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To: Cal Amari who wrote (100315)1/15/2008 4:11:15 PM
From: John VosillaRespond to of 306849
 
Logically extensive use of the printing press has been the only way to fund our massive twin deficits and $100 oil without long term rates skyrocketing.. Remember those economics classes we took way back when where inflationary pressures build with a lag of perhaps 12-18 months after monetary expansion way above trend and economic growth? Thus while in the near term the long term rates remain low it has the opposite effect down the road.. We've been 'down the road' a good 2-3 years but the printing continues endlessly..



To: Cal Amari who wrote (100315)1/15/2008 6:07:20 PM
From: SouthFloridaGuyRespond to of 306849
 
You told me what HAS happened, but that's not what your post inferred. You were inferring that the authorities can increase the monetary base (vis a vis interest rate cuts) faster than credit is contracting and the answer to that is no.