THE NOTION THAT ASIA WILL CONTINUE WORKING...AFTER THE US CONSUMER IS OUT OF THE PICTURE... IS WISHFUL THINKING...
OR PERHAPS JUST NUTS...
THE ENTIRE HOUSE OF CARDS WAS BUILT ON THE IDEA THAT THE US CONSUMER COULD SPEND INDEFINITELY....AND THE FED WOULD KEEP PRINTING MONEY FOR THAT SPENDING...
BUT NO INFLATION WOULD OCCUR BECAUSE THE CHEAP LABOR OF ASIA WOULD "EXPORT" DEFLATION INTO THE AMERICAN ECONOMY...
AND IT DID WORK EXACTLY LIKE THAT DURING THE CLINTON YEARS...
NOW IT'S DIFFERENT... THE CLINTON PROSPERITY...ENGINEERED BY GREENSPAN....WAS UNSUSTAINABLE... AND IN FACT WAS A BIT NUTS...
DID GREENSPAN THINK HE COULD PRINT MONEY INDEFINITELY AND ONLY ASSET INFLATION WOULD OCCUR...NOT COMMODITY INFLATION OR GENERAL PRICE INFLATION...
THAT IS SO NUTS...I CAN'T BELIEVE THAT ANYBODY REALLY THOUGHT IT WAS POSSIBLE LONG TERM...
I MEAN THE WHOLE IDEA OF A "GOOD INFLATION" (IE ASSETS") AND A "BAD INFLATION" (IE GENERAL ECONOMY PRICES) IS NUTS...
BUT HOW ELSE CAN YOU EXPLAIN THE EMBRACE OF THE STOCK BUBBLES DURING THE 1990'S...BY GREENSPAN AND THE FED? OR WAS IT JUST CRIMINAL NEGLIGENCE...?
MAYBE I'M MISSING SOMETHING...BUT I THOUGHT THAT CENTRAL BANKS WERE SUPPOSED TO BE "FOLLOWING THE RULES" ALL THE TIME...NOT JUST AFTER THE LOOTING IS OVER .... AND THE ECONOMY IS DAMAGED BEYOND ALL REPAIR...
