|3 Jan 2006 @ 04:03, by John Ashbaugh|
For those who are interested in the economics of our dear Federal Reserve.
The Mess Greenspan Leaves
by Stefan Karlsson
(quote: Alan Greenspan has a record of repeated rescue operations during times of financial distress. From the stock market crash of 1987 to the S&L crisis of the early 1990s to the Asian crisis and the collapse of LTCM to the feared Y2K crisis to the bursting of the tech stock bubble, Greenspan has proven himself more than willing to bail out failed investors with additional doses of "liquidity" (the popular inflationist euphemism for inflation).
The result of this has been to increase the willingness of investors to participate in speculative bubbles because they know that if things go wrong and they are unable to get out before the bubble burst, their good friend Alan Greenspan will bail them out and limit their losses. Greenspan has thus been responsible for bubbles like the tech stock bubble and the housing bubble both by suppressing interest rates and providing the "liquidity" needed to create the bubbles, and also by reducing investors fear of losses after the bubble bursts by creating the expectations that the Fed will bail them out.(end quote)
Federal Reserve - Enemy of America
(quote:By comparing the purchasing power of money in the United States (or colonies) from 1665 to any other year including the present, you will be provided with the empirical evidence that so many wish to scorn. Here are the results - the real value of $100.00 in 1913 reflected in Federal Reserve Notes, for the year 2001. Now compare how many U.S. Dollars it took in 1913 to have the same worth as $100.00, of real constitutional money, in 1776:
1. $1779.93 in the year 2001 has the same "purchase power" as $100 in the year 1913.
2. $113.33 in the year 1913 has the same "purchase power" as $100 in the year 1776.
finally: just for the fun of it:
Happy New Year to All and Every One.
May We prosper in Spirit,
and continue our path to
the better world we know is possible.