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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 393.24+1.1%Dec 11 4:00 PM EST
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To: THE ANT who wrote (82545)11/6/2011 4:07:57 AM
From: elmatador  Read Replies (1) of 218450
 
klaser I refer to TJ's posting: "When John F. Kennedy took office in 1961, unemployment was 6.9 per cent and inflation 1.4 per cent. So Kennedy cut corporate taxes, and the Fed eased. By 1967, inflation and unemployment had converged at 3.8 per cent. It was a halcyon day for economists."

Message 27749576

Today's US is definitely not the US f Kennedy days and that's what macro-economists need to factor in that into their strategy and plans.

When an economy has growth potential, doing a Philips works. When it is returning to a natural size, i.e., shrinking, a Philips is going to make the situation worse.

I see Dilma loosening the inflation target and going for growth. Mantega knows that he can do a Philips and the 'feeeling wealthier' effect (mentioned in TJ's posted FT article) will work as in Kennedy's time.

You said once something along these lines: Before the US just needed to loose monetary policy and economy would pick up. It was easy because the US economy was being driven by the loose monetary policy. In short, it was all under the control of the US: Money supply and industry and commerce.

Now if the US looses, it's driving China's economy!!!
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