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To: NOW who wrote (120229)	9/9/2001 9:26:25 PM
From: Tommaso	Read Replies (1) \| Respond to of 436258

It takes a long time for a central bank to create inflation when, as you correctly argue, worldwide productivity increases so that there are so many goods and commodities to be purchased. The Fed may well decide to tighten up the minute any sign of real inflation begins--and they certainly can stop it if they can resist the pressure of Congress and the public to just make money easier and easier. Volcker did than twenty-some years ago. In that case, the stock market would collapse so as to make declines up to this point seem minor--I mean, a Dow of under 4,000 and I dare not say what for the NASDAQ. All I am saying is that if monetary policy continues much longer as it has been for the last few months, two years from now we will be looking at inflation of at least 10%. it takes about (on average) two years for monetary expansion to feed through and start inflation. Tightening works a lot faster (as we saw over the last 18 months, from what the fed was doing in 1999 and on into 2000).

To: NOW who wrote (120229)	9/9/2001 9:52:32 PM
From: patron_anejo_por_favor	Read Replies (2) \| Respond to of 436258

<<it does NOT look infaltionary:>> Neither does this: stockcharts.com[m,a]daclyymy[d20000901,20010912][pb50!b200][vc60][iUb14!La12,26,9] Nor this: stockcharts.com[m,a]daclyymy[d20000901,20010912][pb50!b200][vc60][iUb14!La12,26,9] Nor this: stls.frb.org Problem is, the vortex created by the tech/INet/equity implosion is greater than virtually any amount of printing can overcome. So deflation wins....only fools are consuming and spending on ANYTHING at this point. Debt is toxic waste and will remain so for the forseeable future.