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To: KyrosL who wrote (61000)	1/24/2001 1:28:43 AM
From: Perspective	Read Replies (2) \| Respond to of 436258

Excellent points. If BubbleBoy really does "save the day" here, then the risks will go the other direction. However, I'd point out that inflation and deflation are BOTH negative for stocks. There is no way out of this curve on the pavement. You veer left and hit the wall with the driver's side, or you veer right, spin, and hit with the passenger side. Take your pick. Either way, there's gonna be lots of sparks, shrapnel, and blood... BC

To: KyrosL who wrote (61000)	1/24/2001 10:25:46 AM
From: pater tenebrarum	Read Replies (1) \| Respond to of 436258

i disagree. if the BoJ could 'engineer' inflation like these economists say it should, it would have done so long ago! once the k-wave winter begins, a CB is powerless to stop it. printing more money does nothing to alleviate overcapacities, bad debt and malinvestment. only a hands-off approach can achieve that, and like you say, a hands-off approach is not to be expected. the authorities will thereby unnecessarily lengthen and worsen the downturn. <<..as Friedrich Hayek put it in 'Monetary Theory and the Trade Cycle' in 1933:- 'To combat depression by a forced credit expansion is to attempt to cure the evil by the very means which brought it about; because we are suffering from a misdirection of production, we want to create further misdirection - a procedure which can only lead to a much more severe crisis as soon as the credit expansion comes to an end.' 1933 may be too far lost in the mists of time for us to contemplate, but anyone who considers the Japanese experience of the last 10 years will see the wisdom of these words. No wonder everyone is waiting to see which way Alan Greenspan will panic next.>> gold-eagle.com

To: KyrosL who wrote (61000)	1/24/2001 1:42:16 PM
From: NOW	Respond to of 436258

debasing the dollar is not a problem for "future generations": it will come home to roost sooner than you can say: "where is my gold?"

To: KyrosL who wrote (61000)	1/24/2001 5:14:03 PM
From: Claude Cormier	Respond to of 436258

It is very hard to consider a US deflation as a possibility. There are simply too many dollars in the hands of foreigners. Continuing trade deficits will continue to increase the amount of USD held by Japanese, Asians and to a lesser degree Europeans. The problem is that these US dollars abroad are in stocks and US securities and foreigners have started the liquidation process. This will cause not only inflation but possibly hyper inflation in the US as many of these dollars are repatriated over the next several years. As well, the inflation in US equities and real estate of the past 6 years is about to move to the consumer level. <Of course, this will debase the dollar as a reserve currency, but that's a problem to be faced by the next generation. > It may come sooner than later and it may be your problem. That is why gold is about to regain is role as a reserve currency. The new private digital gold currencies will become extremely popular in the coming decade. A "new era" again! Claude Cormier Editor, The Ormetal Report