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Politics : Stockman Scott's Political Debate Porch

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To: stockman_scott who wrote (756)6/27/2002 9:44:02 PM
From: Jim Willie CB   of 89467
 
Fed WILL opt for inflation (not deflation, zero rates)
the Japan lesson is extremely clear, extremely
either rates will go to zero...
or inflation will return
the Fed is incapable of engineering a reflation effort that perfectly guides us right onto a Soft Landing

how long has it been since we have heard "Soft Landing" ?
I must laugh <G><G><G><G>
how do you like the Soft Landing we have so far ???
were we led (thru Political Correctness and optimism) to expect a Soft Landing in 2000 ???
what an effing joke

I have said about 100 times that GreenMan is caught in a box
the "typical" Fed response should now be more Magic Liquidity
more money supplied, more printed money, more life blood
this will unfortunately lead to an even lower dollar
and greater federal debts
and wider trade gap
exactly the poor fundamentals that lead to a lower dollar

GreenSheiss is caught in a box
he cannot lower rates, or else INVITE A DOLLAR FREEFALL

GreenTurkey cannot raise rates either
or else kill the economic recovery, slash corporate earnings, and smother the stock market

GreenScrotum is caught in a box

here is what I think will happen
price inflation will slowly come via the backdoor
interest rates will rise in the bond market
and GreenStuck will be exposed as weak
because we will see a gap between the FedFundsRate and the 3-month TBill yield which is equilibrium-based

THESE NEXT 6 MONTHS WILL BE THE MOST EXCITING AND DAMAGING IN OUR MODERN HISTORY
even if we have no terrorist attacks
we will see the dreaded return of inflation
the dollar is the vehicle that inflation rides in on !!!

surprise surprise surprise
/ jim
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