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To: Investor-ex! who wrote (13098)	6/13/1998 9:38:00 PM
From: philv	Read Replies (1) \| Respond to of 116791

Milton Friedman & Others (ahhaha): Friedman says that deflation/depression is the easy for C.B.s to control---simply increase the money supply. Problem is, you still have to distribute money to the population somehow, and that is done by lowering interest rates and inticing people to borrow money now. This is Japan's challenge. Will their population borrow, spend, spend? Like North America? Can they inflate faster than the drop in confidence, and when they do, what is the consequence for re-inflation? Place your bets. Phil

To: Investor-ex! who wrote (13098)	6/14/1998 10:19:00 AM
From: Crimson Ghost	Read Replies (2) \| Respond to of 116791

Investor X Tou are correct. I should have said we are on the verge of a seismic shift in economic and financial policy aimed at preventing the ongoing depression in Japan and many developing economies from spiralling out of control and dragging down the US and Europe and well. As gold's recent action again shows, escalating deflationary pressures are very bearish for POG. But the inevitable inflationary response at a time when POG is exceedingly depressed will be incredibly bullish.