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To: patron_anejo_por_favor who wrote (156134)3/18/2002 4:27:30 PM
From: Tommaso  Read Replies (1) | Respond to of 436258
 
I have thought inflation was about to take off repeatedly in the past fifteen years, but the huge increases in world production of goods have overtaken monetary expansion. Or at least that's how I explain it to myself.

But the only way to avoid high inflation now is to clamp firmly down and run up interest rates again. As some of us know, all it takes is a 5% net cash withdrawal from all the thousands of mutual funds now in existence to force stock market liquidation, and the minute interest rates spike high enough to cause that, the equity implosion will have to happen.

Thanks for the charts. I had no idea the CRB index was taking off like that.