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Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?

To: A.J. Mullen who wrote (8299)	5/8/2003 10:40:36 AM
From: Biomaven	Read Replies (1) \| Respond to of 52153

what's to stop US government printing money to reflate? Up until now it hasn't seemed like they'd be willing to do so. Of course they wouldn't literally print money - more likely the Fed would buy long term bonds. One constraint might be the dollar - I would expect a sharp decline if they actually proceeded with this strategy. Of course that would help with deflation, but an anticipated sharp dollar decline might also cause a crash in the US financial markets. Foreign holders might be selling Treasuries as fast as the Fed was buying. Of course if you want out of the dollar there seems no good alternative. People reflexively run to the Euro or the Yen, but it doesn't seem to me that the European economy is in any better shape and of course the Japanese economy is a disaster. I cling to the (perhaps misguided) notion that a currency's long term strength is linked to that of the economy underlying it. I can't pretend to understand all this macro-economics stuff properly. If you read the Austrian school (Hayek etc.) they seem to claim deflation is a Good Thing - you get to buy more goods and services with the same amount of money. Peter