Lee you miss the basic point: The idea is to KEEP THE FACTORIES OVER 80% CAPACITY UTILIZATION AND WITH INCREASING PRODUCTIVITY. Greenspan's whole theory is to raise rates, and as the cost of money goes up, so do goods, and labor and this ALWAYS DECREASES PRODUCTION. Please do not rely on the 74 Whip Inflation Now doomed Greenspan "WIN" policy or data when Greenspan was Ford's Inflation CZAR. We do not want another OPEC oil embargoe and double digit inflation, and market crashes, or big correction like your 87 data should show. We want to keep this country prosperous, not cut production. If you cut production, you cut the supply and that means simply more inflation and prices adjust upwards to meet demand...unless you get a drop in population which is not likely, or some other drop in demand. In short, our production and wealth will by the shear force of economics be siphoned off to higher population lower labor rate countries like asia...thats all Greenspan is doing.
I am,
Truly yours,
-Crystal Ball |
