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To: ild who wrote (155952)3/16/2002 11:22:30 AM
From: Joan Osland Graffius  Read Replies (2) | Respond to of 436258
 
ild, Re: Deflation vs Inflation

As investors I think it is important that we keep an open mind as to what is going on to determine where we should be moving our capital.

We can not see in the future, but we do know the CB's have the printing presses going full tilt. Japan increasing their money supply by 27% and I don't know where the US is at the moment but money expansion is occurring at a rapid rate. These folks are giving it all they can to create inflation. Your thoughts on debt is correct and deflation certainly could happen if we get more defaults than the system can handle.

It looks to me like US companies are floating debt like it is going out of style .. they must think the debt market could dry up and want cash so they have a chance of survival.

With only 9 of the large companies in the US with a debt rating of AAA, we know quality of American Corporate debt is not exactly pristine. <g>

Interesting times!!!!

Joan