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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: Freedom Fighter who wrote (764)	9/12/1998 11:37:00 AM
From: Bob Rudd	Respond to of 1722

Deflation - "Profits can disappear" They already have in many labor intensive and commodity oriented industries from TV's to textiles. That's why they aren't made here and won't be. The basis of US profitability is innovative technology and branding not parity of supply and demand. Has been for quite awhile. Your point on global excess capacity is well taken, though, and gets at a fundamental problem of economics - ballancing production and compsumption. Excess credit creation and Japan's out of balance production vs consumption has tilted this the wrong way for a time. These imbalances will occur, but policy makers are better informed now than during prior deflationary periods. We'll see how they do. Regards, Bob