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mlsoft

03/08/03 12:34 AM

#84510 RE: federal reserves #84502

federal reserves...

You may be correct about deflation as normally defined not happening, even though a recession (global) seems inevitable. My guess is that the current inflation we are seeing will abate due to the downward pull of the global recession, but I do not rule out completely the stagflation scenario you postulate - the Fed seems intent on printing all the money it can. My question is whether or nor they can actually get that money into the real economy, and for now I remain doubtful.

mlsoft
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Joe Stocks

03/08/03 9:25 AM

#84533 RE: federal reserves #84502

FR, Deflation- Inflation. I disagree. I see deflation coming. Not many have pricing power at the end user level. Much of the inflation we see now is energy related. As the economy slips back into recession and eventual depression I see deflation a s a very big possibilty. I think the chances are much greater than for inflation.

Joe