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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Art Bechhoefer who wrote (28948)	3/2/2003 12:26:42 PM
From: c.hinton	Read Replies (1) \| Respond to of 36161

I am afraid inflation will take a while to rear its ugly head across the board.Only when it becomes evident that the economy will not fully recover in the near future will the deficit become a big problem,like a person who goes into debt but has a good job is considered a good credit risk untill that job is lost.Future expectations is the key.If it is percieved that the war will be short and sucessful people will tend to be optimistic and invest and spend on the assumtion that inflation will be controlled.That in its self will mittigate inflationary tends.It is like a selffullfilling prophecy. meeting future pension/healthcare liabilities is where inflation will most likely explode.To meet them we need to rewrite pension promises or increase taxes or print more money.This is true for just about every nation.At that point there will be no refuge to be found in yen,euro or dollar.