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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: The Ox who wrote (44566)	2/20/2008 8:33:47 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69970

The thing I find interesting is that all through the late 90's and early 2000's, the central banks were adverse to any kind of inflation. It was something to be squashed at all cost. I speculated it was mainly because that individuals heading up the central banks lived through the run away inflation of the 70's and early 80's and did not want to see it comes back. There are hints that those attitudes are starting to change. It may be that the central banks are out of weapons to keep the expansion going and are not uisng last resort measures that were unthinkable a few years ago. As you pointed out, the approach of spending your way out of economic weakness is short term in it effect and has long term implication for the economy. Though some of use remember the run away inflation and the near collapse of economies like Brazil, re-inflating the economy may be the only resort left if you work on the assumption that recession are a bad thing. I am not sure I total agreed and recession have a natural way to removing excesses from the system. Painful to be sure, but necessary. We have not had a true recession in a while. The central banks have been very good at control the economies to the point where the 7 year cycles of boom and bust have been distrubed.