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


To: NOW who wrote (44962)7/24/2003 4:50:41 PM
From: Lazarus_Long  Read Replies (1) | Respond to of 57110
 
Two contradictory effects result:
They sell US assets, including bonds, to escape the inflation and depreciating currency implied by that.

But if deflation is present, they want to keep the bonds (at least) to get the increasing valuable income stream from them.

It appears the result is not immediately predictable and will depend on the particular circumstances at the time.