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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: Think4Yourself who wrote (1299)	3/9/2001 6:19:04 PM
From: Tommaso	Read Replies (1) \| Respond to of 23153

The Fed is pumping the money supply--or permitting it to expand--at a huge and accelerating rate: stls.frb.org Whatever else this may do for markets or for the US economy, if this keeps up it guarantees very high inflation in a year or two. If inflation clearly hits 10%, the Fed will then have no option but to follow Volcker's example from the 1980s and turn around and raise interest rates. I think that in any case the US bull market is over and a protracted decline or at the very best, stagnation at a lower level, is ahead. But people will want to drive cars, grow crops, heat their houses, and use the Internet, and energy will continue to be in demand to satisfy these needs and wishes. Until the building of nuclear plants resumes, or the Great Plains are filled with windmills (both seem unlikely for different reasons), oil and especially gas are what will supply the energy, with possible increase of improved coal-burning power plants. Just a perhaps needless apologia for why I am short the stock markets and long energy.