To: yard_man who wrote (79553 ) 8/21/2003 11:23:21 PM From: Haim R. Branisteanu Read Replies (2) | Respond to of 209892 My thesis now is that war persist even if it is not fought by armies of nations but via financial markets and trade. I do not think that financial markets are left to their own destiny and we are not dealing with true free markets, they are manipulate by the respective administration driven by politics and re-elections desire IMHO it is done via CB like in the US who flood the market with liquidity propping up the stock market, or by their action statements influencing the debt market. It sounds strange that a treasury will issue debt to cover budget deficits and then the country CB will by this debt in the process of market manipulation. Most recent events is the 15% rise and reversal in the bond market, by false statements about inflation / deflation, the 10% swing in certain FX exchanges and the spectacular run in the stock market, all based on perception invented stories, misrepresentation and not hard facts. It is not a zero sum game as the value of the paper money decreases in real terms but if correctly manipulated the effects are postpone for years. Same with the trade deficit. The unbelievable alchemist are running a staggering twin deficit of close of 10% of GDP and still manages to run a country in relative order for years. Europe is now quiet about the Iraq war even that it is clear the WDM was not the real reason for war. But Europe was punished via the financial markets and statements by the US treasury, resulting in slowing their economies.nationalreview.com The stock market recently broke out of its summer doldrums on news of unexpectedly good retail sales and hardgoods production, near-record housing starts, and above-expectation reports for business revenues and profits. Not even rising bond rates or blackouts can stop the powerful new bull-market cycle — which was sparked by President Bush's sweeping tax cuts. Politically, this is good news for Bush. If the economy is operating at 4 to 5 percent growth during next year's presidential election campaign, it will literally shut Bush's major window of political vulnerability. But there's also the Terminator Factor working to Bush's advantage. In a dramatic news conference this week, actor-turned-gubernatorial-candidate Arnold Schwarzenegger made it clear that he will occupy right-of-center territory when it comes to fiscal matters in the forthcoming recall election to throw out California's incumbent Governor Gray Davis.