Posted on 03/22/2015 7:24:29 AM PDT by expat_panama
What the heck are we talking about here, are we saying America's economy is "centrally planned" because it comes w/ national money and congress is empowered to "regulate the Value thereof"?
The economy can get flushed down the pooper but if we get inflation the Fed will raise rates. So far (imho) we're reasonably clear from that risk but just 3 days after I said no inflation the CPI came out w/ inflation (post # 23).
Just in: the GDP "Gross domestic purchases price index" is -0.1% below the previous quarter. We got deflation to the tune of about a half %/year. Forget the rate hikes.
What do you call 10 people setting interest rates for an entire nation? They’re centrally planning an economy with all the pitfalls that brings. I’m not an anti-Fed nut. Look at the history. They miss calls all the time. We’re in this mess due to low interest rates. That’s the facts, Pete.
I don’t discount government’s anti-commerce stance. From the local to the federal level government has made a hash of the economy. Look at the Long Depression for proof that you don’t need a Fed or a government intervention to get out of a credit crunch.
That’s what I am seeing too. Chicago RE market is very, very soft. I suspect that local Democrat policies are a big part of the problem.
If we do get inflation it will be stagflation.
That I'd have to call it "something that doesn't happen." What does happen is that congress regulates the value of U.S. money by hiring 10 people to control the money supply by tweaking the rates charged for the $50B that banks borrow for overnight loans. Meanwhile, the rest of us Americans are loaning a thousand times that much to each other without any "contral planning" involved whatsoever.
Remember that this is congress' decision; don't blame the 10 people setting interbank rates 'cause they're just the hired help doing what congress told 'em to do.
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