-Caveat Lector- WJPBR Email News List [EMAIL PROTECTED] Peace at any cost is a Prelude to War! Forbes: Fed Making Same Mistake as BOJ NewsMax.com Wires Wednesday, Sept. 19, 2001 SINGAPORE -- Publisher and businessman Steve Forbes on Wednesday blamed the U.S. Federal Reserve and some of its past decisions on interest rates and monetary liquidity for the current U.S. recession, and to some extent, the world recession. Forbes, the president of Forbes Inc., spoke at the Forbes Global CEO Conference, held for the first time outside the United States. He said the Fed should not have tightened interest rates three years ago, should have loosened them at a much faster pace this year, and had made the mistake of keeping liquidity tight, up until last week's terror attacks on New York and Washington. "The Federal Reserve is making the same mistake as the Bank of Japan," he said. "The same thing is beginning to happen in the U.S. It is cutting interest rates, but is keeping money supply tight." After the terror attacks on the World Trade Center and the Pentagon, central banks around the world, including the Fed, have started to enable liquidity in the system. Central bankers acted in unison to stabilize financial markets, injecting more than $80 billion of short-term funds in the banking system to meet demands for cash. As a rule of thumb to assess the appropriate level of liquidity in the economy, Forbes said, the price of gold should be higher than $300 per ounce, and should stabilize between $300 to $320. Forbes pointed to three main reasons for the U.S. economic recession: the "mistakes of the Fed," the level of taxation and the rise in regulation in the high-tech sector. Forbes argued that the Fed has been working on the "strange theory" that prosperity causes inflation. "Experience shows this theory is nonsense," he said, pointing to the 1980s, when the United States experienced a prolonged expansion period with falling inflation. According to Forbes, the tightening of the interest rate led instead to deflation, with a shortage of money, which reverberated across the world, as 70 percent of all U.S. dollars printed in the United States leave the country. Forbes accused the Bank of Japan for being "overly tightened." He said, "It needs to loosen policy if it is to avoid a meltdown of the banking sector in Japan." In both 1996 and 2000, Forbes campaigned unsuccessfully for the Republican nomination for the U.S. presidency. His platform called for a flat tax, medical savings accounts, a new Social Security system and a strong national defense. Forbes said the current level of taxation penalized Americans. Contrary to popular belief, he said, the recent tax cut was small. "The tax cut was like a cup of tea posing as a bottle of whiskey," he said. "Very weak in its impact." *COPYRIGHT NOTICE** In accordance with Title 17 U. S. C. Section 107, any copyrighted work in this message is distributed under fair use without profit or payment to those who have expressed a prior interest in receiving the included information for nonprofit research and educational purposes only.[Ref. http://www.law.cornell.edu/uscode/17/107.shtml ] Want to be on our lists? Write at [EMAIL PROTECTED] for a menu of our lists! <A HREF="http://www.ctrl.org/";>www.ctrl.org</A> DECLARATION & DISCLAIMER ========== CTRL is a discussion & informational exchange list. Proselytizing propagandic screeds are unwelcomed. Substance—not soap-boxing—please! These are sordid matters and 'conspiracy theory'—with its many half-truths, mis- directions and outright frauds—is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRLgives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credence to Holocaust denial and nazi's need not apply. Let us please be civil and as always, Caveat Lector. ======================================================================== Archives Available at: http://peach.ease.lsoft.com/archives/ctrl.html <A HREF="http://peach.ease.lsoft.com/archives/ctrl.html";>Archives of [EMAIL PROTECTED]</A> http:[EMAIL PROTECTED]/ <A HREF="http:[EMAIL PROTECTED]/";>ctrl</A> ======================================================================== To subscribe to Conspiracy Theory Research List[CTRL] send email: SUBSCRIBE CTRL [to:] [EMAIL PROTECTED] To UNsubscribe to Conspiracy Theory Research List[CTRL] send email: SIGNOFF CTRL [to:] [EMAIL PROTECTED] Om
