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


To: Mike Johnston who wrote (92415)3/18/2008 1:47:46 PM
From: westpacific  Respond to of 110194
 
Mike, inflation in the face of Americans with no savings and massive debt, nice solution the FED has, is it not?

Inflationary Depression it is, agree.....

Arabs will price oil accordingly along with everyone else that will sell us their products.

West



To: Mike Johnston who wrote (92415)3/18/2008 1:53:11 PM
From: John Vosilla  Respond to of 110194
 
'high inflation and sharply negative real growth, hyperinflationary depression would be a better description.'

Sounds like 1970's stagflation only with stronger growth in a more global economy. Eventually all that back end monetezation comes home to roost. The key between modest stagflation and inflationary depression. Just imagine how much more nominal GDP growth would be required if long term rates in the US were 400-500 basis points higher?



To: Mike Johnston who wrote (92415)3/18/2008 2:05:06 PM
From: westpacific  Read Replies (2) | Respond to of 110194
 
Mike, watch the Coal index.....

The monthly chart just did a bullish very oversold crossover.

And this with the chart near all time highs.

DJUSCL

We have gone from 52 in 2002 to 477 in 2008, no inflation? Charts never lie!

Bought even more KOL on big pullback yesterday.

West