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

To: RetiredNow who wrote (770780)	2/25/2014 12:47:48 AM
From: Bilow	Read Replies (2) \| Respond to of 1574767

Hi mindmeld; Re: "The Fed acts on policies considering inflation excluding food and energy."; That's right. They have no choice. Food and energy prices change too quickly to be used as Fed policy. For example, if I wanted to buy a house right now, I'd go to the bank and ask them what interest rates they can give me. The bank would look at my credit and give me a number that they can guarantee. I could use that number to determine which houses I can afford. If the Fed followed the very volatile pricing of food and energy, the banks wouldn't be able to do that because they would be unable to predict interest rates as easily. Any changes the Fed makes to its policy have to be small changes made slowly. Same thing applies to any governor of a mechanical system. You don't get an efficient system by constantly slamming on the brakes and pushing hard on the accelerator when all you're trying to do is to maintain a 55mph speed. The objective of the Fed is to maintain a steady monetary policy, not maintain steady prices. Re: "So if you don't eat or drive, then we have no inflation."; You're basically quite stupid and don't have sufficient intellectual capacity to understand these complicated arguments. You should stick to things that you can understand and leave complicated stuff like Federal Reserve policy and how gravity works to the experts. Why don't you talk about your favorite football team instead. Or abortion, that's always a good topic. Okay you've revealed that what you really want from the Fed is for it to maintain steady prices for food and energy. Why don't you campaign for complete government control over the price of food and energy? That's the only way you can achieve your objective. And it can be done. Nazi Germany had price controls that worked for most of a decade or so. And the Soviet Union was also able to keep prices steady for some time. Sure it could work here, LOL. -- Carl