holy crap, fed agrees inflation might be the only way

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kiryan
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holy crap, fed agrees inflation might be the only way

Postby kiryan » Thu Oct 07, 2010 4:41 am

Remember how I said the only way out of this is to inflate our way out so that the houses are worth what they are on the books for? I guess someone else thinks so too which is absolutely fuckign terrifying.

Holy fuk, thats really all i can say. Its one thing to do "quantative easing" which is basicalyl inflation, its quite another to actually say we're going to try and force you to spend your savings. I'm in shock.

http://online.wsj.com/article/SB1000142 ... Collection

The rationale is that getting inflation up even temporarily would push "real" interest rates—nominal rates minus inflation—down, encouraging consumers and businesses to save less and to spend or invest more.
...
And, in an interview, Chicago Fed Charles Evans said, "It seems to me if we could somehow get lower real interest rates so that the amount of excess savings that is taking place relative to investment needs is lowered, that would be one channel for stimulating the economy."
...
In a speech in 2003 when he was a Fed governor, Fed Chairman Ben Bernanke suggested that Japan attack prolonged deflation by announcing its goal of restoring the price level to the level it would've reached under moderate inflation. That approach, he explained, would lead initially to a "reflationary phase of policy" to bring prices back up to what would've been expected before the deflation.
Corth
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Re: holy crap, fed agrees inflation might be the only way

Postby Corth » Thu Oct 07, 2010 1:01 pm

These keynesians are a freaking menace. You can't just juice the economy perpetually. There is a time and place for spending and also for saving.

Inflating in order to encourage people to spend money.... wow. It's an offer you can't refuse. If you don't spend it we're going to take it from you. But where does that leave people who have actually done the right thing and saved for retirement? People who bought a cheaper car, a cheaper house.. went out to dinner less often, so they would have money now when they need it? Retirees holding cash and cash equivalents will be destroyed in a highly inflationary environment. So again you see an example of the government rewarding incompetence and penalizing good behavior. Absolutely nothing good can come out of that over time.
teflor the ranger
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Re: holy crap, fed agrees inflation might be the only way

Postby teflor the ranger » Thu Oct 07, 2010 1:31 pm

Dunno Corth, those cyclist teams keep on juicing.

You know, all the way to that heart attack at 42.
Sarvis
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Re: holy crap, fed agrees inflation might be the only way

Postby Sarvis » Thu Oct 07, 2010 2:33 pm

kiryan wrote:Remember how I said the only way out of this is to inflate our way out so that the houses are worth what they are on the books for? I guess someone else thinks so too which is absolutely fuckign terrifying.



I'm oddly satisfied to see you state your own thoughts are terrifying. Now you know how the rest of us (except Teflor) feel when reading your posts.
teflor the ranger
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Re: holy crap, fed agrees inflation might be the only way

Postby teflor the ranger » Thu Oct 07, 2010 6:45 pm

Teflor doesn't feel.
Dalar
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Re: holy crap, fed agrees inflation might be the only way

Postby Dalar » Fri Oct 08, 2010 6:13 am

Sarvis wrote:
kiryan wrote:Remember how I said the only way out of this is to inflate our way out so that the houses are worth what they are on the books for? I guess someone else thinks so too which is absolutely fuckign terrifying.



I'm oddly satisfied to see you state your own thoughts are terrifying. Now you know how the rest of us (except Teflor) feel when reading your posts.


Does it hurt you that he has a wife and kids too. How's single life.
teflor the ranger
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Re: holy crap, fed agrees inflation might be the only way

Postby teflor the ranger » Fri Oct 08, 2010 3:28 pm

I heard he has a little something on the side now.

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