Posted on 10/26/2010 8:10:07 AM PDT by blam
Volcker: Don't Worry, No Inflation Or Deflation Coming
Gregory White
Oct. 26, 2010, 10:45 AM
Paul Volcker has downplayed the threat of near-term inflation and deflation.
The Chairman of President Obama's Economic Recovery Board didn't think deflation was a real threat at all, and thought inflation, "won't be a problem next year, it won't be a problem for several years."
Volcker was also bullish on job opportunities for those just entering college now, suggesting the market would be much better when they graduate than it is today.
Read the full story at CNBC >
[snip]
(Excerpt) Read more at businessinsider.com ...
Whistling through the graveyard? Or...merely delusional?
Stop lying Volcker you POS Dem. The dollar lost 8% of it’s value in Sept-Oct.
I think it’s fair to say tha ‘Lurch’ doesn’t have the brains to be delusional.
Tell ya what, Paul: I’ll send you the receipts for my grocery bills from today compared to 1 year ago. Since there’s no inflation, you won’t mind paying me the difference between the two, right?
Isn't this the same administration that told us that we had to pass the stimulus so Unemployment wouldn't go over 8% and that if we passed Obamacare people could keep their insurance they have and their premiums wouldn't increase?
Yeah, not buying this one either...
He has fallen in with liars and thieves.
” Whistling through the graveyard? Or...merely delusional? “
I’m reminded of that dog-food commercial from the 80’s (I think) that featured a gaggle of baby ducklings milling about between the legs of a Great Dane, saying to each other - “Dog?? What Dog?? I don’t see a Dog?? Do you see a Dog??”....
Lots of baby ducklings around, these days... ;)
Have we put Bobby McFerrin in charge of our economy?
Here's a little song I wrote
You might want to sing it note for note
Don't worry, be happy.
Our economy has a bubble
Print some cash and make it double
Don't worry, be happy.
Don't worry, be happy now.
(Chorus)
Don't worry, be happy. Don't worry, be happy.
Don't worry, be happy. Don't worry, be happy.
Ain't got no place to lay your head
The Chinese just repoed your bed
Don't worry, be happy.
Q: "How many economists does it take to get out of a 20-foot deep hole?"
A: "First, assume a ladder...."
“Inflation always feels good when it first starts. It seems like you’re getting something for nothing. The “excess liquidity” flows into stocks, pumping their values. It flows into commodities, and makes them go up.
“You may think you can avoid the price increase in your iScam from China, but you’re not going to avoid the cost of wiping your a** - and that’s where Kimberly-Clark’s [Q3 earnings] warning comes in.”
http://market-ticker.org/akcs-www?post=170335
So, the hole Obama dug for America will take at least four years for us to climb out of. Even then, those college graduates who find "job opportunities" are also going to find higher taxes to support the Obama parasitical community, and a busted medical system. Obama won't simply end up a failed, scorned ex-President like Carter, his legacy will be one of a detested man who divided his country and destroyed prosperity for all. People will forget Barak Obamadinejad the same way they forget a plague.
Well gee. If that’s the case why stop spending now? Why not have the gov write everyone a check for a couple million right before Christmas? Just imagine what that will do to get the economy stimulated! (do I really need a sarc tag/)
And then there’s the fact that we already have inflation and the Fed said we need more...
Over the past twelve months, the PPI has bubbled up a frothy 4 percent, while the Consumer Price Index has leavened its year-over-year tally 1.1 percent (and yes, food and energy are included; price volatility is no excuse for exclusion). Contrary to government semantics, an increase is still an increase even if it fails to meet previous expectations.
But is it enough of an increase? Some think not. Federal Reserve Chairman Ben Bernanke recently opined, “Inflation [consumer] is running too low. It is too close conceivably to the kind of tipping point into a deflationary environment.” Bernanke set the tipping point at “2 percent or a bit below.”
http://www.bls.gov/news.release/cpi.nr0.htm
http://www.americanthinker.com/2010/10/yes_we_have_inflation.html
Mr. Volker, you have sold your reputation and your soul.
I hope you at least got a good price.
Consumers won't be the engine in a consumer-driven economy with high unemployment and debt repayment obligations. So, flooding the money supply won't take effect for a while as consumption will primarily be public spending on things that do not produce wealth: a road, solar cell, windmill, school building, etc.
Top-down economic management is much easier to control than bottom-up, where individuals decide how or where to invest. The result will be a soviet-style economy where the spoils go to those connected to the bureaucrat and his ministry.
Enormous debt will ensure that once the consumer is back on his feet, the cost of money will dampen the desire to take risks in pursuit of profits and wealth- furthering the malaise while keeping inflation in check. This is the "screw you, capitalist pig!" message that people should take away from this administration.
Its hard to have inflation when the largest component (housing) is declining in value. I wonder what the index would look like though if they added taxes into the equation.
While he is widely credited with ending the stagflation of the 1970’s, I can only observe that my personal finances fared better in every way under Greenspan's policies.
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