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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (31653)	11/3/2010 8:00:38 PM
From: ggersh	Respond to of 71445

Exactly, their will be stages! ng-

To: Real Man who wrote (31653)	11/4/2010 8:53:04 AM
From: ggersh	Read Replies (1) \| Respond to of 71445

Houston we have liftoff!!! -vbg- The world loves QE! Insanity reigns supreme! Imagine that Gold up $40, shocked, I tell you I'm shocked! -vbg- SHTF is here! CNBC even saying and asking pundits are you ok w/market up everyday? -ng-

To: Real Man who wrote (31653)	11/4/2010 9:50:40 AM
From: ggersh	Respond to of 71445

QEIII coming soon! -ng- US GOVTS: 10 Yr Futures Jump; Odds For QE-3 Rather Good (IFR) - Treasury 10 year futures have gapped higher - in response to the movement in the cash rate late in the NY session. Our modest short 10 year position is under water by 2bps. It would appear that despite teh views discussed below, the 10 yr sector is anticipating that it will be the next beneficiary of any further QE programmes. So what are the chances for another round of QE - call it QE-3? Very good. There was a very interesting article out yesterday care of the Market Watch news service in which it called upon the advice of messrs Buffet, Gross, Grantham, Faber, Stiglitz - all of whom favoured selling Bonds as QE-2 was doomed to fail. The article posits the view that the Fed should stick to maintaining price stability and stay out of the business of trying to rescue the economy. Bottom line - expect rising yields some time next year. Given that the Fed will not listen to these words of wisdom near term, we can expect another round of QE, assuming that former Fed Meyer and Golman Sachs are right in their views that a further $4tn-5tn is needed. Borrowing from some extensive outpourings from various high profile economists, the main bone of contention with QE has been that it won"t work while the private sector is in debt (little no money supply growth). Banks won"t lend as they are indebted as well and will therefore hoard funds - like the banks in Japan did and are doing - and play the yield curve. One economist termed the economic malaise in the US as a balance sheet recession - arguing that using massive amounts of liquidity will only set the scene for another bubble further down the track. And so the boom/bust cycle of decades past is likely to be perpetuated. You can see this in currently action care of the price of gold and other USD denominated commodities which are the beneficiary of a USD debasement "programme" - one that makes a mockery of the strong USD mantra. In the meantime, the rise in 30 year yield and the strength in TIPS is telling us - that the upshot of all of this QE is for rising infaltionary pressures. Expect the Fed to remain "behind the curve" for many months to come. --