Can the Second Coming of Paul Volcker Save the Dollar? (China's hand on the switch)

Financial Sense ^ | December 14, 2006 | Antal E. Fekete

[Toddsterpatriot]

Once they have sold what they have what other levers do they possess.

If they deflate the money supply, all hard asset prices would decline.

[GodGunsGuts]

"Production keeps contracting"

==Where?

The signs of economic contraction are all over the place...that includes production. Wake up and smell the coffee, Toddster.

[Jack Black]

M3 Money Supply: reporting of this was suspended in 05 by the Fed.

[montag813]

The dollar doesn't need to be "saved". Yes it broke down (chart below in the Euro, so dollar is inverse to that) recently, but it is quickly coming back as robust U.S. economic has been released in the past week.

[Mase]

The signs of economic contraction are all over the place

ROFL!!

U.S. consumers revive spending in November

A stronger-than- expected retail rebound in November surprised many analysts.

Investors Bullish on Commercial Real Estate

Much press has been devoted to the cooling residential real estate market and its effects on the U.S. economy and consumer spending, but the commercial real estate market has remained bullish as businesses around the country continue to expand

• Corporate pre-tax profits are up 31 percent through the third quarter.

• Personal income increases have pushed real consumer spending up about 3% at an annual rate above the third-quarter average.

• The overall consumer price index has dropped to 1.3 percent over the past year.

• Unemployment at 4.5% and the Dow at an all time high.

...that includes production.

Obviously, this contraction is killing manufacturers profits. LOL!

Wake up and smell the coffee

You're sniffing something but it sure isn't coffee.

[Toddsterpatriot]

That was a whole bunch of charts that didn't prove that "Production keeps contracting".

[Toddsterpatriot]

And thanks for your substantive response to the rest of my lengthy rebuttal of your clown professor.

[Petronski]

Fekete and all his colleagues commute to work together in a tiny little car.

[GodGunsGuts]

Apparently, you didn't even bother to read your own article. Talk about spin! Of course you are going to see a bounce going into Christmas. These guys are simply trying to puff up consumer confidence. However once you get past all the Pollyanna BS, the real state of our economy begins to emerge in the typical dribs and drabs the MSM tries to sandwich between all the sweetness and light. Here are the relevant counter arguments buried in the article that YOU posted. One thing's for sure, your article's headline certain does not capture all the conflicting information contained in the story (and let's not forget, the Clinton/Greenspan changes inflate the GDP and understate the CPI...so it's even worse than the official stats would suggest):


..."In another encouraging sign, the government revised the October sales performance to show a 0.1 percent decline rather than the 0.4 percent drop first reported."

..."The November rebound was surprising given anecdotal evidence from retailers that sales had tapered off following a strong weekend after Thanksgiving."

..."But gasoline prices are well below summer levels and job growth has stayed strong despite the economic slowdown."

..."The economy began 2006 with a sizzling 5.6 percent growth rate, then slowed to 2.6 percent in the spring and 2.2 percent in the summer."

..."We think it is very likely that sales will either be revised down or there will be a hefty drop in December,'' said Ian Shepherdson, chief U.S. economist at High Frequency Economics."

[Mase]

Fekete and all his colleagues commute to work together in a tiny little car.

Does anyone know where the Intermountain Institute for Science and Applied Mathematics (LOL!) is located? For some reason I'm hearing banjo music.

Professor Fekete, Is that you?

[Toddsterpatriot]

(and let's not forget, the Clinton/Greenspan changes inflate the GDP and understate the CPI...so it's even worse than the official stats would suggest):

You have some proof the revisions were inaccurate?

..."The economy began 2006 with a sizzling 5.6 percent growth rate, then slowed to 2.6 percent in the spring and 2.2 percent in the summer."

Slower growth is still growth, silly.

However once you get past all the Pollyanna BS, the real state of our economy begins to emerge in the typical dribs and drabs the MSM tries to sandwich between all the sweetness and light.

What are you smoking?

[Toddsterpatriot]

Does anyone know where the Intermountain Institute for Science and Applied Mathematics (LOL!) is located?

The founder is in Montana. I think Fekete is in Canada.

[GodGunsGuts]

==You have some proof the revisions were inaccurate?

I already posted it to you. You were just too lazy to read it.

[Toddsterpatriot]

I already posted it to you.

Your "proof" that the revisions revised the CPI is not the same thing as proving the revisions made the CPI less accurate.

[GodGunsGuts]

==Slower growth is still growth, silly.

It means the economy has slowed by 61%. This should have gotten your attention a long time ago. And when you subtract out the Clinton/Greenspan changes to the GDP, we have already entered negative growth/recession.

[Mase]

(and let's not forget, the Clinton/Greenspan changes inflate the GDP and understate the CPI...so it's even worse than the official stats would suggest)

Here's some more in case you run low:

The November rebound was surprising given anecdotal evidence from retailers that sales had tapered off following a strong weekend after Thanksgiving.">

Wow. Facts trump anecdotal evidence. You could learn something here. Maybe the experts will also be surprised by retail sales in December...and January, and...

But gasoline prices are well below summer levels and job growth has stayed strong despite the economic slowdown

Wow again. Crude prices are dropping and our economy keeps creating jobs. That's really some economic slowdown you're touting.

The economy began 2006 with a sizzling 5.6 percent growth rate, then slowed to 2.6 percent in the spring and 2.2 percent in the summer

And with consumer spending remaining robust, we could achieve 3.5% annual economic growth in our $12 trillion economy. Like I said before, that's some disastrous economic slowdown you goldbugs are seeing.

..."We think it is very likely that sales will either be revised down or there will be a hefty drop in December,'' said Ian Shepherdson, chief U.S. economist at High Frequency Economics."

Is this the same guy who predicted a hefty drop in consumer spending for November? LOL!

[Fan of Fiat]

It means the economy has slowed by 61%.

No it hasn't silly.

You are driving 50 mph. You accelerate 10% / sec to 55mph. You continue to accelerate 5% / sec to 57.75 mph.

Only a gold-bug would say 57.75 mph is 50% slower than 55 mph.

[Toddsterpatriot]

It means the economy has slowed by 61%.

Are you claiming GDP shrunk by 61%?

[groanup]

psst..., looks like another record close for the Dow. I'm gonna ask Santa for a better economy. He's gonna say ho, ho, ho.

[Toddsterpatriot]

What do you think of this stupid article? And my post #15?