Posted on 11/12/2010 5:22:43 PM PST by rvoitier
What the Federal Reserve is up to, and how we got here. (6:48)
(Excerpt) Read more at youtube.com ...
Wow, very well done. Even DUers are linking to this. By this time next year I should be able to light my fireplace with $50 bills. If I can afford the Carbon Credits.
Funny, but true.
Bernanke should serve the remainder of his life in prison. As should Obama, Pelosi and Reid.
The only deflation I see out there is in the housing market and retail, everything else is going up, up, up.
They bailed out AIG for Goldman-Sachs too. That’s where Hank Paulson came from.
Hey, thanks for posting this, it’s great! But I’m not getting any sleep tonight, sitting up emailing this to everyone I can think of...
lol... clearly written with an agenda, but very well done!
Btw; who made this in the first place??? No credit given?
Glenn Beck or the Chinese Government?
>>w/cartoon bears (some language), rvoitier wrote:
Makes me grit my teeth.<<
Me too. These videos SUCK!!
The wooden, computer like dialogue is unlistenable.
These “computer character” videos are stupid, STUPID, STOOPID!
Maybe in a decade or so this sort of thing might be convincing. In 2010 technology, it just does not work.
This is a great explanation. There is one inaccuracy in the video. The money is not printed, but spoken into existence is exactly the same manner as God created the heavens and the earth in Genesis. However, unlike God’s creation it has no substance at any time. However, people do exchange items of real value such as labor, housing, and food for words spoken over a phone. Here is a case of extravagant human arrogance.
One analogy might be to consider a flood control dam. The water that builds up behind it during the winter and spring could be considered QE1, QE2, QE3, etc. The flood gate could be a lack of economic activity or “Why do I want to borrow if no one wants to buy? and “Why do I want to buy when I don’t have a job?” Now stagflation happens when the reservoir gets so full some water just has to go over the spill way.
But then economic activity picks up again as if the flood gate on the dam was opened wide. Next comes inflation just like a wall of water scouring out the stream bed and washing all before it.
The thing that changes here is the velocity of money with increased economic activity. The Fed would rather not have anyone remind them of that fact learned in 200 level financial economics classes.
I think there’s a little more air to squeeze out of silver after today, and I think I’m gonna jump in with both feet.
Glen Beck please answer the courtesy phone in the lobby..
The Goldman Sachs....
Ping
I’m laughing so hard I am crying.
I think that most people understand that no actual money is printed and that “printed” is only metaphorical. As someone else has noted, if there were actual printing of money, we’d run out of trees (or, in reality for U.S. dollars, cotton).
The present problem with measuring inflation/deflation is the flip side of what happened in the mid-2000s. Back then, the price of a house did not count toward the official inflation rate so the Fed could keep lowering interest rates with a straight face and help create the housing crisis. Now, the Fed claims that it is worried about deflation because its measuring tools conveniently ignore those goods and services that are increasing in price.
malekanoms, as stated in the heading.
I agree that most people understand that the money is not actually printed in the Treasury building, but few (I know I don’t) often consider what is actually done. The Fed now acts with no more constraint than the God did in the Genesis story for creation of the universe. (At least with Bretton Woods the U.S. agreed to buy and sell gold at $33 per ounce.) For these security traders nothing has been placed on the other side of the scale to balance out, to measure their spoken words. These people display unbounded hubris by managing the money supply in the same manner as an all-powerful, all-knowing God did in creation. If you consider the story a myth, then there should be a nagging worry the actual process has departed too far from reality. If you are a believer in one of the desert religions, then the Fed acts as if co-equal to God and leaves the country open to an expression of anger as when Uzzah reached out to steady the cart holding the Ark of the Covenant and was struck dead for his irreverence. My point was really philosophical in nature.
Your statement about the price of a house not counting towards the inflation rate sent me to the Bureau of Economic Analysis tables. In the table I note in this first link it seems owner occupied housing was always included, which makes sense to me.
The only indication I could find that the information is being compiled differently is in the following linked to table where the index starts over in 2005 and I find no explanation.
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