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Politics : Welcome to Slider's Dugout

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To: ecrire who wrote (2145)8/6/2006 11:14:07 AM
From: Rarebird  Read Replies (2) of 50725
 
>>If the Fed "pauses" on Tuesday....<<

None of the economic problems in the US are going to be solved through a "pause". With the rest of the world raising interest rates, the US has to follow or see the US Dollar fall in international value. It's as simple as that. Higher internal US interest rates will ultimately put the brakes on the US internal credit expansion as deeply indebted Americans pay higher costs.

There are too many Dollars and not enough tangible items of value for which they can be exchanged. That's why prices of most economic goods are rising.

The economic slowdown in the US is not going to make inflation a "lagging" indicator; it will make the situation worse, quite likely, much worse.
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