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Strategies & Market Trends : Strictly: Drilling II

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To: orkrious who wrote (15727)7/15/2002 1:30:33 AM
From: Little Joe  Read Replies (2) of 36161
 
You may be right that government will not act until after the market crashes. But many are assuming that there is no choice in the action they take that come what may deflation will occur. While we may have deflation, it is my belief that it will not occur until after a serious bout of inflation. I say this because the govt can relatively easily act. I don't think they are concerned about the stock market, so that falling alone will not cause them to hit the panic button, but if people start to lose their jobs and their homes the government will act. While they many not be able to use debt in their attempt to stimulate the economy there are other ways to address the problem. Direct payments by way of tax credits,which are already established and could easily be expanded. OR, to liquidate debt and encourgage borrowing the government could relax bankruptcy laws, which already play a big part in debt liquidation. I don't want to belabor the point, but I think inflation is coming.

Little joe
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