Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Investor2 who wrote (38184)	12/4/1998 12:45:00 PM
From: Defrocked	Respond to of 132070

(1) The market will always discipline the Fed if they deviate too far from expectations, whether above or below target. (2) I believe US money growth should be "slightly loose" in this uncertain environment with M2 and M3 in the 5% to 8% range. The current double digit growth is untenable over time and puts our currency at risk vis-à-vis the Euro in particular. The unexpected growth is encouraging misallocation of resources in the equity markets through speculative activity. Moreover, a dollar decline may adversely affect competitive foreign exporters, slowing recovery in already recession prone countries. Monetary policy adjustments offer only temporary solutions to real economic problems. Measure YOY% Germany M3 5.30% France M3 4.80% Italy M2 7.20% UK M4 9.10% Japan L 3.20% US M3 10.60% I'm doing too much posting today and will sign-off for a while.