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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: Arran Yuan who wrote (6427)	9/17/2007 10:12:08 AM
From: jim_p	Read Replies (2) \| Respond to of 50503

Whodathinkit??? The deflationary effects of globalization have run their course??? This was the event that allowed the central banks to maintain a policy of low interest rates and double digit money growth. At least AG sees it that way. It was a onetime event and now we are seeing the opposite effect with wage inflation out of control in China and India. It's now cheaper for some companies to even close their operations in India and move them to the US. AG's biggest concern is inflation and double digit interest rates down the road. My guess is we first go to double digit inflation and we end up with a period of deflation that results from the unwinding of the credit bubble. The only question is timing. Jim