I thought the same but apparently the flow of funds out of the commodities are being deviated into Treasurys as long as hedge funds need this swap.
Congrats Fed! Maybe CPI Will Heal Itself: Inflation @ 9.6% Annualized
- Thread starter ByLoSellHi
- Start date
I must of missed the Great Depression of 2002. Didn't happen even as stock prices slid in 1929-1932 fashion. And yes it HAS worked in Japan. What other place could see it's stock market implode by 80% without unemployment rising above 2%.
It didn't work for FDR. Also government spending hardly collapsed after WWll. What about the Marshal Plan, Korea and the buildup to the Cold War. Inflation was double digits after WWll with much of the 1950's rise in stocks merely indexing the market to post war earnings inflation.
Without doubt Greenspan's rate cuts and Bush's weak dollar-low tax-Iraq stimulous all conspired to avert a serious recession. I can remember the malls in 2001-2002 being morgues. Much worse economy than today.
Deposits in japan pay less than 1 percent. They may have suceeded, but the yen certainly isnt a currency. Money absolutely fled japan when yields got that low.
Quote from makloda:
Believe it or not, the Fed is just reading the bond market when they say CPI is set to moderate. 10 TIPs vs 10 bonds are predicting a five year low in CPI expectations of around ~2.2%.
Makloda,
five year low in CPI expectations - what would Bundesbank' s Mr. Weber comment ?
ECB official warns of âprotracted weaknessâ
http://www.ft.com/cms/s/0/78d1effc-6868-11dd-a4e5-0000779fd18c.html
Separately, Axel Weber, Germanyâs Bundesbank president, told a German newspaper that the ECB had to keep fighting to ensure current levels of inflation did not become entrenched. He was also relatively upbeat about German economic prospects.
Ha, ha, ha....
http://www.ft.com/cms/s/0/78d1effc-6868-11dd-a4e5-0000779fd18c.html
Separately, Axel Weber, Germanyâs Bundesbank president, told a German newspaper that the ECB had to keep fighting to ensure current levels of inflation did not become entrenched. He was also relatively upbeat about German economic prospects.
Ha, ha, ha....
Quote from ASusilovic:
ECB official warns of âprotracted weaknessâ
http://www.ft.com/cms/s/0/78d1effc-6868-11dd-a4e5-0000779fd18c.html
Separately, Axel Weber, Germanyâs Bundesbank president, told a German newspaper that the ECB had to keep fighting to ensure current levels of inflation did not become entrenched. He was also relatively upbeat about German economic prospects.
Ha, ha, ha....
http://www.telegraph.co.uk/money/ma...008/08/15/cneuro115.xml&CMP=ILC-mostviewedbox
Nice! Kudos to the Fed once again!
Core inflation rose 0.7 pct for the month, the largest monthly gain since November 2006. That left core inflation up 3.5 pct in the past 12 months, the fastest unadjusted annual pace since 1991.
Overall inflation rose 9.8 pct in the past year, the largest annual gain since June 1981.
Let us pay the fed stooges homage.
A chart that even 'let's just have the taxpayers nationalize all weak financial institutions' Ben 'Comrade' Bernanke may be able to understand:
Core inflation rose 0.7 pct for the month, the largest monthly gain since November 2006. That left core inflation up 3.5 pct in the past 12 months, the fastest unadjusted annual pace since 1991.
Overall inflation rose 9.8 pct in the past year, the largest annual gain since June 1981.
Let us pay the fed stooges homage.
A chart that even 'let's just have the taxpayers nationalize all weak financial institutions' Ben 'Comrade' Bernanke may be able to understand:
I find it appalling, scary and rather insulting that our federal reserve is still clinging to their bullshit about 'inflation is expected to moderate in coming months...'
Lacker is now stepping up.
We need Lacker to corral some allies and mount an intense mutiny if there's any hope to break this pent-up inflationary pressure that shows little sign of abating outside of specific areas such as oil.
Even IF there was some possibility that such pressures would abate on their own, what is the likelihood? If it's not great, it's wise not to take chances.
The federal reserve is getting it all wrong lately. Bernanke is just in way over his head. He does not have the luxury of time.
http://www.nytimes.com/2008/08/20/business/economy/20econ.html
Higher Costs Taking a Toll on Business
By MICHAEL M. GRYNBAUM and PETER S. GOODMAN
American businesses faced the biggest annual rise in wholesale prices in 27 years last month, just as the stumbling economy caused consumer spending to drop.
....
Lacker is now stepping up.
We need Lacker to corral some allies and mount an intense mutiny if there's any hope to break this pent-up inflationary pressure that shows little sign of abating outside of specific areas such as oil.
Even IF there was some possibility that such pressures would abate on their own, what is the likelihood? If it's not great, it's wise not to take chances.
The federal reserve is getting it all wrong lately. Bernanke is just in way over his head. He does not have the luxury of time.
http://www.nytimes.com/2008/08/20/business/economy/20econ.html
Higher Costs Taking a Toll on Business
By MICHAEL M. GRYNBAUM and PETER S. GOODMAN
American businesses faced the biggest annual rise in wholesale prices in 27 years last month, just as the stumbling economy caused consumer spending to drop.
....