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Politics : Stockman Scott's Political Debate Porch

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To: T L Comiskey who wrote (31808)11/21/2003 1:48:16 PM
From: Jim Willie CB  Read Replies (2) of 89467
 
new article: "Inflation + Deflation = Chaos (not zero)"
by Jim Willie CB
Nov 21, 2003

financialsense.com

it should be linked to the Financial Sense Online front page shortly
but here is the link

it covers monetary inflation, exported bubbles, consequent price deflation, rising production costs, other USDollar effects, and .....

the imminent return flight of that inflation into the US Economy
which happens on the back of rising Asian currencies


it is high time somebody debunked the horseshit out there claiming
that some inflation will be good to counter the price deflation

we will get it in higher production costs and higher home energy costs
the result will be shrinking profit margins and lower household budgets
not to mention higher interest rates
when real estate falters, the economy will likely enter a recession in late 2004 or 2005

early evidence is clear
PPI was +0.8% (annually almost 10%)
CPI is largely unchanged
the difference affects profit margins

most economists are simply political apologists who comment on the economy
just because an object occupies a gargage, doesnt make it a car
the same applies to those who discuss the economy

/ jim
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