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2009-06-03 Economy

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Posted by ed 2009-06-03 00:00|| || Front Page|| [6 views ] Top

#1 You sow Identitity Politics you reap...

Posted by g(r)omgoru 2009-06-03 05:28|| 2009-06-03 05:28|| Front Page Top

#2 Inflation Begins

When did it ever stop? No matter how small, it's pretty much always been there. Deflation has been a more of a fear than ever a manifestation. I wouldn't count the inability of some car manufactures to off load their junks no matter what the price as an indication of deflation.

Posted by Procopius2k 2009-06-03 09:06|| 2009-06-03 09:06|| Front Page Top

#3 Price inflation AND debt deflation can easily happen at the same time.

Trying to "cure" the debt deflation that the economy needs with harmful monetary inflation will be a disaster for jobs.

Posted by Bright Pebbles 2009-06-03 09:18|| 2009-06-03 09:18|| Front Page Top

#4 Deflation has been a more of a fear than ever a manifestation.

You must not own a home, P2K. Just as there is a wealth effect when assets appreciate, there is a poverty effect when they decline. We have just had a massive destruction of asset value that has sever demand impact.

To combat the reduction in demand, the government has printed money which will ultimately result in inflation of prices for current goods and services and ultimately, the reinflation of asset values at the cost of an inflation that taxes those on fixed incomes the most.

This is the introduction of the shifting of the burden from the young to the elderly. Part of the price for having supported the "Greatest Generation" and being the pig in the python. Don't ever think they weren't thanked for their service.

Posted by Nimble Spemble 2009-06-03 09:36|| 2009-06-03 09:36|| Front Page Top

#5 Don't be at all surprised when the next step in the fascist takeover of the economy is wage and price controls on virtually everything.

Fascism is an economic system where the government through cronyism, regulations and tax power controls business without bothering to "own" the business.

Everyone should read up on Mussolini.

Posted by AlanC">AlanC 2009-06-03 12:28|| 2009-06-03 12:28|| Front Page Top

#6 With the unemployment rate as high as it is and probably not getting down to 8% before the end of 2010, the CPI and WPI will probably be quite tame through then.

Interest on 10+ year debt may go up quite a bit more but, in the short run, this will prevent a rapid recovery in home prices.

Thus, it is hard to see much retail level inflation risk for the next 18 months or so.

Posted by Lord garth 2009-06-03 12:51|| 2009-06-03 12:51|| Front Page Top

#7 Money supply has little to do with inflation, eh?

Posted by Nimble Spemble 2009-06-03 13:25|| 2009-06-03 13:25|| Front Page Top

#8 Must be very worrisome as Bernanke even warned Congress they had to cool the spending.

Posted by Lumpy Elmoluck5091 2009-06-03 13:36|| 2009-06-03 13:36|| Front Page Top

#9 yes Nimble, money supply is important, but in the short term the velocity slows because of unemployment

With respect to the long term, we can hope (pray) that much of the TARP money will be repaid which would slow the money supply growth. Very little of the stimulus funds have been spent so there is some chance of reining in the out years of that program. On the other hand, the $ for GM and Chrysler and FannieMae and FredieMac are probably not recoverable in the next decade if ever.

We will have to hope the Fed will tighten in 2010.

Posted by Lord garth 2009-06-03 13:54|| 2009-06-03 13:54|| Front Page Top

#10 "Don't be at all surprised when the next step in the fascist takeover of the economy is wage and price controls on virtually everything."

The best cigar you can afford to AlanC.

This is the stealth plan of how the Messiah and his cronies on the left plan to 'rein in health care costs'.

As we enter the coming period of high inflation, doctors and hospitals would raise fees to keep up with their own rising costs. The government's plan is to freeze fees in place or index them at a rate far below inflation. Presto, the appearance of decreasing health care costs. Except that hospitals and doctor's offices will go bankrupt when they can't raise their fees to cover costs, leaving the government to take over the health system utterly.

Beyond this, shortages will be created the same way as they were when Nixon did his little experiment in wage-price freezes in the 1970's.

Posted by no mo uro 2009-06-03 17:59|| 2009-06-03 17:59|| Front Page Top

#11 Those who seek to emulate Mussolini should remember how his career ended.

Posted by rwv 2009-06-03 19:28|| 2009-06-03 19:28|| Front Page Top

#12 rvw, you tease....

Posted by Barbara Skolaut">Barbara Skolaut 2009-06-03 20:06|| 2009-06-03 20:06|| Front Page Top

#13 thanks to all these gifts... Acorn among us...

Posted by 3dc 2009-06-03 21:59|| 2009-06-03 21:59|| Front Page Top

#14 Those who seek to emulate Mussolini should remember how his career ended.

It didn't faze the MSM at the time....

Posted by KBK 2009-06-03 23:35|| 2009-06-03 23:35|| Front Page Top

#15 So when can we start hanging the guilty politicians?

Posted by OldSpook 2009-06-03 23:41|| 2009-06-03 23:41|| Front Page Top

23:58 Richard of Oregon
23:41 OldSpook
23:40 OldSpook
23:39 trailing wife
23:38 European Conservative
23:37 trailing wife
23:36 OldSpook
23:35 KBK
23:33 49 Pan
23:29 trailing wife
23:29 European Conservative
23:27 European Conservative
23:20 Barbara Skolaut
23:03 ed
22:59 ed
22:32 DMFD
22:27 Eric Jablow
22:21 JosephMendiola
22:18 DMFD
22:17 JosephMendiola
22:11 JosephMendiola
22:08 DMFD
22:06 JosephMendiola
22:01 ed