Fed policy makers began a two-day meeting – Fed still debates if stagflation ever happened as economy goes into deflation – effects on bonds, stocks, gold and dollar?
Special Correspondent
Jan. 30, 2007

Fed is lagging behind the real scenario, knowingly or unknowingly, for close to twelve months. The stagflation in the economy was totally overlooked. Some say, they knew it very well. They fought inflation by raising rates. They also knew they couldn''t do much against the stagnation while fighting inflation.

Some experts believe the economy has trapped Fed. The stagflation was sector specific. It has now transformed into sector specific deflation. Deflation could have never materialized unless interest rates would have risen from 1% to where it is today.

The deflation is decidedly bad for stocks. It is good for bonds as long as the bond market is not controlled by the Asian Central Banks. It is good for dollar because the shrinking economies all over the world will all on a sudden realize the biggest strength of American economy is its buying power.

Fed policy makers began a two-day meeting – Fed still debates if stagflation ever happened as economy goes into deflation – effects on bonds, stocks, gold and dollar?
Special Correspondent
The stagflation in the economy was totally overlooked. Some say, they knew it very well. They fought inflation by raising rates. They also knew they cannot do much against the stagnation while fighting inflation.
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Deflation back in Japan, started in US and waits to get hold of Europe and Asia
Special Correspondent
The deflation is getting hold of the economy. American economy has just started getting affected by deflation. The housing, manufacturing and retail sector is under the influence of deflation.
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Verizon can go bankrupt if they cannot maintain heavy dominance in wireless market
Special Correspondent
Net income declined to $1.03 billion, or 35 cents a share, from $1.66 billion, or 59 cents, a year earlier....
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Quantitative models show Employers in the U.S. added 145,000 workers to their payrolls this month but there is trouble behind the scene – stagflation or deflation?
Special Correspondent
Business is expanding low wage jobs. The big businesses are squeezing on small businesses any way they can to keep the expansion going. The number of outsourcing contracts is increasing based on information from India.
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Oil prices can go a little further as Mexico's daily oil output at its biggest field plunged by half a million barrels last year, a drop that is likely to continue
Special Correspondent
Crude can rally to $65 or lower first. Collapse fron there below $30 in several years. That will only happen if India and China goes into depression in late 2007 or between 2008-2012. Eventually oil will rise well above $100 per barrel.
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As YouTube starts paying for video contributions, it has opened itself for enormous law suites
Special Correspondent
How do you know if the video was taken not under force? How do you know if the video was taken by setting up after paying cash?
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Stocks have started their downward spiral, oil, gold and hosing will recover and may make new highs
Media Release
Speculation bubble is will explode and finally collapse. The speculation and hedge fund areas will suck in all the liquidity in the next eighteen months.
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