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To: philv who wrote (6677)1/24/1998 4:49:00 PM
From: Zardoz  Read Replies (1) | Respond to of 116762
 
Phil: I saw Milton Friedman on the tube yesterday saying that deflation will never happen. He says deflation is the easiest to control; simply print money!"

What happens when you can't print money fast enough, like Japan? Deflation is the real problem. It's been mentioned that all the inflation in the US is in the Stock market. So the USA Fed is exporting inflation, but importing deflation. Products are cheaper now, and will be cheaper in a few months. The first signs of deflation occurred in June 1997 with the seventh negative PPI. Deflation is rampant in the US. It's a shame that many can't see it.

There is deflation in: Commodities, service, production, textiles, oils, technology. I could go on, but I'm sure Ole/49r needs the bandwidth. [8^I



To: philv who wrote (6677)1/24/1998 10:31:00 PM
From: Ron Wilkinson  Read Replies (2) | Respond to of 116762
 
philv - Friedman's statement is true, however, this Fed is still fighting the inflation threat. They are not likely to inflate until its to stinkin late,
the same way banks strangled credit in '29. JMHO. Ron