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To: Sea Otter who wrote (69693)9/30/2007 12:21:44 AM
From: elmatador  Respond to of 116555
 
"Why won't US admit inflation is rising?" Because the salaries will spiral upwards. Inflation is there but it is repressed. Like a pressure cooker without a valve. Pope are day by day become more poor. That is: more and more of their income goes to pay for their livelyhood with less and less discretionary income.

I saw that film in 1979 in Brazil before the "Lost Decade" started 3 years later.



To: Sea Otter who wrote (69693)9/30/2007 12:26:24 AM
From: elmatador  Respond to of 116555
 
why deny inflation? Message 23896821

Admiting there's inflation points to increasing interest rates, which is not the FED is prepared to do. Thus hide inflation and lower the interest rates.



To: Sea Otter who wrote (69693)9/30/2007 12:54:40 AM
From: gold$10k  Read Replies (1) | Respond to of 116555
 
Why won't US admit inflation is rising

Doing so would

1. require that the government pay a larger cost of living increase on all entitlements.

2. cause prospective bond holders to demand a greater rate of return which would increase the cost of servicing the national debt as well as increasing borrowing costs for everyone else which would depress the economy and stock market.

3. reveal that the economy is already in a recession in inflation adjusted terms.

Is that enough? Are there more reasons?



To: Sea Otter who wrote (69693)9/30/2007 10:40:55 AM
From: Jim McMannis  Read Replies (1) | Respond to of 116555
 
"Why won't US admit inflation is rising?"

Because entitlements are tied to the cost of living.



To: Sea Otter who wrote (69693)9/30/2007 10:41:08 AM
From: ggersh  Read Replies (1) | Respond to of 116555
 
Steve; Why Govt Says No Inflation,

You got some good replies to that question, all are true, but in my mind the biggest reason(maybe not the most important) is the Stock Market. If interest rates go up as they should've ,to save the Dollar the Stock Market couldnt go up.
Listening to CNBC the Queen of Spin for the market,all they care about is that the Market goes up. Could care less about any of the ramifications. 30 Stocks do make the economy!!! Also the politics of everything breathing would be crippled. Our glorious leader doesnt want a recession like daddy had, the PPT, (plunge protection team) has probably been buying stocks also) so all that is done financially, whether it be Paulson or Bernanke is done for Wall ST. and the Market.

IMHO