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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?


To: stockman_scott who wrote (676)6/25/2002 11:34:46 AM
From: Jim Willie CB  Read Replies (1) | Respond to of 89467
 
important line on S&P article:
The current spread between the 10-year note and 1-year bill seems to be surprisingly wide. Not only does it mark a historically wide spread even by recessionary peak standards, but given that this recovery is expected to be much more muted relative to past recoveries, a decent case can be made for why this spread should reflect less recovery/inflation risk optimism.

they conclude also that the longend yield might come down
what they totally overlook is the effect of the declining dollar on price inflation 6-10 months from now
it is backdoor inflation from imports
heck, even most domestic production involves 75% foreign components

doesnt anybody connect the dollar to inflation ???
I guess that is Politically Incorrect

take PC and shove it
not you, Scotty
you can beam me up anytime
/ jim