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

To: Elroy Jetson who wrote (28435)	3/20/2005 5:15:46 PM
From: John Vosilla	Read Replies (1) \| Respond to of 306849

Agreed but this time is so different from the 1970's. We have flat wages, flat rents and manipulation of the CPI to keep interest rates low and people falling all over themselves to but property with cap rates of 1 or 2%.

To: Elroy Jetson who wrote (28435)	3/20/2005 8:03:41 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 306849

a Monetarist will want to create counterfeit money equal to 3.5% of the GDP each year - the Monetarist Tax. This will create 3.5% inflation and inflate the index of goods up to 0% change. Monetarists call this normal and zero inflation - another of their many lies. They call the tax, which is equal to 3.5% of the nation's income, price stabilization operations. I think its worth pointing another one of Milton Friedman's lies - something he calls the "natural rate of inflation". Not content to create counterfeit money equal to 3.5% of the nation's income, as in the example above, he insists the counterfeit supply be increased to 5.5% - enough to bring an index of goods up to a 2% price appreciation. Friedman, in one of his most extravagant lies, assures us that a level of monetary inflation which increases an index of goods by 2% is the "natural rate of inflation". His perverse use of the word "natural" means that level which he finds personally pleasing. It is not a level of monetary inflation which is dictated by any market, supply and demand, or any aspect of capitalism. It is merely the level of Monetary tax which "naturally" provides as much subsidy for the banking sector as Friedman finds "natural". Rather than the price of money being dictated by supply and demand, Friedman's system uses an infinite supply of counterfeit money to create as much money as is demanded. He calls this a "market economy" once again in a perverse sense - in that the Monetarist economy is "free of market constraints". .