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Re: Nuclear Containment by The Fed
Posted by: CYBERBA
Date: 04/27/2008 08:36PM
Recommendations: 0
Follow Up to my Previous Post on Fed and Government Policies


Inflation, Deflation and Other Trends:

Consumer inflation will accelerate for, now, as long as the fed stays with their current plan or until financial meltdown occurs. The Fed will attempt anything it deems necessary to avoid the Japanese deflation scenario. Inflation is increasing, in part, because the Fed is pursuing inflationary policies to avoid a deflationary economy. When meltdown occurs, the world economies will basically shut down creating consumer deflation in nonessential goods and services--and in some commodities like oil for a time--in addition to the current asset deflation we are seeing, now.

Governments of various countries will then turn to inflationary policies at various points to try and pay off debts and purchase goods… this will result in the worst of hyperinflation as governments try to remain in power and keep their populations from riots and insurrections--of course, the hyperinflation activities will eventually result in the same behavior by their citizens. Some countries will have more success than others. Which ones will be the winners and the losers?

There will eventually be wars over the essential resources of water, arable land, timber, oil and precious metals.

Security and defense-related companies will surely prosper in this environment. Outsourcing firms… and pharmaceuticals manufacturing both drugs to fight infectious diseases, as well as, nutritional-related products should prosper, too. More profits will generated by companies in alternative energies, recycling and pollution controls. Unless there is a new discovery in the production of energy, I should think that the American Railroads will see a renaissance of their previous Golden Years and finally be comparable to the existing rail lines in Europe and Japan.

Always remember that what you think and what the sheeple think can be completely different. But that’s a good thing. Every seller needs a buyer… and vice versa.

Bull and Bear Traps... they're all good : )


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