Posted on 12/01/2008 12:31:21 PM PST by arkadyka
America is heading towards the path of inflation and under Obama's economic plan it may very well be one of the worst inflationary periods ever experienced.
(Excerpt) Read more at rkdpolitics.blogspot.com ...
Like all marxists, he thinks he knows a better way, under his control, and he intends to try and implement it across the board.
Republicans departed from conservative, free market principles and now they (and all of us) pay the price.
Where have you been the last year?
We’ve had plenty of inflation — at the pump and at the grocery aisle.
Many grocery product prices have jumped 10-70% in the last year.
And this inflation spurt started before Obama got one primary delegate vote.
This one is Bush’s. He’s been president nearly 8 years. He was elected twice. It has been his watch since January 20, 2001. The GOP open checkbook spending helped fueld this.
Uh, yea, right.
Right about now, some inflation might be nice to see. Everywhere I look, I see deflation.
And of the two, inflation is far easier to cure.
Better up the med's. Did you forget about Congress? In November 2006, Democrats regained control of the House and Senate. A year after that (late 2007), we were in a recession.
The price of basic food commodities increased due to shortages caused by Global Cooling; an increase in the supply of money didn't raise those prices.
The price of gasoline has now dropped to where it was more than 5 years ago. Again, this is the result of arbitrary decisions by the oil producers.
Inflation and deflation are happening all the time in different degrees to different things. Housing costs are way down and probably make up for virtually all the inflation that's occurred in any product or service. Odds are good deflation is the dominant force in the economy.
Meanwhile, Gold’s down $48. I’m thinking of getting a bit...
http://www.bloomberg.com/markets/commodities/cfutures.html (scroll towards the bottom to Precious Metals)
Disclaimer: I have no gold or related stocks. Heck, last time I owned gold it was Kugerands (sp?) and I sold at around $250, but it may be time to get back in.
From what I am reading, and I admit some of it is Peter Schiff (but only some), although it is deflation now, it will be serious inflation soon.
It’s like steering a motorcycle. To turn left, you steer right (It’s all about the gyroscope effect). It’s one reason I am looking at finally taking the plunge on gold.
I’m with you. I blame the congress, not the president. That is, unless the president does really boneheaded economic stuff like Hoover did.
I don’t think we’re going to see inflation. Really, I don’t. Before we see inflation, we need to see money make it into the economy, and that will easily be seen in the Fed’s reports on the banking system.
Besides, given that the Fed has pushed all this money out into the system by using swaps for collateral, it is VERY easy for the Fed to unwind a great deal of this liquidity: they just say “We think it is time you gave us back the Treasuries we gave you in exchange for this crappy paper. Now.” And the banks (et al) get illiquid paper back, and the liquid Treasuries come out of the system and poof! Hundreds of billions of dollars come out of the economy in a week.
No problem.
The “masses” won’t care because they truly do not understand what inflation means. Or any economics for that matter. Obama can do no wrong:”It’s not his fault! Those rich republicans keep raising prices!”
I have been predicting inflation for 25 years.
I have been wron fo 25 years.
the test is to look at the 10 year bond rate. but that hasn’t moved yet and a lot o people are thinking aou it.
Whatever your reasoning the 10 year bond is one very alarming picture.
Yes, its showing deflation - which makes sense at this point in time.
But its in bubble mode and once it bursts, it will hurt.
Yes, I am. Bush certainly started it, but he also did not try to create 2+ million useless jobs that somebody has to pay for.
Obama’s New Deal is precisely what will be our undoing.
The more important question is “what can we do about it?”
Simply inform others that this kind of reckles spending will ultimately yield our demise.
Republicans departed from conservative, free market principles and now they (and all of us) pay the price.
Both of you a need civics lesson. For starts we are not a kingdom and the president is not all powerful. According to our Cocstitutition only Congress in particular The House of Representatives can raise taxes and spend the money raised. So it's not Bush and it's not going to be Obama it's Congress, the president only executes their laws.
It might be a better idea to invest in MREs and ammo and draw your family close to train them up.
I don’t need a civics lesson. The president can indeed control monetary policy without consent of congress.
This administration has pursued a weak dollar policy, and the Fed is now printing more dollars to hand out to all the failures. They do not need congress approval to print more money.
Anyway, the larger point is political and rhetorical. “Bush started it” is all they need.
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