Mostly: Classical

[KastelCo]

Yes it's a wonderful scenario...

Inflation eats away on things Americans need to live..

so we better tighten... firm up the dollar...

Make out debts more expensive ....

Our trading partners like that our purchasing power is stable to increasing...

We'll have less jobs though as wages are more expensive... that's OK we have productivity increasing anyway so let's blame it on that and outsourcing..... We can't do anything about that anyway....

Our property values will go down though...

We can't refinance and take cash out now...

Maybe we can't buy more stuff after all...

Who really cares... soon we can't carry our mortgage / credit card payments...

Tightening is great for those with little to no debt... and guaranteed jobs or.... no need of a job... I dunno if that's the majority though...

Now Russell and the Dow theory getting play on mainstream business radio.... Deflation he says....

What you need goes up... what you would like goes down....

This is all well and good (the Fed manoeuvres) but really doesn't take globalisation into account... Whichever they do.... it will cause as many problems as it solves... We're re-balancing globally....and quite a ways to go yet...