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

To: MeDroogies who wrote (28827)	9/15/1999 4:14:00 PM
From: ynot	Read Replies (1) \| Respond to of 50167

yes, but rates are also affected by monetary policy, forex, import/exports etc... CB has a point as increasing rates do increase cost of capital not a simple thing, but economists often confuse themselves or are confused by politicians who on the other hand are terrified of traders :) ynot ;)

To: MeDroogies who wrote (28827)	9/15/1999 5:41:00 PM
From: Crystal ball	Read Replies (1) \| Respond to of 50167

Inflation means higher prices, and that means goods, services (wages) and Money i.e. also the COST OF MONEY. If you do not understand that money is a commodity too, then you should seek more advice before you invest in any market anywhere in the world. Don't just hit the books, open them and read them too. Sure higher rates may seem like only a symptom of inflation to those who were not vigilant to avoid inflation in the first place, but I stand by the fact that they are also a cause of inflation...simply because there is no such thing as a free lunch, and all increased costs are eventually passed on the the consumer and that does mean that the higher cost of money is also, and thats inflationary, and starts the inflationary cycle and all that is bad about inflation starts there. It can start with wages or prices etc going up too, it can start from any increase, but this time it was and is started by the FED's increased rates, and Treas bonds are abetting this problem and its all for ill conceived political ends that the MARKET left on its own, would adjust on its own, without failed political agendas interfering, quite greedily and jealously I might add, in this century's greatest bull market and properity. Don't fix what ain't broken...Greenspan is meddling where he is not wanted or needed...he is part of the problem, not the solution. I am, Truly yours, -Crystal Ball