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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Frodo Baxter who wrote (4096)	6/7/1998 12:41:00 AM
From: Frodo Baxter	Respond to of 9980

Much better analysis of the liquidity situation in this week's Barron's interview with Joe Toms. interactive.wsj.com Rather than liquidity exploding and causing all manner of weirdness, he is predicting liquidity growth will slow, with concomitant effects on national growth. This is a much more likely scenario, IMHO. The correlation between M3 growth and inflation is tenuous, delayed (2 years or more), and has completely broken in the recent past. On the other hand, the correlation between M3 growth and real GDP growth is strong, fast, and still holds.