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

To: ahhaha who wrote (3729)	11/30/2001 10:24:06 PM
From: ahhaha	Read Replies (4) \| Respond to of 24758

A year ago I predicted that AG would be saying this when he was promulgating his belief that a new era of structurally higher productivity was upon us. The FED based their exponential money pumping during the late '90s on this view. I guess that truth which was never a truth is no longer operational as Der Nyx would have put it. Greenspan-Likely US Q4 productivity growth positive WASHINGTON, Nov 30 (Reuters) - It is likely that U.S. productivity growth will be slightly positive in the current quarter, Federal Reserve Chairman Alan Greenspan said on Friday. ``It's too soon in the fourth quarter to make very many judgments, but despite the fact that we clearly have been shocked by the tragedy of September 11, there is no evidence at this stage from the data we have to date that there will be a decline in productivity in the fourth quarter,'' Greenspan said following a speech to a Euro Group forum. Greenspan added that productivity growth will likely be ``very small'' in the fourth quarter and said if it does decline, the drop will also be minimal. The Fed chairman also said the original estimate of U.S. productivity growth in the third quarter will be revised down but will still be at about a 2 percent annual rate. 2 percent. Hmmm. Reverting to the intrinsic true rate, the rate at which man desires wealth and is willing to work to get it. The CPI better had take a nose dive or we got some serious problems in place with money growth racing upward, union greed rising, and corporations folding from their concessions of the past. Let's see. M2 is rising at 13% and productivity is rising at 2%. That yields a rate of inflation of 11% and guess what? 11% is the effective cost increase of wage settlement. Either corporations margins will go severely negative or inflation is about to take off. Now we know the true reason for FED's heavy money creation. They have to provide enough money drug to prevent the unions from shutting down the society. Does that square with a lot of the money going to savings? Yes, the balloon must continue to expand everywhere at least at the same rate. So FED had to create ever more money even as people saved more and more of it. In cosmology we call this kind of egalitarian expansion the Cosmological Principle.