I Think Federal Reserve is working against US how is destruction of the dollar good for US. if that was the case every country would destory their currency and start a new one every 5 min
You people you talk about things you don't understand. You cannot have serious inflation with a dropping velocity of money. The situation is really serious. You cannot have any substantial inflation with 10% unemployment. You are just puppets of media propaganda: http://research.stlouisfed.org/fred2/series/M2V
The Fed has every incentive to downplay, even doctor the inflation numbers. Economic stagnation (hi unemployment) as well as inflation is possible, it is happening in N. Africa. U.S. is spared because cost for basic needs, food, clothes etc are smaller portion of income than poorer nations. Americans do not feel the bite as much as Egyptians or Indians.
The piper has to paid eventually. Alot of the numbers will come out in heated debates during the 2012 election. Democrats and Republicians will pointing fingers and casting barbs and in the heat of the debates the numbers will be upplayed. Reguardeless of anything there has not been any economic forward with significant scale to restart the system. Corperations are already making moves to setup the majority of bussiness in other nations and the dumb ass politicians are worried about getting the vote. The hype cycle: http://en.wikipedia.org/wiki/Hype_cycle Until there are some public works projects on a grand scale the place will keep on sinking. China has to be laughing their ass off because the leadership here is scrambling just to frame the issue. They are already getting Africa set up to culture/nation build. Akuma
have you seen what has happened to the dollar in the last year. A chart was posted which showed the dollar drop being in symmetry with QE. You can not have substantial inflation with 10% unemployment? That is when inflation happens. People are unemployed, govt revenues go down... govt prints money? I think you are confusing the systematic and controlled inflation being caused be the central bank flooding the world with dollars electronic and real since the 50s... with the inflation caused by the govt printing money which is what QE is. The govt printing off money without corresponding bonds being soaked up by the market place is the reason... gold, oil and food and other world goods go up in price. The Fed flooding the world with dollars in systematic way is the cause of the controlled across the board inflation we have been forced to endure since the 50s. (the massive theft or at least tax on peoples lives, their time and their savings.) Let it be stated I am not necessarily against the fed... I am against debasing the dollar and any system which allows the govt to spend trillions more than it takes in. The Fed has to go back to respectable governance.
Erm, you're contradicting yourself here... All the examples of "brutal inflations" that you cite were a result of political upheaval. What exactly does a central bank have to do with inflation in post-revolution Russia, for example? The great depression, on the other hand, as well as the 1970s pre-Volcker episode, were both examples of poor economic policies. Obviously, in hindsight.
I disagreed with the specific description given in the original article of what's been going on in the US money mkts. I didn't express an opinion on QE and the Fed. I can and we can have an discussion, if you so desire, but I first need to ask you a simple question. Is there anything that can convince you that the Fed is/was trying to do the right thing and that their economic policy making process is relatively sound?
Excellent comments intradaybill. You have mentioned one of three things that I have reasoned out about inflation and deflation that are rarely mentioned in the many writings. I am still trying to work out the most likely scenario but it is a shifting dynamic and hard to do when some of the answers lie back over 100 years ago. It is amazing what nonsense exists out there. I guess the surprise will be that much worse.
You got one thing right. It is absolutely amazing what nonsense exists out there...and you and your other central bank bootlicking friends epitomize it. The fact that we continue to have discussions about the so-called "need" for further rounds of QE shot your whole ideology full of bullet holes. But everyone who points out this obvious fact is an "idiot..who just doesn't get it". Get fucked.