Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Mike M2 who wrote (66608)	8/22/1999 6:05:00 PM
From: valueminded	Read Replies (1) \| Respond to of 132070

William <Your reference to Japan implies the presumption that central banks can stop deflation> Actually, I meant the opposite. FEDS are ineffective against deflation imo. This is a key reason why this FED is going to lean heavily towards an inflationary policy. Interestingly, enough, it would appear to me that you can end the credit expansion one of two ways. Either inflationary or deflationary. If you choose the deflationary route, you lose control. ( you have mentioned before that you can lead them to the market but cant make them consume) Inflationary endings on the other hand are exactly the opposite, you dont need to make them consume - they do it all by themselves when they realize a dollar today will be worth less than a dollar tomorrow. The bank stays with some modicum of control and everyone feels better. (well except the bond holders that is) Yes, it trashes our bond holders, but the bottom line is most people will not care as it will continue to justify the buy and hold strategy on stocks. jmho