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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: blazenzim who wrote (36683)	7/7/2008 10:43:39 AM
From: Real Man	Respond to of 219510

We (JPM) will have to be buying when they sell us their dollars. Deflation is a common persistent misconception. Not here. The monetary policy is to prop assets, run financial bubbles at the expense of real economy, commodities are a spillover, while the dollar drop is the undesired direct result. It is propped too. Hank said, Jamie obeyed. <G> When this crashes, stocks will sink along with bonds, quadrillions in propping instruments (derivatives), the Fed, the US government, and the dollar. Problem is, they have to prop the clownbuck against their models (interest rates differentials). The current account does not help either. We are going to visit Buenos Aires, circa 2001. Folks just keep hoping against all odds we are not going there because of mythical "deflation". Sell the buck, price goes down. <G>