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Strategies & Market Trends : Commodities - The Coming Bull Market -- Ignore unavailable to you. Want to Upgrade?


To: Robert Douglas who wrote (134)6/6/2001 1:15:17 PM
From: craig crawford  Read Replies (1) | Respond to of 1643
 
thanks, any and all contributions are welcome.

>> I don't think any central bank in the world will let inflation run away like we did 30 years ago. Tight money will put an end to that. <<

i disagree, but it's nice that we do agree on the demand side of the equation. i think it's either inflate or suffer a deflationary spiral like japan, 1929, etc. i think central bankers these days have seen what deflation can do and will choose to print money as opposed to watching unemployment skyrocket. i think they are printing so much money right now that the inflation is already a given. it's just a question of where does the inflation manifest itself. i believe the inflation will not show up in skyrocketing equities, but in rising commodities prices. this rise will choke off growth, reinforcing a vicious cycle where more inflating needs to be done to keep the economy growing. one day the fed will switch to fighting inflation, but they won't even acknowledge that it's a problem right now, so we have a long way to go before we have to worry about inflation ending.

Worries Mount Over Euro Changeover
washingtonpost.com

nice article courtesy of the clown free thread.