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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: edamo who wrote (32082)	2/28/2001 12:10:52 PM
From: thames_sider	Read Replies (1) \| Respond to of 65232

it is up to the administration to dictate money policy, the fed is an independent operative tool to achieve same... the fed is owned by "for profit" entities.... Ah, my misunderstanding. I thought the Fed's mission was under less control. The UK's MPC, which sets interest rates, is entirely independent (well, inasmuch as anything can be): I believe any changes to its monetary policy goals have to be approved by Parliament, and would be almost impossible for 'political' ends. Mainly it has the remit of keeping RPIX inflation stable, at 2.5% +-1% (currently 1.8%... maybe some UK cuts later this year...). Likewise, the BoE is independent of the Treasury per se - but it's certainly not in private ownership. As for the US having high consumer spending - well, far better that than the Japanese alternative... but it's hard to consistently spend more than you own - even if you eventually have to sell assets to pay the debts. And, of course, if those assets themselves are both volatile and purchased with debt, well. Problems ensue. cheers, ts