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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: surfbaron who wrote (6319)	9/13/2002 4:05:49 PM
From: Jim Willie CB	Read Replies (3) \| Respond to of 89467

how do you define inflation? I define it: "REAL ESTATE" / jw

To: surfbaron who wrote (6319)	9/13/2002 4:20:48 PM
From: Jim Willie CB	Read Replies (2) \| Respond to of 89467

much excellent debate on FedRes, inflation, econ developmt although the debate is lively and coming from many corners, the learning seems to be bereft of enlightenment and new thinking I refer to newspaper editorials, financial publications, internet sources, and more it is excellent to read so much on countering views they all seem to be attempting to answer the basic question WHAT WENT WRONG, AMERICA ??? as Marc Faber said in August, a lie will tend to be believed if it is large enough, since to disbelieve casts doubt upon the entire system the simplest explanation I can come up with is that America attempted to manage its monetary system, and in doing so, held firm a notion that reducing the price level of goods & services would produce prosperity govt officials even spent its gold to subsidize its bonds, thus lowering interest rate costs for the entire economy the world was sucked in, purchasing all manner of American assets, from stocks to bonds to debt to real estate but the failure seems to parallel the Japanese failure the disinflation encouraged asset inflation on a widespread basis the monetary system was managed in such a way as to offer benign neglect to asset inflation within the equations that governed interest rate policy it continues to ignore real estate inflation in fact, it does everything in its earthly power to sustain the real estate inflationary timebomb Greenspasm will live in infamy give it time now America must deal with a suffocating debt structure that imperils the entire economy, every phase of it the goal will soon be to promote stagnant economic conditions that goal will be seen as impossible soon the entire world depends upon the American engine to revive the entire US economy depends upon the overburdened, indebted, suffocated US consumer to continue to live over its head, to endure the debt load, and even to heap additional debt onto that load so one can safely conclude that the entire world economy depends upon indebted US consumers to spend more money they dont have !!! monetary policy that cannot define inflation properly is doomed to suffer catastrophic asset inflationary damage it has begun I await Puplava next installation to the Storm Watch series it addresses bubbles the public seems to feel more comfortable with the word "bubble" than "asset inflation" just as it is more comfortable with the word "liquidity" than "monetary inflation" the new bull market for commodities has begun in earnest soon, profit margins will shrink further as material costs and energy processing costs rise this will offer a new justification for lower equity prices as though the stock market needed yet another reason e.g. high valuations, stock option expensing, proforma crappola, pension funding, zero pricing power, capacity overhang the public is so silly, so desperate, so sad, so pathetic it still has no idea what inflation is, or how it is caused asset inflation leads to depressions and economic failures the Federal Reserve and Central Bankers have no solution for asset inflation except liquidations and bankruptcies even now-discussed "helicopter drops" of cash to all citizens will not address the debt issues suffocating consumers now they are living in a DEBT CAGE, with rising water levels I suspect the entire US economy will be subjected to liquidation risk over the next 2-3 years this liquidation is well along in the commercial sector it has begun in the household sector outside property owners it will soon take root among property owners last will be the scary scary part: to Treasury Bonds and USdollar that is the true AMERICAN TRAGEDY / jim