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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Archie Meeties who wrote (3311)	1/14/2008 10:25:04 AM
From: Tommaso	Respond to of 71454

>>>So the bond market is mistaken about inflation?<<< Disastrously.

To: Archie Meeties who wrote (3311)	1/14/2008 10:40:21 AM
From: Paul Kern	Read Replies (1) \| Respond to of 71454

So the bond market is mistaken about inflation? Do you live strictly off the grid and off your own land? Never shop? Use no energy, buy no food, use no health care or education?

To: Archie Meeties who wrote (3311)	1/14/2008 10:40:27 AM
From: Paul Kern	Respond to of 71454

deleted. dupe.

To: Archie Meeties who wrote (3311)	1/14/2008 12:47:44 PM
From: Real Man	Read Replies (1) \| Respond to of 71454

I guess it anticipates official inflation numbers rather than actual inflation. IMHO the reason is that these markets are now mostly derivative markets, and models for derivatives have official inflation numbers priced in. Those differ from the actual numbers, as many folks who shop can easily see. For example, TIPS vs T-bonds futures, which often extract "inflation", rather reflect the market's anticipation of the next BLS number. Since official inflation numbers are a joke, the derivatives market built on lies can't last forever, and some day we'll have a deep crisis. Kind of similar to "subprime" before the crisis hit - that market was based on fake credit ratings from major US credit rating agencies, so it was a matter of time before stuff hit the fan. The party lasted for quite some time though.