jt

Shorting The Bond Bubble? Hold On

Why do people insist on saying we're in a deflationary mode??? Go look up the definition. Inflation and deflation have to do with MONETARY POLICIES regarding the increasing or decreasing of money supply above or below the growth (to paraphrase) of the country's economy. Yes, we have gone thru a time of "deleveraging"...ie, selling off just about any and all assets /equities for whatever to get cash, and we are in the middle of a credit crunch b/c those who spawned this mess bet 30:1 against the house (reality) and lost and are holding that money for now to perhaps pay off the thugs that they're afraid will come and break their kneecaps (like they did to Lehman Bros and BearSterns). But the money supply is being increased at rates beyond all historical bounds...and the money isn't being burned...it's still out there. Increasing prices is just a common symptom of inflation, but it is NOT there when there is a credit contraction at the same time.

It's like filling up a dammed up lake that sits high above a large city (the US...maybe "the world"...at least the Western World...but some parts of the Eastern World and maybe all of it are also in the flood plain) that depends on the liquid(ity) contained behind the dam wall staying there. Normally the water is held at about 100' depth...but b/c of heavy rains (more like b/c of the heavy-handed reign of the banksters and their fraudulent, criminal, Ponzi schemes), the water level is now at 200' with no end in sight. Somewhere above 250' flooding will begin...and any persistence at that level will start to break down the dam wall itself, and all that supposedly "black-holed" electronic funny money that noone thot they'd see again will come rushing right down MainStreet....

Jim Willie just put out a very good article about all this that can be read at this link (put the pieces together as this site tends to chew of full links:

news. goldseek. com/GoldenJackass/ 1230912000.php