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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: daryll40 who wrote (52910)	9/23/2001 2:57:46 PM
From: robert b furman	Respond to of 70976

Hi Daryl, With plant undercapacity as low as it is ,and the global slowdown gaining momentum,the fear of inflation is very minimal(JMHO). If we were seeing max plant capacity and the crb index going up ,then excessive fiscal policy (printing of money) would be inflationary. The biggest problem at hand now is to create demand for money. Corporations are collecting as much as possible.The pain induced by increasing rates is now being minimized by refi's - but to prime demand and new projects to be justified requires a substantial lowering of rates and this does not necessarily induce the knee jerk reaction of inflation. At the very worst it would occur with the same lags as the rate reductions have lagged in a turnaround and then only if plant capacity were at max (which it is not) ALL JMHO Bob