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

To: John Vosilla who wrote (96415)	8/18/2008 7:30:49 PM
From: GST	Read Replies (2) \| Respond to of 110194

Look at where the dollar has come from over the past five years -- look at commodity prices over the past five years. That is what I would expect to see. Our response is just getting underway -- and our response is to take risk onto the public balance sheet -- on top of the official Mount Everest of debt we already have on our books. Our personal balance sheets are crumbling. Our government balance sheets are crumbling. We do not live hand to mouth -- we live on credit. The Fed lowered rates -- did you see long rates fall? No. Now you should expect to see long rates go up. And if the Fed eases again, expect that to push long rates up even further. Come back in a year or two -- prices will continue to go up, long bond yields will continue to go up. The US economy will continue to stall. The dollar will continue to fall. It will take years to flush the US economy's debt toilet. We will watch as our national "wealth" goes down the drain -- and with it goes our ability to con foreigners into taking our paper promises for their goods.