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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (522555)	1/11/2004 2:18:38 PM
From: Rarebird	Respond to of 769670

<Tell me Why> I'm quite ignorant GZ. So, please don't take me for any bublicious authority whatsoever. Learning is merely my God and Education is My Religion. I just know that the Fed did not address the bubble itself for the very simple reason that they were instrumental in CAUSING it. ClownBoy Greenspan is well known for his repeated assertions to the effect that a developing financial "bubble" cannot be recognised while it is developing. He refuted this contention way back in December 1996 when he came out with his "irrational exuberance" speech. As for addressing the CONSEQUENCES of the bubble, the Fed has certainly done that. They cut rates eleven times in 2001 and twice more in 2002-2003, hauling the Fed Funds rate from 6.50% to 1.00%. Not so coincidentally, those eleven rate cuts in 2001 coincided with the TOP of a nearly seven-year long US Dollar bull market. In 2002, the $US index fell 12.75%. In 2003, it fell 14.67%. After only ONE full week's trading in 2004, the $US index has fallen another 2.14%. The federal government has, according to successive Treasurers, maintained its "strong Dollar policy" throughout.

To: GROUND ZERO™ who wrote (522555)	1/11/2004 2:23:58 PM
From: Rarebird	Read Replies (2) \| Respond to of 769670

GZ: For a generation, a New York Times/CBS news poll has been asking Americans this question: "Do you think you can trust the government in Washington to do what is right?". In 1995, those who answered "always" or "most of the time" stood at 18%. It rebounded to 55% in the immediate aftermath of 9/11. It stands (at the most recent sampling in the northern summer of 2003) at 36%. One can only hope, for the sake of America and the world, that the percentage has continued to fall in the six months since then. In fact, I would suggest a different question: "Do you think you can trust the government in Washington to tell you the truth?" Well, do you ...? The same Fed Governor, Ben Bernanke, who introduced the concept of "deflation" (conveniently redefined to suit his purposes) in late 2002 was quoted in San Diego, at the same venue where ClownBoy Greenspan made his speech, as stating that the risk of a currency crisis affecting the US Dollar was "quite low". That was on January 3, 2004. On the first trading day of the first full week of 2004, January 5, Gold soared $US 8.70, Silver exploded upward by $US 0.28, the Bank of Japan spent $US 5 Billion (or more) trying to support the Dollar, and the $US Index hit a new bear market low of 86.35. For more than a year, the Fed has been promising to do whatever is necessary, up to and including outright Treasury debt monetization and literal printing, to stave off "deflation" or, in their words, falling prices. The results can be seen in the accelerating downward spiral of the Dollar and upward spiral of commodities in general and Gold and Silver in particular. The results can not - yet - be seen in falling stock markets, and that is the direction in which most of the world is looking.