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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?


To: Real Man who wrote (67530)11/21/2003 6:52:35 PM
From: mishedlo  Read Replies (1) | Respond to of 94695
 
No!
We get deflation in the US
What happens when there are no jobs and housing collapses.
What happens when all that debt can not be inflated away and more companies like GM and F go bankrupt
What happens when other companies can not get there debt rolled over and go bankrupt
what happens when consumers overmaxed out on credit cars go bankrupt
What happens when CA defaults on its bonds and they are worthless

Do you discount those happening?
Every one of those actions is DEFLATIONAY
hyper-inflation is in your mind
we do not see that until we see the deflationary bust first
You are perhaps as much as 10 years away or more

The only inflation you see is due to China outbidding us on commodities. You have to be nuts not to see deflation in the price of finished goods.

Oops I failed to mention overcapacity - Deflationary not inflationary. The signs are all there and no one sees them. Why the H do you think the Fed is spooked?

M