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Strategies & Market Trends : New US Economy Policy
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To: Arthur Tang who wrote (132)3/24/1998 6:41:00 PM
From: Arthur Tang  Read Replies (1) of 435
 
The new economy has no dents on the fenders?

Most economical developments has to have trial and error. If you bump around you will have dented fenders. How come this new economy has no dents on the fenders?

The new economy started by experimenting in interest rates; FEDS went down to 3% overnight discount rate. When we discovered no productivity increase and no supply side benefits; the interest rate for the 30 year fixed rate was targeted to be 6.5%. The overnight discount rate of 5-5 1/4% was tried out for the last few years with infinite stability and advantages. Then we move to control liquidity. It was perfect for growth. The productivity was then increasing due to automation provided by computer technology improvememts. Labor was attracted to roving economy; shifting to the build up of industry after industry, where labor was needed until productivity improved. Then labor was released to work in the new industry being build up.

9600 industries are being fitted into various number of years plans. Corn production is divided into 3 month plan twice a year. While lumber plans are 100 year plans planned each year. Forests have to be thinned out each year to give more room to grow new trees and let older trees grow larger.

Such is the future of America, we just love it; to plan and let the new economy grow and prosper.
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