the FED: HOW TO GET back; TO "2+2+2" ???

the GOOD old DAYs ??

Peter Drucker told a story about Banking in the USA in the "good old days".  I filed it in my NOTES under "2+2+2".  

We were told that in those days, a Banker could go to work at 9:00 AM; Play a round of golf and have lunch, at 11:00AM; and then, end his work day at 3:00PM!!  That was because Interest Rates were very stable, and covered: 2% of "natural" inflation, plus 2% of inflation from growth in the economy (one half), and growth in the value of assets (the other half).  The Banks added their 2%, to cover the costs of "doing their business", and their profit.  The 6% Interest Rate became our Standard.

That lasted until Nixon took us off the Gold Standard, and the world was hit with Commodity Inflation from Oil, Coffee, even Sugar.  Wage and Price Inflation rose rampantly in our Economy, until Paul Volcker Chair of the FED for Presidents Carter and Reagan (1979 to 1987), KILLED inflation and brought oil and gold prices down from the rafters.

Money Boys then started playing with our Housing, as I remember, starting with the Keating Five in the United States Senate.  That turned out to be a practice run for the Big Caper targeting our Housing Market, that took place under the loosey-goosey reign of Dickand Dubya!.  We're still shell-shocked from that CRAP!  All of this happened under Alan Greenspan, who followed Volcker as Fed Chair, serving Reagan, Daddy Bush, Clinton, and DickandDubya (1987-2006)!!  The Housing Debacle of 2008, courtesy of the second-round Bush Administration, revealed that our Economy had been deeply linked to the GLOBAL ECONOMY that grew in the wake of Nixon and Kissinger tinkering with China!

Stay Vigilant! Hold-on to whatever part of your body that works for ya'; as we continue to  "ride-out" the aftermath of "2008"!  The Red-Neck Revolt that placed DickandDubya in Office in 2000, has metastasized into the Repoob-Tea Party, and what's left of the Republican Party we used to know.  Their REVOLT also killed our FISCAL POLICY; leaving the FED to carry the full weight of  "fixin" their F*ck-Ups!  We're back to 2% growth; where we need 4%!  Until the VOTERS kick the asses of the Republicans in Congress and force them to do their FISCAL job, and restore our  twin policies that have always stabilized our Economy, we will continue to "Limp Along" as a Nation; much the same way we injured Veterans have to??

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