Several years ago I coined the phrase, "GREENSPAN DOLLAR" and it's been in the "blub" for Gloom and Doom ever since.
Of course, for many years the idea of the "Greenspan Dollar" was cryptic and odd sounding. What was meant by a "Greenspan Dollar?
WELL, NOW WE KNOW.
It has been my position all along that the only "cure" for the bubble mentality was a CURRENCY COLLAPSE AND ITS FOLLOW ON BOND PLUNGE.
ARE WE THERE YET? WELL, WE'RE CLOSE.
AND '05 SEEMS LIKE THE YEAR WHEN IT ALL HITS THE FAN:
FOR THE DOLLAR, THE DEFICITS AND THE US BOND MARKET.
For one thing, Greenspan has been SO SLOW to raise rates, and "shock" the market.
This was not always so, a few years ago, the Fed would routinely "shock the markets."
In fact, that was the whole rational behind keeping the Fed minutes secret.
Then, Greenspan bought into this NEW ECONOMY nonsense---hook, line, andsinker. And as they say: The Rest is History!
And it has been a dismal history of Bubbles and Speculation, with this odd notion that ONLY STOCKS mattered in the US economy.
Indeed, it was as if nothing else concerned Greenspan, other than if Cudlow and Kramer think the G-Man to be--- " a swell guy."
THAT could FINALLY be over.
Now, the Eurolanders are watching the US financial leadership like a security gaurd at the mall staring at a couple of homeless guys!
What are these guys up too now.............?
Everyone is a little bit confused by the "inaction" in Washington and at the Fed.
Wassup?
Perhaps, the biggest debt default in history?
The Chinese Communists have the dollar in a strangle hold, and they aren't about to let go.
Our Washington Leadership, in Kongress, and at the White House has been supportive of the Cult of the CEO, and the Wall Street Looting Parties for decades.
While the public was deliberately decieved with "wedge issues" like gays and abortion rights or "values."
Perhaps, there is a sense among the leadership that "it's too late" to do anything about it now.
I suppose it's a case of, we all hang together, or we'll all surely hang seperately?
BUT HERE'S THE BOTTOM LINE;
IF THE 10 YEAR BOND GOES TO 5%. ITS ALL OVER ON THE STREET.
We ain't there yet, but we're getting closer everyday.
A 5% bond would change everyone's view of The Street and Stocks in General.
Many mom and pop investors would love to get out of stocks, and take a nice safe 5% yield.
Never underestimate the shock of those 1% bank yields on the general public!
It was devastating to many who relied on interest for living expenses.
THE GREENSPAN DOLLAR IS GOING TO BRING YIELDS BACK UP TO HISTORICAL NORMS IN 2005. BELIEVE IT!
AND THE GREENSPAN DOLLAR IS GOING TO BRING AN END TO OUR LONG YEARS OF SAD BUBBLEMANIA!
THE YEAR 2005 WILL GO DOWN IN HISTORY AS A KEY TURNING POINT IN THE HISTORY OF THE GLOBAL ECONOMY.
So stay tuned..................and watch it all happen;
Right here at GLOOM AND DOOM! -----------24.7.365.
