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S Chun-Li

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S Chun-Li

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Re: osprey post# 140171

Wednesday, 08/13/2003 11:08:44 AM

Wednesday, August 13, 2003 11:08:44 AM

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I see how printing money to buy bonds is inflationary, but I don't see how it will lead to lower rates.

Would you buy a bond denominated in a currency that you knew was being printed up in an inflationary style. Wouldn't you be buying into a scheme that pays back your debt in ten years with dollars that are almost guaranteed to be worth a lot less than when you buy the bonds?
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