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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: eddieww who wrote (46266)12/11/2000 10:28:45 PM
From: chic_hearne  Read Replies (1) of 436258
 
Frankly, the problem you are describing is indicative of the recession we seem to be headed toward. The problem of falling demand/wages for labor is usually due to recessionary slowdown, not stimulatory inflation. The one caveat is the possibility of stagflation such as late '70s early '80s, which is the worst of both worlds. Can you make a case where easing and printing creates stagflation from where we are?

If you're trying to use history as a guide, you have to assume all things are equal, or close to equal. That would imply taking government stats at face value, such as productivity, CPI, PPI, labor costs, unemployment, etc. IMVHO, all of these stats have been doctored to perfection over the past few years to support this bull run. In other words, things are much much worse than they appear. As the economy starts slowing, these little white lies will come out and I think it is unpredictable what will happen at this point.
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