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To: Boplicity who wrote (3176)	7/30/2000 12:24:55 AM
From: r.edwards	Respond to of 13572

article from Loest,... In a bigger picture sense, the markets and the nation seem to have developed a very unhealthy attitude toward good fortune, discovery & innovation, and hard work. The majority of market participants seem to have fallen for the pernicious notion of economists who use a loopy, mechanistic model of reality for the economy, that low unemployment, higher incomes and living standards, and higher economic growth rates are "bad" for us. This is based on the idea that they are unsustainable, and will lead to higher prices. In the first place, the Fed and its ilk simply don't know if it's sustainable or not. They won't give the economy a chance to find out. After several years of accelerating growth, one might begin to entertain the suspicion that just maybe the Fed is wrong about this, like it has been about virtually everything else for more years than most of us can remember. In the second place, higher prices are not inflationary. Milton Friedman was right: inflation is purely a monetary phenomenon. Higher wages or broccoli or oil prices do not lead to inflation. These are supply/demand imbalances, and that's clearly not the same thing as inflation, as I've demonstrated. If you have any uncertainty about this, read my analysis. If you are a new shareholder, you will find that periodically I get fed up with the idiotic notion of mainstream economists, and the naive gullibility of the press, that the economy is a machine that they can control in simplistic ways, and go on a rant about it. Imagine you were a citizen of a healthy economy on a different world, and you came to Earth and found a bunch of knucklehead economists rattling chicken bones, and promising fire from the skies if we spent too much money, or got a promotion or, hell, just got a job! What would be your reaction when you found folks cringing under their desks, afraid every time a new economic statistic came out that it might be good news? What would you think about a bunch of old men who had never managed money or run a business in their lives, just read about it, and took their economic rulers and rapped everyone on the knuckles whenever people in the real world got a promotion, or a new job, or invented something that paid them more than an additional 2.5% - 3.0% per year? What would you say to one of these old men and women when they told you that you were spending your money on things they didn't approve of, and if you didn't stop, they would punish you? Would you judge these people sane? This is the world we live in today in the U.S. You can thank Alan Greenspan, the economics profession with theories only Daffy Duck could come up with, and that are never tested against real world results, and politicians who are so ignorant of the real world that they fall for this crap. Let fools be fools all they want. But until we as individuals stop focusing on consistently erroneous economic predictions from the Fed, and loony models of how the economy works by economists, and begin focusing on the nature and theory of value creation,....etc