Zeev's Turnips Patch-No Politics (ZEEV)

[federal reserves]

Misoft> IMHO Roach isn't correct.

I don't think deflation is coming.

No Possible Way.

Stocks may go down sure, bonds go up for awhile due to war fear, but we are not going to have deflation, inflation will rip us. Wages went up this month .7%, biggest monthly increase since 1987. PPI/CPI heading up. Inflation gauges UP! I've counted 4 coupon passes in 2 weeks. The CRB is weak, trending sideways sure, but all that is needed is for it to stay where it is now to pressure the economy and the FED. The FED isn't going to stop the growth of money. They backed themselves into a corner. Pump or die. They'll pump.

Its stagflation, even price controls if the war lasts long. Nixon slapped them on in 71. I think we will get there in 2004.

Roach is wrong about deflation.