FEREDERAL RESERVE

THE BEST WAY TO DEAL WITH DEFLATIN IS FOR THE CENTRAL BANK TO FLOOD THE ECONOMY WITH MONEY IN ORDER TO PERSUADE THE PUBLIC THAT INFLATION WILL RISE INT HE FUTURE THEREBY REDUCING EXPECTED REAL LONG TERM INTEREST RATES.ADVICE WOULD LEAD CENTRAL BANKS TO KEEP EXPANDING THE MONEY SUPPY AN BANK RESERVES EVEN AFTER DOING SO NO LONGER LOWERS INTEREST RATES.
THE FEDERAL RESERVE THE BANK OF ENGLAND AND THE BANK OF JAPAN ARE DOING JUST THAT UNDER THE NAME OF "QUANTIATIVE EASING"

UNITED STATES THE INTEREST RATE ON GOVERNMENT BONDS NOW RISES FROM 1.80 PERCENT AT FIVE 30-YEAR BONDS.COMPARING THESE INTEREST RATES WITH THE YIELDS ON GORNMENT INFLATION PROTECTED BONDS SHOW THAT THE CORRESPONDING IMPLIES INFLATION RATES ARE 0.09 FOR FIVE YEARS 1.3 PERCENT FOR 10 YEARS AND 1.7 PERCENT FOR 30YRS

BILLY LEE SCIENTIFIC FINANCIAL ADVISOR