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Re: The Limits To Growth



In article <32AEF309.698@bionomics.org>,
Max Jacobs  <mjacobs@bionomics.org> wrote:
...
>Now for your second assertion. The federal reserve does not control the
>general employment level in this country, the market does.  Your
>assertion is a good example of machine age thinking, something we at the
>Bionomics Institute are trying to overcome.  The economy is not some
>sort of automobile, with the fed having its foot on the gas pedal.  The
>economy is a complex ecosystem.  Sure if the fed raised the federal
>funds rate tremendously there would be, some increase in the
>unemployment level.  But that is only because wall street trusts Alan
>Greenspan to make the right decision.  The fed only controls the federal
>funds rate, which is the interest it charges to make loans to other
>banks.  This does effect the interest rates that we deal with everyday,
>but it is the market that actually changes them.  A couple of months
>ago, there were some rumors going around that the fed was going to raise
>the federal funds rate and that very day, interest rates rose by
>themselves.  

Perhaps "we at the Bionomics Institute" should find out what the Federal
Funds rate is and how it is set, and how it differs from the Fed's
discount rate.

>
>Max Jacobs
>
>************************************************************************
>
>The Bionomics Institute
>http://www.bionomics.org
>
>Viewing the economy as an ecosystem
>
>************************************************************************

Paul Farrar


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