On Apr 16, 12:01=A0pm, Jerry Kraus <jkraus_1...@[EMAIL PROTECTED]
> wrote:
> On Apr 16, 10:30=A0am, ZerkonX <Z...@[EMAIL PROTECTED]
> wrote:
>
> > On Tue, 15 Apr 2008 08:27:34 -0700, Jerry Kraus wrote:
> > > The patterns are strikingly parallel from the beginning of the
century=
> > > up to the 1970s.
>
> > Gold Standard go bye-bye. Money becomes separated from a referenced
valu=
e
> > standard to a value determined by control and manipulation.
>
> > The rest, as they say, is history.
>
> It's curious how people in the U.S. say we're not in a "Bear Market",
> when the value of the U.S. currency has dropped by 50% in the last
> five years on international money markets, and the Stock Market is
> just about at the same level it was five years ago. =A0That's a 50% drop
> in effective market capitalization. =A0Not counting inflation.
It's a Gordian Knot of a problem. If the dollar were stronger, then
inflation would vanish and the economy would be fixed. But, in order
to strengthen the dollar, the Fed would need to raise interest rates,
which would kill credit and the housing market. A stronger dollar
would also cause American goods to be more expensive.
Nonetheless, you are absolutely correct in your *****sment.
As Europe now faces their own housing crash and banking problems, the
Euro will become devalued and the Feds will soon be forced to raise
rates in order to combat inflation. Let's just cross our fingers that
consumer confidence makes a miraculous rebound before summer. Look for
higher rates in the fall.
-solon fox
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