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

To: combjelly who wrote (798542)	7/31/2014 5:04:06 PM
From: Tenchusatsu	Read Replies (1) \| Respond to of 1578008

CJ, I am just curious as to how it could happen. It should be obvious. You pump money that didn't exist before into the system without any corresponding increases in productivity. Prices will rise because more money is being used on the same amount of goods. Of course, there are a lot of factors that go into price spikes. Inflation has to be measured over the long-term because of all the other variables that lead to short-term volatility. According to the Fed, food and energy prices are too volatile to consider in concerns over inflation. However, the current rise in these prices seem to be more permanent and too important to ignore. Hence we won't really know whether all of the quantitative easing in the past several years led to inflation until it becomes 20/20 hindsight. But IMO (and that of a small but growing number of economists), the Fed seems to be in denial over the effects of their policies on prices that average consumers see these days. Tenchusatsu