Monday, June 09, 2008

Economic Seventies

It's bad enough when those younger than the Sandmich do not know of the poor monetary discipline of the seventies, but those ten or more years older than myself should have vivid memories of the double digit inflation and the double digit interest rates that failed to bring it under control. However, it looks like it's collective amnesia time as everyone seems geared up to make the same mistakes all over again!

What got me in this train of thought was this news story. I wouldn't recommend watching it; it's thirty five years old and basically the same crap you see on the evening news today. The only difference is that back then they blamed big American manufacturing firms for dumping dollars in some bizarre effort doom their sales, rather than today when they blame big (mostly) American oil firms for being unable to buy oil with an increasingly devalued dollar.

Meanwhile "Uncle" Ben Bernake is on the case!
Federal Reserve Chairman Ben S. Bernanke said the economic outlook has improved from a month ago, and central bankers will ``strongly resist'' any waning of public confidence in stable prices.
Too bad he's about a year late on his 'strong resistance' after printing all that money for his buddies and allowing congress to pump a bunch of fake money into the system via low interest rates. Maybe he should've asked the economic pundits at Nintendo how much purchasing power is left in the dollar:
"The LA Times is reporting that the new Nintendo Wii Fit is hard to find on US shelves, due not only to strong demand but also the United States' declining
status in the world economy: '"[Nintendo] is also is shrewdly maximizing its
profit by sending four times as many units to Europe, reaping the benefits of the strong euro," says Michael Pachter, an analyst with Wedbush Morgan Securities. "The shortage demonstrates one consequence of the weak dollar. We're seeing companies ignore their largest market simply because they can make a greater profit elsewhere."'"

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