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Non-Tech : The Critical Investing Workshop -- Ignore unavailable to you. Want to Upgrade?

To: R.V.M. who wrote (739)	1/16/2000 12:03:00 PM
From: Jim Willie CB	Read Replies (1) \| Respond to of 35685

on the Fed: they are not a private bank, rather a bank for banks they have a legitimate charter for overseeing banks, managing credit market offerings, managing US$ money supply, and more so much gray area about observing the health of the economy, about monitoring inflation, about gauging the hemorrhage in balance of payments related to imports vs exports my beef is their hidden agenda of keeping the stock market from unduly influencing an extraordinary heatup of the economy from a very real wealth effect... when my account is way up, I think about some discretionary purchases... when my acct suffers declines like in last two weeks, I think about hunkering down for several more months my astonishment comes from false myths that the Fed lives by, acts by, and cannot seem to shake... I have frequently spoken about these falsities over the course of eight months false: - growth begets inflation - money supply surges beget inflation - low unemployment begets wage inflation true: - growth begets increase in both demand and supply - US$ is infused thruout dozens of foreign economies - machines and foreign workers compete against American workers (principally Mexico and Canada) the Federal Reserve faces a stiff challenge in the next few months as it must replace several retiring regional governors... the retirees are from the new school who understand the new economy... the non-retiring are from the old school who think inflation must be dealt with firmly... just what inflation they see, who the hell knows? the Fed statisticians fail to properly measure productivity... even though they measure it as higher, they seem to grossly underestimate it... e.g. falling PC prices are seen as a decline in productivity since sales receipts are slowing in growth the Fed statrats fail to understand the US economy is more like a North American camp... for all practical purposes Mexico is a huge blue collar labor state... Canada is another partner, more like for technology, raw material resources, and much more when was the last NoAmerican unemployment rate or productivity rate or inflation rate you ever read about? I rest my case as more and more former inflation rocketship foreign economies anchor their unstable currencies with the daily infusion of the US$ as currency of trade interior to their domestic economies, we will see skewed US money supply figures and confusing statistics on them... Argentina just went to dollarization... Cuba is already... eastern Europe prefers dollars to their own... why no inflation? .. money is spreading to the entire world big danger next few months: OUR OWN FEDERAL RESERVE IGNORAMUSES Greenspan is not an ignoramus... the board governors are now that is progress... a diverted target of my ire how about some good football games today? yesterday's saw a blowout and a second tier battle / Jim Willie