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Strategies & Market Trends : Zman Market Timing

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To: Fiscally Conservative who wrote (385)10/23/2013 2:40:00 PM
From: zman69  Read Replies (1) of 15903
 
Fed is doing what it has to do, leaning against the deflationary winds of K-Wave Winter. If anything the Fed has been too timid. And certainly on the fiscal side policymakers have done all the wrong things with the obsession on defecits and Austerity. The global economy currently suffers from excess supply and inadequate demand mostly due to imbalances caused by the mercantilist policies of the Asian bloc and one could lump Germany in there as well. Now the question is how do we get demand and supply back in balance. The best answer IMHO is wage inflation. But that hurts the corporate oligarchs and 1%ers so there is this political struggle. The alternative hower is much worse as that would be the Liquidationist solution of destroying supply via a massive wave of bankruptcies and defaults. We got a sneak peak at what that might be like in Fall of 2008 and it wasn't pretty. I hope policy makers wouldn't try to go down that road again.
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