← Autodidact Archive · Original Dissent · All Old Right
Thread ID: 13947 | Posts: 2 | Started: 2004-05-29
2004-05-29 04:59 | User Profile
Man, inflation, deflation. Interest rates go down, stocks rise, value of dollar falls(lower demand for $), gold falls? Inflation...interest rates rise, value of dollar falls, gold rises, stocks fall. No inflation, interest up, dollar up. I'm think that's right. Value of dollar contrary to gold, interest rates contrary to stocks.
I can't understand why the dollar is low and stocks are high, unless that's showing Greenspan ignored inflation and froze rates, knowing it'd cause a fake rise in the stock market? Trick is, nobody can time an economy as big as the US but so close, and the steam is running out in June instead of just after the election.
2004-05-30 13:54 | User Profile
[QUOTE=All Old Right]Man, inflation, deflation. Interest rates go down, stocks rise, value of dollar falls(lower demand for $), gold falls? Inflation...interest rates rise, value of dollar falls, gold rises, stocks fall. No inflation, interest up, dollar up. I'm think that's right. Value of dollar contrary to gold, interest rates contrary to stocks.
I can't understand why the dollar is low and stocks are high, unless that's showing Greenspan ignored inflation and froze rates, knowing it'd cause a fake rise in the stock market? Trick is, nobody can time an economy as big as the US but so close, and the steam is running out in June instead of just after the election.[/QUOTE]
Good questions. The thing that I don't understand is why anybody in their right mind would want to hold dollars. Oil prices are at record levels, we're importing oil at an astonishing rate, we have yawning trade and federal budget deficits as far as the eye can see, and none of it really seems to get anybody real excited.
The thing just keeps chugging along.
It's a virtual realty economy, which is the only explanation I have for its apparent ability to defy gravity.