nihil, RE: It is useless to use monetary policy to resist rising prices of commodities which are determined in world markets.
Agreed 100%. As I said in the earlier post, I don't think that this has ever been the Fed's intent, nor should it be. That risk is there, and there really is nothing we can do about it now. Prices must rise to attract investing in those commodity industries' capacity. That solution has a long tail, however, and the current price rise hasn't been enough to attract any capital at all. That is why I think that further price rises are probable.
It would be a disastrous mistake to kill off this domestic boom when the world economy is beginning a coordinated expansion.
I don't think that Greenspan is anywhere near trying to kill off this expansion. There isn't much he could do to kill it, save for some very foolish moves; the probability of this is close to zero. There are many other more probable causes that will effect the end of our domestic boom. My greatest personal worry is the building potential of inflation.
There are 10's of thousands of migrant technologists who are not at all sure they can immigrate because of the inept, slow, incompetent INS. Mr. Clinton, knock down this wall!
Opening the US border probably would extend this boom another decade, if not more. Too bad that it is probably political suicide. Mr. Gore, the probable president-elect (ugh!) is getting a good deal of support from organized labor, and he probably would be wearing cement shoes if he opened our borders. |
