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:: Tuesday, January 06, 2004 ::

Rest of world gets sick of propping up Bush's deficit:
"US interest rates are now further below the American GDP growth rate than at any time since the 1970s. The 'output gap' that measures the difference between the economy's production and potential has probably already closed.

By the end of next year, Kalirai predicts the effects of a falling US dollar on US import prices, rising prices transmitted through Chinese and Japanese exports, and a tight US labour market (despite rising unemployment) will translate into a US inflation reading above 3 per cent.

'The Fed's goal is not to avoid deflation but to create inflation' says Kalirai."

:: Jim Nichols 1/06/2004 10:20:00 PM [+] ::
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