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

To: KyrosL who wrote (49456)	5/5/2000 1:28:00 PM
From: pater tenebrarum	Read Replies (2) \| Respond to of 99985

KL, well, the way they're doing it now, they simply meet all credit demand at the funds rate. whenever the rate goes above target they pump in more money. however, they also have official targets for money supply growth and those have been exceeded by a wide margin in recent years. it's hard to take their inflation fighting tough talk serious when that happens. basically though i am not surprised to see this cyclical inflation upturn gathering pace. after all the demand pull from recovering economies around the world has now become a factor as well, in addition to Al's proclivity to print us all to prosperity. for the deflation scenario to take over again, we'd need a sharp downturn in the stock market and the beginning of the debt wipe-out period, which i think will come at some point. see Al's repeated warnings to the banking community...he knows it's coming. regards, hb