In a message dated 04/16/2000 3:11:40 AM Central Daylight Time,
[EMAIL PROTECTED] writes:
<< GOV'T LIES CAN'T POSTPONE A GRIM RECKONING >>
One of the biggest lies is that inflation can be slowed or stopped
by increasing interest rates. Just the opposite is true.
Any businessman knows that interest payments (debt service)
are a cost of doing business.
Business costs must be added to the prices of goods and
services and passed on to consumers.
The direct result of higher interest rates is higher prices.
Please read that again.
The direct result of higher interest rates is higher prices.
When prices go up, the Federal Reserve and the propaganda
media call it "Inflation".
That is a lie......rising prices are a result of an inflated or
devalued money supply.
So when the various Price Indexes go up, the FED calls
it "Inflation", and in the next breath they tell us they
are raising interest rates to fight the inflation.
Raising the interest rates is pouring gasoline on the fire.
Remember, increased interest rates translates into increased prices.
When the Fed increases interest rates it's like the captain of a ship
ordering holes to be drilled through the bottom of the ship's hull
in order to stop the water from coming in.
If you want to know what's really happening,
please read and consider the following.
The Masai Tribe of Kenya Africa has a very
peculiar custom. The Masai bleed their domestic
cattle by piercing a vein in the neck with a hollow tube.
The blood is caught in a bowl or jar.
They carefully control the amount of blood taken from
each animal so as not to endanger its life. The loss of
a cow is a major economic loss to a Masai family.
The blood is mixed with milk and the Masai drink it!
This blood-milk mixture is a major part of their diet.
The Masai must be careful to maintain a balance
between bleeding their animals and keeping them alive.
Obviously, a dead animal would provide no more blood.
It is accurate to say that the Masai are literally "Vampires".
It is also accurate to say that the Federal Reserve is a Vampire.
It feeds off the very lifeblood of the American Economy.
When it raises interest rates, it is increasing the "bleeding".
If the economy slows too much...stagnates...deteriorates...
they slow the bleeding by reducing interest rates.
When our economy is healthy and vibrant as it has been,
they stick us in the neck and let our blood flow.
They feed on it!
Remember this example the next time you read or
hear in the news about Alan Greenspan and
The Federal Reserve and interest rates.
Regards to All
Nakano
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