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Politics : Ask Michael Burke

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To: Knighty Tin who wrote (95613)4/23/2002 11:27:14 PM
From: John Pitera  Read Replies (1) of 132070
 
Michael, you are very right on these robust debt levels. From a Macro economic point of view the way for the FED and other central banks to deal with the high debt levels and the deflationary undertones in parts of the economy will be create a reflation of the economy through an expansive monetary policy. Including the higher year over year rate of change money growth and also an aggressive expansion of the monetary base.

Inflation is more politically palatable than falling prices. It appears very possible that we could see a secular advance in commodity prices that could be similar to our 1970's experience.

John
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