On Apr 16, 12:39=A0pm, solon fox <solon...@[EMAIL PROTECTED]
> wrote:
> 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
centu=
ry
> > > > up to the 1970s.
>
> > > Gold Standard go bye-bye. Money becomes separated from a referenced
va=
lue
> > > 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- Hide quoted text -
>
> - Show quoted text -
There are two possible solutions, although they really must be
combined, I expect:
1. Redistribution of wealth
2. New Technologies.
The first is to some extent being effected simply by the collapse of
the dollar, the markets and real estate. Those with assets have far
less than they had a few years ago, effectively. Although they may
still chortle about how "things are about to turn around". They
won't. Why would they? Because Warren Buffet is buying stock?
What's he supposed to do, give up and kill himself? He's too old to
bother.
The second, new technologies, is to some extent a problem because of
the absolutely ridiculous combination of tenure and peer review in the
Universities. The ultimate recipe for no progress whatsover in
science or technology, at least in the Universities. People who can't
be fired, are the sole arbiters of the value of their own work, in
their own field. Why should they do anything, ever? So, they don't.
Perhaps both problems could to some extent be solved by job creation
in the research sector with training paid for by some Government/
Private sector combination.
Otherwise, we are in a deep depression, with no way out.
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