Re inflation, deflation and other animals
1. Re definition of inflation: myWebster says . an abnormal increase in the volume of money resulting in a substantial and continuing rise in the general price level. If such a reference work as Merriam Webster does not know what inflation is, how should then feds know (g). In any case, seriously, the good ol' Webster did not know the horse from the carriage. It's the changes in price levels, buddy, that force changes in the money supply - assuming the government does not intend to steal and redistribute the GDP by helping itself (which is where Webster got his ideas of inflation).
2. "if Market were to collapse, the printing presses would have to work overtime" Huh? What's the connection? Like, "Yo Greenman, get me 2 Bees of twenties, they jes keep selling. And get me 5 billion of fifties as well, when your're at it, Im running out of them as well". Like, "Now see what you done, everybody wants to have CASH".
If it were so simple, then I have an even better suggestion: Let the presses run, run hot like hell, have everybody fill up their piggy banks all the way to the gills and then let's all have one big ball. Saw that in the old Breughel pictures. A paradise, papered all over with greenbacks. Wonder what you could buy with it."Microsoft"? "No way Jose, they don't exist anymore". "A Big Mac"? "Have a 100 instead".
It is much, MUCH more complicated. Or put it in a different way: it is much, MUCH simpler, but on a much MUCH different level.
3. "we have little known exposure to 'eastern Europe' or Asia". Look at your national debt - thank God you can even serve it, and serve it in a decent, predictable, honorable, exemplary .(add your own words of praise here). fashion. But OTH, you do get decent (low) rates for it. Could it be, that the US hunger for Japan's GDP for the last 20+ years was a cosy and easy short-term solution for long-term problems, which have now exploded into the face of Japan? Japan? Just Japan? Dream on. It is one ship, and even if there's first class and 2nd class etc, there's one and one only bottom to it. Whoever is the skipper - but I guess US is resigned to do the bridge duty. At least one can sit at the top of the captain's table (g).
4. "The...problems associated with Indexing, the country baskets ... really needs to be addressed". What do you think the FEDs have been doing the last 25 years? Gleefully wording the next speech of the chairman, to make US go gaga and cross-eyed for one evening every three months?
D Word? We will have to learn few things about this animal in next 15 months. The first lesson maybe this week, personally from the beloved Chairman.
DJ |
