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Pastimes : A Jackass, his PAL(indrome), and GOLD -- Ignore unavailable to you. Want to Upgrade?


To: mt_mike who wrote (95)1/11/2003 8:14:48 PM
From: Jim Willie CB  Respond to of 1210
 
reflation wont mean wage recovery, not a chance
despite the bigtime monetary expansion, that will be requisite for maintaining the ship of sea
but the car sector and lethargic consumer health will slowly erode, giving us a slowmotion development of recession
just my opinion

the southern hemisphere is NEVER neglected
jungle rot on the mouth fades after a few days<
a hearty constitution covers both respiratory and dermals/i>

recall the Austrian principle that accelerated monetary expansion will be essential to maintain status quo, with flatline economic activity
just where will the new money go?
so many places, but my guess is primarily within the credit world, keeping desperate lenders alive with all the bankruptcies and defaults
it sure aint going to capex or job growth
it sure aint going to IPOs or hefty stock issuance
it sure aint going to healthy sustained consumer spending
and REFI's are winding down notably

I wouldnt worry that monetization turns ANYTHING around
it merely keeps the merrygoround spinning
but in time, the RPM's reduces, frustrating govt officials
in debt collapse environment, this monetary expansion simply replaces BURNED CAPITAL

the stock market seems to me to be gyrating and flapping around like a big fish pulled onto a boat
the new money is like water tossed onto the desperate fishy

just the take of a jackass
/ jim