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

To: Enigma who wrote (5588)	4/26/1999 8:50:00 AM
From: Bobby Yellin	Read Replies (1) \| Respond to of 81101

what about Korea,Indonesia,etc? ps glad you weren't talking about Rose..

To: Enigma who wrote (5588)	4/26/1999 11:00:00 AM
From: Zardoz	Read Replies (2) \| Respond to of 81101

Your definition of deflation is this: "Deflation is the reverse of inflation." But there is much more to consider about deflation: "Deflation is the reverse of inflation. It means falling prices, shrinking business activity, less easy credit, lower levels of interest rates. Do you recognise these symptoms? gilt.co.uk AMERICAN MONETARY INSTITUTE: A foundation dedicated to the study of monetary history, monetary theory and monetary reform. Stephen Zarlenga director. "DEFLATION" or MONETARY DROUGHT STUDY AMI is seeking additional sponsors in an ongoing study investigating the question of whether a form of monetary "deflation" is now in progress. The quotation marks are used because the correct word for naming the process in mind, does not appear yet in the vocabulary of economists. Alan Greenspan and the rest of the monetary "generals" are still fighting inflation; the way military Generals are always said to be fighting the last war. This study seeks to establish both quantitative and qualitative criteria to measure and determine whether monetary expansion or contraction is in progress, and to gauge its degree. One hypothesis of the study is that for various reasons absolute measurements of changes in money supply figures cannot do this effectively. Sponsors receive an initial report which details nine such major macro monetary events of the 19th and 20th centuries, through which the concept in question can be fully understood. It discuses the evidence whether such an event is now in the making, and presents the path the research is taking, to fully define the process in question, and to measure whether it is in progress. Three additional reports on this investigation are sent over a period of months as the research continues. Sponsors can become interactive with the study, posing questions or challenges to past reports or suggesting questions and directions for the future research to take. As sponsors are expected from among institutional investors, The studies devote appropriate attention to the investment conclusions of such monetary theory; to their short, medium and long term effect, especially on the US Dollar, and US long bond rates. Persons aware of researchers or university departments who have or are currently working in this area are invited to send the names of such studies and how AMI can obtain them. Those contributing in such a way will receive full credit in the results of the studies. UPDATE December 8, 1997: The second report in the Deflation study, completed on September 19, 1997, discussed some startling developments in the money supply statistics, the importance of which have gone unrecognized. The unprecedented deterioration in M1 levels, since the statistics began to be published, doesn't scare economists using a faulty concept of money, but is of great relevance when viewed with the real concept of money's nature. Both reports one and two explained why there is not now a monetary demand for gold, months before the Swiss Central Bank announced it would be selling much of its gold; and before the Europeans said that gold would not be playing an important role in the coming European Central Bank. The report's conclusions on the $ Index; the U.S. Long Bond; and gold, have already proved correct, and continue to do so. We are still near the beginning of very major monetary changes. As important as AMI's conclusions, are the underlying reasons for them - an understanding of the nature of money. I watched incredulously as a major bond fund manager, told viewers of Wall Street Week, before the October smash, that he expected interest paid on the US Long Bond to be rising to 7% by January 1998. They were at 6.5% then. Today they are nearly down to 6%, in line with AMI's prediction. The reason for AMI's success in these projections is our correct concept of the nature of money. This concept, properly understood, should continue to generate correct conclusions, long into the future. We urgently warn that the Federal Reserve System, the commercial banks, most money managers, and the "goldbugs"; are all mis-evaluating the current monetary situation; and are making the mistake of believing their own sales pitches. monetary.org PS: AS stated before, I'm a monetarist! Now explain to me how monetary policies can deflate an economy, while still giving the appearance of inflation? Why CPI is a bad meassure of inflation? And why anyone would believe the political definition of deflation? These definitions of inflation, dis-inflation, deflation and such should be changed. Growth of returns, and return on investment are the real concerns. If real returns are negative, does that mean we have inflation? If I pump money into the system at 11%, and inflation is 1.5% what is the real return of a company at 6% growth year to year? Well you wanted discussions, give me your answers.