the broader markets & economy?

[boarderbloke]

just wondering if there is a consensus here at Agriville with those who follow and study, the broader markets and NA/global markets and currencies. I'm looking at this from the point of view that we've(the USA or Cdn) have been traveling down a long road and have now come to a fork in the road. Choose one way and you'll have deflation, choose the other and you'll have inflation. Have we(say here, the USA) chosen what fork to go down, and are we far enough along that path, there's no turning back?
I have a sense that Cottonpicken feels that we(the USA) are on the path to inflation, yet are there enough signs to say we are so far along that inflation can't be turned back or that we could change the path? Could all the trillions of dollars sitting in cash accounts prevent inflation if the markets show signs of a double bottom and the money pours back into equities??
Again, just in the last couple days, I've heard comments in the MSM about the coming deflation.
Unlike farmers(who are used to having their pay go up and down), I don't think the avg "Joe and Mary 6pack" are prepared to take less money from their employer,(the gov't taking more is one thing), but to accept a lower pre tax wage would be a difficult sell(as pay has always gone up, for their parents life time and theirs as well), till they were unemployed. That is why I think deflation is out of the cards. That and BO is talking about having Trillion $ deficits for Years to come ! ! !
As far as the economy goes, do posters here think we need a double bottom before there is a firm turn around? If so, do we have to fill in the gap on the weekly Dow Jones IA at the 10340 to 10165 area before retesting the lows?

http://www.tfc-charts.w2d.com/chart/DJ/W

[boarderbloke]

Peter Schiff just on BNN, with Pat Bolland, describes U.S. Treasuries as the next ponzie scheme !

[cottonpicken]

The things shiff is talking about should be understood by everyone.They are the most important things effecting us.

[boarderbloke]

i agree cotton, i watched many of his U Tube videos that you discussed a week or so back. But if the US Treasuries blow up will the CDN $ be sucked into the vortex as well. I'm so pissed that we're sitting at $0.80 and fear that if they go down, we'll be pulled down with them (because of the global opinion that our trade is so large and our economies are tied (also we still have debt). Sure we have natural recourses, but the world view maybe, who wants them if there is a world wide global collapse?

[liberty]

Schiff is bullish on Canadian investments, especially in the energy and mining sectors. He thinks that when the Asian economies recover, which should be much sooner than the U.S., Canadian agriculture and natural resources will be a big beneficiary. Just don't ask anyone when that will occur, because no one really knows.

However, a large part of our economy (Ontario and Quebec) is very tied up with the United States, and I think that they will be sucked into the abyss as well. The big question going forward might be: will the profitable sectors of our economy be bled white to subsidize the unprofitable ones?

I was reading the other day that when you factor in things like credit card debt and other debt on consumer items, Canadians on balance actually don't have any savings. Not much different than the United States. Our recession may just lag behind what happens in the U.S. I doubt we can avoid it. We certainly won't avoid it by turning on the spending taps.

[cottonpicken]

The way i understand it all this new and old money will be screaming for a home.

And the funny thing is all the worlds currencies are flawed,so were talking about a lot of potential for tangibles.

However i can see how an american would start buying canadian dollars rather than everything else because we would look the safest to them.

So,charlie your bonds might be plenty safe and maybe there would be an oppurtunity in the future when the race out of the usdx begins and they start buying canadian t-bills.

[cottonpicken]

I never invisioned this.


http://charts3.barchart.com/chart.asp?jav=adv&vol=Y&grid=Y&divd=Y&org=stk&sym= ZBH9&data=E&code=BSTK&evnt=adv

[classicalliberal]

I agree with CP

[furrowtickler]

How will the "amero", or not, fit into all of this and when?

[boarderbloke]

cotton, when that chart gets back to 115, will the CDN$ be at par?

[cottonpicken]

I would think 115 is about right.

The amero,has been debate quite a bit,but for me it never made sence.

The us is a juggernault economy,canadas wealth cant save it and mexico would be even more burdemson.

Why not let canada thrive and the south burn?

Not every fat cat wants to move offshore,so a safe,functioning economy like canada is just what the doctor ordered.

You think its a fluke the resource companies of the world list on the tsx?

[boarderbloke]

say has anyone here, heard this morning that the Bank of England has cut it's interest rates to 1.5%, the lowest rates since the 1600's, yes the 1600's ! does anyone here think the Banks may impose negative interest rates?? that you will be paying them interest, not only when they loan you money, but also when they hold your money????

[boarderbloke]

here's the link to the Bank of England story.

http://news.bbc.co.uk/2/hi/business/7817453.stm

[classicalliberal]

I heard that on bloomberg television this morning, watchin Betty Lui. She is well worth the watch ;-)

[boarderbloke]

I'll have to check her, does hurt to smile while your in pain. lol