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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: philv who wrote (25706)	8/12/2007 11:17:39 AM
From: sea_urchin	Respond to of 81177

Phil > I did not get any sense of an impending doom That's because the people didn't read Jim Sinclair's column. > I am unsure exactly where this money is supposed to go and how it will get out into the public Apparently the money is to protect certain "exposed" banks and is by means of short-term loans. > our economy depends on an increasing supply of money. And money is created and distributed through debt. You must be a banker?! > Just to stop and hold the money supply at present levels would cause major financial problems, and shrinkage is unthinkable. In fact, I'm sure you're a banker. > So I wonder what they will do to keep the party going Anything that can be done by throwing money at it. > If the equity and financial markets cannot be contained, I would not be surprised if the FED and the rest of the world's CBs would respond by lowering interest rates again. If you look at the charts, the falls in most indices have been small in comparison to the previous rises and were overdue anyway. Of course, last week's action might eventually result in a severe shake-out with a fall in the overall index of 20% or more, or even a bear market, but I seriously doubt that. > The fly in the ointment that is clouding the water for me is the matter of wages which are severely lagging real inflation. Workers are largely irrelevant to the US economy and, likewise, so is their remuneration. The big drivers of the US economy are war, health and banking and nothing will happen to those. For the rest, jobs can be outsourced to India or Timbuktu for all the government cares. > Should workers rise up and demand higher wages They dare not because they are frightened to -- not only because the government would be ruthless with them but because they are all heavily in debt and if they can't meet their repayments they can lose everything. > As long as wages are contained, inflation is absorbed by the population without undue cost to business and government. Yes. Like rigged statistics and a suppressed gold price, low wages are an index of low inflation. > that means a lower standard of living. Not if one has an income which keeps up with rising prices. But if one doesn't, then it will. As it is, for many Americans things are already far from rosy. nytimes.com >>The United States ranks dead last on almost all measures of equity because we have the greatest disparity in the quality of care given to richer and poorer citizens. Americans with below-average incomes are much less likely than their counterparts in other industrialized nations to see a doctor when sick, to fill prescriptions or to get needed tests and follow-up care.<<