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

To: GraceZ who wrote (5585)	11/7/2002 1:25:21 AM
From: ahhaha	Read Replies (2) \| Respond to of 24758

Currently there is no monetary policy, unless one considers no money creation as a kind of policy. That is, the economy is generating more cash than it can use, so FED doesn't need to and isn't creating money. Should proper policy then be to reduce excess cash by raising interest rates or to lower taxes to mobilize the use of unutilized cash? Thus right policy isn't monetary. It's fiscal. FED is right to do nothing. The ball is thrown to Bush. He has to overcome the 'crat obstructionists who will be doing everything they can to hurt the country Does that break you through to the importance of tax cuts? As I've stressed for a long time it was FED's and Clinton's error to run tight fiscal policy and loose monetary policy which caused the bubble. To solve the problem the mix has to be reversed, but FED need not raise rates. They only need to leave rates alone and let the market reflect changing forces. I bet they do that.