 Wysłany: Czw 17:49, 12 Gru 2013 Temat postu: Minneapolis Fed President Narayana |
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| Minneapolis Fed President Narayana
Harry, you are wrong. The Fed can still do much more. The only reason would be its lack of trying. Now, you might say, "But the Fed has done so much."It doesn't matter what they have done, the market still expects inflation to average less than 2% over the next 5 years which means they haven't done enough. In the blogosphere, we think the Fed is going to create hyperinflation, however the market knows better and is still betting that the Fed won't even reach its own target of 2% inflation. I disagree. The Fed has already created inflation. Although it is not covered in any macro 101 text, the Fed runs monetary policy for ALL countries in the dollar block. That includes all countries with pegged currencies, like many in Asia, and commodity exporters. Since the CHOOSES to ignore food and energy prices, he doesn't even see the inflation he creates in the US. To make matters worse, he seeks validation from Wall St. Instead is tragic. Lol, that argument never ceases to amaze me. When people's investment wealth is undergoing severe deflation, that easily trumps food and energy prices. And I disagree with general statements like "everything is worse" since 1998. I would agree that the trend is towards less personal responsibility, and that could only happen if economic and social conditions are generous enough to allow it. In 1998, you couldn't simply walk away from your mortgage without going into bankruptcy or at least ruining your credit. Today, we've got people doing "strategic" foreclosures. We've also got principle forgiveness. It goes on and on. Well, I don't disagree, but who is responsible, that's a different story. We've all participated is creating this monster, there's more than enough blame to go around. Half the electorate pay little or no federal taxes, they have no skin in the game, same as zero down mortgage holders. How did we get to that point? There is less sense of personal responsibility, but too much of the blame game,[url=http://nikefree.mobilejeti.com]nike free sko[/url], going around. And don't forget, we suffered our greatest single attack on 9/11, would you not concede that the rise of terrorism has something to do our present state? |
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