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Subject:  Re: Post's Samuelson on low rates Date:  3/3/2005  2:12 AM
Author:  mjcalab Number:  11971 of 36328

Why clueless?

Could it be that Greenie is not clueless but putting politics first? If interest rates are looked at as the cost to barrow money then they are determined by supply and demand. The Fed and banks create the supply. The private and public sectors create the demand. Interest rates are low because the supply of money has been growing at a much faster rate then demand for money. The Fed's own data demonstrates this: pages 13 and 14 at

Guess Greenie doesn't read for many people have described how unprecedented public and private spending has created excessive demand for cheap Asian goods. The Asians have not in turn used that money to purchase what we produce, which would in kind have stimulate our economy, but instead purchased our bonds which caused and increase in the price of those bonds which lowers the interest rate. It is very sad to see a man with his power and responsibility fake ignorance.

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