4 ms·

I wish, wish, wish, wish, that the Fed would respond in kind. Inflation just hasn't been an issue in this country. Everyone is so terrified of 4-5% inflation, b

by hacknat 11y ago

I wish, wish, wish, wish, that the Fed would respond in kind. Inflation just hasn't been an issue in this country. Everyone is so terrified of 4-5% inflation, but they forget that we lived through a decade (the 70s) averaged over 5%. We all survived. It's time to end this ridiculous liquidity trap and punish the hoarders.

trhway 11y ago
>It's time to end this ridiculous liquidity trap and punish the hoarders. actually, the low rates force the investment. The higher rates create hoarders.
- sz4kerto 11y ago
  Inflation and base interest rates are not the same thing, though they usually affect each other. If inflation is higher than the base rate, then people tend to spend more as money is losing the purchasing power. The problem is that inflation can't be simply 'set'.
  - trhway 11y ago
    >then people tend to spend more as money is losing the purchasing power. They spend on smaller things, and are losing the ability to spend on bigger, long term things like cars, houses, education, starting their own business, etc.. I lived though different levels of inflation - USSR and Russia of 199x - and i can say no inflation is good. The inflation we have right now in US - 2 times in 10 years - is among the lowest i've experienced and about the best economic environments.
hihbuuhjjjf 11y ago
What? Are you deaf and blind? Look at rents, college, healthcare, food staples, inflation has been destroying the middle class especially when combined with stagnant wages. I can only assume you are a shill, mind controlled, or tremendously challenged to believe inflation is a non problem.
- altcognito 11y ago
  Medical care and tution is part of the BLS measure of inflation: http://www.bls.gov/cpi/cpi_methods.htm http://www.bls.gov/cpi/cpi_methods.htm OTOH, I'd be a fool to disagree with your assessment given how much greater of a percentage goes to the items you listed today.
- eitally 11y ago
  That is a logical POV but it's compelling to leave rent & real estate out of it, because it's also true that cheap money is one of the primary factors that has quickly driven up the prices there.
- deleted 11y ago
  [deleted]
- api 11y ago
  The real problem is that inflation is only occurring in those areas. Other areas are flat or deflationary.
- freehunter 11y ago
  You have a username created by mashing the keyboard, a brand new account, and your only comment is inflammatory and calling someone a shill and mentally challenged. Something about that doesn't instill the highest confidence level in your opinions.
joeyspn 11y ago
(cough cough) http://bit.ly/1N1jAWF http://bit.ly/1N1jAWF
dragonwriter 11y ago
> but they forget that we lived through a decade (the 70s) averaged over 5%. I'm pretty sure people in government remember that, remember how people responded to it, and remember how it worked out for people in government at the time.
eyeinthepyramid 11y ago
Isn't that what QE is supposed to do? Expand the money supply in order to increase inflation?
mmanfrin 11y ago
Not to mention 4% over 10 years would halve the value of our debt; if the national debt were truly a concern for the far right, then they would be pushing for a monetary policy that encourages a bit more inflation. As it stands, though, 'the debt' seems to be dog-whistle words for 'cut social programs'. A monetary policy that encouraged a bit more inflation would necessarily free up cash to pay for more social programs and reduce the real value of the debt. Instead, the debt is being used to champion austerity for programs that help the poor.
carsongross 11y ago
(lol) By cutting interest rates to... what? You want to see hoarding? Try negative interest rates. What happens again when you lower the price for something? Whatever. We deserve what we get.

by hacknat 11y ago

trhway 11y ago

>It's time to end this ridiculous liquidity trap and punish the hoarders. actually, the low rates force the investment. The higher rates create hoarders.

sz4kerto 11y ago
Inflation and base interest rates are not the same thing, though they usually affect each other. If inflation is higher than the base rate, then people tend to spend more as money is losing the purchasing power. The problem is that inflation can't be simply 'set'.
- trhway 11y ago
  >then people tend to spend more as money is losing the purchasing power. They spend on smaller things, and are losing the ability to spend on bigger, long term things like cars, houses, education, starting their own business, etc.. I lived though different levels of inflation - USSR and Russia of 199x - and i can say no inflation is good. The inflation we have right now in US - 2 times in 10 years - is among the lowest i've experienced and about the best economic environments.

hihbuuhjjjf 11y ago

What? Are you deaf and blind? Look at rents, college, healthcare, food staples, inflation has been destroying the middle class especially when combined with stagnant wages. I can only assume you are a shill, mind controlled, or tremendously challenged to believe inflation is a non problem.

altcognito 11y ago
Medical care and tution is part of the BLS measure of inflation: http://www.bls.gov/cpi/cpi_methods.htm http://www.bls.gov/cpi/cpi_methods.htm OTOH, I'd be a fool to disagree with your assessment given how much greater of a percentage goes to the items you listed today.
eitally 11y ago
That is a logical POV but it's compelling to leave rent & real estate out of it, because it's also true that cheap money is one of the primary factors that has quickly driven up the prices there.
deleted 11y ago
[deleted]
api 11y ago
The real problem is that inflation is only occurring in those areas. Other areas are flat or deflationary.
freehunter 11y ago
You have a username created by mashing the keyboard, a brand new account, and your only comment is inflammatory and calling someone a shill and mentally challenged. Something about that doesn't instill the highest confidence level in your opinions.

joeyspn 11y ago

(cough cough) http://bit.ly/1N1jAWF http://bit.ly/1N1jAWF

dragonwriter 11y ago

> but they forget that we lived through a decade (the 70s) averaged over 5%. I'm pretty sure people in government remember that, remember how people responded to it, and remember how it worked out for people in government at the time.

eyeinthepyramid 11y ago

Isn't that what QE is supposed to do? Expand the money supply in order to increase inflation?

mmanfrin 11y ago

Not to mention 4% over 10 years would halve the value of our debt; if the national debt were truly a concern for the far right, then they would be pushing for a monetary policy that encourages a bit more inflation. As it stands, though, 'the debt' seems to be dog-whistle words for 'cut social programs'. A monetary policy that encouraged a bit more inflation would necessarily free up cash to pay for more social programs and reduce the real value of the debt. Instead, the debt is being used to champion austerity for programs that help the poor.

carsongross 11y ago

(lol) By cutting interest rates to... what? You want to see hoarding? Try negative interest rates. What happens again when you lower the price for something? Whatever. We deserve what we get.