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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Patrick Slevin who wrote (7315)	2/13/2006 5:56:47 PM
From: Patrick Slevin	Read Replies (1) \| Respond to of 33421

You know, so many posts have gone by, I forgot the original post. ------- I think a drop in the Dollar will eventually lead to the point where yes, there will be significant inflation as a result of Fed loosening rates, I'm certain in the original post I said we will need a Volker to pull us out. But that will be down the road, after this Fed does some damage (if they are going to proceed on a course of dropping rates). We will need is not the same as we do need. ----- EDIT. Finally read the original post. I said if we need, et cetera. That still does not mean I'm screaming inflation. I just happen to agree with the policy of tight money.

To: Patrick Slevin who wrote (7315)	2/13/2006 10:35:04 PM
From: robert b furman	Read Replies (1) \| Respond to of 33421

Nah I didn't mean that. I think other countries like UK and Australia have been dealing with the higher rates for longer than we have. Keep in mind we had 9/11 which through us into a recession. Other countries had low rates and housing inflation uncontrolled for much longer than we've had. They gone with an inverted yield curve for a year longer than us. They may be thinking recession as the lag is beginnig to bite over there. We're still waiting for the full effect of the lag to kick in and thinking more rate rises. Others are thinking rate cuts and this will ,in a relative way keep the dollar strong. Over on da Chiefs thread,there is a rate differential post that suggests all of our rates will get very close and similar. If we're thinking hikes and the rest of the world is doing cuts - the dollar should,in a relative way stay strong. BWDIK Bob