|
I really don't think he is looking for inflation any more. As he told Congress, the odds of seeing double digit inflation this year are below zero. He has been using the inflation excuse for a long time, but recently has exposed what he is really after -- the "wealth effect." Now, where is that wealth effect? It certainly is not in holders of Dow stocks, or S&P stocks, or even the average Naz stock. It is only in holders of the fastest growing companies in the Naz, companies like JDSU that are laying out the infrastructure for communications and a better life for the rest of this century. The problem is he has neither the charter nor the tools to selectively go after companies or investors. The charter does not bother him, since Congress and the executive branch have rolled over and let him do whatever he wants. But he lacks the tools except for the bully pulpit and interest rates, neither of which is particularly good for going after companies that have no debt and that have real technological advancements. But, and I think this is where he is dangerous, at his advanced age, and with his tunnel vision, he will keep using what he has, interest rates, until the economy as a whole is destroyed. |
