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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: J.B.C. who wrote (21687)	1/16/2003 12:32:00 AM
From: lurqer	Respond to of 57110

what we discussed Interpreting JW could be a full time occupation.<g> To be sure, the massive over-investment during the mania blow-off phase that culminates a secular bull, results in powerful deflationary forces being unleashed. Without any countervailing force, '30s like deflation will result. OTOH, if the Fed decides to crank up the printing press (as they have said they will), then with a flood of dollars, prices inflate. I believe we are currently in an intermediate state. The prices of some items reflect the deflationary forces, while the prices of other items (insurance, health care, etc.) reflect the building inflationary forces. This dichotomy may or may not be what JW is referencing. The big difference between now and the last secular bear (’66 – ’82) is the current powerful influence of Asian trade. This trade greatly exacerbates the deflationary forces and is complicating the Feds attempt to reflate. BTW, I notice that Puplava is discussing inflation. financialsense.com All JMO lurqer