Volcker tells the truth

I doubt a lot of people are worrying so much about 2% / year inflation now. One might be more worried about 2% per month or day, later with a big hyperinflationary O.
 
0% inflation is dangerous, in any recession you will hit deflation. In a U shaped or L shaped depression you certainly will go to very negative deflation rates which will demand extremely loose monetary policy to reverse. Actually RAISING the fed inflation target might be the right policy, the fact that the US is just coming off high 2008 inflation and a commodity boom probably delayed the likely coming deflation by 6-12 months, that is a good thing
 
Quote from Daal:

0% inflation is dangerous...
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Disagree. Without the Fed "screwing with the money", there would be no inflation and savings would actually be a store of wealth.
 
Quote from Scataphagos:

Disagree. Without the Fed "screwing with the money", there would be no inflation and savings would actually be a store of wealth.
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The securities markets are aware of inflation and it tends to price that through higher interest rates, so higher interest income will offset higher loss of purchasing power, that's what volcker seems to be missing, maybe your cash not spent loses half its value but not your bank CDs, money market deposits,etc

The people who bitched in 2008 the fed was cutting off their interest returns and inflation was soaring leaving them unprotected have been proven wrong as deflation was the real problem. The treasury market seemed to be aware of this way before the ET hyperinflation bulls did

The fact that interest income creates a tax liability does complicates things, but the fed can address that through targeting an overnight fed funds that offers 0% post-tax inflation adjusted returns, leaving overnight low risk rates protected against inflation
 
The author of the article is a douche. He writes like a 16 year old girl. He only cites one quote from Volker, then has a rant that has nothing to do with the comment. You are a douche bag for even linking to this article.
 
Quote from RiceRocket:

The author of the article is a douche. He writes like a 16 year old girl. He only cites one quote from Volker, then has a rant that has nothing to do with the comment. You are a douche bag for even linking to this article.
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That's all that's needed to be said. You dont know enough to understand this though.

That one sentence says it all..... (but you don't know any better)
 
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