With all due respect, are you able to turn your brain on at all? 1.) Volcker did not create the inflation that ran rampant during the Carter Administration. It was created by Carter's misguided policies. 2.) Tim Geithner is the new Treasury Secretary. He has never held this position before. How did he create this current mess, as you claim? 3.) Increasing the money supply during a Recession is just plain common sense. How is it that you are unable to fathom that? 4.) So you have a problem with some of Obama's appointees coming from the Clinton Administration? Did you ever stop to think that there were some pretty smart and effective people inside of Clinton's Administration? What would you suggest . . . that he hire people from the last Democratic Administration - - - back in the 70's from Jimmy Carter? Get real.
From outside the US I would say he is bringing in a lot. He is relative new to the game so he is in a crisis bringing in experienced people that objectively can be viewed as being good in their field. This regardless if they are a democrat or republican or age. Some appointments he is postponing and leaving the existing person in the role for another 6 months to a year until such time he can foucs on selecting the right candidate. Wise move imho. Unlike most of the other presidents who only brought in their friends (and cronies they have been associated with) and plainly ignored their lack of skills. Maria
You're mixing apples and oranges. Or are you too young to understand that statement? Volcker allegedly believes in taxing the wealthiest brackets at excessive rates--probably more so than Obama. That's based on what I've heard from another economist, who thinks Volcker is well-suited for monetary policy, but shouldn't be let loose on anything else. Inflation can be considered a "tax," sure, but that wasn't the context of my statement. Maybe you can do the correct "Ready, Aim" procedures before firing next time.
Please feel free to provide a web-link of an interview or article on Paul Volcker that substantiates your claim. Thank You. http://washingtonindependent.com/15410/paul-volcker-a-true-conservative-in-the-obama-camp
funny how that the man most praised by his charitable activities(buffett) is also the most egoist when it comes to his time. the hack wont even fly to washington just so he can keep playing bridge, volcker, summers, rubin all of them were willing to serve the country in time of need. yet buffett is too busy playing bridge online and doing the same thing he did for 50 years
1. You can't have inflation unless there is an increase in the money supply. The Federal Reserve controls the money supply. How are they not responsible? 2. Tim Geithner is a part of the Federal Reserve, which created this problem through artifically low interest rates under Greenspan. Foreclosures would be no big deal if banks were able to sell the house for at least the amount of the mortgage. They canât because people finally realized that 500k for a townhouse is rediculous. So they stopped buying and the market crashed. The Fed created this mess by pumping too much money in the system. Many economists agree this is the chief propblem. Now they are trying to fix the problems they created by doing the same thing again, lower interest rates. 3. Who should get the new money created during a recession? Will it be the little guy? Of course not. They will print money to bail out all of the banks, and the little guy will pay for it through inflation. Fiat currencyâs always fail. Think about this for a minute. Banks can take a $100 bill and go xerox it and it is perfectly legal. What kind of system is it that people can print money out of thin air? Maybe you should turn your brain on. 4. Nothing is wrong with picking people from the Clinton administration. But Obama promised change. That is going back in time. Now we find out he might not pull the troops out of Iraq and heâs keeping Gates. Didnât he also say he might not rollback the Bush tax cuts? You said so yourself. Inflations is a tax. So why would you want to raise taxes in a recession? Inflation is a tax on the poor to benefit the rich.
Exactly right... Inflation via printing money is the same as a tax.... It is the same .....just another taxing method...... The government prints the money ...do they not ? And who get's the money ? Those with real assets............sometimes ...... Latin American countries really screw over their people with this one....They still do not know that printing money is just another tax.....And believe it or not....some elected officials do not know this.... EVEN IN THE USA.....
1.) In your original post did you not claim that VOLCKER was responsible for playing a big role in creating INFLATION? Nowhere did you say anything about the Federal Reserve. Perhaps you should re-read what you actually post and/or be a lot clearer of getting the "thoughts" that you have in your brain down on paper. 2.) Are you actually tying Tim Geithner to Alan Greenspan? He didn't become a member of the NY Federal Reserve until Oct. of 2003. Even then, he was just one of the Fed Governors. Do you even know what his voting record was while he was a Board of Governor? 3.) After the Fed's announcement of finally guaranteeing Fannie and Freddie, did you not see the FACT that mortgage rates dramatically declined by well over 3/4's of a point in a single day yesterday? How does that not benefit the American homeowner or a prospective homeowner? 4.) President elect Obama is facing an economy that is most likely registering a -5% GDP for Q4. Why is it that you are unable to understand that the ECONOMY is the TOP PRIORITY with his new Administration? Why would anyone replace Robert Gates during this time? He has been a tremendous asset to this Country. Obama obviously values what he has accomplished thus far, and wishes to continue with such continuity of leadership. 5.) Yes, he might not roll-back the Bush tax cuts and would simply let them expire at the end of 2010. Obama obviously understands that balancing the budget right now is NOT the prime concern. Your understanding of some of the most basic economic/monetary concepts that this Country is facing right now is quite poor.
How come when I mention this idea on ET, that inflation is a tax on the poor and isn't fair, I am called a socialist or told by Landis82 to turn my brain on? Inflation is the most evil economic sanction against the poor. I hope housing prices continue to crash. Maybe one day I can actually afford one. A house was never meant to be an ATM.