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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?


To: stockman_scott who wrote (50192)7/2/2004 5:00:34 PM
From: Jim Willie CB  Respond to of 89467
 
Fed is surely behind the curve, but key issue is 2 economys
TRANSITORY EFFECTS will not relax much at all
and Greenscheiss will have to eat his words again
funny how few people keep track of his wrongful words

all measures of inflation pertain to real economy
-- where things are made, mined, grown, serviced

low rates are accommodated since real economy is slow

but this unleashes massive inflation in the financial sector

the real economy is likely to slow further
much more, much much more
even as the financial economy stalls
even as the cost inflation push gets much worse

the USDollar will deteriorate like you will NOT BELIEVE
a slow economy leads foreigners to the exits
watch production cost inflation skyrocket further
the big megatrend of declining import costs has reversed
that and declining borrow costs were the two major 1990 decade effects
the big megatrend has reversed for sure, rising import costs
which includes rising commodity costs, energy costs

we will see how much borrowing costs rise
my personal assessment is NOT MUCH
the Hyper Liquidity Fed Endgame is coming, in force

financialsense.com

/ jim