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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (44130)	12/21/2008 4:06:43 PM
From: TobagoJack	Read Replies (2) \| Respond to of 217764

<<... Massive liquidity injections will not cause inflation until velocity of financial transactions recovers ... At that point the Central Banks will have to act to drain liquidity from the financial system to compensate>> ... i am certain that the officialdom WILL get the velocity of money up, and i am not at all comfortable that draining will take place to any extent necessary when compensation ought to be. also, whereas the world has fallen down in sync, the planet will not stand up together, and i believe the usa will stand up later rather than sooner, but its dollar will not reflect that eventual truth, and so inflation will be more ferocious than usual. <<Btw, did you get any further information on retail demand in China since last month?>> i am getting the sense that everything is down 9%, no matter what number we are talking about, and if so, the counterattack now gathering force will be of unusual ferocity, and when so ... omg <<... there's a perception in China that they are looking at devaluation of their currency and deciding to buy in advance of that>> ... i believe folks believe (i) chinese new years will be in january (which it will be), and (ii) devaluation will also be (let's watch n brief) btw, i am for deflation and inflation, of what i need and have, respectively.