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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: Jim Willie CB who wrote (11343)4/5/2004 1:26:18 PM
From: gregor_us  Read Replies (1) of 110194
 
When The Chapter on Re-Flationary Policies is Written

in the next edition of the Econ. 101 textbook, there should be special mention made of the risk that a weaker domestic currency simply pushes up input costs and goods costs, thus accellerating the deflationary export of labor to cheaper lands.

material prices pushes mfrs toward more outsourcing

Indeed. And this is "fun" isn't it? Reflationary policies which originally sought to fight deflation, become both inflationary--and, accellerate the problematic aspects of the original, precipitating deflation.

My portrait of Stagflation: a burnt-out gas-guzzler abandoned in Harlem, with high city taxes, high unemployment, and subway-worker strikes. The mayor is floating ciy bonds with coupons of 12% (sold at the offering below par, of course!).
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