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

To: pater tenebrarum who wrote (38955)	2/3/2000 4:00:00 PM
From: KyrosL	Read Replies (1) \| Respond to of 99985

Heinz, I agree with you that the key word here is yet. Like you and I discussed repeatedly, the long term prospect is deflation. And, as the Japanese experience proved, it is not that easy to defeat deflation. And LT interest rates can go much lower than what they are now (the Japanese 10 year bond yield fell below 1%). Couple this with the prospect of no more 30 year bond issues a couple of years from now, and rates north of 6% for 30 year bonds look awfully attractive. In a global free market driven by ever cheaper technology, inflation should be at least as rare an event as it has been throughout human history -- absent wars or other catastrophes. People forget that the 70's and 80's inflation was an aberration rather than the norm .