SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: GraceZ who wrote (56104)3/17/2006 6:56:06 PM
From: mishedlo  Read Replies (1) of 110194
 
While I'm a big fan of a fixed low rate of money expansion, taking away the discretionary power of the Fed to attempt to engineer prosperity by jerking it around, I would never make the obvious error of thinking that a steady 2% rate of money expansion would give us a steady 2% rate of "inflation".

Who knows what it would do to prices?
I don't know either except to say that it would be highly unlikely to give us a steady increase in "prices" of 2%
But at least it would be honest as well as known by all participants.

As for that housewife, get real.
The FED is not in control of peak oil or peak copper or rising resource demand from India or China or globalization putting pressure on wages. Once again all the more reason to state 100% without a doubt that the FED is NOT in control of hardly anything and furthermore it is a mistake for them to try.

Fixation on prices led the FED to believe that there was little inflation in the mid to late 90's when in fact it was rampant.
Proof is the stock market. When that bubble burst, the next bubble was housing and you have to be nuts to not see speculation in housing.

I will ask you what I asked John earlier.
Do you want the FED to hike rates in the middle of a housing slump to combat rising oil prices? If not then fixation on prices is stupid. If so, please explain.

Mish
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News