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In a prior response to a question about inflation, you wrote: “We are not expecting a significant rise in inflation over the next two years. The economic environment we are experiencing today reflects an unprecedented period of global deleveraging which, in our opinion, and in the opinion of Federal Reserve Chairman Ben Bernanke, makes deflation a greater threat than inflation.” I'm still a novice at bond investing. I infer from your response that the huge looming increase in money supply will be largely absorbed by banks and other institutions as they increase their cash reserv
- D.L., Arizona
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