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To: BGR who wrote (68189)10/12/1999 4:26:00 PM
From: Cynic 2005  Read Replies (3) | Respond to of 86076
 
BGR, some folks, eventually - for better or worse, will come to the realization that they are wrong even when they made decisions by exhaustively analyzing data. What it really means is that the socio-economic factors and data anlysis are no match for inherent 'feelings,' which drive emotions and there by the decisions. Data, as irrelevant as it might be in the ultimate analysis, is sought by several policy makers to guide fiscal policy, be it politically driven or socially driven, to assure public that they are doing the right thing. As it turns out, capitalism is not based on the presumption that everybody can be rich, which in fact, is the ideological backbone of socialism. Here, rich is defined by a state in which the subjects, i.e. the people, will have enough money to purchase the goods and services they need and desire without regard to the price they pay. If you look at it closely, as I have done, it is not different from socialism where the needs are met by the State and desires are non-existent (and hence can be treated as fulfilled).

The social/political/economic order preached by you dictates that everybody in the society be rich via index fund purchase because they always go up. Should there be an unfortunate event occurring due to free-market activity and should it precipitate towards a calamity, there is the Feds to come to the rescue and hence there is no risk in investing in the markets - or so you preach.

Such homogenous and vastly opaque monetary policy is, indeed, a liability in the capitalistic society. The mantra preached by Greenspan and his cohorts last October was to assure markets' confidence. In other words, play the confidence game. However, the problem with the confidence game is it works as long as there is confidence in the people who assure the markets. At a time when there are so many imbalances in the economy, it becomes almost impossible to protect one facet as it would cost dearly in another. If the system has created 200 billionaires in the last 5 years, and all of them combined, have 200 billion in CASH, there SYSTEM would have lost as much, be it in the banking or from the savings accounts of individuals. What I mean is, there is no free lunch.

Apart from the subject matter I presented in this note, you might have noticed a change in my writing style. Your writing style has impressed me so much so that I wanted to imitate you! How did I do? -g-



To: BGR who wrote (68189)10/12/1999 4:43:00 PM
From: Oblomov  Read Replies (1) | Respond to of 86076
 
BGR, this is all true, but what specifically about the Austrian
perspective is in opposition to your views? What would be your
ideal monetary regime?

AA