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To: Hawkmoon who wrote (55171)	6/26/2000 9:59:00 AM
From: pater tenebrarum	Read Replies (1) \| Respond to of 116753

Ron, money supply growth has far outstripped economic growth over the past ten years. similar to the 1920's and 1980's Japan, the growth in productivity has lulled the Fed into pursuing a far too loose monetary policy , thereby creating the financial assets bubble (essentially inflation has been channeled into financial assets). in '99 $5,30 in new credit has been created for every dollar in economic growth. this is an untenable situation for the long term, and most recent data suggest that no restraint can so far be discerned in 2000. an interesting article on the credit bubble appeared on the prudentbear site (forget the polemic for a moment, and just assimilate the data, and the interesting description of how asset-backed credit instruments are imbued with credit ratings that are far better than the ratings of the assets backing them - a modern version of Ponzi finance): prudentbear.com i agree btw. that the US's position atop the compost heap is a great advantage...and i'm definitely of the opinion that structurally/regulation-wise the US economic framework is superior to e.g. Europe's. however, the social market economy model of Europe has its advantages too. more later... regards, hb