no savings? no problem!

[grapejelly]

Re: no savings? no problem!

looks like we've been joined by a poet! welcome.

sorry for inflicting this on you. Thank you for the kind welcome.

[Spartacus]

Re: no savings? no problem!

Why do you suppose gold and silver are not listed, and what is no. 1, that is not listed?

Gold and Silver are in fact specifically EXCLUDED by the clause "commodities without futures and derivatives".

Why? Presumably because Warburton thinks either

1. Central banks and their allies/proxies/workhorses, the investment banks, will succeed in keeping Gold and Silver prices low

or

2. When the liquidity comes crashing down, and the immense leverage in the derivatives arena must be unwound, all prices that were raised by the ultra-uber-over-leveraged liquidity (including Gold and Silver) would fall.

This whole post is funny because I asked similar questions long ago of EJ with respect to Peter Warburton's recommendations, one of which was for, paraphrased,

"commodities not traded on any futures exchange"

hmmmm .... do we know for certain there are no derivatives on Drinking water, bottled or piped, on beef tallow and Platinum and arable farmland and cow leather ? ???

[Spartacus]

So - Eric

Wall Street, of course. It's difficult to find a better argument than Peter Warburton's from 2001.

I've read that article many times, probably will read it many times more

On this reading I noted something I had not clued into before

"By the mid-1980s, central bankers had begun to enjoy a measure of success in controlling inflation, not by strict regulation of the money supply, but as a by-product of financial de-regulation and the liberalization of credit."

Is he really saying that the 70s CPI and monetary inflation were both controlled not by Volcker's rate hikes ("not by strict regulation of the money supply")

but rather by "financial de-regulation and liberalization of credit"?

I'm stymied again. Warburton claims that even under Volcker, "financial de-regulation", which I take to mean the early derivatives products was the force that put an end to the 70s inflation?

EDIT - reading it yet again, I'm gettting even more confused and wish Mr. Warburton had differentiated inflation into monetary and CPI.