Congrats Fed! Maybe CPI Will Heal Itself: Inflation @ 9.6% Annualized

[gnome]

For years the economy has been "cyclical"... most people just accept that but don't understand why.

One of the major reasons WAS because the Fed used to "create" the cyclicality. They would stimulate economic activity by lowering rates and increasing liquidity. Then when those inflationary actions had raised the inflation rate in the economy too much, they would raise rates and drain liquidity. When inflation had cooled, they would step on the gas again.

But since the GreenScam Fed, they basically don't do that any more. Instead, they (2) keep the inflationary money-pump pedal mashed to the floor, and (2) LIE about the inflation is causes.

Why is that? The correct answer will tell a lot about the future of America...

 

[ByLoSellHi]

Quote from Pa(b)st Prime:

You don't get it (I often scold Makloda the same way but this time it's HE who get's it).

What markets NEED an inflation fighting signal? Is it Oil down 30 bucks in a few weeks? Or Gold off 20% from it's high? Or the rallying dollar? Or the Long Bond at 4.5%? I agree these cuts are inflationary but GUESS WHAT. The markets disagree with us. Move on.........

Oil and gold drops are being more than offset by material, food and other energy-source inflationary spikes.

The worst part of this is that producers have just begun to pass on to the consumer many of the costs that were building for the last year at the wholesale level. They tried to hold the line but couldn't any longer - Tyson Chicken is a perfect example of this.

Now, this is anecdotal, but I have to say it nonetheless (so disregard it in the grand scheme of this discussion): I had the misfortune of having to go shopping this past weekend. I have never before seen, nor did I ever expect to see, a green pepper that cost $1.50. I'm talking about a single green pepper.

 

[JamesVU2000]

The whole system is insolvent.

 

[Hydroblunt]

Quote from ByLoSellHi:

Gotta' hand it to Bernanke & Co. If nothing else positive can be said of them, they sure are dreamers!!!

Keep waiting for 'inflation to moderate' while doing nothing. Why not throw in a wish for a super-model hot wife and private Caribbean Island for all, and scoring 50 yardline Superbowl tickets in the official fed policy commentary next time?

One word:

I-N-C-O-M-P-E-T-E-N-T

Do you have a learning disability?

 

[ByLoSellHi]

Quote from Hydroblunt:

Do you have a learning disability?

Hydroponic! How are you?

You should be pissed off. Hasn't BC Bud gone through the roof?

 

[Pa(b)st Prime]

Quote from JamesVU2000:

The whole system is insolvent.

THAT is the bottom line. Inflate or die!!!

 

[JamesVU2000]

I love that line. I used to write it all the time.


The bottom line is NO one has any idea what they are doing. This whole system has ZERO redundancy. It stretches from ocean to ocean, nation to nation.

The risk of something going wrong is very very high

 

[gnome]

Quote from Pa(b)st Prime:

THAT is the bottom line. Inflate or die!!!

More accurately, "inflate AND kill everybody, but later"..

 

[JamesVU2000]

i like that one too.

 

[Pa(b)st Prime]

Quote from ByLoSellHi:

Oil and gold drops are being more than offset by material, food and other energy-source inflationary spikes.

The worst part of this is that producers have just begun to pass on to the consumer many of the costs that were building for the last year at the wholesale level. They tried to hold the line but couldn't any longer - Tyson Chicken is a perfect example of this.

Now, this is anecdotal, but I have to say it nonetheless (so disregard it in the grand scheme of this discussion): I had the misfortune of having to go shopping this past weekend. I have never before seen, nor did I ever expect to see, a green pepper that cost $1.50. I'm talking about a single green pepper.

Obama will put a chicken and green pepper in every pot.