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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: Mike M2 who wrote (81401)	12/28/1999 5:35:00 PM
From: fut_trade	Read Replies (1) \| Respond to of 86076

Thanks for the link. Back in my college days I was aware of A.G.'s participation in Objectivism from my study of Ayn Rand's works. Not much of it "Objectivism" seems to remain in A.G.

To: Mike M2 who wrote (81401)	12/28/1999 5:48:00 PM
From: Ken98	Read Replies (3) \| Respond to of 86076

Mike, thanks for that article I had never seen it before. Heck, Asymmetric Al sounded almost like Heinz. <g> But remember, he wrote that in the 60's and Lord knows what he was smoking. Of particular note: <<The excess credit which the Fed pumped into the economy spilled over into the stock market-triggering a fantastic speculative boom. Belatedly, Federal Reserve officials attempted to sop up the excess reserves and finally succeeded in braking the boom.>> So this is where we are today. I guess the lesson that the Fed learned was NEVER "soak up the excess reserves" and trigger a crash, just keep printing, and printing and printing.... <<But it was too late: by 1929 the speculative imbalances had become so overwhelming that the attempt precipitated a sharp retrenching and a consequent demoralizing of business confidence. As a result, the American economy collapsed. Great Britain fared even worse, and rather than absorb the full consequences of her previous folly, she abandoned the gold standard completely in 1931, tearing asunder what remained of the fabric of confidence and inducing a world-wide series of bank failures. The world economies plunged into the Great Depression of the 1930's. ... The law of supply and demand is not to be conned. As the supply of money (of claims) increases relative to the supply of tangible assets in the economy, prices must eventually rise. Thus the earnings saved by the productive members of the society lose value in terms of goods. When the economy's books are finally balanced, one finds that loss in value represents the goods purchased by the government for welfare or other purposes with the money proceeds of the government bonds financed by bank credit expansion. ...>> Well maybe the other lesson learned here by the Saviour of the World was that so long as the excess supply of money is only pursuing financial assets (and single-family housing) [good "inflation"] and not silly things like furniture, food or whatever the heck the gov't actually measures [bad "inflation"] then, no problemo. Keep printing, and printing and printing... So where do we go from here? If y2k is worse that people think then the bubble pops and the Fed gets off scott free - why they even tried to safe the bubble Congressman. If y2k is AOK like everyone is saying what does the Fed do? "Soak up the excess reserves"? No way will the Fed let their fingerprints be on this busted bubble. If they mere stop printing will that be enough? Do they keep printing? My guess is that they are gunning for the y2k angle (real or not) as the fig leaf to hide behind when its pops. Regards, Ken.