Abject Failure
John Mackenzie
jrmfl@adelphia.net
Jul 14, 2004
The Financial Markets are setting
up to overwhelm the Policymakers in short order this August in
this observer's opinion.
Dislocations have become most untenable over the course of 2004
as the latest round of excess liquidity, stuffed into the system
ahead of the Federal Reserve's "Tightening Lite" campaign;
certainly isn't yielding Foie Gras.
Instead, it appears to have brought about yet another unwelcome
side-effect akin to having binged upon far too many Olestra based
substitutes. Digestive problems, cramps and urgency are symptomatic
of "the Invisible Hand's Substitute."
Contrary to Mr. Bernanke, Chairman Greenspan, and Board of Governors
at the Federal Reserve little remains ""Under very
good control."
Under Chairman Greenspan's lofty misplaced rationale, the ebb
and flow of current monetary policy appears to center around
the following:
"GDP falling faster than Debt" or "Debt increasing
faster than GDP"
Choose your poison carefully, Chairman Greenspan, as the ending
is precisely the same.
Abstract statistical aggregates matter very little to "Larry
lawnmower and Judy java." They recognize the simple truths
within their financial sphere.
Things they need cost more.
Alan Greenspan is not totally oblivious to the realities of America's
majority, although his loyalties clearly lay elsewhere. Pontificating
hedonically fudged economic indicators is no substitute for the
pocketbook reality indicator.
Health-care costs are rising 300% faster than wages. Explaining
away the impact upon the "Real Economy's" participants
is quickly becoming far less palatable to America's Working Class.
I use that term very loosely to include all Americans not feeding
at the top tier of first abuser privilege granted to those with
immediate access to Chairman Greenspan's "Liquidity Trough."
The CONfidence game is losing its grip. One doesn't need a rapidly
escalating College education, in dollar terms, to deduce the
obvious.
Consumer CONfidence reporting has constantly shifted blame away
from cause and towards the ill effect assumed by the American
Public. The great irony here is that although "Gloom"
may accurately describe the collective mood moving throughout
the balance of 2004, the infertile egg is somehow held accountable
for the chicken's promiscuous malaise.
Cutting Social Security benefits, sending tertiary jobs overseas,
re-jiggering pension benefits while piling on Federal Debt and
raiding already under funded future liabilities in order to remain
solvent within the confines of the federal budget ceiling, yes,
this adds up to a rather amazing miracle in Enron-esque accounting
irregularities.
Debt is deflationary, regardless of how it is addressed. It would
be best to begin to prepare now, the ending is out there and
it may well be much closer than most realize.
Jul 13, 2004
John Mackenzie
jrmfl@adelphia.net
John Mackenzie
manages private capital and hosts a gold
forum/investors exchange on Yahoo! groups.
321gold
Inc
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