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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: Canuck Dave who wrote (124344)	7/21/2008 11:47:10 AM
From: Rocket Red	Read Replies (1) \| Respond to of 314067

deflationary how many trillions wiped out of the markets already

To: Canuck Dave who wrote (124344)	7/21/2008 12:10:31 PM
From: koan	Read Replies (1) \| Respond to of 314067

Inflationary, or deflationary? The 1000 trillion dollar question. CD koan: "yes! While you were away I posted a graph I saw in this weeks Newsweek that showed when gold and inflation rose in 1975 to 1980 oil asa percentage of GDP went form 2% to 8%. Then when both fell in 1980/81 oil as a percentage of GDP fell to 2% where it stayed for the next 20 years. Now oil as a percentage of GDP is rising again and is close to 8% of GDP gain and expected to rise past 8% GDP. The correlation looks almost perfect. Still, I do not think anyone knows whether inflation or deflation will prevail. The one thought I have is that many countries, US included, has to do anything to prevent deflation because the dficits are so big. So that means printing money. But I do not feel I can see any mental picture of how this plays out.