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


To: stockman_scott who wrote (4148)8/8/2002 10:26:12 AM
From: Jim Willie CB  Read Replies (2) | Respond to of 89467
 
Fed wont cut rates, wouldnt work anyway
if they cut rates, then deflation would accelerate
because so much debt would be retired on repayment at a lower rate after swapping to that lower rate

retirement of debt removes money from circulation, thus reducing the money supply
this is deflationary
I think the households of America are now scared
they will cut back on spending, assuring a recession
next the real estate values will be flattening to falling
which will further cut spending

the game is over
by the way, in the last deflationary period, GOLD ROSE OVER 60%

two bubbles remain: Treasurys and Real Estate
both will be popped, after PUMP & DUMP schemes complete
Treasurys are in full swing being pumped now

/ jim



To: stockman_scott who wrote (4148)8/8/2002 10:28:33 AM
From: MSI  Read Replies (2) | Respond to of 89467
 
The commonsense part of this that stands out is the notion that worldwide trade is causing excessive production capacity, which will drive down prices for a long time, worldwide. Perhaps this will continue until 3rd world demand increases, to match their available labor.

It doesn't get into the question of what to do, however, with assets or cash.

Anyone have any ideas?