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To: flyboy who wrote (54421)	1/5/2001 9:24:01 AM
From: AllansAlias	Read Replies (3) \| Respond to of 436258

Good post flyboy. Welcome to the CFZ. -g This morning I am still looking for a continuation of the move upward. Yes, dominos are falling and danger lurks everwhere, but I think the blinders will propel us higher for a short spell. If they do not, then equities are doomed.

To: flyboy who wrote (54421)	1/6/2001 9:50:03 AM
From: Mike M2	Respond to of 436258

Flyboy, Yes the strength of the US $ and the trade deficit has suppressed product price inflation. We always hear that product price inflation is low yet the current inflation rate in the US is the highest among the major industrial nations. The fact that low product price inflation is a global reality suggests that this situation is the result of excess capacity on a global scale. People need to remember that banks create money by making loans if people are unable or unwilling to borrow monetary inflation will no longer be an effective stimulus. I suppose we may see bouts of stagflation as the Fed attempts ( in vain) to fight the inevitable debt deflation. There has never been a financial bubble that has not ended in deflation. Attempts to delay the inevitable by creating greater credit excesses will only exacerbate the inevitable decline. It is easier to borrow than it is to repay. At some point debt loads will not be serviceable then we experience debt deflation. Mike