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

To: gbh who wrote (46560)	2/11/1999 12:04:00 PM
From: Mike M2	Respond to of 132070

Gary, here is an old link but very informative usastores.com The greatest bubbles this century US in the 20's and Japan in the 80's occured in in the absence of product price inflation while money and credit inflation was rampant. I am a fan of the austrian school of economics which believes that gov't intervention ( manipulation) of interest rates causes the business cycle ( boom/bust). The Austrians define inflation as an expansion of money and credit beyond the supply of savings and the needs of economic activity. This easy money can go into capacity like SE Asia or it can go into the financial markets like the US. During the 20's the austrian economic school was the only school that warned about the excesses during the boom ( for more see Murray Rothbard's America's Great Depression -available at B&N). More recently Kurt Richebacher -a leading austrian economist spelled out in his sept. 96 and Marck 97 letter why the " Asian economic miracle " was a bubble that would go bust. Richebacher Letter 1217 St. Paul St. Baltimore, MD 21202. Mike