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To: Rarebird who wrote (46674)	1/5/2000 9:08:00 AM
From: long-gone	Respond to of 116766

The End For Now Ryan Troup January 5, 2000 As predicted in A Case For The Bear, the Fed's liquidity infusion for Y2K protection is now being removed. In other words, money is being removed from circulation. With less money in circulation, the banks have less money to lend to consumers. Consumers therefore have less money to spend on goods and services. Less spending means lower revenues and profits for businesses. Businesses then lay off employees and the problem becomes even worse. It's called a "vicious circle". The way to get out of a "vicious circle" is for the Fed to increase the availability of money again. However, they will only do this when they believe that the inflation that could be caused by more money in circulation is not a threat. A threat to what? A threat to the strength of the dollar. The Fed tries to ensure that your savings (hopefully you have some) are worth at least the same amount five, ten, twenty years from now as they are now. If inflation creeps up, then each of your dollars can buy less and less. Your savings lose their value without you spending a dime. Unlike a year ago, European and Asian markets are much stronger now. They are consuming many more goods and services. This increased demand, along with the United States continued strong demand is increasing the likelyhood that prices (cont) newsmax.com