How the new economy is being adjusted?
Since 1992, the economy has been adjusted by redistribution of disposable income of individuals with good job and good pay. The cost of food was reduced to enable the income to buy clothing. The mortgage was reduced, to lease cars. The jobs were created by shifting the income to buy other goods and services so that the economy is rolling along, and the industries were build up one after another over the last 9 years.
This year, the automobile industry with its new design of "crossover" cars; is taking a great deal of the disposable income. Also, Congress passed the law to give social security recipients a greater income without penalties. Most of them have traded in their cars. This shift of spending patterns alarmed many on Wall street when they see retail softened. Yet the consumer confidence continued to be more favorable. The money is just going to monthly payments on cars. Vacation money too is going into car expenses.
However, the formula for the new economy is still the same. Cost of food is slowly coming down again. Retail in department stores is slowly being revived, Restaurants are enjoying the resurgence because of new motoring interests. We have done the adjustments.
Next year, some other industry will get the pocket money from our employed citizens. We think the computer advancement will enable us to have 0% unemployment. This is all on the backs of dis-inflation which is controlled ever so slightly, having supply exceed demand by 5%. Extra labor forces, from the unemployables and senior citizens who have new liability to cover their car payments, will have to join our labor force. Allan Greenspan eat your heart out. This is the science of economical development, squeezing out money to develop industry after industry creating jobs and using productivity to shift manpower into areas of need.
Profits generated over the past and into the future, will by pass the Greenspan foolishness that raises the cost of money. Greenspan forgot that deposits from bank customers provide cheaper money than Federal Reserve Banks. And deposit are plentiful from land development income.
This new economy has been watched every day for nine years, and will be adjusted every day into the future. No one is more responsible than the planners of this new economy, we have done the job. And we will not let anyone take it away. |
