Posted on 08/25/2009 12:10:00 PM PDT by Palin Republic
Grassley, speaking about the renomination of Federal Reserve Chairman Ben Bernanke to a second term as head of the Fed, asserted that Bernanke's ability to hold down inflation would be the metric by which the Fed's success would be measured.
"We won't know for a year if he's done a good job so far, because he shoveled money out of an airplane to save banks and the financial system," Grassley said in a conference call with Iowa reporters. "But shoveling money out of an airplane to solve problems can be inflationary — in this case, hyperinflationary — if he doesn't start mopping up some of the money that's out there."
Grassley, the ranking member of the Senate Finance Committee, said that inflation as a result from government spending on bailouts could result in inflation rivaling rates in 1980, when it hit a peak of 13.5 percent.
(Excerpt) Read more at briefingroom.thehill.com ...
Oh, those saintly Asians!
Now all they have to do is change their systems of Gov't and we can all move there where they never consume or spend!
Can’t argue with you about any of that, you’re absolutely correct.
As to point two though... the commie thing... yea, their governments suck. But look at ours. No reason for optimism here.
I pay attention to the markets and to politics every day of my life. It’s anecdotal, but folks on the ground are saying it’s easier to start a business in China than it is here. Clearly, they’re moving in the right direction while we’re moving in the wrong direction. That can change, sure, but I’m not holding my breath.
Look at the secular trend here. We now live under mob rule, where the federal government rules all. And the mob is growing, both in size and ignorance. The white house now rules the country. Who is going to unseat Obama? Palin? Romney? Please... not a chance.
You’re in banking, right? Well I’m in education. Our educational system is beyond repair, and without a knowledgeable citizenry our democratic republic is doomed. We’re entering a very dark age here in the US.
I do hope I’m wrong about this.
Can't imagine how you came up with that from what I wrote. FRiend, my blood runs red, white and blue. But I'm a realist, and an observer. It does no good to stick one's head in the sand.
You are wrong if you think those billions are all like this.
They have their sinners....bigtime.
You need to go live over there for a few years to see how the American system really is better.
Fixed that for you.
This shows that your blood may not be all that red, white and blue.
Obama may dream about making us commies, but we're a long way from that.
Look at the secular trend here. We now live under mob rule, where the federal government rules all.
Exactly, which is why Obamacare passed already. Wait....what?
Well I’m in education. Our educational system is beyond repair,
I'm trying to educate Freepers as fast as I can.
This shows that your blood may not be all that red, white and blue.
Why do you try to make this a patriotism contest?
Why is it unpatriotic of me to note that they save while we borrow, that they produce while we consume?
If I could change it around I'd do so tomorrow.
Waving the flag ain't gonna cut it though pal. We have to turn around the country. But the rest of 'em are barreling down the socialism highway full speed. We know where that highway leads, don't we? Do you deny this is happening?
That's good, but Freepers aren't really the problem. And unfortunately they're in the minority, and the spread is widening, not narrowing.
Why do you insist that me pointing out your belief is a contest?
Fact is, you mistakenly think the Asian system is better. Far from it.
Interesting.
With that as a basis, it is my contention that this action caught a lot of businesses and individuals completely off guard. Businesses found that their credit options became very limited in availability at a cost that they could afford. Individuals (even those with excellent credit) found the cost of credit being increased by a sizeable amount.
This has weaved its way through our economy, and is what is driving our present economic crisis - and our deflationary spiral. The Primary Dealers love deflation. It makes existing debt more expensive to pay off. Our Federal government hates deflation, and is stuck trying to create inflationary programs in an effort to maintain their power structure.
The Federal government loves inflation for the simple reason that it makes existing debt cheaper - and allows them to pass a "hidden tax" on to the public.
Most all of us are debt slaves - including the guy that defaults on his mortgage. The bigger banks (not regional or state) wind up with the wealth that the foreclosed property contained, unless they sell it again.
Bottom line, I believe you think the Fed is just "trying to do its job to pull us out of this mess". I believe that the Primary Dealers who completely control the Fed did all of this intentionally - and our government (federal, state, and local) is feeling the ramifications just like everyone else.
That is a good question: What is hyperinflation? Is it how high it gets or is it how fast it climbs? Just askin’
Primary dealers do not control the Fed.
pulled the easy availability of credit last year- with the express purpose of gaining more wealth and more power.
How do massive mortgage defaults give primary dealers more wealth or power?
The Primary Dealers love deflation. It makes existing debt more expensive to pay off.
Let's drive our customers out of business, we'll be rich!
The Federal government loves inflation for the simple reason that it makes existing debt cheaper - and allows them to pass a "hidden tax" on to the public.
Income taxes and benefit programs are indexed for inflation.
Most all of us are debt slaves - including the guy that defaults on his mortgage. The bigger banks (not regional or state) wind up with the wealth that the foreclosed property contained,
So Bank of America loans a guy $280,000 to buy a $300,000 home that's now worth $200,000. How does Bank of America get all that wealth out of the property?
Bottom line, I believe you think the Fed is just "trying to do its job to pull us out of this mess".
As a matter of fact I do.
I believe that the Primary Dealers who completely control the Fed
In your dream world, how do they exercise that control?
did all of this intentionally
Did all of what? Be as specific as you can.
I'm not going to waste my time trying to convince you of where I believe you're wrong, since we're both pretty well set in our current thoughts regarding the economy. This is where watching the next year unfold will tell us a lot of information.
I sincerely wish you well in your financial endeavors.
Imagining the Fed is controlled by the Primary Dealers is not a fundamental.
Two points. First, it's not "imagination". Second, it's very fundamental to the picture.
The Fed is simply a "pipeline" from the Primary Dealers to the U.S. government. The only thing that you could debate is the fact that a President "nominates" a Federal Reserve Board member once every even-numbered year to serve 14-year term. Past that, you're out of debating points.
Two points. First, it's not "imagination". Second, it's very fundamental to the picture.
You'd think that those all powerful Primary Dealers would be booking some huge profits these last few years. Hell, if I controlled the Fed, I know I would.
The Fed is simply a "pipeline" from the Primary Dealers to the U.S. government.
Still don't see any proof of control.
Hey, weren't Bear Stearns and Lehman Brothers primary dealers? LOL!
Past that, you're out of debating points.
Your fevered imaginings about Primary Dealers don't rise to the level of debate. It's all about poking fun.
Yes they were. And who drove them out of business?
You can "poke fun" all you want. I can take it.
As I said, you and I have two very differing opinions. You still have not taken time to expand on your economic theory, other than to say that things will eventually get better.
Based on what? Given what evidence? As you like to reply to me - let's see some detailed explanation. I believe that I have offered much more in that regard during this thread than you have reciprocated.
So, either tell me your understanding of the Fed and its relationship to our government or we don't have much to debate anymore.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.