i don't remember anyone in the thread asking you. the FED is oldtime, dump it..... run by a bunch of geriatric repressed croonies with prostrate issues. a matter of time before it finally gets blown out. set the balance sheets back to zero, reload fort knox with heavy metal and print some new paper worth something. s
they say that's the first thing to go, your memory. I'll get into it with you on the FED later. The comment I was responding to (if you can remember), was oil and inflation. it's a pisspoor situation where inflation is usually defined as "too many dollars chasing too few goods" wheras in this case it's too few dollars chasing just one good, namely oil. say hi to your fellow traders at the old folks home, glad to see they gave you your computer priveleges back, next time you fool around with a nurse, remember to lock the door.
one of the feds job is to moniter inflation. If the straits are closed, oil may go sky high. What do you want the fed to do about that? The usual response to inflation is to raise rates. Same with food. A bad weather catastrophe could cause wheat to go sky high. Should the fed step in and then raise rates because bread is now higher?
And when oil and commodity prices rise consistently without adverse geopolitical OR weather conditions, what is your response?
like I said, It takes a while to work it's way through the system. It hasn't even begun. Oil has never been truly passed on to the consumer which is what the CPI is all about. First the truckers took it in the shorts, and then finally the shipper had to eat a little, and due to the bad economy the retailer has been very reluctant to pass it on to the consumer. So now it costs us more and more just to do what we use to do. Is that inflation? Or is it just a problem with oil? If it's inflation, then it's a fed problem. Conversley, if some great oil field was discovered, or we figured out a cheaper way to refine it, would you then declare that we are in a deflationary cycle?
if that's the case why has goldman built multiple storage areas to park gold and leased multiple tankers sitting idle loaded with oil , after all historically sufficient storage facilities are full, that is not moving,the price is being gamed,and not by supply.demand ,unless hoarding is consistent with the traditional definition of low supply...how long will this stagnated economy last and what is going on behind the scenes to possibly extend it and to what end..heres a clue, the author of the opening news article is the deutsche bank.... http://www.bankersalmanac.com/addcon/infobank/bank-rankings.aspx