Posted on 08/24/2020 5:38:19 PM PDT by Enlightened1
So he prints a few Trillion extra to see us through the Covid 19 shutdown and NOW he admits we might have a little bit of inflation? Econ 1 exam question: When more money is chasing less goods and services prices do what?
Since live cats purr, if we make purring sounds above a dead cat, it will surely come back to life.
The deep state is not finished with us yet.
Per Algore:
“What is up, should be down and what is down should be up...”
What?
They cannot help unemployment by making it more expensive for businesses to operate.
That will cause even higher unemployment.
Deflation would help unemployment and NOT inflation.
Fire up the Printing Presses, we all gonna be rich!! Did he comment on any plans to add a ZERO to our currency in January??
Haha! Yeah no kidding right?
I assume we really have too much deflation.
Which is why the Fed is committed to keep interest rates as low as possible and is willing to accept a rise in inflation in order to do that. If it's cheaper to borrow then business can expand and add on staff. You fight inflation by cooling down expansion and you do that by raising interest rates.
It kills savers and bails out the indebted.
And erodes the value of those holding the public debt.
Of course they will deliberately stimulate inflation.
If they can anymore.
I thought they were already trying with everything they already have. Negative interest rates. Hell, they’ve even resorted to helicopter money. Stock market intervention. Purchase of private debt.
What else is there? Uh oh...
Universal debt holiday.
Home prices will fall, because mortgage rates will go up.
Higher interest rates suck excess money out of the economy. Except banks are not lending so there is not a lot of excess cash out there.
“So the Fed’s action would have to have an almost instantaneous effect - and that just never happens except when they funnel money to banks to buy stocks (but that doesn’t help UE).”
See post #31.
Nope the Fed decreasing the purchasing power of the average American, and increasing the cost to do business is NOT a good thing for anyone.
It will also make the void between the highest and lowest income workers look like it is growing astronomically.
They are killing off the middle class.
This especially will go over well in a country full of rioting and societal unrest.
They are afraid that deflation will be good.
The FED always wants inflation. Who are they kidding?
True. But many around here seem to think the Fed is capable of crashing the economy at 11:23 AM on October 30th just to hurt Trump's chances.
“This especially will go over well in a country full of rioting and societal unrest.”
When the price of Cheezits, Soda and Colt 45 go through the roof, there will be blood in the streets.
If you are working and get salary and wage increases to match, you’ll come out ok.”
Which means only gov workers.
Time to buy TIPs treasuries?
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