Short term solutions for a much too complex world for individuals. Though, their roles is giving a human face to all that is happening. People can find some informations through their body expressions of the information they are giving to the media. No central banks would mean de-personalization of the process, risking to make people more cynical than they are right now, even if it looks like pure propaganda and marketing strategies. Catch-22..the least-evil.
I believe it can affect the economy just not to the extend the marc fabers of the world think. He thinks the fed fueled a world wide bubble in everything and yet when greenspan tried to push the 10y up he failed miserably sure 1% helped but most countries in the world achieved single digits inflation rates from 2000 to 2006 which was historic. they already lied about inflation before so this was a real thing long-term rates went down making real estate affordable everywhere Regarding having a central bank, I dont know if most countries need one, probably not. However maybe there is a case for having one when you have a garbage financial system in a large country like the US given that the system will need a rescue every once and while and its politically impossible to clean the system
The reason I defend the fed is simply because we should only care about being right, no matter how painful it is to have to our change views. if it turns out that nanci pelosi creates an economic plan that would work, then thats reality I'm not going to fight it at the end of the day you need to be right, only your PL should speak The inflationist conpiracy theorists bought into gold at $1000 thinking the fed was 'printing money' and had their head handed to them. some austrians take their worshipping of mises too far and that blinds them. buffett have charity and helping the poor as his hobby and tries to impose that into everybody else at gunpoint through the government but uses rationalizations to justify it. Those are the kind of biases that can always cost you money or left you with no understanding of whats going on
In any case, this nonsense about hyperinflation is total garbage. Were about to hit a god damn liquidity trap and these nutters are worried about inflation. All the liquidity injected into banks is being used to shore up their balance sheets, none of it's being lent. When the money multiplier functions again, there's plenty of room to raise rates.
Since i usually don't eat grain purchased by the freight car load from ADM, only bread, i made the common error of thinking food prices had actually gone up when a paid 2 bucks for a loaf of bread that cost $1.20 last year. Silly me. Perhaps in time the drop in agricultural prices will actually be reflected in food eaten by Homo sapiens, but i doubt it, because Mr. Bernanke can always buy Treasuries to deal nicely with that problem.
Don't worry, lower prices are headed your way......... http://www.google.com/hostednews/ap/article/ALeqM5hgJF9nSoEJfKwmRnquO9ulJuMyvgD94H16JO1
You're not one of those who thinks we are actually going to see significant deflation in the overall economy 3 or 4 years hence are you? If you are, then please be my guest and hoard as much cash as you can. Personally, I like to do what the big boys do, like the US Government, and hoard debt! I figure since they are in control, or supposed to be anyway, They'll do what's best for them and just screw you guys hoarding cash and ammo. Hyperinflation (whatever that is?) here we come.
1st, The FAO made a report last week claiming food prices would go up again next summer to a great extent. they expect lower growth to provoke farmers to cut planting. 2nd, hyperinflation would have a duration of 1 month. Do you expect all the people talking in blogs, discussion room and facebook groups to leave it that way for more than one long 30 days? I would not like to be the cause of that hyper-inflation, people would likely revenge after 2 weeks of sustained hyperinflation. I mean cruelty and killings.