Hi Arthur,

While having my first pot of tea and pipe of the day and perusing the
morning's Financial Times, Economist, The Independent, Daily Telegraph and
other worthy mouthpieces on the Net -- all pronouncing on their various
remedies for the present impasse --  and being rather irritated by most of
them -- a postscript to my previous comment came over me: 

(AC)
<<<<
I don't think anybody fully understands "the system" and I am quite sure
that control is probably as good as it's going to get.
>>>>

Yes to first half of sentence (as already commented on), but No to second
half.

Billions of cash lies stacked up in investment funds, venture capital, and
pension funds in most countries in the western world (and under mattresses
in Japan and Russia) and there's nothing to invest in, now that the dot-com
mania has come and gone. And still Greenspan lowers interest rates to get
business to invest!

Millions of people with debts (excluding mortgages) more than their annual
disposable incomes in America, England and no doubt Canada and several
more, and still Greenspan lowers interest rates to get customers to spend
more and get themselves in deeper trouble!

Is it madness or hubris that makes the "authorities" think that they have
more than the most feeble grasp over the economy?

I've changed my mind. I'll answer Yes to Arthur's second phrase. " . . .
control *is* probably as good as it's going to get."  When we (or our
grandchildren) pick themselves up after the coming recession/depression,
we/they will decide that governments should get out of pretending that they
know what they're doing as regards currencies, interest rates, and suchlike.

Keith 



  

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Keith Hudson, Bath, England;  e-mail: [EMAIL PROTECTED]
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