The federal reserve is going to pull another ONE TRILLION DOLLARS OUT OF THEIR ASS!

[Avatar4321]

It's a neat little trick by them. Wish i had that capability.

Course, I'm sure pulling all that money out of their ass is as painful as it sounds. So maybe working for it would be a better idea.

 

[Political Junky]

Buy more gold and silver.

From Beck. Right.

 

[LiberalNut]

What a dollars value now compared to 1970 ?

What difference does that make dumbass? Really, explain to me in rational terms why the dollar being worth less today than it was in 1970 hurts anyone. I dare you.

Your rant against the fed is like all other rants by wingnuts. You have no fucking idea what you are talking about. None. What president took us off the gold standard? What party did he belong to? Why did he do it?

Do you have any idea what a petrodollar is?

 

[Mr.Fitnah]

What a dollars value now compared to 1970 ?

What difference does that make dumbass? Really, explain to me in rational terms why the dollar being worth less today than it was in 1970 hurts anyone. I dare you.

The more dollars they print, the less each one is worth.
It is a hidde ...
Oh fuck it .
Go on with your bad ass self

 

[Toro]

What a dollars value now compared to 1970 ?

What difference does that make dumbass? Really, explain to me in rational terms why the dollar being worth less today than it was in 1970 hurts anyone. I dare you.

Because inflation erodes the purchasing power of your currency. It buys less.

 

[Toro]

Buy more gold and silver.

From Beck. Right.

No, from me.

 

[Big Fitz]

What a dollars value now compared to 1970 ?

What difference does that make dumbass? Really, explain to me in rational terms why the dollar being worth less today than it was in 1970 hurts anyone. I dare you.

Your rant against the fed is like all other rants by wingnuts. You have no fucking idea what you are talking about. None. What president took us off the gold standard? What party did he belong to? Why did he do it?

Do you have any idea what a petrodollar is?

So you know nothing about how inflation works, is created or what to do about it who benefits and who gets hurt.

Okay, we get it.

 

[loosecannon]

What a dollars value now compared to 1970 ?

What difference does that make dumbass? Really, explain to me in rational terms why the dollar being worth less today than it was in 1970 hurts anyone. I dare you.

Your rant against the fed is like all other rants by wingnuts. You have no fucking idea what you are talking about. None. What president took us off the gold standard? What party did he belong to? Why did he do it?

Do you have any idea what a petrodollar is?

So you know nothing about how inflation works, is created or what to do about it who benefits and who gets hurt.

Okay, we get it.

Every president since FDR has been a proponent of a weak dollar. China, the US, Japan, the EU all want to weaken their currencies asap.

In a globalized economy the cheapest labor and the weakest currency wins.

If you don't like it revolt against globalization. But until that pays dividends a weak dollar is as good as it gets.

 

[Big Fitz]

In a globalized economy the cheapest labor and the weakest currency wins.

Only if you're producing. If you are not producing, like us, it's a death sentence.

If you don't like it revolt against globalization. But until that pays dividends a weak dollar is as good as it gets.

Except it hurts all the wrong people and rewards the tyrants. Globalization is not a foregone conclusion, and there are other ways to fight an economic war than by devaluing your own currency. It just takes far more moral courage and intestinal fortitude.

 

[McDowell's]

one of the Fed's stated goals in doing the bond buying is to increase the inflation rate towards they're long term target of two percent.

And 2% inflation is a problem, why? Y'all were babbling about the 70s and Carter (as if he did that and not OPEC) and whatnot and now you come back with 2%? Jesse. Truth is, it would be a good sign if inflation were to inch up to 2%. It would mean the labor market was growing again.

You said inflation was not a rational concern. Obviously this is an inflationary step. The Fed admits it is an inflationary step, and the amount of inflation this will cause is uncertain. This is not typical Fed policy, there is little historical context to understand what will happen. So I think you were a little over ambitious in saying inflation should absolutely not be a concern. And just because inflation ticks up does not mean the labor market is recovering. One does not necessitate the other. And please, I am not 'y'all' or 'you'. I did not say anything about the 70s or Carter. I was just highlighting that knowledgable people see this as raising inflation concerns. Even a member of the Fed board voted against the measure citing inflation concerns. Hopefully that individual knows how the economy works.

 

[Paulie]

Higher inflation means more jobs!

Awesome. So why stop at 600 billion then?

We should just print until companies hire again, and then let the Fed magically exit their myriad of purchase facilities without so much as even a slight drag on growth.

I mean, it's GOTTA work, right? The Fed can't possibly go wrong!

 

[Paulie]

Fuck, why even bother ever raising interest rates again?

Leave them at 0, and just keep printing money forever.

So what if bubbles form and burst, as long as we just keep printing more money and keep inflation high, there will be jobs for all, and foreigners will buy our goods as well!

And all the debt holders who took advantage of low interest rates to finance shit they didn't really need, can pay it back with all of the devalued dollars!

Holy fucking shit, I can't believe all this time it was just THAT SIMPLE!

 

[LiberalNut]

Because inflation erodes the purchasing power of your currency. It buys less.

But your paycheck goes up correspondingly. If you make $10,000 and pay a mortgage of $250 it's exactly the same as making $100,000 and paying and paying a mortgage of $2,500. Yeah, a dollar bought more in 1970, but people had a lot less dollars dipshit.

 

[editec]

The reason this move will not work is not because it is inflationary. although I agree that it is.

The reason that this move will not work is because the money will go into the hands of the people who won't spend it, but might try to find alternate investments opportunities.

Again with the supply side solutions to demand side issues?

 

[WillowTree]

The federal reserve is going to pull another ONE TRILLION DOLLARS OUT OF THEIR ASS! Have fun with the inflation everyone! =)



I wonder how little your dollars are going to need to be worth before some of you choose to start paying attention to federal monetary policy...?

http://www.youtube.com/watch?v=GNqxGtzUW4I

It will just give the TEA party more steam in it's spout.

 

[LiberalNut]

You said inflation was not a rational concern.

No rational person would fear inflation at this time. That's a fact.

Obviously this is an inflationary step.

In a deflationary situation. That's why monetary policy has to be counter-cyclical. Duh.

just because inflation ticks up does not mean the labor market is recovering.

No, OPEC could be screwing us but that isn't happening. Barring the increase in the price of a critical input like oil, only the labor market causes inflation all else held equal. You pump money in when the labor market is bad and you pull it back out as the labor market reaches full employment. It's called Keynesian economics. All democratic nations do it.

knowledgable people see this as raising inflation concerns.

Funny me, I'm not for fighting inflation that we don't actually see.

 

[Big Fitz]

Because inflation erodes the purchasing power of your currency. It buys less.

But your paycheck goes up correspondingly. If you make $10,000 and pay a mortgage of $250 it's exactly the same as making $100,000 and paying and paying a mortgage of $2,500. Yeah, a dollar bought more in 1970, but people had a lot less dollars dipshit.

oh reallly? You think your paycheck goes up AT THE RATE OF INFLATION?

You must be a government employee. Most people lag so far behind inflation in pay raises they have a helluva time staying in their house, let alone keeping food on the table for the next few YEARS till pay catches up... kinda. Remember compared to the 1960's the income purchasing power is far less.

You don't remember the 70's I see. Ask your grandparents.

 

[LiberalNut]

You don't remember the 70's I see.

Of course I remember the 70s. In the end, my father came out smelling like a rose. His mortgage payment was the same but his paycheck was much, much bigger. Sure, it's painful for awhile cause prices rise faster than wages but in the end, the debtor wins as a result of inflation.

The math is pretty simple. Wanna see the math?

 

[WillowTree]

Because inflation erodes the purchasing power of your currency. It buys less.

But your paycheck goes up correspondingly. If you make $10,000 and pay a mortgage of $250 it's exactly the same as making $100,000 and paying and paying a mortgage of $2,500. Yeah, a dollar bought more in 1970, but people had a lot less dollars dipshit.

oh reallly? You think your paycheck goes up AT THE RATE OF INFLATION?

You must be a government employee. Most people lag so far behind inflation in pay raises they have a helluva time staying in their house, let alone keeping food on the table for the next few YEARS till pay catches up... kinda. Remember compared to the 1960's the income purchasing power is far less.

You don't remember the 70's I see. Ask your grandparents.

Exactly! Priceless!

 

[Paulie]

Because inflation erodes the purchasing power of your currency. It buys less.

But your paycheck goes up correspondingly. If you make $10,000 and pay a mortgage of $250 it's exactly the same as making $100,000 and paying and paying a mortgage of $2,500. Yeah, a dollar bought more in 1970, but people had a lot less dollars dipshit.

oh reallly? You think your paycheck goes up AT THE RATE OF INFLATION?

You must be a government employee. Most people lag so far behind inflation in pay raises they have a helluva time staying in their house, let alone keeping food on the table for the next few YEARS till pay catches up... kinda. Remember compared to the 1960's the income purchasing power is far less.

You don't remember the 70's I see. Ask your grandparents.

Why even bother arguing with this kid?

He's reading his next response from his Keynesianism 101 college textbook.

The fucking guy is a fruit loop