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Re: [RT] QUESTION ON DEFLATION



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Kondratieff lives. The FED is aways in the act after the fact and can 
only make things a little better or worse at the margin. They haven't 
the power to repeal the long term effects of demand and supply. Nor 
does any other single group.

Deflation was done by 2003 and won't be back for 2 1/2 decades. We're 
just seeing a little contra-trend correction now. Use it to get rid 
of any remaining investments geared to deflation.

--- In realtraders@xxxxxxxxxxxxxxx, "Trey Johnson" 
<dickjohnson3@xxxx> wrote:
> Keynesianism lives?
> 
> -----Original Message-----
> From: realtraders@xxxxxxxxxxxxxxx 
[mailto:realtraders@xxxxxxxxxxxxxxx]
> On Behalf Of Robert Pardo MS
> Sent: Tuesday, May 17, 2005 12:53 PM
> To: realtraders@xxxxxxxxxxxxxxx
> Subject: RE: [RT] QUESTION ON DEFLATION
> 
> 
> The Fed does not have the tools -- other then really cheap money -- 
to
> prevent deflation.
>  
> Deflation prevention -- which I don't believe is ultimately 
possible if
> push comes to shove -- is more in the hands of policy makers.  
Federal
> spending, tax relief, and tax incentives to spend.
>  
> Regards,
>  
> Bob Pardo
> 
> 
>   _____  
> 
> From: realtraders@xxxxxxxxxxxxxxx 
[mailto:realtraders@xxxxxxxxxxxxxxx]
> On Behalf Of Charles Meyer
> Sent: Tuesday, May 17, 2005 11:42 AM
> To: REAL TRADERS
> Subject: [RT] QUESTION ON DEFLATION
> 
> 
> Group-
>  
> Would someone like to weigh in on the issue of whether the Fed can
> prevent a Deflationary scenerio?  This has to do with
> the velocity of money; or how fast money will be spent once it is 
put
> into the economy.  Will the printed money be spent
> at all; or would consumers use to it further reduce debt?  The
> contention is that the government or the Fed can make the money
> available, but if consumers or business does not spend it, the 
result
> will be Deflation anyway.  I've read that while this statement is
> partially correct; it is not the case of the U.S.  Japan is the 
example
> used where Deflation has been ongoing now for about ten years.  
However;
> it is said that Japan has a couple of things going for it that helps
> them withstand Deflation 
> which the U.S. does not:  consumer savings and little or no debt.  
As
> the theory goes; the U.S. cannot take a Deflation which is why the 
Fed
> guy Bernanke says they will do whatever it takes to prevent that
> economic scenerio from happening.  The consequences of that action 
is
> simply stated as 'inflate or die' and the result would be; well:  a 
LOT
> of INFLATION.  The
> question is; does the Fed in fact possess the tools and power to 
PREVENT
> A DEFLATIONARY ECONOMY?  
> Thank you for any thoughts or comments.   
>  
> Chas
> 
>  
> 
> 
> 
>   _____  
> 
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