"When in Doubt, Vote Them OUT!" Why GreedSpammer should not be reannointed or re-appointed to the Fed. The only inflation is the inflation now created by the Fed, and thats due to the lag or delayed effect of the last two Fed rate hikes (and Treas. bond yield hikes too), since wage increases only happen when you are worth it to the employer (increased productivity, more duties, etc. NOT A FACTOR WITH THE FED's ACTION), OR: when your house and car payments increase, and you need a bigger paycheck to pay your monthly debts, thus as interest rates rise to meet the higher cost of money (Treas and Fed) due to Greenspan tightwadding at the spigots, there is at least a month delay, FIrst at your bank/S&L or Credit Union; and then when YOUR NEXT mortgage or car payment is due, ditto for Credit cards, not usually on interest rates, but on sneaky finance charges and late fees hikes. Same holds for Union or overnment employees tied to the CPI, there is a lag, then the next month wages need to get increased. Then your employer, facing higher wages has to increase the costs of goods and services, same hold true for execs and unions etc negotiating salary and pension plans and profit sharing based on stock options etc for 401K plans and the like, when interest rates kill off the market, the stock, as a currency, is worth less (not worthless, just not worth as much as before GreedSpamming took effect) and more is needed or cash is needed to make up the difference. These costs, obviously get passed on the the consumer, who demands higher wages to pay for them, or consume less, which means slow production, layoffs, foreclosures, repossessions, but more importantly: New High Tech Companies are not born or are butchered and eaten up by the larger Multinationals. If this sounds like spiralling Inflation of the 70's it is, add to that spiralling (Viral) deflation downward of stock prices) and you have a crash, and maybe the making of a depression. We never had the 120x times earnings multiple BROAD across the entire market or as high real estate prices as the island nation of JAPAN, for which Greenspan really is basing his hysterical sky is falling model, but which becomes a self fullfilling prphecy, only because we have allowed the Fed much misplaced power and influence today, Well Today is not Post World War 2, Bretton Woods, Marshall Plan rebuilding of War torn Europe and wholesale sell off of high tech steel mills to Japan, and with it autos, tv, chips, computers, etc., this time it will be pouring the whole economy down the asian drain.
Of course, being a practical opportunist, I am buying at these bargain prices. I will cry for the America that could have been, without GreedSpamming, all the way to the bank, knowing that with our financial markets being 52% of our GDP, there is no way any politician, (with the Pres. Election looming GORE/BUSH/VENTURA etc)will reward Greenspan by reappointment, therefore Clinton can not do so, Alan became his own scapegoat. Otherwise, look for the economic havoc to play big in the election, and for the first time since Andrew Jackson, the entire Congress may be "VOTED OUT!"
I am,
Truly yours,
-Crystal Ball
P.S. I have to change my GNET positon, since the buy recommendation came out by Paine Webber, GNET will not take a hit for now, it will get AOL syndrome next week, or tommorrow instead. |
