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

To: Fiscally Conservative who wrote (747987)	10/19/2013 11:25:54 AM
From: RetiredNow	Read Replies (1) \| Respond to of 1570557

Agreed the game is rigged. One way it is rigged is that official inflation figures are biased to the downside with all the hedonics and smoothing they engage in. True inflation is closer to 9%, not 2%. Anyone who has to eat or drive knows that. Anyway, just wait when the economy actually does start to recover in a meaningful way. With $3.7 trillion in Fed Reserves, if that money starts getting leant out to a recovering economy, it will unleash truly horrific inflation. But what I'm more worried about now is not inflation, but the destruction of capital from QE and ZIRP. Capital formation is getting clobbered due to the financial repression going on right now. Capital formation and allocation is the key to real jobs growth. The only reason the Unemployment Rate is going down right now is not due to jobs growth, but rather due to people dropping out of the workforce. That's horribly unhealthy for our long term fiscal situation. The Fed has created a vicious downward spiral that will be hard to get out of.