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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (40858)	11/9/2002 1:25:20 PM
From: Haim R. Branisteanu	Respond to of 52237

Lizzie the issue of inflation is directly related to the availability of money and demand for goods. Presently the CB's are fighting the risk of deflation due to the economic contraction inflicted by the rise in productivity resulting from technology and automation. After those productivity improvements will arrive to a saturation point (back to the historical mean) then inflation will start in earnest. Inflation as deflation is an phenomena of expectation and not a easily quantifiable norm. Similar to the stock market bubble so will inflation take it's toll. One of the best examples of inflationary pressures are the service sector healthcare and housing. UK is a prime example of inflationary pressure in housing due to perceived expectation and no fundamental reasons. At this time the FED is pumping 3 time more money into the economy without results ....... but all this money will burst in inflationary pressure in a similar way as nature always has dealth with excesses. research.stlouisfed.org