re: bush invading iran? unlikely.
interesting point chris re deflation.
i read somewhere recently a theory that the fed might actually contract the money supply in march when it stops reporting M3.
the reasoning being .. if they pump M3 for the 3 months leading up to march, the market will expect helicopter ben to continue to warpspeed the printing presses but nobody will know as m3 is not being reported. in actual fact he will be turning off the presses and contracting the money supply. in effect causing a deflation.
in march 06 when the iranian oil bourse opens, and countries holding us dollar reserves diversifiy into euro this will flood the market with us dollars that ultimately will come home to roost in the us. this being inflationary.
so helicopter ben will be trying to balance the inflationary forces of overseas dollars coming back to roost in the us by secretly deflating the us dollar and turning off the presses.
