We're doomed. Doomed! DOOMED!!!
Posted on 09/28/2005 4:09:54 PM PDT by hubbubhubbub
It must be-- they're always so crabby
Eureka!
We're doomed. Doomed! DOOMED!!!
Maybe he's had no growth for the last decade. It could explain a few things.
Its the average growth rate of M3 published by the Fed.
And its insolvent banking system.
Just look at the most recent Fed figures on household net worth - $50 trillion - with only about 20% of that attributable to homeowner equity. The average American household has about 57% equity in their home. Americans' total debts, including mortgages, are dwarfed by their liquid assets.
Yes, we have lots of 401K chock full of "high quality" Fannie Mae bonds, money market funds full of Fannie repos, and stock in Fannie's derivative counterparties like Citigroup and JPM. We have massive equity in homes whose value is inflated by GSE money pumps.
Hey, when was the last time FNM posted reliable earnings? And when do you reckon commodity prices are going to stop rising?
Doomers are making money on commodities and shorting the GSEs.
Oddly Bulls are making money too.
Someone's got to be wrong.
“This guy is an optometrist? WTF?”
He sees the future ... I guess!
Go figure.
Mathematical formula for your 8% inflation rate.
" In the long run, were all dead..."
John Maynard Keyes
Gosh, I'm worried now. /sarcasm
"This stern warning was for the United States to limit its dangerous monetary expansion, increase its taxes, and force its consumers to reign in their wonton spending."
What the blue blazes is "wonton" spending? Buying up Chinese restraunts recklessly?
I object to this formula as it has no predictive value.
I'd prefer to just use the empirical data offered here
As you can see 10 years ago m3 stood at 4576 and today it is 9874, roughly an 8% per year growth.
I'd be crabby too if I bet on (and hoped for) the worst to happen - and then it didn't. What a grim way to live.
I believe you when you said M3 grew at 8% a year. I asked you what inflation rate was caused by that 8% M3 growth rate. You said 8%.
Please show me the formula that turns M3 growth into inflation. Thanks.
"In constant dollars our family income purchasing power is less now than 50 years ago. That's why husband and wife must both work. Please get some economics education."
Well, *your* family income may be down, but the *average* family income is way up.
http://www.economywatch.com/world_economy/usa/
"The US has the largest and most technologically powerful economy in the world, with a per capita Gross National income of $37,610, (2003) this figure is significantly higher in comparison to that of other developed countries."
You think per capita income and family income is lower on a real basis than 50 years ago, ie 1955??!?? Before microwave ovens, cell phones, PCs, the interstate highways, etc. you had more purchasing power? back when color TVs didnt even exist, let alone 36" colr TVs that can be had for under $1000?
If you dispute my claim that we are better off now, show me the stats to prove it.
"This stern warning was for the United States to limit its dangerous monetary expansion, increase its taxes, and force its consumers to reign in their wonton spending."
LOL.... Sounds like the IMF prescription for China.
I can see the central bankers now ... "No Soup for you!"
Ah, sorry, as I see it, the growth of the money supply *is* the inflation rate.
Price stability is an entirely different matter. The effects of inflation on prices are neither instantaneous or homogeneous nor predictable in my opinion which is one of many reasons the politburo should not be trying to to manipulate the economy on its estimation of the literally chimerical price level.
Shouldn't this have been prefaced by a tinfoil hat alert or some such?
So if you were in charge, instead of the politburo attempting to centrally manage and manipulate the economy, the ideal money supply would remain constant? Are you saying M3 growth equals (true, Adam Selene, not fake politburo)CPI growth?
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