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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: Perspective who wrote (2149)	6/6/2003 12:34:35 PM
From: ild	Read Replies (1) \| Respond to of 4904

Hey, I'm not him. His e-mail is: Stephen.Roach@morganstanley.com Send him an e-mail. In fact I sent him a couple in the past and he replied to both.

To: Perspective who wrote (2149)	6/6/2003 1:32:37 PM
From: ild	Read Replies (2) \| Respond to of 4904

From Heinz: Date: Fri Jun 06 2003 11:47 trotsky (kapex) ID#377387: Copyright © 2002 trotsky/Kitco Inc. All rights reserved i think we got the message by now - you're not happy with the current banking system. well, neither am i. i think the Federal Reserve's fractional reserve fiat money system is an abomination that has destroyed the currency , imposed a huge hidden tax, and lowered economic growth over the past century by at least 4 - 5% per annum. however, what i would like to know is what do you want to do about it? if we voted for you in the next election, which banking reforms would your government institute? a brief synopsis would suffice. Date: Fri Jun 06 2003 11:55 trotsky (Sherlock) ID#377387: Copyright © 2002 trotsky/Kitco Inc. All rights reserved however, protectionist trade barriers won't bring those jobs back, since they will simply lower economic growth by a few percentage points, lessen our consumer goods choices, make all goods more expensive ( probably even prohibitively expensive ) and thereby destroy what's left of our glorious living standards. so you are STILL wrong to attack free trade. again, i urge all critics of free trade to read this ( it really is only a small effort, and the explanations are very lucid ) : click here ... econlib.org Date: Fri Jun 06 2003 12:03 trotsky (Kapex@'abolish the Fed') ID#377387: Copyright © 2002 trotsky/Kitco Inc. All rights reserved no doubt that would be a good start. here is an interesting essay on FREE banking without a meddling central bank or government: click here ... auburn.edu Date: Fri Jun 06 2003 12:56 trotsky (goldfish) ID#377387: Copyright © 2002 trotsky/Kitco Inc. All rights reserved no, that's imo NOT the point. we CAN'T 'grow out' of our problems, because the main problem consists of the fact that malinvestments on a huge scale have accumulated in the economy courtesy of the botched monetary policy during the boom. they must be allowed to liquidate. by 'reflating' as it is euphemistically put ( i.e., attempting to lower the value of the currency - common sense should tell you that that can't be a desirable 'policy' ) the liquidation process is delayed, and the lingering malinvestments, and with them the misaligned production structure prevent a genuine long term recovery from taking hold. in the meantime, a new bubble has formed in mortgage credit and residential real estate ( a direct result of the misguided attempt to 'reflate' ) , which will ensure an even bigger debt implosion crisis down the road. deflation ( if it were to occur - so far the monetary aggregates and bank credit have continued to grow at astonishing rates ) is not 'bad' as you erroneously believe. it merely is the corollary to the liquidation of malinvestments: the liquidation of 'money' previously created out of thin air, which has been the root of the problem. you want to 'solve' the problem by making it bigger. it won't work. as for the PoG, it is rising because the market realizes that the bureaucrats have set upon the destructive 'reflation' course. gold is insurance against this madness. Date: Fri Jun 06 2003 12:59 trotsky (Goldfish) ID#377387: Copyright © 2002 trotsky/Kitco Inc. All rights reserved 'reflation' ... 'fiscal stimulus'...those are Keynesian concepts. they have worked their destructive magic on Japan for 13 years running...and have brought us the Great Depression way back when. what makes you think that 'this time will be different'? Date: Fri Jun 06 2003 13:13 trotsky (RIP) ID#377387: Copyright © 2002 trotsky/Kitco Inc. All rights reserved i agree - it won't work...the opposite of what is intended will occur. the fresh debt bubble they have created in mortgage credit will contribute to the eventual deflationary debt implosion. over 57% of bank assets are now in mortgage credit, and the parabolic growth chart of Fannie Mae's balance sheet speaks for itself. i can but laugh when i hear them say how 'healthy' the US banking system is. it's alleged health depends entirely on the credit bubble continuing unabated. and that is mathematically impossible. just as it was impossible in March of 2000 for Cisco's revenues to continue to grow at 50% annually indefinitely - they would have been larger than US GDP a decade later. the coming implosion is not a question of 'if', it's only a question of 'when'. and recklessly accommodative monetary policy has made the problem intractable...it's a historic monetary experiment as Noland says, and like all its predecessor Ponzi schemes it will fail miserably.