Posted on 10/14/2010 11:14:20 AM PDT by blam
“The mainstream media is reporting that the Federal Reserve wants to publicly declare their intention to seek a higher inflation rate so that Americans are encouraged to spend more before their money is worth less.”
Yes, in case you were still wondering, the people in charge are morons.
Federal Reserve wants to publicly declare their intention to seek a higher inflation rate so that Americans are encouraged to spend more before their money is worth less.
What planet am I on?
The people in charge are not morons - they are evil.
Americans (sheep) who watch TV are the morons.
“What planet am I on?”
Planet Honesty, apparently, as for once the Feds tell us what their plan has been since 1913.
“The people in charge are not morons - they are evil.”
Evil morons, I’d say. Because even if their plan works, we will be flirting with hyperinflation, which I don’t need to explain is a very bad thing for the economy and by extension the government. Then again, what the hell am I saying? Leviathan loves crises. Nevermind.
What’s funny is that they don’t seem to have the power to do it. Since money is LOANED into existence, and nobody is loaning, and plenty are defaulting (causing money to LITERALLY disappear, but the trillions), they seem to be unable to create money as fast as it is dissapearing.
They’ll eventually catch up and pass it though, but I doubt it will be any time real soon.
That was an important piece of news last week that got very little attention.
It's a slow motion currency collapse. Let's see if they cut a short term deal with the Chinese that'll make it much worse in the long run...
Another aspect of this worth noting is that this also helps those banks sitting on billions of dollars in foreclosed properties slowly get their balance sheets back in order.
I don't know if these people are morons or evil, but there might actually be a sound basis for how this whole financial mess is being unwound.
Yes, 'that's the ticket'.
Then, they'd be able to get an equity loan and begin the spending all over again.
I’ve said since 2006 that there are basically two ways out of this: A depression, or monetizing the debt resulting in severe inflation or maybe hyper-inflation. But if wages don’t go up then the latter results in a significantly lower standard of living.
“It’s a slow motion currency collapse.”
Reminds me of how during the ‘08 crisis people used as a metaphor an airliner bound to crash, which TARP, etc., were intended to guide carefully into the Hudson like Sully Sullenberger (not that he existed in the national consciousness at the time; I honestly can’t remember). What total arrogance to think they can de-disaster a disaster.
Funny thing about inflation: when it gets bad people tend to call it “runaway inflation”; in other words, uncontrolably inflation. No one knows when or how (except in the most general manner), exactly, this happens. But at some point, people realize their money is soon going to be worthless, and in a desperate attempt to spend it before its value disappears they cause prices to multiply themselves many times more and in shorter a period of time than sanity can handle.
Tempting that danger by freaking people into spending only so much, but not too much, is foolhardy. Because you’ll never know exactly how panicked they’ll get, nor how much panicked spending is safe anyway.
“Tempting that danger by freaking people into spending only so much, but not too much, is foolhardy. Because you’ll never know exactly how panicked they’ll get, nor how much panicked spending is safe anyway.”
By analogy, given the Fed’s competency, it’s like setting a controlled fire in a forrest without knowing what’s flammable, what’s nearby the forrest, how fire works, or how to put it out.
I'm 100% in agreement...one of those two will occur, neither will be pretty.
I'm 100% in agreement...one of those two will occur, neither will be pretty.
“there might actually be a sound basis for how this whole financial mess is being unwound”
The mess is not being unwound. If anything, they’re attempting to wind it up further. Inflating currency could only accomplish what happened in the first place. It does nothing to solve the fundamental problem: namely, that people built more houses than people could pay for.
The value of the home goes up. But who do you sell it to?
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