June 25, 2011
– Comments (4)
Good discussion of Fed's contridictory statements on inflation and the price of oil starting at about 3:50.
Deflation discussion - The Fed has a targeted inflation level but slight deflation stabilizes family finances at a time when most middle class workers have had some sort of job, wage, or benefit reductions. Deflation in the U.S. with inflation in China would also stem the flow of job exportation.We are past the peak need for housing and stripmall growth. Stop propping up your mortgage backed securities. Let's discover the bottom of this sucker and start growing from that point.
Later in the piece, Schiff discusses why attempts to stimulate that are not based in the private sector have little chance of success and probably choke off the chance for core economic growth. Most public spending is overhead and overhead spending in strong companies rarely grows at a faster rate than the underlying business. Why would this simple business fact not apply to the U.S. economy?
This is one of Schiff's better weekly updates.
Schiff at his best.
Thanks for posting these.
Yep. I'm confident Mr. Bernanke understands exactly what's going on. He's very smart. He knows exactly what he's doing. He's A) propping up his buddies. Think about the cocktail parties he goes to and the how often his rich buddies bug him about the economy; not many would have the balls to allow his friends to lose money via deflation.
He's B) slowly (although not that slowly) devaluing the dollar. This must be done to alleviate the debt. 4% inflation for a decade puts a dent in our debt (See Mr. Prickars thoughts on financial repression). In this way I'm sure he thinks he's doing his country a service.
I bet A) is the key and B) is just a nice side effect/ way to explain his actions.
I also bet he owns quite a bit of gold.
Taxes should be raised on large corporations. Tax breaks should remain in place for small businesses...