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To: edamo who wrote (106030)3/1/1999 10:19:00 PM
From: Boplicity  Read Replies (1) | Respond to of 176387
 
re: i'm a firm believer that government produces inflation with is decisions and regulations...

Sorry to keep butting in, but you are so right, it's artificial, the economist should look at the market as form of man made evolution, stand back and let it evolve on it's own. Thanks for your posts.

Greg



To: edamo who wrote (106030)3/2/1999 8:57:00 AM
From: Lee  Read Replies (1) | Respond to of 176387
 
edamo,..Re:.it is a new world, due to a tangible technology,which increases an unmeasurable productivity...the government still scratching its head over the impact on economic figures..

I would argue that it's an evolving US economy which drives greater efficiencies via technology. Technology is encroaching upon previously established contributions from the smokestack industries as a greater percentage of US GDP. For this reason, cyclical forces can no longer be accurately assessed for growth or contraction but this doesn't mean that they can also be ignored. The Fed seems to understand this evolution since they remained restrained when all historical measurements were pointing to an overheating economy.

This evolution doesn't negate normal cyclicality although looking at a long term graph of CPI, it's difficult to see where pricing pressures may arise. Also, commodities, while caught in huge oversupply will eventually gain some equilibrium when demand re-surfaces. The SE Asian countries had to close plants and idle equipment in the latest crisis because of oversupply and lack of demand, which contributed to the glut further.

stls.frb.org

The picture is distorted by the US efficiency and by the slowdown in a major portion of the global economy, but I don't think it's a permanent distortion.

Just another 2 cents,

Lee