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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: Lazarus_Long who wrote (43410)	7/3/2003 1:33:42 PM
From: zonder	Read Replies (1) \| Respond to of 57110

The Fed has said they are fully capable of countering any deflationary spiral. I believe them. There is no deflationary spiral. That is what I was trying to explain. Have you looked at inflation numbers at all? Not that "inflation minus food and energy" stuff designed to look deflationary, sort of like the pro-forma statements of the last decade, but REAL INFLATION? 2-4% CPI & PPI is NOT deflation. It's inflation. They fear if they do that [step on the breaks], the economic slump will get worse My humble view is that they are introducing fears of deflation to keep interest rates low, in order to contain the credit bubble and keep it from bursting, thereby taking with it to never-neverland most companies AND consumers along with it. so they have no choice but to try to run the printing presses somewhere between depression and inflation. I doubt that. USD has gone down far enough just on the MENTION of printing money (see Fed governor Bernanke's speech of late-November 2002, where he talks about printing money, with no uncertain allegories to an alchemist finding out how to make gold and hence significantly lowering its value).