deicer Posted May 15, 2003 Share Posted May 15, 2003 In these times, I think it's neccessary to pull back and take a look at a little piece of the bigger picture. In my opinion, the state of affairs right now is due to the Monetary policy that the United States has foisted upon the world. Reading the papers this morning and seeing prices going up, spending dropping like a rock, and unemployment going through the roof, one has to wonder where Greenspan and his buddies are taking us. The U.S. Fed has pursued a policy of artificially low interest rates to try and encourage the common masses to put their money back into equities to line the pockets of the CEO's and top 2% who hold 98% of the wealth, that is has caused a stagnation that could lead to another depression. Companies will never be able to return to profitability by cutting wages and spending. It just takes too much stimulous out of the system. My opinion it that they have to allow the system to rebalance itself by allowing Inflation to have its way. This will allow money to flow back into the system through wages and thereby allowing job growth through having to meet the demand. The problem is that they have kept inflation in check for so long that when it happens, it will run rampant in the other direction. Otherwise, the other alternative is Deflation possibly leading to a Depression. Possibly a simple way of looking at it, but reading through history shows that the cycle has to complete itself before moving ahead again. Just a topic for discussion.... Iceman Link to comment Share on other sites More sharing options...
tsgas Posted May 15, 2003 Share Posted May 15, 2003 Sounds close to Karl Marx intro 101 ? Link to comment Share on other sites More sharing options...
deicer Posted May 15, 2003 Author Share Posted May 15, 2003 No Communist intentions from my side, I'm only highlighting that economic cycles are like the seasons. Things aren't being allowed to progess normally due to the Fed's interference and it is now causing more damage. Even in the Capitalist fantasy nobody will make money if the system collapses. That's why I feel that the Bigger Picture needs to be contemplated. Rgds Iceman Link to comment Share on other sites More sharing options...
Guest Shibui Posted May 16, 2003 Share Posted May 16, 2003 Au contraire, comrade, plenty of us are making big money as the system collapses! You don't need a "bigger picture", you just need a better broker. And perhaps a higher grade of correspondance school. Link to comment Share on other sites More sharing options...
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