The Fed recklessly abandons their price stability mandate, and this is what it has wrought: Dollar at record lows, oil and gold near all time highs.
It is the first rule of economics, yet so many
idiots pundits cannot seem to to remember it: THERE IS NO FREE LUNCH.
In physics, the corollary is that "every action has an equal and opposite reaction." Why this is too complex for their little frontal lobes is beyond me. It is simple. It is basic. It is easily understood by even supply siders.
Think about all of the brainiacs who have been begging for rate cuts — and from historically moderate rates — over the past 2 years. Be sure to thank them for the reckless disregard for your wallet.
Hey, how’s your core inflation doin’ these days?
UPDATE: November 7, 2007 9:21am
Maybe there’s some hope for the dollar:
Within the Fed, Resistance to Further Rate Cuts http://www.nytimes.com/2007/11/07/business/07fed.html
Oil Rises Above $98 to a Record on Forecasts U.S. Supplies Fell
Grant Smith and Nesa Subrahmaniyan
Bloomberg, Nov. 7 2007c
Dollar Slumps to Record on China’s Plans to Diversify Reserves
Agnes Lovasz and Stanley White
Bloomberg, Nov. 7 2007
The Eagles — the multi-platinum selling alt country/rock band circa 1970s — are trying an interesting sales strategy for their first studio album in 28 years.
For the new disc, it appears that there is:
- no recording label participation;
- downloads at their site only;
- physical 2-CD Set purchased only at Wal-Mart, or ordered at their site ((Eaglesband.com).
The band cranked out over 700,000 discs in the first week — not too shabby for a double disc.
For you young ‘uns, the album Eagles: Their Greatest Hits 1971–1975 is the all time best-selling album in the U.S. (according to the RIAA); Their album Hotel California is #18 on the all time top selling list).
What’s really interesting is the downloading — the double disc is available for in two formats: MP3 256k for $10.88, and in FLAC lossless for $11.88, directly from the band’s website.
I am not sure, but it appears that both the labels and Apple’s iTunes have been cut out of the picture.
(I’ll update this as I learn more)
Update: November 7, 2007 5:52am
The Eagles made a
direct exclusive deal with Wal-Mart for physical album — no label involved.
sold the album to Wal-Mart on a one-way basis (meaning, no returns).
serves, I believe they bought 3.6M units at $8 or $9. The Band pays
manufacturing costs and publishing (most of which goes to themselves as writers)
and keeps the rest. Pretty nice haul. I haven’t confirmed with the
manager, but I believe the downloads are being done by the band through their
Again, no iTunes, no labels . . .
Top 100 Albums
Revised Chart Policy Lands Eagles At No. 1
Billboard, November 06, 2007, 8:30 PM ET
JT bypasses the Labels