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A Rebellion at the Federal Reserve? (Must of read Krugman)
The Atlantic ^ | May 2, 2012 | Matthew O'Brien

Posted on 05/03/2012 6:47:58 AM PDT by C19fan

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Be prepared to get out of longer term bonds now. This would be the ultimate bailout of debtors.
1 posted on 05/03/2012 6:48:00 AM PDT by C19fan
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To: C19fan
The Fed famously has a dual mandate: It's supposed to promote the maximum level of employment consistent with its two-percent inflation target.

No. Part of the dual mandate is stable prices. Two percent inflation is not stable prices. Your money losing half its value in 36 years is not stable prices.

2 posted on 05/03/2012 6:52:31 AM PDT by NeoCaveman ("If I had a son he'd look like B.O.'s lunch" - Rin Tin Tin)
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To: C19fan

Must of . . . ???


3 posted on 05/03/2012 6:56:54 AM PDT by Misterioso ( There's no one worse than a lapsed Objectivist. -- Eddie Willers)
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To: C19fan
Finally, a third group is worried that if the Fed doesn't print more money, there won't be enough inflation to keep the economy healthy. Evans belongs to the last camp.

I thought the stagflation of the 1970s and the low inflation growth of the 1980s had finally killed the Pillips curve. Inflation is not a sign of a healthy economy. In fact, the natural state of the economy is slightly deflationary to match the increase in productivity. One dollar should be able to buy a little more in ten years than one dollar today because people will be more productive on average. Anything above that is a sign that those controlling the printing press are skimming some unearned income from the economy.

4 posted on 05/03/2012 7:00:31 AM PDT by KarlInOhio (You only have three billion heartbeats in a lifetime.How many does the government claim as its own?)
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To: C19fan

“Must of?”
Really?


5 posted on 05/03/2012 7:00:46 AM PDT by dangus
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To: C19fan

Whether it be the EPA, the Dept. of Energy, or the Fed, it is clear that appointed ideologues have great power and are harming the American people. This ceding of major policy decisions to the unelected and unaccountable is a serious flaw in our republic.


6 posted on 05/03/2012 7:04:49 AM PDT by allendale
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To: allendale

Amen.


7 posted on 05/03/2012 7:11:26 AM PDT by dagogo redux (A whiff of primitive spirits in the air, harbingers of an impending descent into the feral.)
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To: KarlInOhio
It's the old 1930s theory that, if people and businesses anticipate coming inflation, they'll go out now and spend like mad, boosting GDP. It has never worked.
8 posted on 05/03/2012 7:12:42 AM PDT by ProtectOurFreedom
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To: C19fan

Matthew O’Brien is a economic illiterate, to start with. He’s also cheerleading an idiot (Charles Evans) who looks the part, BTW, and who wants to reignite inflation. It’s a leftist Keynesian screed, to be sure.


9 posted on 05/03/2012 7:13:04 AM PDT by WashingtonSource
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To: allendale

Do you seriously believe that the Congress or comrade Obama would do a better job?


10 posted on 05/03/2012 7:13:32 AM PDT by monocle
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To: NeoCaveman
Two percent inflation is not stable prices. Your money losing half its value in 36 years is not stable prices.

I had an economics professor who stated that the economy can handle any constant, predictable rate of inflation or deflation except for two sticking points: physical currency being excluded from the nominal growth or shrinkage of values and taxes being charged on gains that come strictly from inflation. Other than those an economy could handle 100% inflation just so long as it was predictable. But of course the "other than that" is similar to saying "other than that Mrs. Lincoln, how was the play".

11 posted on 05/03/2012 7:14:23 AM PDT by KarlInOhio (You only have three billion heartbeats in a lifetime.How many does the government claim as its own?)
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To: C19fan

The Fed is and has been a disaster. It is the only employer in the U.S. that can and does punish employees if they get sick or injured on the job.


12 posted on 05/03/2012 7:18:31 AM PDT by pabianice (ame with)
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To: ProtectOurFreedom

When I took econ in the mid to late 80s, the Phillips curve was still in the text books but in the lectures it was treated as a historical theory that had been overwhelmed by new evidence like luminiferous ether in physics or Lamarckian inheritance in biology. It looks like it is either coming back, or at least those who think they can profit (either monetarily or in power) from running the printing presses at ludicrous speed are digging it back up.


13 posted on 05/03/2012 7:26:48 AM PDT by KarlInOhio (You only have three billion heartbeats in a lifetime.How many does the government claim as its own?)
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To: monocle
Do you seriously believe that the Congress or comrade Obama would do a better job?

So if the trains run on time and you get a good cocktail in the bar car, nothing else matters?

14 posted on 05/03/2012 7:27:28 AM PDT by Stentor ("All cults of personality start out as high drama and end up as low comedy.")
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To: C19fan
(Must of read Krugman)

Must have read. Must HAVE read, not must OF read.

We are letting you off with a warning this time, but next time you may not be so lucky.

(Signed)
The FR Grammar Police

15 posted on 05/03/2012 7:28:13 AM PDT by Maceman
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To: C19fan

All the stimulus and quantitative easing in the world will not work when regulation is overwhelmingly oppressive and the Federal government is holding a gun to the heads of American small business with the combination of heavy-handed regulatory enforcement and excessive taxation.

Mr. Evans is applying academic theory to a street fight. He needs to come out of his castle and try to understand the reality of what is happening to folks on the street.


16 posted on 05/03/2012 7:28:52 AM PDT by RatRipper (I'll ride a turtle to work every day before I buy anything from Government Motors.)
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To: Maceman

Must of got up on the wrong side of the bed.


17 posted on 05/03/2012 7:29:37 AM PDT by Mr. Lucky
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To: Maceman
(Must of read Krugman) Must have read. Must HAVE read, not must OF read. We are letting you off with a warning this time, but next time you may not be so lucky. (Signed) The FR Grammar Police

THANK YOU! That drives me nuts.
18 posted on 05/03/2012 7:33:07 AM PDT by Mama Shawna
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To: KarlInOhio
if the Fed doesn't print more money, there won't be enough inflation to keep the economy healthy

I'll meditate on that next time I buy (fewer)groceries.

19 posted on 05/03/2012 7:41:10 AM PDT by tbpiper
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To: Mr. Lucky
Must of got up on the wrong side of the bed.

Well, certain basic grammatical errors just jump off the page at me and are distracting.

I was taught that if you can't write clearly, you can't think clearly, and I believe that. "Must of" makes no kind of logical sense at all.

Plus, substituting "must of" for "must have" makes a writer look like a major looser.

(Ha-ha, you thought I spelled "loser" incorrectly, but I'm just messin' with ya.)

20 posted on 05/03/2012 7:42:02 AM PDT by Maceman
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