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To: Joan Osland Graffius who wrote (232116)	3/29/2003 9:27:09 AM
From: Mike M2	Read Replies (2) \| Respond to of 436258

joan, as individuals it is easy for us to understand that there is only so much debt that we can personally service. I don't know why people have so much trouble applying this concept to the economy at large. mike

To: Joan Osland Graffius who wrote (232116)	3/29/2003 4:40:16 PM
From: Mark Adams	Read Replies (2) \| Respond to of 436258

If we devolve into a debt deflationary scenario, efforts by Bernake et al to hold real rates at zero/negative will effectively transfer wealth/income from savers to debtors. Thus alleviating the debt burden creating the deflationary influence. It may be that enough balance sheet repair is already in place to see a slow growth inflationary period with rising nominal interest rates (though low real rates) near term. I'd say from a chaos theory perspective, it could go either way. Much more will depend on the non US world reactions to current events than I considered six months ago. And as goes the US, I suspect the trends towards globalism will follow.