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

[spike]

> ...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.  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.

spike