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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: pater tenebrarum who wrote (112427)7/13/2001 10:41:38 AM
From: Don Lloyd  Read Replies (2) of 436258
 
hb -

mises.org

".... The severity of distortions caused by the loose interest-rate policies of the Fed are illustrated by the record-high ratio of capital-goods investment to personal consumption.

Between 1959 and 1990, the average of this ratio stood at 0.127. In the first quarter of 2001, this ratio stood at 0.225 after reaching a record high of 0.227 in the third quarter of 2000. The massive overinvestment in capital goods relative to consumer goods should force a severe liquidation of capital-goods production. ..."

Regards, Don
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