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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (23919)	8/26/1999 8:22:00 PM
From: pater tenebrarum	Read Replies (2) \| Respond to of 99985

Haim, the stagflation scenario has much going for it...however, i think the spike in inflation may be a temporary phenomenon. globally there is still a deflationary undercurrent that seems quite powerful, and the Fed may well be starting to feed the deflationary forces by hiking rates. it is possible that right on the heels of an inflationary spike deflation reasserts itself, beginning with a sharp decline in the value of paper assets. as the Ecuadorian example shows, global money destruction is still in full swing, and i have no doubt that the default of Ecuador will be followed by similar problems in Argentina and Brazil. who knows, this could well be the straw that breaks the camel's back... regards, hb