supply surely doesn't include the money held overseas in foreign accounts - does it? Doesn't matter though if it does because the money held in foreign places is NOT used in the purchase or exchange of goods on an every day basis here. If because of huge trade deficits Americans are buying more from overseas than we are selling to them - money is flowing from America to China or Dubai or even to Iraq for that matter. If these countries holding dollars then decide to buy up American companies - doesn't that money suddenly end up in the hands of shareholders? Shareholders then have the choice to go out and spend the money on new trinkets or any of the myriad choices that anyone with dollars has. But in any case why isn't it new dollars in the hands of Americans? If nothing else, it most surely would increase the velocity of money from sitting in some long term instrument to being doled out to shareholders. steve

To: mishedlo who wrote (72699)	12/26/2007 4:48:40 PM
From: ajtj99	Read Replies (3) \| Respond to of 116555

Mish, the GASO (unleaded gasoline) has a nested formation that is very reliable that targets $3.10 near term and $3.60 possibly. That's a 29% minimum and 50% maximum increase in the price at the pump (these are prices before taxes and distribution). This suggests we will see gasoline at $3.99/gallon and possibly as high as $4.49/gallon for regular unleaded by the end of February. That $500-Billion the EU pumped is likely going to fan inflation in the near term and likely help propel a global market blow-off. The end game to this is real bad. Think of all the money pumped into the system since July, and the stock markets have basically moved sideways during that time. Once accommodation levels out or drops, the markets will likely react adversely in a manner we have not seen for several years.