<<You really think the FED/government officials are totally ignorant of this happening? I believe they know exactly what is going on...even if by chance they did not a few years ago, they do know now>> of course they are keenly aware of this, far more than they will let on; but being able to do anything about is a strong odds against.
You know the old adage, trying to stop deflation is like pushing a string.
Deflation is the numero uno fear of many economist as it is an imploding event rather than an explosive event.
it is easier to bring inflation back to earth than dig deflation out of sinkhole.
But the Dr. Marc Faber fellow i consider so intently is because his ideas fall together in my mind as damned logical.
His scenario is a brush with deflation that will ironically set a move into rampant inflation, this is withinn a unspecified timeframe other than it being a process within the next 10 years.
For me, the element as i see it, is that a massive bubble and it's process of crumbling creates cracks and fissures and a pandora's box of complexities.
Stiglitz, who was in the inner circle of Washington economists, said he felt Greenspan, Rubin and Sumner he was witnessing the action of Hubris at play.
They(Greenspan/Rubin and Sumner etc.) had found the answer to the riddle of boom and bust cycles, and it would never happen again.
Stiglitz now is outspoken against Globalization.
For me , i simply simplified all this some time back as a problem of Entropy.
The decision to dump in the first week of April 2000 was i felt i detected what i was looking for, the Big Bang had reached its' apex and now Entropy was the future(the terrific Tradeable Swings come, i feel, from desperate attempts to re-energize an entropic process--well good luck Fed:).
I was at that time going to change my handle to Entropy but found a fellow already had it:)! There now are 4 variations of entropy handles on SI. Max |
