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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: russwinter who wrote (762)9/16/2003 11:34:38 AM
From: Jim Willie CB  Read Replies (1) of 110194
 
interview with Gramley, former Fed Governor (typical crapp)

he said rates are low, productivity is high, which should be instrumental for creating new jobs
(nevermind that productivity's only beneficiary so far in ten years has been low prices for consumers)

he said "we have slain the inflation dragon"

AMAZING, SUCH AN ENORMOUS STAGGERING BLIND SPOT
HOW ABOUT THE INFLATION IN THE BOND MARKETS, AND IN REAL ESTATE ???

our economy is managed by blind people
in the mid-1990 decade something significant happened
the Fed under Greenspan managed the money supply by not allowing it to grow much more than the GDP growth
then they changed
in the latter half of that historic decade (akin to Roaring Twenties), GreenSpasm decided to manage the money supply by keeping the spigot running as long as price inflation did not show up
BUT THEY MEASURED SUCH PRICE INFLATION VIA THE C.P.I.

which means as long as consumer prices are low, keep inflating the monetary base
unbelievable
the CPI does not count real estate, the stock market, and a host of costs such as insurance, local taxes, entertainment, college tuition, etc

so we got a speculative bubble which economists to this day cannot explain
and we now have bigger spec bubbles which they call good
UNTIL THEY BUST

/ jim
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