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


To: marginmike who wrote (52685)5/31/2000 11:26:00 PM
From: Jacob Snyder  Read Replies (2) | Respond to of 99985
 
re: lower growth doesnt slow inflation, especially if it causes dollar decline.

The underlying inflation rate is now much lower than it was in the 1980s. And the underlying growth rate is high. That means there is plenty of room to maneuver, and we won't get stagflation. A gentle soft landing will be expertly engineered by the geniuses at the Fed. This will calm down incipient inflation, which is rising (but off of a very low base). "And pigs will fly", I can hear Heinz muttering.

If the dollar declines, it has to decline in relation to something else. What is the alternative to the dollar? The euro? The yen? Gold? As long as there is no viable alternative, the dollar will reign supreme.