You made a stunning admission in your post, which I agree with whole heartedly: "we're in a depression". So if we are still in a depression 4 years after 2009 and the tsunami of QE, ZIRP, and fiscal stimulus, is it then time we reconsider those policies, given that they have failed so dramatically?
On another note, I keep bringing up stagnating wages for the 99%, which we both agree on, because these people who's incomes are not rising, are seeing inflation in their basic Maslow's Hierarchy of needs, including food and shelter. You may measure inflation by the price of gold, but the 99% measure inflation by the price of their rent or the food they eat. By those measures, they are seeing quite a bit of inflation, as I've demonstrated on these boards to be far in excess of the purely fictional <2% figure the Fed likes to base their policies on.
On top of that, you are correct in saying that QE and ZIRP easy monetary policies will lead to inflation down the road when the economy recovers in earnest. It's like a coiled spring. So the 99% area already feeling inflation in their daily lives and when the economy recovers, we may get another Carter moment in inflation. And then I guarantee you everyone will be shocked. How could this have happened? The Fed assured us they had everything under control! It's all so predictable. We know the outcomes, but the timing of things is always the real bitch to forecast. |
