Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: nextrade! who wrote (24751)	10/22/2004 10:09:39 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 306849

Thanks. Richard Duncan provides a fairly clear explanation of how monetarism works behind the fiction of "free-market" interest rates. The more debt/money that gets created the lower short-term interest rates fall. The current deflationary environment has permitted Milton Friedman disciples Alan Greenspan and Ben Bernanke create money with abandon, sending short-term rates close to zero, without having to worry about consequences in long-term rates at least until such time as the decline in the value of the U.S. Dollar picks up. Ultimately the monetarist system will fail, either in a collapse or through decades of stagnation, once it can be leveraged no further. I think we are quickly reacing that point. On another topic - I've been told by some fascist acquaintences that in our new "politically correct" world they now prefer to be called "democratically challenged". Some people and their relatives.