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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (91531)	6/15/2012 6:59:27 AM
From: THE ANT	2 Recommendations Read Replies (2) \| Respond to of 220395

US asset deflation canceling budget deficit inflation for now.When assets stop falling will see plenty of inflation in US.Time till then not clear.I still think we could have one more deflationary head fake.Assets in US should fall at least another 20% and at some point when inflation appears bonds will sell off too.That should be the bottom.From there assets will go up but mostly inflation related.As Gene Epstien says 0.7% non government GDP growth a year for 30 years after inflation and population growth in USA.That seems about right to pay off the sins of the last 30 years.Our elite has lost the right to govern.Finance,Federal Govt,Military,Unions should be cut in half.Medicare should be cut by 50% and SS and government workers salary by 20%.50% tax on all income above 1,000,000 and.20% VAT.Minimum wage should be raised to $12 an hour.We need a Brazil style revolution in the US oftwominds.com

To: elmatador who wrote (91531)	6/15/2012 9:37:18 AM
From: THE ANT	Read Replies (4) \| Respond to of 220395

US is in the position of pre Civil War pre Revolution Brazil,The non productive privileged groups:Government,military,unions ,doctors(overpaid due to medicare),universities,early retirees from medicare,Wall Street,finance have brought GDP growth to a stand still.Now they are taking the money of the working poor to maintain their life style oftwominds.com I hope the Civil War part is not needed and we head to Revolution.Even if there is Civil War,like Brazils it will likely not be noticed.We are playing the same script as Brazil,amazing.Do you have easy access to my 2005 Brazil apologist post?

To: elmatador who wrote (91531)	6/15/2012 10:22:50 AM
From: Hawkmoon	1 Recommendation Read Replies (1) \| Respond to of 220395

I concur.. Which is why I sense that a collapse in commodity prices will put an upward bias on the USD. Effectively when one purchases a USD denominated commodity, it's an arbitrage against the USD. Sell USD and buy Commodity. So when commodity prices decline, they sell commodities and re-convert back into USD. Thus, right now the Fed is desperately attempting to ward off deflation, which means they are "fine" with a certain level of commodity inflation, to include Gold and Silver. Keeping those commodities at elevated prices above natural supply and demand curves, creates the perception of inflation, or at least avoiding deflation. But if we're facing a global recession over Europe, and perhaps China, I'm not sure how they long they can continue to maintain this inflationary illusion. It's not just that there is too much debt out there, but that it's bad debt, which is not generating a positive cash flow. Debt isn't necessarily a bad thing, so long as the profit/value that is created exceeds the cost of holding that debt. I think we're beyond that point and debt is now being generated to pay off interest on previous debt, not to pay back the principal, or generate a greater return in cash flow. Hawk