The NY Fed's Charles Steindel spoke at the Stamford CFA Society forecast dinner last night. The audience was concerned that current monetary policies might ultimately cause inflation. Mr. Steindel assured us that the Fed is prepared to turn its policiy around and avoid such a scenario.
5 comments:
Whew! What a relief, the Fed's got our back... I feel better now. I think I'll go buy a few houses.
"The Fed is prepared to turn its policy around and avoid such a scenario."
So that means they will have to contract the money supply, which in turn will lead to a double dip recession, right? So the next boom bust cycle is being set up. The only good news, the double dip might hit around 2012.
Jefferson's and Jackson's warnings about central banks are coming true. Let us go ahead and call the Fed what it is, a Ponzi scheme, a million times larger than anything Madoff ever engineered.
Here is a real stimulus suggestion, pay off all our debt with our fiat currency. Then disband the Fed, withdraw from all military and foreign obligations, repeal the 16th amendment, layoff 80% of federal workers, get rid of most industry regulations, have the treasury issue 100% precious metal backed currency that can be physically redeemed. With this, the only way to grow the money supply is to pull it out of the ground.
We can see the wizard behind the curtain, the game is up, but he's still pulling levers.
That's some solution you got there Kumbu. Be sure to load up on arms and ammunition too -- you're gonna need it if what you want comes to pass.
In all honesty, my guess is you are in for some wicked inflation. And what's wrong with that anyway? I mean haven't Americans bought enough crap over the years to keep them satisfied? Read a book. Plant a tree. Relax a bit.
Anonymous...
You deride the Fed with one breath then embrace inflation (of which the Fed is the arbiter) with the next. Then you believe the a return to the "gold standard" would result in inflation? What exactly is your point?
Where did you get your economic ideas?
Oh, and as for the argument, "what's so bad about a little inflation?" Here is my advice, read a book on the Weimar Republic, plant some cannabis, and relax a bit.
I haven't heard conversation like this since 1980 when the joking investment advice was to buy working farmland and a loaded gun!
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