James > I just don't understand why you see a growing economy
If you read what I said, I was being sarcastic about the "growing economy". I said the jobs growth will be in China, and I'm serious about that. Nevertheless, what does "economy" mean? It means whatever they want it to mean. And it doesn't mean what it used to mean, namely, an increase in industrial production and "real" employment --- for Americans.
Every evening (morning?!) when I go to bed I listen to Bloomberg on satellite radio and I hear that the so-called "growth" will be in car sales, housing sales and increasing sales in household goods. Now, what kind of "growth" is that? It's clearly bullshit --- but that's what they are calling growth.
That piece about the interview with John Snow is emphatic that "growth" will be 4% for the rest of the year and 4% throughout next year. I have also heard this on Bloomberg radio. Apropos jobs, what kind of crap is this?
>>>4 per cent growth would “translate into roughly two million new jobs from the third quarter of this year to the third quarter of 2004 – that’s an average of about 200,000 a month<<<
They are creating jobs out of numbers!!
Nonetheless, and this is where I am serious, growth, however it is made or whatever it is meant to be, is growth and will impress economists all around the world simply because that's the kind of stuff they like to hear. Growth is what they are taught in school and when they hear growth they get an erection!
Furthermmore, this growth justifies the increase in interest rates which is happening from the sell-off in Treasuries. So it appears that the bond sell-off has happened because of anticipation that the growth is real. In other words, they are using a fall in the bond market to confirm the growth in the economy.
Thirdly, I have always believed it doesn't suit them to devalue the USD and it doesn't, Snow said so. Now, with an increase in interest rates and "growth" in the economy happening, there is no reason why USD should not also go up. They will talk it up. That means they can buy more things with the paper. That means the economy will continue "growing" --- buying more things means more growth. And that means the USD will go up some more..... and so on.
In my opinion where you, and those who think like you, make your mistake is that you underestimate the power of bullshit. You believe, because you see that it's all nonsense, that a return to "real" values and "hard" money is now inevitable and the system is imminently about to collapse. It's not. This paper-money, debt-creating, job-reducing, rogue-infested bullshit story is not going to stop. In fact, it's not only going to continue but it's going from strength to strength. And that's not because I want it to, either. I am just a fly on the wall, but that is how I see it.
And, let me tell you, the story with gold is no different. That's as much about bullshit as is the rest of the economy. In fact, gold is as much a store of value and an insurance against a rainy-day as a dollar bill is --- and you know what you can do with that piece of paper! |
