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

To: John Vosilla who wrote (6768)	5/2/2008 11:28:45 AM
From: Real Man	Read Replies (2) \| Respond to of 71442

We ARE in a currency crisis. Some wicked breed of blowing asset bubbles and credit inflation (still!) with some asset bubbles popping, and wild manipulation centered around the "useful" bubbles in stocks and especially government bonds. World wide crack up boom due to low interest rates is very real. Commodities are driven by acute shortages, which obviously has nothing to do with speculators in the futures. Countries are hoarding oil, folks are hoarding food because prices keep rising. Mish "could" be right, but ONLY if the Fed chose a policy of stable currency. The Fed is choosing an alternative scenario, so far - trying to keep asset bubbles and associated credit inflation alive at ANY cost, causing crack up boom in commodities in the process. Credit IS money. M3 is going to da moon. The pop will involve much lower dollar, much higher commodities, soaring interest rates, and popping stock bubble (Best case scenario) or hyperinflation, as all the blown up debt shifts to the government, which then monetizes it (worst case scenario)

To: John Vosilla who wrote (6768)	5/2/2008 9:39:59 PM
From: SouthFloridaGuy	Respond to of 71442

John, please explain the components of the CPI when calculating the "real rate" of interest. Do you agree with the components, and if not, how would you change how CPI is calculated? Would you put stock prices there, housing prices? Wouldn't the market environment change drastically based on one's definition? Why do we assume the current definition is correct? Who, but the market, knows the right definition? Why is it God-Given, it changes every few years; housing prices, then rents, then hedonics... I made $50 million last year (I didn't, but let's pretend I did), why do I care about whether my McDonalds Hamburger went up from $.99 cents to $1.19. Even a man of your means, why do you care that it costs $15 more to fill up your tank than a year ago? Shouldn't the fact that the median house in LA is losing $5,000 per month be more concerning? People worrying about higher food and energy costs in THIS country (it's different in a place like Vietnam) make me laugh. It's equivalent to people who clip 50 cent coupons all day long, but then buy houses which are 50% overvalued. Penny-wise, dollar foolish?