Why is inflation so low?

USD as the Reserve currency is a factor to consider. The world can tolerate
a lot of USD. I hear that small central banks in developing markets directly inflict
damage to their citizens by increasing money supply.
 
Ucan'tEatBonds said:
The job of guys like Maverick and Martinghoul and others like that is to toe the party line and always offer alternatives so that ideas never gain momentum.

There must never be consensus.

Even when US debt goes to 40 TRILLION, when inflation goes from 11-12% to 20% a year.

Even then these guys will show up to say how all of this is OK and normal, and nothing to see here. The fact that in the future every single family will have 4-5 jobs just to keep up, all of that will be explained by these guys as the normal way to live.
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+1,000!

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wheaties said:
Wait! I have just a couple...
Maverick74 so you are saying the fed is printing money....... but not really...... because the new money is being locked away in a vault somewhere.
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A lot of the money is to "fill in" the holes from the deflation and after-effects of the 2008 debt crisis. Make balance sheets technically sound again. In other words.... the inflation already happened over the last 20 years, just need to prevent it from trying to deflate again.
 
Ucan'tEatBonds said:
The job of guys like Maverick and Martinghoul and others like that is to toe the party line and always offer alternatives so that ideas never gain momentum.
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Do you think hes a special op, sent here to dilute your powers so you never take over the world chap?:D
 
Catoosa said:
The large expansion of the money supply alone may not result in high inflation. A fast expansion of the economy combined with increasing of interest rates generally accompany high inflation. I have yet to see any signs the economy is entering a period of a rapid expansion, rather only Obambo telling us there is a slow expansion occurring. With the 4.4 trillion dollar expansion in the fed's balance, I think the US could experience double digit inflation if the economy takes off but that could take years. The CD interest rate peaked at about 20% back in the 1980's and we also had double digit inflation. I hope we do not see those ruinous conditions again.
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I think that's the fallacy with those who try to explain the economy today. A lot of them seem to think that the money supply alone is what determines inflation or deflation. I think we've gotta reach that overheating point before the large money supply becomes a problem.
 
Ucan'tEatBonds said:
Ahem.....

How fortunate that I saw this thread, I will explain ALL to you, and you'll soon feel grateful.


Inflation is LOW because your mum is the one who goes shopping and not you, and she being a woman (most women are not business savvy) she only notices rise in prices and doesn't notice lower net weight in packaging and more air in packaging etc.

INFLATION IS 11-12 %

"IS" as in, have you been to the store lately.

But don't worry, I am probably wrong and one of the FED apologists will chime in with mathematical correction on how things really are
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WALMART.. i buy shrimp from them for years. it was 5.99 a pound
the scumbags pulled this on me.. SAME SHELF.. same product. .same price.. but . it was 14 OZ.. ha ha...
#$#@%^ u man.. u know . we are a creature of habit.. so instead of increasing prices. .they reduce it by 2 OZ.. . .who the @$%^ sells 14 OZ... ha ha... man.. thanks for pulling a fast one on us..

see another fast one by tropicana

http://www.mouseprint.org/2010/05/31/tropicana-inconspicuously-downsizes-half-gallons-of-oj/

64 OZ to 59OZ. ..same package.... AMAZING. . mofos.. they are..

LOTs of inflation.... this summer.. watch prices of beef pork and chicken...
 
wheaties said:
Looking at the Monetary Base chart here it would seem that inflation should be off the chart - Why is inflation under 2% as the fed claims? Yes, I know they under-report inflation, but from the post 2008 4X expansion in the monetary base we see here it seems logical that double digit inflation would result.
What is the true impact of this expansion of the money supply?
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Inflation isn't as low as the government states. They have an agenda and lying about the inflation rate, employment rate, every-other-kind-of-damned-rate supports their deceptions.

To the government, the ONLY inflation rate which counts is "wage and price spiral".

Government think... "If the price of beef goes up, people will switch to chicken. If the price of chicken goes up, people will switch to beans. If the price of beans goes up, people will switch to eating grass. If the price of grass goes up, people will start eating dirt".

See how that works?

:(
 
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