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

To: Jim Willie CB who wrote (20361)	10/20/2004 4:52:52 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 110194

That's why Joseph Schumpeter refered to this type of debt-created growth, when it last occured in the 1920s, as a hollow or sham prosperity. "Policy does not allow a choice between depression and no depression, but between depression now and a worse depression later. "Inflation pushed far enough would undoubtedly turn depression into the sham prosperity so familiar from European postwar (WW-I) experience, and would, in the end, lead to a collapse worse than the one it was called in to remedy." "For recovery is sound only if it does come of itself. For any revival which is merely due to artificial stimulus leaves part of the work of depressions undone and adds, to an undigested remnant of maladjustment, new maladjustment of its own which has to be liquidated in turn, thus threatening business with another worse crisis ahead" . . . . Harvard economist Joseph Schumpeter A population which votes to reduce, or eliminate, their taxes by paying for their government through debt and monetary debasement is degenerate and deserves their sorry fate. . . . . U.C. Berkeley economist Elroy Jetson

To: Jim Willie CB who wrote (20361)	10/20/2004 5:47:14 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 110194

Here's one of my favorite quotes written in 1952 by my Grandfather's cousin. Although written fifty years ago it could be a sage commentary from this morning's newspaper referring to Greenspan's illogical policy of price stability during a deflationary period. "A policy aimed at monetary stability will secure a relative stability of prices, but the economic history of the 1920s teaches us that a policy whose goal is stabilization of prices may result in inflation of money and credit, and very unsound speculation." Charles Rist, Sorbonne economist and Governor of the Bank of France