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Politics : Ask Michael Burke

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To: Skeeter Bug who wrote (28161)5/14/1998 10:39:00 PM
From: geewiz  Read Replies (2) of 132070
 
But skeeter,

is it the low rates that's created the bubble or the growth in the money supply? The only real inflation is in assets, so the real rates are actually high when measured against the CPI, although the government has changed this calculation to lower the increases in Social Security payments recently, it is still the only approximate gage of inflation in consumables.

I have a hunch that the Fed is more certain of it's ability to contain inflation than deflation, so it is choosing a more familiar enemy.

best, art
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