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

To: mishedlo who wrote (75679)	12/15/2006 9:29:22 AM
From: Tommaso	Read Replies (2) \| Respond to of 110194

"So by your definition it is ok to print like a Mf*r just like Greenspan did in the 90's as long as prices don't go up." Mish, if I had thought anything like that, I would be quite capable of saying it myself, and somewhat more elegantly than that. I don't even know what you are talking about when you speak of "your definition." Any definitions I offer would be those of common usage and those commonly accepted by most economists and most dictionaries. I read Friedman and Schwartz more than twice back in the 1970s, received the Federal Reserve Bank of St. Louis publications for years before the Internet even existed, and believed almost everything Friedman said. I found by costly experience that he misunderstood the capacity of the world economy to grow rapidly. The jury is still out on the question of how much damage Greenspan has done. I did watch with dismay as he repeatedly eased credit in a way that encouraged speculation, the silliest example being the effort to forestall a Y2K panic. But I guess in that case it was like the man with the bottle of antielephant dust who replied when someone told him there wasn't a wild elephant on the entire continent, "Well, you see how well it works." I think the likeliest result of Greenspan's folly, and Bush's folly, and indeed the entire country's folly, will be a 50% decline in the value of the U. S. dollar against other world currencies and a reciprocal 100% increase in the cost of imported goods. I also think this will spur demand for cheap U. S. agricultural products, raising food prices within the United States. Oh yes, the ethanol foolishness will help with that, too. I don't know how long this will take. Five years or ten would be my guess.