7-Aug-11 News -- Bitter recriminations over debt downgrade

[John]

7-Aug-11 News -- Bitter recriminations fly over U.S. debt downgrade

China issues a bitter, acerbic statement

** 7-Aug-11 News -- Bitter recriminations fly over U.S. debt downgrade
** http://www.generationaldynamics.com/cgi ... b#e110807b


** 7-Aug-11 World View -- Turkey's patience runs out over Syria
** http://www.generationaldynamics.com/cgi ... 07#e110807


Navy SEAL team killed in helicopter crash in Afghanistan


Contents:
"Bitter recriminations fly over U.S. debt downgrade"
### World View --- Turkey's patience runs out over Syria
"Turkey says that 'patience is running out' over Syria's savagery"
"Navy SEAL team among those killed in helicopter crash in Afghanistan"
"Rioters protesting in North London set cars, bus and shops on fire"
"Al-Shabaab Islamists in Somalia flee from Mogadishu"
"Hundreds of thousands of Israelis march for economic reform"

Keys:
Generational Dynamics, Turkey, Ahmet Davutoglu,

Keys:
Generational Dynamics, Turkey, Ahmet Davutoglu,
Syria, Bashar al-Assad, Recep Tayyip Erdogan, Navy SEALs,
North London, Al-Shabaab, Somalia, Mogadishu, Tel Aviv, Israel

[vincecate]

As liquidity becomes more scarce, meaning that the supply of liquidity goes down, the "price" of liquidity, as measured in interest rates (bond yields) goes up, by the law of supply and demand.

The trend the last few years and certainly the last few days is for interest rates to go down. If interest rates are going down, then you say that money is less scarce, so we have inflation? I would agree with that. The Fed has pumped trillions of liquidity into the market and the price (interest rate) has gone down. Where do you see interest rates going up? I expect it at some point, but have not seen it yet. The problem is that when interest rates go up the velocity of money will also go back up but we will still have all this money around.

http://www.fxstreet.com/rates-charts/bond-yield/

The current drop in bond prices looks like the drop during the 2008 stock market crash.

http://finance.yahoo.com/q/ta?s=SPY+Bas ... lysis&t=5y

[John]

I added the words "particularly in Europe," to clarify what
I was referring to.

John