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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club
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To: Allan Harris who wrote (7732)8/13/1999 5:15:00 PM
From: JF Quinnelly  Read Replies (2) of 15132
 
The inflation of the '70s was the result of the Fed monetizing Treasury debt, which is now prohibited. Spending on the Vietnam War was largely over by 1972 and inflation picked up steam a good deal after that. If you want government spending that didn't slow down you merely have to look at the Great Society programs which were never pared back and the similar programs added during the Nixon Administration.

Greenspan will be looking for wage-push inflation and capacity restraint problems.
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