Friday 28 January 2011

Signs of an economic problem when your economy looks like a gambling joint with all the trimmings of free coffee and loans to get you sucked into the mood for taking a risk with other peoples hard earned savings.

How not to manage your monetary policy! Exclude those items from your price index so you don't worry about the inflation and the next bubble you are creating. Let the banks go in for another merger spree so as to get those share values up and keep the joint tickin along. The hall is rockin so let the money supply get out of hand. You need that house value to get up there instead of really saving. Let the government pay for the interest on my mortgage....

There are real signs of a deep economic problem in America when it's economy looks like a gambling joint with all the trimmings of free coffee and loans to get you sucked into the mood for taking a risk with other peoples hard earned savings.

Get people to gamble and work till they drop then tell them you are not going to give them a decent pension and you will be raising their health costs because that too has become a lottery.

US monetary policy now supports borrowing to increase the money supply and over reaches of the effective demand for speculation in commodities and shares world wide. This is the new Keynesian formula combined with the old Friedmanite economics of low inflation. Just keep your eyes closed, man alive!

It's the way to make money on the stock market, but is it what we want to stimulate the economy? Seems more of a way to transfer wealth than earn income. Gambling, possibly, promoted by government and it's low interest rates. Inflate share prices and property prices, but keep them out of the price index please.....

As in the past:

http://www.fool.co.uk/valueinvesting/2003/vi031003.Htm

So in the present:

http://www.fool.co.uk/news/investing/2011/01/28/we-should-welcome-bank-bonuses.aspx

Or if you can read it free:

http://link.ft.com/r/BLH300/BMGV0H/NQKPU/IY2JV4/D4HJ3R/VU/h?a1=2011&a2=1&a3=28

Woohs stream at http://woohs.blogspot.com taps into many streams of thought and action. There is no end to motion, just evolution and unrelenting change, seen or unseen. Energy is motion both in reality and calculation. Take time to rest even though all inside you is always moving. Your massive relative pause gives opportunity for other smaller streams to catch up. Take time to meditate so that you can see with your mind what lies within and beyond.

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