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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?


To: re3 who wrote (25517)12/16/2000 11:33:46 AM
From: Jim Willie CB  Respond to of 65232
 
a slight burst of inflation is typical prior to recession
comes from combo of dismantling productivity engines
and initial refusal to layoff employees
in the past, the Fed has misread this signal, then tightened on interest rates
the result has usually been a worse recession
doing nothing would allow the temporary inflation to fizzle
the right answer is to cut rates quickly

but they wont
they are not competent within their own supposed expertise
half the FedBoard govs are talking about inflation still
like morons
they actually believe the weakness is shortlived
with a rush of inflation coming on some mythical winds a few months from now
incredibly incompetent, dangerous, powerful ills
/ jim