"Be back later tonight honey! Gotta stand in line to buy some milk and bread!"
Posted on 10/07/2010 9:23:22 AM PDT by Red in Blue PA
The Federal Reserve spent the past three decades getting inflation low and keeping it there. But as the U.S. economy struggles and flirts with the prospect of deflation, some central bank officials are publicly broaching a controversial idea: lifting inflation above the Fed's informal target.
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.
(Excerpt) Read more at online.wsj.com ...
Maybe we should read the Constitution to see if any of this could have been avoided, maybe even a part of the Constitution directly addresses the issue of Money.
Article 1 section 10
NO STATE SHALL MAKE ANYTHING BUT GOLD AND SILVER COIN, A TENDER IN PAYMENT OF DEBT.
Article 1 section 8
Congress shall have the power to COIN MONEY.
to coin money has a very specific legal definition, look it up.
To stamp pieces of precious metal, not print on paper
Only government can take a valuable commodity such as paper, slap some ink on it, and make it worthless.
You mean he used a Japanese bank to do a mortgage on a house in Texas?
I didn’t realize they would, or could, do that.
Bite your tongue!! Why, if we did that, gov’t would be compelled to follow it. If they did THAT, how would they control the people or sell us down the river?
Unless I read the mood of the country wrongly a spate of hyperinflation would be personally deadly for the mucky-mucks.
BOHICA
Well, Bass made about a billion dollars by shorting the housing market derivatives right before the bubble burst, so he’s got access to things we don’t.
I don’t trust the inflation stats either. Just saw the stat and quoted it. It’s hard to tell because my wife is a much better shopper than she used to be.
The guys over at zerohedge would respond to this by saying “gold bitchez”.
And they’d be right.
Sounds right to me. But inflation is not measured by money supply in stats and in how we actually feel inflation, it’s measured by prices.
Another way of putting it is that just money supply alone doesn’t account for velocity.
Do that and we'll switch our transactions and savings to another currency.
LOL. You can't save less *and* invest more.
Don't get uppity, serf. Your money - and your life - are the property of the Federal Government.
Don't get uppity, serf. Your money - and your life - are the property of the Federal Government.
Not money supply alone. It is increase in money supply beyond what is required to maintain a stable price level. It is unavoidable so long as politicians do not have so much money to spend as they would like to have and there is no immutable limiting factor such as gold.
The effects on our situations are measured by prices. Inflation is not prices. At all. Inflation causesthe price level to rise. When you insist on defining inflation as any damned thing you want it to be then there is no economic discussion of the phenomenon possible because your meaning is not my meaning and your meaning will change with whim and the nature of your discomfort. There is the classical definition or there is no definition for the word beyond a vague expression of discomfort. It becomes a Liberal PC word that means what the speaker wants it to mean for only the moment the speaker is using it.
And I’m going by a line in an article, don’t know whether a US bank denominated the loan in yen or whether he dealt with a Japanese bank (or US subsidiary of Japanese bank).
Since I believe that the real interest rate is negative at the moment, we are certainly paying out; and since the bank’s are still charging for making loans, they are certainly being paid.
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