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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: Gary H who wrote (16607)	12/19/2002 5:09:27 AM
From: Gary H	Read Replies (1) \| Respond to of 81943

Well now that your up and taking over the watch, I will say good night.

To: Gary H who wrote (16607)	12/19/2002 7:06:25 AM
From: sea_urchin	Respond to of 81943

Gary, yes, I think as far as imported manufactured goods are concerned it's true but that's not the only cause of inflation. Let an American tell you what it costs to call out an electrician or a plumber to do a simple task, find out what basic dental work costs and, God forbid, ask someone what it costs to employ a lawyer, and then you will know where the inflation lies --- services! Sure, they are screwing the Chinese etc by paying peanuts for their goods, but if they (the Chinese) didn't like it they could revalue their currency or charge more for their goods. They won't and don't. However, the problem the US faces is burgeoning debt and incipient deflation and if there's no inflation, ie the value of assets rises over the nominal value of the money, they will never be able to escape the debt trap --- irrespective of how low the interest rate falls. Another problem, which von Mises told us about the other day, is that the "cheap" money causes a mis-allocation of bank-created debt and hence of resources and therefore serious distortions within the economy ie bubbles which co-exist with unemployment and insolvencies.