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To: philv who wrote (636)2/5/2003 11:25:09 PM
From: yard_man  Respond to of 1210
 
I'm not sure about your first statement -- there is large fixed investment which is supported by debt -- debt collapses and the prices go down -- that's real.

But I agree in general -- all the printing means -- some prices go up and some prices go down.

Here is a simple question that I think will be most useful in discerning what prices will go up and what prices will go down --

What prices are supported by the acquisition of debt and what prices are not?

i.e. the prices of food and energy will certainly go up in dollars; the prices of homes will go down => real wages go down.

Fixed capital investments for businesses??

it will be according to the ability of the investment to still garner first -- profit and second -- revenues.

if they can't get either -- the price is gonna go down and fast -- don't matter how much they print.