[ExI] M0 singularity... you're soaking in it

[samantha]

spike wrote:
>  
> 
>> ...On Behalf Of Gordon Swobe
>> Subject: Re: [ExI] M0 singularity... you're soaking in it
>>
>>> Ben Bernanke's Fed has doubled the monetary base in a single year! 
>>> Holy cow.
>> Normally the Fed responds to tough economic times by reducing 
>> short term interest rates. But short term rates have reached ...
>> -gts
> 
> 
> Thanks Gordon, your post is an excellent and calm explanation, the best I
> have seen in a frenzy of panicky news articles.  I have been a deer in the
> headlights the past few months, wondering where to move my savings.  
> 
> While we debate about inflation/deflation, do take a trip down to the local
> hardware store.  The loss leader tools are selling for about a quarter of
> what they were two years ago.  I suspect a number of Chinese factories are
> dumping in a wild panic to liquidate stock. 

Actually many stores are selling at and often below cost to attempt to 
maybe survive a while longer.

  For instance, last month I
> bought a drill, 11 bucks, a grinder, 12 bucks, a jigsaw, 11 bucks, yesterday
> a set of wood clamps, 14 bucks for a set of 15.  A year ago those were more
> like 5 to 7 bucks for each clamp, with the set about 100.  They are
> surprisingly solid tools.
> 
> The Chinese could scarcely ship those tools over the sea for the price they
> are getting.  Explanations welcome.

The warehouses are emptying.  China itself is closing factories.  As 
much of our manufacturing is off-shore look out.  Buy those hard goods 
now while you can at a good price.

- samantha