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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding

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From: elmatador4/12/2024 2:20:21 AM
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SirWalterRalegh
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Inflation used to be fought with economic hardship.

Salaries were squeezed by the threat of being fired.

With incomes threatened people cut consumption hard.

Job insecurity forced people to save more, postpone consumption, and consume less.

Hiking interest rates crashed the stock market.

The economy corrected itself. The rotten and excesses were purged and the economy restarted growing in a solid base.
That was the past. How do Central Banks want to lower inflation now?

Look to the US. Confronted with inflation the administration launched a spending package labeled inflation fighting!
The FOMC meets to discuss policy with an eye on the stock market.

Capitalism without economic hardship to correct its course is like religion without Hell
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