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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: SouthFloridaGuy who wrote (89240)	10/27/2008 7:24:05 AM
From: Dan3	1 Recommendation Read Replies (2) \| Respond to of 116555

Re: Mogul, I cannot for the life of me see how we can get inflation in the near-term. The $170 Billion stimulus that was actually given to people who needed it as a stimulus deferred this mess for more than a quarter. Imagine the effect if the $1 Billion or so given to politically connected cronies to lend out had been instead distributed as quarterly stimulus checks totalling $250 million for 4 to 6 quarters? Imagine if at the same time interest rates were increased and regs changed so that no more bogus loans were being made even as all but the most absurd ones were being paid back using stimulus check funds. Imagine if at the same a security tariff of $25 plus 10% per barrel were put on oil imports, making domestic production of oil and alternatives (relatively) much cheaper and competitive - weaning us away from oil imports during a period in which the ongoing stimulus checks kept it from tanking the economy. Keep those payments too high for too long, and you'll get a huge inflation. Stop them at the right time, and you'll have fixed things.