Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Joan Osland Graffius who wrote (99266)	6/19/2003 9:31:01 AM
From: Don Lloyd	Respond to of 132070

Joan, Yes, there is a disagreement on the reason for the end of the depression. This speaker felt that the Bush administration was following the popular myth theory. This speaker was interesting in that he believed in cycles where capitalism has inflationary cycles and deflationary cycles and believed we are entering a deflationary cycle that governments can not control over the long haul. His point was Greenspan and the government will do everything in their power to keep things glued together until the election in 2004. He was not recommending their clients bet on this to occur as they are selling into this rally. If this fellow is correct and I tend to agree with him the important question is how do we financially survive in an a deflationary economy There will be no general deflationary economy. Normal productivity driven price decreases will occur for some products, other products will see their prices continue to be depressed in the face of massive over capacity until it is rationalized by consolidation and bankruptcy, but the monetary environment is enormously inflationary in supply and all of the forces bearing on the dollar are negative and are likely to remain so for some time. Regards, Don