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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Lazarus_Long who wrote (25290)	11/11/2002 2:58:32 AM
From: maceng2	Read Replies (1) \| Respond to of 74559

Batten down the hatches Yes, this one can be seen while it's still waaaay over the horizon. What particularly annoys me is the B/S we are about to see unfold is unnecessary and preventable to a very large degree. We have this self assured dimwit called Gordon Brown who seems to waste most of his time imagining himself as the next Prime Minister. We also have a clueless Prime Minister who tells other people to think in "joined up writing". So we have the banks flooding the market with easy credit and mortgages for years. (entirely within the governments and the banks control). Wonder what that does. Oh look! house prices go through the roof!! Wow, how strange!!! Yes this is the "free market" at work. The Government would just love to believe that this is economic forces at work entirely out of their control. Someone who does not know all these strict economic definition of words might say we have had "an inflation of house prices". According to government measures of inflation...there isn't any. Now all these gazzilions of pounds sterling are in the system, Gordy B says things like "we cannot have irresponsible wage rises. That would be irresponsible" What doesn't say is the damage is already done. This is how to get the cycle to turn. Get people to work for much less (effectively). Politicians and bankers sit on their butts collecting money for doing nothing other then generating credit. Politicians pay rise = 30%, Firemans pay rise = zilch... "go clean some windows in your spare time." So we get a few strikes and some unruley behaviour from the unions. Gee whizz. Unions are there to be smashed. Almost mathematical proof that politicians and bankers should not be allowed to control the money supply. Useless bstrds. I am an advocate of Keynes when the economy is in the crapper. The point is, it does not have to go there in the first place, to any large degree. When I feel particularly annoyed, this place has a calming effect for some reason... mises.org mises.org Writers on this page have expounded upon the Austrian Business Cycle Theory, developed by Ludwig von Mises and F.A. Hayek, in which attempts by central monetary authorities to artificially increase monetary growth through credit creation leads to an unsustainable boom and, finally, to the bust. This last business cycle was classic in how it fit Hey! I came across the same conclusion (almost).-g-