Fighting inflation might just be a ruse to re-introduce a strong dollar policy....
--Dr. Jeff Sommers [EMAIL PROTECTED] (m) +1 414 324 8184 --Stockholm School of Economics in Riga (SSE Riga) Visiting Professor --Silk Roads Project, Co-Director --Center for European & Transition Studies, University of Latvia, Fellow --Institute for Globalization Studies, Moscow, Fellow Date: Wed, 28 Jun 2006 08:56:53 -0700 From: Jim Devine <[EMAIL PROTECTED]> Subject: =?WINDOWS-1252?Q?Re:_[PEN-L]_The_Real_=93Flation=94_Threat?= Sabri posted: The Real "Flation" Threat >Deflation, not inflation, is what Ben Bernanke should be worried about. >By Robert B. Reich >Each generation responds to its own traumatic memory. Ben Bernanke and his Federal Reserve remember the double-digit inflation of the 1970s and are determined to mount a preemptive strike. That's why they're poised on raising interest rates yet again. Bernanke and company have no direct memory of the trauma that haunted the previous generation, the depression of the 1930s. < this isn't exactly right. Benanke seems to have been a major influence on Greenspan when the latter engineered all of those rate-cuts in 2001-2. This was done partly or largely to avoid deflation.
