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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (73)	6/22/2003 11:54:42 AM
From: Jim Willie CB	Read Replies (1) \| Respond to of 110194

MY NASTY EMAIL SENT TO CNBC (to 3 locales internally) you guys simply make no effort to understand the entire concept of "INFLATION" it is the expansion of money supply from Fed printing operations plus bank extension of credit its abuse creates an excess of production capacity, an excess of indebted households in other words INFLATION in the true sense creates both price inflation and price deflation the price inflation comes from speculation, as in stocks now, bonds now, and real estate now DO YOU REALLY BELIEVE THAT THE SAME PROPERTY IS NOW WORTH 35% MORE IN MOST CITIES, VS 2000 ? I have found that perhaps not even 10% of economists can adequately define inflation or cite the causes of either price inflation or price deflation. I believe within 2-3 years, we will see the United States and its economy as the only major industrialized nation on the planet suffering from the ravages of price inflation. Right now, the Dept of Inflation Secy Greenspasm has embarked with full official and public support in accelerating the money supply, when this exact same practice has created monstrous bubbles and economic problems. He has sold the misdiagnosis that price deflation is a monetary phenomenon requiring monetary treatment, when it is actually a structural problem resulting from years of excessive monetary expansion (inflation). Pumping vast amounts of blood into a body whose two legs are dying from gangrene, he now expects regrowth of new legs. He will instead urge on arterial aneurisms from induced bubbles. right now, after 25-30 years of overexpansion, we have too much world productive capacity we also have China decimating not only all of Asia, but the USA as well we also have the US Economy suffering from a dollar still overvalued by 20-40%, making US firms uncompetitive on top of that, our labor costs are 2-10 times what other nations are WHY ON EARTH DO YOU BELIEVE THAT FED MONEY PRINTING WILL RELIEVE OVERCAPACITY PROBLEMS ? it will not I address this question to you, Mr Ron Isana with your sneid tone to anyone who questions your comprehension of economics WHY ON EARTH DO YOU BELIEVE THAT FED MONEY PRINTING WILL RELIEVE EXCESS DEBT AT ALL LEVELS ? it will not we absurdly believe that we must stimulate demand we must not we need to reduce our economy's dependence on consumption you guys are an embarrassment to the entire effort to understand economics you have become Wall Street cheerleading whores !!! Mr Insana, when it comes to economics, you are VERY SHALLOW sincerely, Jim p.s. this was taken from a recent article, a fine analogy which will probably go over your head "Analogies are difficult. Imagine in a tiny village an orchard of giant orange trees whose branches have grown too much without pruning for two decades, fed by real and artificial sunlight, natural and hydroponic watering, plus miracle-grow supplements. Tree branches have extended in sprawls to such lengths that many bend to the ground from their own weight, in grotesque fashion. The abundance of fruit produce has overloaded supply, bogging down fruit stands selling on the roadsides. The farmer becomes confused, observing in dismay fallen prices. He is unable to perceive that supply is excessive, having learned that growth is good. His bank has cheered him on, lending money as business grows, and worker payrolls expand. He seeks out counsel from the brain trust at the farm board. The experts tell him that orange demand is lacking and must be encouraged in order to firm his orange prices. The solution is handed down: doubled water supply from more water hoses, round-the-clock sunshine, more fertilizer, all of which will stimulate demand. The end result curiously turns out to be a rise in the principal value of mortgage bonds that back such bloated farm groves, and rising property values for the homes of their farm workers. Such is the utter insanity of Greenspan and the US Federal Reserve. Culling some branches, laying off workers, reducing production, scaling back the nutrient systems, these are unacceptable."