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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Ron Struthers who wrote (40573)	9/21/1999 4:31:00 PM
From: ahhaha	Read Replies (1) \| Respond to of 116790

Don't confuse monetary policy with interest rate policy. You can't fight deflation with low interest rates. You have to do it with cash. They are only inversely related in a demand regime. You can't push on a string, but that is irrelevant now. There is no country in the world which is in deflation. Why would you believe there is a threat of deflation? There never is that threat. The central bank can just open the money floodgates. In the modern economies the problem is only how to contain inflation. Central Banks are humanistic institutions and so they have a difficult time executing symmetric monetary policy. That means they can't uncreate the extra false money they created to prop up prosperity. It's easy to appear benevolent, but it isn't easy to allow bad times. You have to let the market do that.