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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Crystal ball who wrote (28512)	9/1/1999 10:01:00 AM
From: MeDroogies	Read Replies (1) \| Respond to of 50167

Your comparison to the dynamite is ridiculous. There isn't any comparison between the two. More likely is the comparison to an engineer who builds a house that slowly deteriorates, and he watches it deteriorate. Then, one day, a guest leans on a supporting beam and it collapses. That would be an appropriate comparison. Who's at fault there? No doubt our convoluted legal system would find against the leaner. But the truth is much more evident. You couldn't possibly have much of an economics background if you believe otherwise. Furthermore, Bretton Woods had little to do with the Fed as an institution and its functions. What Bretton Woods DID do is alter the Fed's focus slightly so that it had to consider the value of the dollar on international markets, which it had previously never done. If you think the Fed was just a windbag institution - what is that based on? The fact that it was BECAUSE it was...or BECAUSE it acted like one? The TRUTH is the latter. It had the tools to do most of the same things it does now, but it refused to take action most of the time because of a lack of theory or historical precedent. As for your "deer in the headlights" comment....I've hit one before. If it's in the headlights, you don't have much of a choice - it's pretty much venison. And Ford, of course, has nothing to do with it - that's just Fate - which is entirely different. BTW, before you start spouting about Inflation, take a look at Japan and start worrying about DEFLATION. Inflation isn't likely when countries with large savings rates have a ballooning debt problem. The likelihood is that they will continue to maintain downward pressure on prices in order to keep market share, hoping to keep profits in place. In addition, the US will not suffer inflation for several reasons. The first is that the labor force, which used to supply wage/labor inflation, is more service oriented now. This prevents rapid growth of wage/labor inflation. In addition, more of these jobs are low wage/high stock option positions (such as mine). As a result, my bonuses are paid in options, and my wage increases are a mix. Secondly, the market IS overvalued - but do YOU know by how much? Not likely. Why? Because we are in a period of innovation and development unseen in our history. Sure, we had periods of high innovation before, but the vast majority of the populace was shut out of the gains that were created. The driving force today is the INCLUSION of the populace in these gains. In addition, you have to accounted for the rapid pace of innovation, and higher margins of profit.