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Gold/Mining/Energy : A to Z Junior Mining Research Site

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To: SOROS who wrote (4442)5/19/2003 11:33:17 AM
From: Jim Willie CB  Read Replies (1) of 5423
 
yes, Pops, we are deep in a twilight zone

the Fed is giving money away
but that money does ABSOLUTELY NOTHING in helping debt servicing

it is being wasted in propping up a bankrupt economy and financial system
now that surely sounds like a crazy person
well.....

$4.5 new dollars in credit creates $1 in new GDP
76% of the GDP is devoted to debt service
THAT IS AN ECONOMY SPINNING ITS GEARS, if I ever saw one

next on the docket: arrival of bad inflation
not reflation
the public is not seeing this properly either

rising production costs ==> reduced corporate earnings
rising energy costs ==> reduced household spending

the economy's MONEY VELOCITY is slowly markedly
the Liquidity Trap is tightening

/ jim
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