nScout

ECB Calls Bernanke's Bluff

To JasonC:
US M1 is not a reliable measure of the money supply as it only sums cash and demand accounts. US M3 is the measure that sums ALL shortly available payment instruments. Why then did the FED stop publishing this measure in March 2006? Can you give us the result of the "inflation identity" measuring the rate of inflation since 2003 (Inflation (%P) is equal to the rate of money growth (%M3), plus the change in velocity (%V), minus the rate of output growth (%Y))?

ECB Calls Bernanke's Bluff

"..Bernanke and his boss, Treasury chief Henry Paulson.." Yes one wonders about the independence of the FED. The huge monetary creation and lack of oversight of the past years by the FED was an easy way to finance the gigantic US budget deficits brought about by useless and ruinous internal and international policies.

U.S. Dollar Paradigm Shift Underway

to Michael B. Krause.

Must point out that the Swiss experience totally contradicts your last point as you can have stability of prices and currency and a dynamic and imaginative industry.

As to the $ money supply the FED's bail-outs replace the lenders who stepped aside, so the money supply is the same as before the credit crisis and thus remains still at the bubble level.

U.S. Dollar Paradigm Shift Underway

"The US Dollar is still a fundamentally sound currency", "But all of those problems are fixable"
Is it not a contradiction? Or just wishful thinking? Precisely because US leadership has proven incapable of fixing these problems and does not show any inclination to do so, the $ will slide further. As to the warped US financial system just read the following article "Searching for the cause of the crisis on Wall Street"
By Nelson D. Schwartz and Julie Creswell Published: March 24, 2008 in the International Herald Tribune (www.iht.com/articles/2...".
The US is in deep trouble and it is not an ever optimistic mental bent that will fix them.

Fed Rate Cuts Backfire, Lift Gold and Oil into Orbit

Right on! That's the end you get when waging a trillion $ half-war, caving in to banks and altogether losing all sense of leading a country.