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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (2283)	3/17/2004 10:31:13 AM
From: MulhollandDrive	Read Replies (1) \| Respond to of 116555

"The Fed should gradually wean the country off such extraordinarily easy money before it is forced to do so abruptly, and painfully. It cannot wait until after the election, nor until it sees inflation pick up. Rates are so low that the Fed has plenty of room to move before being accused of adopting a restrictive monetary policy. It needs to get started" does anyone actually believe that we are in such a demand driven economy, that the fed needs to hike rates as a preemptory strike against inflation? do we need to slow down an over-heating economy? do we need to increase the cost of borrowing to slow down maladjusted investment geared toward economic expansion? (and slow job creation)? do we need to strike at consumer spending with higher rates to reign in incipient inflation? or will higher prices take care of that as the poster who said earlier "high prices take care of high prices"? do we all understand that wage price pressure (not commodities) is the biggest inflationary concern? and that it is virtually nonexistent? does easy money and pushing on a string ring any bells? just asking.