Novak's Column Jude Wanniski July 16, 2001

Bob Novak's column today is of critical importance because it suggeststhere is growing support inside the Bush adminstration for my deflationthesis. Novak quotes me throughout as having been alone in seeing theunfolding deflation and the fact that traditional medicine -- tax cuts orinterest-rate cuts -- will not solve the problem. Remember I advised DickCheney and Paul O'Neill of this several months ago, and did so in clientletters, and enough time has now elapsed so they can sense the validity ofthe arguments and take them seriously. If there is to be a reversal of the deflationary bear market, it has to start with recognition of the cause.The Novak column is on the margin.