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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: russwinter who wrote (10930)3/29/2004 11:34:59 AM
From: Jim Willie CB  Respond to of 110194
 
I wish focus would turn toward WHERE new USDollars go

if toward new business domestically, toward higher paychecks, toward sloshing within our own walls, great, fine
that is price inflationary

if toward new debts, toward mindless consumer spending, toward infotech builds for outsourcing, toward foreign direct investment, toward leveraged bond crappola, toward real estate overpriced support, not great, bad
that is price deflationary

so far it is 90% bad
multiple evidence that crackup has resulted in job layoffs, plant shutdowns, lost profit margins, all the forces which are on the bad side

Fed Governors might be concerned that their monetary looseness has resulted in even more dire deflationary forces than existed in 2001

interesting, but few economists recognize how monetary inflation can produce enormously deflationary forces
it all depends on how the new money is used
so far, it is mostly being used toward increased pressure on the extreme deflationary factors

most paradoxical, and thus way over US Economists heads
without a doubt, US Economists are the worst in the world
/ jim