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

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To: pater tenebrarum who wrote (17518)9/12/2000 11:22:49 AM
From: Perspective  Read Replies (4) of 436258
 
Don't they realize that this 200DSMA defense is a losing proposition? Each time they defend their favorites at the Holy 200DSMA, it comes at a higher and higher price level. And as long as they keep it *above* the 200DSMA, each test will *always* come at a higher price level. Meanwhile, fund inflows have dried up, meaning they have less and less ammunition.

J6P is finding he actually has to *service* all that debt he's amassed. And the supports under the economy are creaking; even with double-digit money supply growth rates, things are slowing. What happens when the credit demand saturates?

Meanwhile, inflation is working its way into things with roughly the same six-month lag assumed to delay the other effects of monetary policy. Why don't people understand THAT?

KNOCK KNOCK - who's there?

STAGFLATION.

BC
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