One striking example is the RIDICULOUS retired state employee pensions.
You have people sitting at home @ 58 years old raking in $20, $25, $30, $35 or more dollars an hour to walk out to the mailbox twice a month for the next 20-30 years.
THAT'S why the call for a $10 an hour minimum wage is out there.
Deflation is here, but it can't force down those public sector wages & pensions.
Oceania has always been at war with Eastasia.
Larry makes a pretty good argument here.
I'm glad Larry picked the least manipulated markets as price signals. /S
The fiscal policy being pursued by the FED is an attempt to walk a tightrope between inflation and deflation, turning what would be a brutal depression into about 12 years of Euro-style stagnation.
Which would be preferable is a matter of debate.
The result is a perfect storm, assets are in deflation while many consumables are inflatiing. This leads to much confusion for the public. the problem will last until about 2022, though things should start improving by 2017 or so.
Enjoy.
It is simply a way to transfer wealth from savers to borrowers who get to pay back their debt with devalued dollars.
Inflationist logic is that high inflation and more money printing means ppl have more money in their pockets to spend
Nice summary from Kudlow.
IMHO, the USA is counting on inflation to pay down its foreign debt. This would not work, except that the U.S. dollar is the world’s reserve currency. U.S. debt is denominated in U.S. dollars. Use inflation to make the dollar a lot less valuable; then pay the debts with the cheaper dollars. That way, you stick it to your creditors.
Of course, as a foreigner, I fully support this strategy — because, the world owes Americans a living. (You might detect a tinge of sarcasm here.)
Yellen was picked because she is biased in favor of inflation. That’s her job. Ours is to make our politicians feel the heat for every uptick in inflation. Then, they must make Yellen so miserable that she begs them to take away the dual mandate of low inflation and low unemployment and just leave her to low/no inflation.