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Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread -- Ignore unavailable to you. Want to Upgrade?

To: Lone Ranger who wrote (2237)	2/2/2003 5:17:17 PM
From: Alan Bell	Read Replies (1) \| Respond to of 10065

LR, Thanks for the thoughts about reflation. That make a lot of sense. Isn't it also the case that fiscal policy is setting up the potential for major inflation. The previous tax cuts, the unrestrained spending for defense, and the proposed tax code cleanup are causing a large deficit. While these may be necessary, they will substantially increase the debt. Without increasing revenues (through taxes or economic expansion), isn't the only way to absorb the debt through inflation? What would the delay for that to occur?

To: Lone Ranger who wrote (2237)	2/2/2003 5:26:20 PM
From: Boca_PETE	Respond to of 10065

LR: RE: ("falling dollar ...stagflation rearing its ugly head in the future") That's a definite possibility - I agree. I see as prudent owning a modest amount of Gold stocks or funds that track precious metals like PMPSX. Bob has been down on gold for a long time - said one minute ago that he sees it as "a speculation". He missed the big run-up in gold because of his speculation dogma. Big deal - I don't like asparagus. Gold would do well in a stagflation environment. I've seen theories that say this cyclical bear will not end until the GOLD to DJA RATIO reaches 6:1 through some combination of a rise in gold prices and a fall in the DJA. As of Friday, that ratio stood at 21.9 (that's -18 to go). Also, multinational company stocks that benefit on a falling dollar from translating foreign local currency earnings into more and more dollars could be a good investment. I have nightmares of Jimmy Carter too <grn>. P