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Strategies & Market Trends : Value Investing

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To: E_K_S who wrote (45190)10/28/2011 7:26:07 PM
From: Windgoof  Read Replies (1) of 78470
 
>> What's your 10 year view on inflation? A high inflation rate would skew the blue line lower perhaps by one square. Look where it was during J. Carter period. I expect double digit inflation some time in this decade based on the amount of U.S. deficit spending and total cumulative U.S. debt. >>

I don't remember where I read this. After WWII, the US debt as percent of GDP was as slightly higher than now. Govt kept the lending rates percent or two lower than inflation over extended period, and got rid of debt reasonably quickly without getting into double digit inflation. Sort of like now, CPI 2-4%, short term rates near zero. All the issues that are out there (high unemployment, europe, china, uprisings, etc) may keep inflation in check for some time.

I like your strategy. Are you holding any NG companies long term?

wg
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