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To: William Hunt who wrote (25965)5/4/2000 1:14:00 PM
From: William Hunt  Read Replies (2) | Respond to of 27012
 
Sonny ----take at the following url and look at the crb index and the lack of inflation since April 1997 :
economagic.com

We really have some odd issues going on at present :
1)The Fed raising interest rates because either the GDP is too strong , labor market is too tight or the wealth effect is driving demand to fast
The following raises some real concerns if they know what the hell they are doing :
1) The CRB index is down 15 % from three years ago .
2) The labor market issue if true can be or will be corrected by companies by importing labor or exporting jobs to control costs .Also the issue of replacing labor with technology . Either way it will be resolved .
3)The Treasury reducing debt in the bond market thus making the dollar worth more
4)The Fed raising interest rates thus making the dollar worth more
5)The last two issues cause the dollar to be stronger thus allowing consumers to buy more thus increasing retail demand .
WHAT A CIRCUS --- I can honestly say I do not understand what Greenspan is fighting ? I wish someone would explain it to me

BEST WISHES
BILL

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