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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Jim Willie CB who wrote (6475)	8/4/1998 3:20:00 PM
From: Robert Douglas	Read Replies (2) \| Respond to of 10921

NO CHANGE UNTIL PAIN LEVEL INCREASES DRAMATICALLY... VERY SAD, MUCH SUFFERING TO COME, MUCH CIVIL UNREST. Your words remind me of the "Horta" creature in the old Star Trek episode. "Much pain, much suffering", sorry I couldn't resist. <VVBG> While I agree with you that the IMF policy of austerity can be damaging, it does have its' roots in sound economic thinking. When a country's currency drops sharply the natural result is usually inflation. If too much stimulus is provided at the same time, it could result in a cycle of more devaluation and more inflation. Once begun, this is very difficult to break. After the Plaza Accord devaluation of the US dollar in 1985, US interest rates rose for several years to combat a growing inflation threat. Inflation is now threatening most of the Asian countries whose currencies have fallen. (See ml.com At the same time the trade deficits of these countries are turning into surpluses, which will help stabilize the currencies - precisely what is needed. The next step is good old-fashioned Keynesian stimulus. If this course is followed, maybe we won't see the pain and suffering you think is around the corner. - Robert