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

To: Skeeter Bug who wrote (107391)	2/18/2010 8:08:09 PM
From: GST	7 Recommendations Read Replies (1) \| Respond to of 110194

No, I don't buy it. The decision will be political -- I feel 99% certain of it. If we now resort to policies that face the full force of unadulterated markets, then Obama will have to redeploy troops from foreign battlefields to urban and suburban battlefields in the US. The people of the United States are slow to bring to a boil, but the economic pressures are already severe, and a real move to instill market discipline at this point would lead to widespread breakdown of civil society. Just as China's economic calculus revolves around what it takes to maintain a degree of pacification of the people, so too in the US the key decisions will revert to the need to preserve some semblance of law and order. Large parts of the country will begin to look like New Orleans in the wake of Katrina if we try to make amends by coming clean and marking down assets and slowing the printing presses to where we have anything like a real money policy. Law and Order cannot be maintained in the present day USA with 25% unemployment nationally, and 50 to 90% unemployment in the worst hit parts of the country. The USA is on the path to default via inflation and there is basically no institution, no higher power, no government, no banker and no guru who can alter the path we are on -- we are too far down the road and have squandered our options. Our debts cannot be serviced much less repaid -- we are headed for default via inflation.