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

To: Micawber who wrote (2179)	5/2/2001 11:57:04 AM
From: ahhaha	Read Replies (3) \| Respond to of 24758

The problem is that the money creation has so much momentum that it isn't possible to slow it down. Only panic over rising inflation will cause the FED to reverse policy. Looks like Milty is speaking with a forked tongue about AG. His duplicity of opinion follows AG's policy duplicity and is the induced result of the process which Milty accepts, interventionism. On the one hand AG is doing a terrific job and expresses brilliant comprehension of the issues. This was clear in his testimony to Congress about the trade deficit. On the other hand he also speaks with a forked tongue because he says money supply isn't important. I agree with Milty that AG is trying to hide his true concern about money growth. AG knows that money supply is the most important factor, but he feels he must engage in disinformation in order to derail policy anticipators who would engage in irrational exuberance. The problem is that once the floodgates are opened, it is feared that trying to close them would bring about what is feared. The result is that inflation is chosen as a necessary policy. AG is making the same mistake as he did in the Fall of '98 to prevent something which he projects out of fear, but isn't materially there. So we rock from panic to panic. This is their better way, the way of interventionism, the way of pretense to knowledge, which both AG and Milty accept as necessary, but which brings us closer to what AG fears. Given the money supply torrid growth which is outstripping productivity by any measure by 5%, the dollar is overvalued, because the implied 6% rate of inflation is more than twice than that of Japan or Europe. Recently the FED has increased the frequency of coupon passes and the quantity bought, so there is nothing but ever greater increases in money supply coming. The money goes more into final prices than it goes into production.