http://www.bloomberg.com/news/2014-...er-sized-balance-sheet-for-years-to-come.html
is this the end of free credit markets?
is this the end of free credit markets?
sky high inflation coming?
- Thread starter zdreg
- Start date
Free credit markets are already gone. I think the question is when, if ever, they will be allowed to return. Implicit in your question is the opinion that it will certainly not be soon and possibly never.
The problem is a political one as well as economic. They do not know how to crawl back down from the ledge without creating significant economic dislocation that has enormous political implications.
The problem is a political one as well as economic. They do not know how to crawl back down from the ledge without creating significant economic dislocation that has enormous political implications.
Who really wants free markets?
No company that I watch, in any industry, want a free market. Makes for good talking points for politicians, that's about all. IMHO.
That being said, it will be interesting to watch the FED going forward, especially if/when we get a recession, or some other outlier event.
Maybe we're entering a new "New Golden Era".
You are correct in your assertion that, by a large, business -- particularly big business -- has zero interest in free markets. They love the edge their lobbying gets them in tilting the playing field.
Who really wants free markets?
No company that I watch, in any industry, want a free market. Makes for good talking points for politicians, that's about all. IMHO.
That being said, it will be interesting to watch the FED going forward, especially if/when we get a recession, or some other outlier event.
Maybe we're entering a new "New Golden Era".
Yeah, if anything, it's Japanese-style deflation we should be worried about.
Maybe it does.
A picture is worth 1000 words but i cannot find the chart at FRED.
It is a chart of US GDP vs. CPI both expressed as percentages.
It illustrated, to me anyway, why the 2% inflation target.
Below 2% CPI ( with some margin of uncertainty), GDP growth plummets negative quite sharply.
The chart is very non linear.
"They" dont want this.
Here's one thing that's not too wonderful about Japanese-style deflation:
Bubbles need to pop. Sorry. People in japan live in closets because that's all they can afford.
Wanna know what that is? A bailout to the massive banking cartel that run Japan.
Lower prices are better for everyone. Living standards rise when prices DROP. Real simple.