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Non-Tech : Deflation -- Ignore unavailable to you. Want to Upgrade?

To: JF Quinnelly who wrote (229)	1/22/2004 2:44:08 AM
From: Maurice Winn	Read Replies (2) \| Respond to of 621

jfred, with the interest rate reduction Uncle Al KBE effected, it's not surprising that people have gone AWOL with their money. I have watched my interest rate on US$ slip to under 1%. I might as well hold banknotes. I have got some banknotes. The combined moves people make will have an impact on deflation, interest rates, bank deposits and everything else. But having control of a pixelation process for new US$ must mean dilution and inflation is very simple to achieve. As Gary North perspicaciously pointed out, people look at their derisory interest rates and do something else with their money. We used to have term deposits and I'd hunt around for a fractionally better interest rate. Now we have large [for us] amounts of money just sitting in a cheque account. Deflation, depression, disarray, dislocation and declines were likely as the Biotelecosmictechdot.com irrational exuberance and Sudden Wealth Syndrome turned to Sudden Poverty Syndrome [which is much worse] and rational fear. But, amazingly, our great and estimable idol, Alan Green$pan KBE, contrived to provide a soft monetary landing, so that margins could be reduced, markets cleared and life could go on. There was no cascading financial implosion which seemed quite a possibility if Uncle Al KBE hadn't managed the situation well. We are in the clear three years after the crunch. More or less. We will be in the clear when interest rates have risen once again to 4% or 7% and saving a dollar again makes cents. We haven't even started on the uptrend so there's a big market test still to be passed. But at least we got through the downtrend and 3 years of market clearing without catastrophe. Indeed, with barely a dent in Earth's GNP [or GDP or whatever it is]. Mqurice