Greenspan's Retirement

[Bala]

I am glad the maestro is finally leaving after
18 years. The last 2 years has been nothing
more than political patronage.


Due to Bush’s willful abuse of his veto power
prerogative, runaway federal and state deficits
the Treasury in response from the Federal Reserve
Board has been printing $$ with reckless
abandon.


Money supply in our economy is measured by
M1, M2, and M3 indicators at the Federal Reserve.
Even factoring in the hurricanes and Iraq – the M
Indicators look like goggle’s chart. I believe this
is the primary reason why commodities like gold
and platinum have more than doubled in the last
couple of years. International investors get spooked
and move capital into secure vehicles.


It is futile to even discuss the trade deficits. I think
we should outsource congress. India does speak
our language and probably capable of a better job
then our current occupants.

[Tom]

I heard he is taking the dollar with him when he leaves! :eek:

[PaceAdvantage]

Due to Bush’s willful abuse of his veto power
prerogative, runaway federal and state deficits
the Treasury in response from the Federal Reserve
Board has been printing $$ with reckless
abandon.

Shouldn't this be leading to runaway inflation?

[chickenhead]

Shouldn't this be leading to runaway inflation?

Productivity gains and migration of manufacturing overseas are a pretty big offset to inflation, no?

Anyone notice things that those two can't offset, like say the price of land, going up at all? And a large part of the increase in gold, silver, oil, etc. is not that the price is going up everywhere, it's just the weaking of the dollar.

"Between the end of February 2002 and the end of February 2004, the price of oil in dollars rose by 51 percent (from $20 a barrel in 2002 to more than $35 a barrel today), but it rose by only 4 percent in euros. Over the same two-year period, the US currency plunged from 1.16 euros per dollar to 0.80 euros per dollar. In this situation, it is perfectly rational for foreign suppliers of oil to charge more dollars."

http://www.csmonitor.com/2004/0407/p09s02-coop.html

[Bala]

PA said: Shouldn't this be leading to runaway inflation?________________________________________ _____

We have seen and are curently in runaway inflation mode.
All commodities are at or near record levels.
Not just precious metals. Steel, copper, pork
bellies… etc.

This is called asset inflation. Witness the
runaway real estate markets in many
parts of the country.

Do I need to remind you of the present oil and
gas situation. All petroleum in the world is
dollar denominated. The American dollar
has fallen badly over the last coupe of years
causing inflation in assets and commodities.

[PaceAdvantage]

This is called asset inflation. Witness the
runaway real estate markets in many
parts of the country.

Do I need to remind you of the present oil and
gas situation. All petroleum in the world is
dollar denominated. The American dollar
has fallen badly over the last coupe of years
causing inflation in assets and commodities.


Really? I thought the increase in housing prices were due to the historic demand? Correct? You know, the housing bubble....bubbles only occur when everyone and their mother-in-law are buying. This kind of buying tends to drive up prices. Huge demand for a limited supply equals higher prices.

Same goes for petroleum. Witness emerging industrial markets such as China (one big ass market). Huge demand for a limited supply equals higher prices.

[JustRalph]

Harry, Harry, Harry.................................poor Harry.............


http://i.timeinc.net/time/verbatim/20050307/photo/verbatim_reid.jpg

[Bala]

PA said; Same goes for petroleum. Witness emerging industrial markets such as China (one big ass market). Huge demand for a limited supply equals higher prices.
__________________________________________________ __________

Did China just discover their need for oil? In fact China's hunger for oil
was well established thru the mid '90's. 1995 thru 2001 the world's
GDP was on a very serious up curve. In those days Eastern Europe's
economy grew at steller rates. During those evil Clinton administration
days crude was $10.00 {ten} per barrel. BTW, today all of Europe is flat to
negative territory ei. Germany (12% unemployment rate.)

Separatly, after the stock market crash of 2000, capital panicked and moves
to more secure locations - to real property. Mega bulders such as Toll
Brothers {NYSE symbol TOL} keep meticulous statistics on every corner of
this country. Their actuarties have stated publicly that this incredible move
in real estate is do to a very low interest environment. In other words,
americans have taken on enormous debt. Levels that are not sustainable.

Or.... perhaps it is all the narco terrorist money freely crossing our borders
that caused the real estate boom. "Your either with us or against us."
__________________________________________________ ________

For those how care Google's {nasdaq GOOG} earnings were very disappointing.

[Bala]

It is ok to hold strong opinions but passion must be tempered with objective
thinking.

Bill Clinton was socially a liberal but fiscally a conservative.
Bush is a social conservative but fiscally a liberal.

[JustRalph]

It is ok to hold strong opinions but passion must be tempered with objective
thinking.

Bill Clinton was socially a liberal but fiscally a conservative.
Bush is a social conservative but fiscally a liberal.

Bill Clinton was a fiscal Liberal because the Congress was taken over by the Repubs for the first time in 40 years and he wasn't getting anything he wanted. And he knew it