Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (920)	1/30/2001 3:16:58 PM
From: GraceZ	Read Replies (1) \| Respond to of 24758

Do you think Japan's central bank could have prevented their deflationary cycle by doing something more? They moved interest rates to zero, yet no one would borrow.

To: ahhaha who wrote (920)	1/31/2001 12:57:41 AM
From: jack bittner	Respond to of 24758

you are surely correct when you write that it is impossible usefully to regulate the price of money. as late as november the Fed was fearing inflation - at the very moment when the economy was falling away beneath our feet. had they not exacerbated a normal slow-down by raising rates we would not be in this pickle now, and they would not be abruptly dropping rates and anxiously seeking a tax cut. far as i know, not a single talking head has noticed how wrong the Fed has been - while the evidence appeared before them only last month. nobody notices that the hero in the fed has been jamming on the brakes and then jamming on the accelerator, when it's all occurring before their eyes. there'll be more pushing on the string with increased money supply. and suddenly the monster of inflation will rise. this is where i came in. i do believe it is profoundly psychologically useful for virtually all to believe that our money is controlled by an infallible god. it avoids panic. the powers believe someone must regulate rates. thus, if Greenspan didn't do it, we might have someone truly dangerous. this is the can-do country and we cannot accept that something will work unless we tinker with it. your prescription of leaving it all alone and suffering a bit this year until the tinkering clears out of the system is perfect. this subject echoes the medicine craze this country suffers. the healthiest people i know take no pills. the rest think that such people don't take pills because they're healthy. rather, they're healthy because they don't take pills. but Americans must tinker.