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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: smolejv@gmx.net who wrote (2904)	7/2/2003 10:48:24 AM
From: Wyätt Gwyön	Read Replies (2) \| Respond to of 4909

sure, it doesn't have to be inflation, you could have deflation, but your example of 12% or whatever it was deflation doesn't make much sense to me. as you know, the inflation rate changes fairly slowly from year to year--a couple of percentage points. you can call deflation just "negative inflation", and there is no reason to expect the rate of change would cause it to move from, say +2% inflation to -12%--a move of 1400 basis points--in just a year's time. i think it is more reasonable, even assuming deflation, to think of it as a subtler 1-2%. and by the way, we don't have deflation yet. re: that article, it just scares the bejeezus out of me that these lunatics would consider seriously implementing such a plan. thanks for posting the article.

To: smolejv@gmx.net who wrote (2904)	7/2/2003 12:26:37 PM
From: LLCF	Read Replies (3) \| Respond to of 4909

<Unfortunately, conventional open market operations lose their effectiveness as the yield on Treasury bills is driven to zero. > ROFLMOA!!! Brilliant! Glad he could clue us in... let the monitization of assets commence!!!!!!! <The strategy for eliminating the zero bound, therefore, is to make money pay a negative nominal interest rate, by imposing some type of "carry tax" on currency and deposits.> AND let's finish off the widows and orphans PRONTO! UFB! But then, there are upstanding companies like WorldCom that can use the liquidity [lemmings] this would force over the cliff. I may just stay up here in Canukistan and bring all my coin up.... [good idea till winter hits :( ] DAK