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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: combjelly who wrote (685492)11/19/2012 12:28:59 PM
From: tejek  Read Replies (1) | Respond to of 1577978
 
But it doesn't. Where is the inflation now?

Its ironic.......traditionally, the Rs have been the party believed to understand the economy best..........and yet, they don't. It seems every R screams inflation these days while ignoring the higher than normal unemployment rate, the lower than normal capacity utilization rate and the significantly lowered national housing price median.

Like in many things they say and do, they assume that printing money will cause inflation immediately..........completely overlooking the deflationary position the economy was in after the great recession hit. They also assumed there were WMDs in Iraq. Tells you a lot about the lack of perspective and sound thinking in today's GOP.



To: combjelly who wrote (685492)11/19/2012 12:49:11 PM
From: i-node  Read Replies (1) | Respond to of 1577978
 
>> But it doesn't. Where is the inflation now?

Well, in that case I'll restate it. Printing money is always inflationary over what would otherwise have been. It is true that printing money does not ALWAYS lead to the condition we call "hyperinflation" but it is a balancing act that even the Fed realizes is exceedingly difficult to manage. The actions of the Fed today are desperate, and the struggle to start pulling money out when the time is right is going to be politically and analytically difficult to manage. One could even say "dangerous".