Thursday 26 August 2010

that inflation was a special forces after casting

The emergence of this price, that inflation was a special forces after casting, the central bank print money market assets over-stimulated, causing asset prices, wealth effect stimulate demand, Greenspan by creating a new bubble solution bubble burst after the last legacy of economic problems. Now, after the big bubble burst, many people think that we have to create a new bubble could solve the economic problems, so many ideas that printing money, and then engage in a bubble, we think that people can not live after the bubble burst, and so is better than the day yesterday, stock prices high, high prices, high profits, consumer Yip Wong, suddenly the bubble burst, just when the Government Reform blast accused Wall Street greed, brought us such a big disaster, and now talk about the world's people now in the praise-singing. Why? miss the last bubble, wanted to return to yesterday How wonderful! in this mentality The Government put money, what would? cut interest rates, the money released in turn triggered a rise in asset prices. how do you understand this? This is not yesterday's back? We are not able to return to the era of Alan Greenspan? asset prices After the drive up the rise in the real economy? then we are back to the good old days, I think this possibility is very small. Why? flow past the framework of our world economy, the currency from the central bank released, the bottom is that China and interaction between the United States, China is a low-cost, farmers get little pay, factories, building products, sold to the Americans. Americans because of the relationship between monetary policy, price rise, he bought something, the money left to China, to lend their .

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