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Strategies & Market Trends : New US Economy Policy -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Tang who wrote (113)	2/12/1998 2:38:00 PM
From: Arthur Tang	Read Replies (1) \| Respond to of 435

How this new economy is controlled and why is it in no danger? This new economy is based on microeconomy of each and every business. It is based on the well being of each and every business to prosper by proper management of the business. It is by efficiency and technology, to do obsolescense and replacement of consumer demands. It is based on job growth because of business growth. Each business group is then fine tuned and prospers. It is fine tuned using servo mechanism technology. Then the planning is directed to economy quality control. What is the norm that we expect in the economy? Not interest rate, liquidity, but productivity. The abundance theory is the inflation control theory. Not the theory of depression after intolerable interest rate increase; when people do not have money, then lack of demand controls inflation. The norm in economy quality control is ever so small an increase of productivity each succeeding year. Then you allow guard band of a few percentage either up or down from your expectation in the new economy. So far so good. Will the economy ever fall off the cliff? not likely. Because the productivity is being adjusted in a roving economy. Some industry may be better, some may be worse. But we always have time to readjust back to norm from wanderings into the guard bands. Such small adjustment recently showed up in the futures pricing of crude oil. Gold? Other commodities? How third world resource dependant asian economy stabilized? When commodities retain a normal price supported value, and their national output retains a positive trade balance.