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Re: Pepper sprayed for public safety.
Quote:
Originally Posted by sebastian_dangerfield
See the recent decreases in consumer confidence? The consumer - on which 70% of our economy is based - is tapped out. The middle class squeeze (mix of non-core inflation in essentials coupled with wage stagnation) is murdering him. Seeking greater across the board inflation will only result in selective inflation that will decrease disposable income. The areas where inflation is needed - housing and wages - remain stubbornly resistant, and will continue to be so no matter how loose our monetary policy.
You've an odd assumption that monetary policy can create inflation, or deflation, where it is needed, and that it's just a matter of political will, or policy prescription, to do so. This is ludicrous. If we've learned anything from this depression, it's that the Fed, and our govt, have far less ability to guide our economy than thought.
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This is nuts. The Fed is making a very conscious choice to avoid any inflation, and accept the unemployment that comes with low interest rates. It's very, very clear.
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“It was fortunate that so few men acted according to moral principle, because it was so easy to get principles wrong, and a determined person acting on mistaken principles could really do some damage." - Larissa MacFarquhar
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