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

To: pogbull who wrote (9710)	11/26/2002 9:48:17 AM
From: Jim Willie CB	Read Replies (2) \| Respond to of 89467

Bernanke speech confirms the gold strategy REFLATION might not succeed but gold will rise during their struggles and attempts since the spring I have expected EVENTUALLY for the Fed to employ its next stage of DRASTIC MEASURES that means MONETIZATION of debts we are here at long last the gold market hasnt responded yet, but it will Bernanke makes a typical economist charlatan claim "I believe that the chance of significant deflation in the USA in the foreseeable future is extremely small, for two principal reasons." resilience and structural stability remarkable ability to absorb shocks of all kinds well, I tend to disagree with this harlot cheerleader the structural stability of our economy is shaky now, due to suffocation by debt and actual debt collapse, which has begun to feed upon itself, producing INSTABILITY sure, the economy absorbs shocks, but it does so by adjusting prices, both upward and downward the next raised prices will be in energy costs and interest rates the dollar must soon be defended and prices continue in deflation for the product sector at least 2/3 of sectors are now in deflation "lack of pricing power" is the operating euphemism as Roach claims, the Fed strategy may not succeed three sectors must respond, and ALL THREE ARE UTTERLY EXHAUSTED consumer durables (frig, furniture, TV, car) business capex (equipmt, computers, tractors) car sales the Fed boasts that they have more tools at their disposal sure, but they are ALL DESPERATE TOOLS e.g. monetizing debt, S&P futures, dollar futures, gold short futures, BankJapan purchases they wont last long just as the Fed has encouraged monumental distortions since Jan2001, they will continue to worsen them they are attempting to bypass a recession they will likely earn a depression or massive massive stagflation for their efforts the Fed is running out of options, exhausting the economy's entire set of demand buttons now they are resorting to utter desperation WE ARE SETTING UP FOR THE MOTHER OF ALL STAGFLATIONS if we are lucky, we will avoid a depression the Fed actually believes they can fool the bond and currency markets by monetizing debt READ: PRINTING MONEY WITHOUT USE OF BOND SALES this is the backdoor for inflation and higher bond rates also, todays Q3 revision to GDP brings two points USGovt spending was a big piece with war preparation Q3 robs from anemic Q4, which the stock market expects / jim