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Strategies & Market Trends : Technical analysis for shorts & longs
SPY 695.17+0.2%Jan 12 4:00 PM EST

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To: Johnny Canuck who wrote (39538)5/23/2003 3:22:25 PM
From: Logain Ablar  Read Replies (3) of 69695
 
Harry:

The problem with deflation is the disruptive effect it has. Individuals by nature reach a point where they enter into a comfort zone where they stop or slow down their advancement / education.

You know the "set in their ways" arguement. Deflation is one of the by products of inovation which is why we clearly see deflation in technology all the time, especially if the innovator doesn't have a monopoly.

But politically it puts many out of work. Look back to the great depression of the 30's. One of the most inovative periods in our history (all the farmers becoming unemployed).

There are a lot of people in this country who are "poorly" educated. In many cases a high school degree is not worth the paper its printed on. Even those with higher education get displaced if they don't keep up with the right skill sets.

So allowing deflation is not a viable political option.

PQUE looks to have bottomed. I bought some in my wifes account the other day and she asked what do they do. I laughed and said I don't know except they mine for natural gas and there was a volume spike. She just gave me one of those looks.

Have a great weekend all.

Tim
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