Cc's view is informed by the fact that they can't outsource medical care, so he doesn't give a shit. His ox will never be gored.
Cc's view is informed by the fact that they can't outsource medical care, so he doesn't give a shit. His ox will never be gored.
A big interest rate increase would increase the severity of our recession. I remember Paul Volcker and Timmy Geithner is no Paul Volcker. In fact, Volcher is starting to speak out against Obama's economic policies.
Big price assets including houses and stocks have declined in value do to our economy. In the depression, both the stock market and housing lost 89-90% of their value. Housing is presently down only 11-14% from its peak nationally and stocks are still down only about 25%. However, days to day items we pay for such as tuna fish, taxes, gasoline,and doctor visits have seen inflationary price increases. Gas and tuna, as examples,are imported so their price goes up as our dollar collapses. Should the world economy turn around, the demand will cause the price of commodities to increase significantly. We will find out how much low demand is masking inflation. I suspect our present economic stability is an illusion.
Technically, "inflation" refers to governments inflating their money supplies. This always, sooner or later, causes prices to go up which we refer to as 'inflation' although it is actually the result of inflation. Inflation, government expansion of the money supply, is also a hidden tax imposed by government. Inflation is the only way our government can expect to paydown its debt. It goes down a lot easier than income tax increases.
economics 101...more debt means a necessary eventual increase in interest rates in order to gain willing investors. The bigger the debt, the higher the interest rates...it is coming, and fairly soon.
Too bad you stopped at Economics 101. A few higher-level courses might have given you a better understanding.
Enlighten us please Professor Elganned...real world examples are required for this discussion however. let me start by harkening back to the 1930s...big spending and subsequent interest rate hikes and inflation. Example number 2 coming in the Carter years....Your turn.
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