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

To: suanny who wrote (109241)	10/19/2010 1:37:29 PM
From: GST	6 Recommendations Respond to of 110194

<Some of this printed money needs to be in the hands of the end users of goods produced> Ok, I know this hard to swallow because we are all taught to think in terms of us setting prices by buying things, so if we don't have money then the prices cannot climb. Right? Wrong. In a global economy with floating currencies this is not at all the case. All you need for prices to rise in a global market is for the value of your currency to drop -- this effectively jacks up your prices. Most simply put, countries with poor credit and a bad habit of printing money to meet INTERNATIONAL payment obligations get whacked. That is exactly who we have become and it is exactly what we are doing -- and we are going to get whacked. You, me, all of us can have empty pockets and it won't matter -- we will still get whacked by higher prices -- all of us. Why? because we can no longer make the payments on our international accounts -- it cannot be done and there is zero reason to believe we will ever be able to do so. On the contrary -- the plane in which we have been happily flying is pointed nose down and picking up speed at a screaming rate that should cause all of us to take a moment to say goodbye to our loved ones -- and here I am referring to those well-loved plumped up dollars that used to bring the most exotic and delightful goods and services from all over the world and lay them at our feet like we were kings. Alas -- we are kings no more.