Replies

Mister Bernanke has studied the intricacies of inflationary effects and has learned how to manipulate inflation.

He has very much also studied the causes in addition to the effects of inflation.

He will not end it or embark on any no-inflation policy.

He'd be a fool to "end it or embark on any no-inflation policy". That would be absolutely absurd and ignorant of all actual economic history of the world.

Continuing inflation gives power to the FED and to the government in general as they manipulate this rate and that fiscal policy to show that they are "doing" something.

Baloney. Fed has a task, economically, in defending our country, defined as an economy entity, WITH boundaries. Do you posit we should be as Europa, and constantly wrangling for some type of "economic" unity?

Reagan simply said Stop it! and we had the Reagan Boom and no general overheating or unbalanced economic relationships.

Right. And he did so at exactly the right moment. The time HE was in, and what is now, are not identical holograms.

Conservatives who tinker are harmful to the extent that they tinker. Liberal tinkerers are worse only because they have grand social designs to guide their tinkering and they wrench levers and swing hammers instead of turning dials.

lol. So what, if any, role do you think the Federal Reserv should or should not have? Liberal and Conservative Economist disagree vastly on this subject. Are you proposing a "third" way?

Your theories blow my mind, actually. You seem to be positing a world with no rules, and no means by which a solid dollar can be worth a solid dollar. A free for all. In this kind of thinking, only a KING can arise, not a President.

The real rationale for inflation is always to inflate your way out of debt. All rulers try it and trash their economies doing so. It is welshing on the debt. It is debt repudiation. It is theft. It is immoral. It is unwise. The ONLY rational economic policy vis-a-vis inflation is to end it or not start it at any time at any stage of the inflation. If ending it would cause problems you can be sure that continuing it will cause greater problems, albeit after some delay. Reagan ended inflation. His FED did not piddle around with trying to make any sort of "soft landing" or try to shove off any unpleasant effects on to the next administration. Reagan said STOP and it was stopped. We then had a recession . We then had a loooong boom that was not interrupted until 2000 and the interruption was quite mild by the standard of recessions. Some people who believe they support free markets simply cannot let go of the idea that there is no real spontaneity in market exchange and that the government must guide every development, that if the wise men in Washington don't constantly adjust the tiller and stanch development here and ordain it there, why Monopolies will rise everywhere and people will not know how to buy and sell. It is all degrees of dirigisme and socialism. Experts think that only they can make things work right, that nothing works right unless the Experts are planning it and pulling the strings. It is worse than the rooster that thinks if he oversleeps the sun will not come up right because the rooster's delusion can do no harm. The economic tinkerer can do only harm.

are not identical holograms.

The time is ALWAYS right to return to honest dealing. Theft from creditors, or anyone else, is always wrong morally and practically. You simply cannot justify stealing from your own population by trimming the value of the money you have ordained for the people. It is not "for their own good." It is for the short term political benefit of the thief.