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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: yoremopnhoj who wrote (4160)	12/14/2006 2:53:10 PM
From: RonMerks	Read Replies (2) \| Respond to of 50727

'Personally I think Benny boy will keep printing till gold bitch slaps him in the face. ' Here's my #1 Question. WHY is the Fed still adding so much liquidity and pumping up M3? It doesn't make sense. Why do 17 rate hikes, if you're going to flood the money supply? Im no economist and Im not nearly as educated, or sophisticated about economics as many here. I understand the basics. Heres my theory. #1. The dirty rotten bastards (excuse that word, but it fits)raised rates to stop the average American from cashing in on the Feds inflation- by refinancing their home and then paying back the bank with cheaper (inflated) dollars. #2. They stopped the average American from getting rich via Housing inflation, flipping homes and extracting equity. By raising interest rates- they shut out the less sophisticated, the low-middle, the middle and the upper-middle classes from profiting from inflation via refinancing and housing appreciation (they also just made the banks a shitload of money). But, they added M3- money supply and liquidity to the Goldmans, the Hedge Funds and the Private equity groups- so they could leverage 12:1 on CDO's, international bond spreads, other sophisticated investments and even commodities. The rich, the sophisticated and the banks themselves- benefit the most by the M3 flood. That is why M3 is still ramping, but the average citizen just got his credit card rates and minimum payments hiked, his adjustable rate mortgage skyrocketed and the refinancing window closed, along with and end to house flipping and massive appreciation via the housing bubble. The masses got the door shut on them- they no longer can benefit by the Feds inflation. But, the Banks , the Private Equity groups and the Hedge funds- are all STILL reaping the benefits of the Feds inflation. Am I on the right path, or am I just an uneducated old man reaching for straws? Your comments,or criticisms are welcome- because I am PUZZLED and MYSTIFIED (should be MORTIFIED) by the M3 ramp- after 17 rate hikes. WHY are they doing it- and WHY aren't people screaming at the top of their lungs about this FRAUDULENT transfer of wealth via inflation from my wallet into Goldmans, or some Private Equity groups bank account so they can buy into some Chinese Bank, or some Hotel Chain for the rich. Ron A pissed off American who is seeing his country stolen right before his eyes. And it all started with that NAFTA crap! New World Order - is really the same old order- The RICH bankers and the Fed- stealing from the citizenry by inflation and debasing our currency- AND SENIDNG OUR GODAMNED JOBS OVERSEAS so some CEO can make a ten million dollar bonus. IM MAD AS HELL- BUT I DONT KNOW WHAT THE HELL TO DO ABOUT IT- AND THAT JUST MAKES ME MADDER.