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B4 The Bell, Tuezelday, February 17


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Posted

"They are yesterday?s heroes. Central banks ruled the world during some 22 years of disinflation. But like most champions, they have overstayed their welcome. The world?s major central banks ? the Federal Reserve, the Bank of Japan, and the European Central Bank ? have squandered the capital they built up in the long and arduous war against inflation. And now, with their policy arsenals dangerously depleted, they are woefully ill-equipped to cope with the ever-daunting complexities of a post-inflation era. Bondholders beware: Your once-proud defenders have met their match. I fear modern-day central banking is on the brink of systemic failure. "

 

roach

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Posted

The Doors/Peace Frog

 

There's blood in the streets, it's up to my ankles

She came

There's blood on the streets, it's up to my knee

She came

Blood on the streets in the town of Chicago

She came

Blood on the rise, it's following me

Think about the break of day

She came and then she drove away

Sunlight in her hair

She came

Blood in the streets runs a river of sadness

She came

Blood in the streets it's up to my thigh

She came

Yeah the river runs red down the legs of the city

She came

The women are crying rivers of weepin'

She came into town and then she drove away

Sunlight in her hair

Indians scattered on dawn's highway bleeding

Ghosts crowd the young child's fragile eggshell mind

Blood in the streets in the town of New Haven

Blood stains the roofs and the palm trees of Venice

Blood in my love in the terrible summer

Bloody red sun of Phantastic L. A.

Blood screams the pain as they chop off her fingers

Blood will be born in the birth of a nation

Blood is the rose of mysterious union

There's blood in the streets, it's up to my ankles

Blood in the streets, it's up to my knee

Blood in the streets in the town of Chicago

Blood on the rise, it's following me

Posted

Their middle class is being destroyed by the constant devaluation and price inflation. Most have to work multiple jobs to pay for basic necessities; unless you are underprivileged, which in that case you get free food, electricity, and shelter. Many of the middle class save in dollars for inflation protection (when they can get them), they do not trust their stock market, and are not allowed to purchase US stocks from Venezuelans accounts. So they take their dollars, and schedule a trip to the US. Open a bank account. Some of the more savvy open up brokerage accounts. Others, who can only get access to Bs, buy real-estate as their only way hedge devaluation.

 

So as the dollar continues its devaluation, what will the US people do? Save in other paper currencies like the Venezuelans? Will the US in act currency controls once the bond market is in turmoil and the stock market has tanked? Will the US government force 401ks and IRAs into Government bonds (for retirement safety, the stock market is too risky.) Will they prohibit the buying and "hording" of bullion? Will it be cheaper to use a George Washington as a sheet of toilet paper?

 

Could this happen to the dollar?

Posted

You know Hi-Hat like you I read Roach all the time-first because he is a Stoolie at heart second because he is very SMART-how in Hell he keeps his job at that den of thieves I don't know but I'm damn glad he does. By the way the Bill Gross article he speaks of is a very good read from another SMART guy and Stoolie at heart. ;)

Posted

As a Canadian I am baffled why-Americans do not buyCanadian Government zero coupon Bonds with Yankee dollars which gives you a further 28% discount and then you sit back and enjoy a very high rate of return with no risk for say 5 to 7 years and by then the Looney will be par or close to it as you convert back to the Greenback. Think about it. ;)

Posted

End-

The trend is so tight on ezpw, it's tough to get a wave. 1 year cycle cmap looks like 12.75-13.25. 6 wk cmap looks like 12. due in 2-3 weeks

ezpw.png

Posted

Doc-I don't disagree the Loonie may consolidate in here but the long term trend is up, The zero coupons are a great buy with an even greater yield for both Canadians and Americans. The grey market is interesting when my wife and i shop across the line the looney premium in the store is only 10 to 15 cents to the greenback. ;)

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