To: Wally Mastroly who wrote (2692 ) 7/12/2003 7:25:08 AM From: Boca_PETE Read Replies (2) | Respond to Wally M: re:("because of the massive effort being made to reflate the economy now, the Fed and policymakers in Washington will have little ammunition to pull us out of the next recession")kcmetro.cc.mo.us evitaperon.org Don't cry for me, USA. The money comes in, and the money goes out. Guns and butter. My sense is that we are setting up for a huge inflation in the future. Those with fixed income investments that are not adjusted for inflation will likely find their savings buys less. We will probably wake up one morning in a crisis and find our money worth a lot less. But if you own your own home, its' value would likely soar and the mortgage debt would be a fixed dollar liability. If you have a floating rate mortgage, OUCH because rates would rise (heaven knows how high). Perhaps the 1970's inflation will look tame in comparison to the one in our future. Unlike the 1970's inflation, this one could start with a huge public debt on the USA's books.
