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.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: KyrosL who wrote (69625)	2/21/2001 10:58:59 AM
From: pater tenebrarum	Read Replies (1) \| Respond to of 436258

first of all that is quite obviously NOT its only power...the Fed is much more powerful than people are apparently aware of. in theory they can monetize any type of debt out there...and they have already begun to include agency bonds in their repo operations, so the shift toward monetizing unusual (read: non-government) paper has already begun. look at the money pumping that began in November last year, well BEFORE the FF rate was lowered. the FOMC has produced money supply growth of nearly 20% annualized over the past three months, a banana republic type growth rate. the same happened around the y2k date change, without the FF rate moving one bit. admittedly the Soviet Union comparison is a bit graphic - but that was my intention. people have to realize that the Fed, a central planning agency populated by bureaucrats, lies at the heart of our purportedly capitalist system. do you think the dollar would have lost over 90% of its internal value since 1913 without the Fed? do you believe we'd have had the biggest financial asset bubble of all time without the interference of the Fed? look at the explosion of credit since 1995 - i'd say that's a LOT of economic power being demonstrated there. the PPI raw materials component's rate of change hit a fresh 26 year high per last week's data, and the slower moving intermediate and finished goods components have begun to play catch-up...the Fed is debauching the currency, something that would not have happened were short term rates left to the free market. more on the creeping socialism in the economy: safehaven.ca 'Central Banks rule the world'....