To: waverider who wrote (41241 ) 9/15/1999 11:05:00 PM From: Jim Willie CB Read Replies (2) | Respond to of 152472
DiamondMan, this inflation thing is a tool.. pure and simple, a tool mfred by Fed for the secret purpose of keeping the lid on the stock market with money supply going apeshit last autumn, the Fed has pulled back (perhaps too hard).. result: slipped dollar since July which now endangers Japan's recovery Fed allows inflation fears to linger.. they know full well that growth does not lead to inflation.. well it does, if you totally suppress addition to supply.. but we are a free country with low barriers to entry unless you are Richard Nixon in 1971.. that was textbook planting of inflation seeds with his folly "wage price freeze".. I actually sued my landlord for a rent hike, forcing him in court to roll back rents in 250 units.. he did not like me.. I didnt give a shit Fed incorrectly also believes that wages must be offset by productivity, failing to factor in the "wage of the machine" which is dropping fast the Fed is done.. they played their hand.. no more hikes.. only words to whip up fear.. no evidence of inflation except for May CPI report and yes, another thing.. rise in oil and gas prices is DEFLATIONARY.. easier to view it as a brake acting upon the economy, drawing capital away from productive growth.. the Arabs will fall out of ranks soon anyway, so that is temporary.. it is like a tax slowing down the economy.. got that ass backwards too.. anything to cause fear of inflation we cannot shake the experience of Nixon's screwup, which led to Arab embargo, which led to Volker unprecedented money supply expansion, which led to $800 gold, which gave us inflation.. Nixon caused the first domino to fall.. the rest is history.. I wish it were more complicated.. inflation is incredibly simple, stated in extremely complicated terms by the "experts" if money supply growth exceeds the GDP (factoring in trade imbalance) then inflation results.. last autumn saw the US Fed Reserve providing liquidity for the entire world, risking after-effects months later...... NOW.. that is why they tightened money supply and raised rates when inflation was NOWHERE good night, Gracie / JW