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

To: TH who wrote (98234)	10/3/2008 3:39:13 AM
From: Mike Johnston	Read Replies (1) \| Respond to of 110194

The only other way that recent behavior of the dollar might make sense is if the government recently backed away from its long standing policy of inflation. The arguments that Europe is in worse shape than US don't make sense, it is just a way of grasping at straws trying to find a way to justify the dollar rally. Could be that back in July, with banks failing, oil at 150 and dollar vs euro on the verge of collapse through 1.60 on the way to 2 , Paulson, Bernanke, Blankfein et al sat around a table and decided that "no,we don't want to go the road of hyperinflation and destruction of currency. The banks are going to fail anyway, we will use taxpayers money to save what we can , let Wall Street grab what they can and then just pull the plug, hunker down and let the chips fall." Although nothing can be ruled out, I think it is very unlikely. I still believe that US will default on its massive debt through massive inflation and/or hyperinflation.

To: TH who wrote (98234)	10/3/2008 1:38:02 PM
From: renovator	Respond to of 110194

TH-When things improved this morning I picked up 2000 more AUY warrants YMAGF for $.87. These are extremely responsive to any movement in gold. These run until Feb 2010 and provide modest leverage. They trade on the pink sheets because they are on the Toronto Exchange so I have to call Ameritrade to get a current bid ask, which is usually 3-4 cents spread. The way these move it is quite possible to get a double or triple in a relatively short time. I have traded in and out of them often over the last 2 years.