Umm... Do you have any evidence of this? No? Prior to QE1 we were closer to than any inflation at all. Trust me,
Umm... I would never trust you because you say so. I trust me after I get the information. I would not trust someone who thinks the ones who manipulated the economy would be the ones to get it back on the right track. Congress has NEVER helped the economy except for short term. Why would they break that streak now?
with as much private and public debt floating around ATM deflation would have for sure brought plenty of pain. Contrary to your assertion, QE1 and QE2 have helped:
As you can see the manufacturing trade balance has obviously been effected by the dollars slide (Which actually started with the Bush years, and no I'm not complaining..). Aside from that, every bit of inflation helps those who are in debt - which, behind housing(although related), is the biggest obstacle to the U.S. recovery.
you didn't bring anything to the table on your answer. Unemployment is over 9, not 8 like we were promised by the pretty chart put out by the Obamas crack staff. ( a lot higher when you correctly count all that are not working) Prices are up, the dollars value has dropped significantly. How is that a good thing?
This is called "bending the curve". Considering our main budget problem in the future is not that excessive entitlements have been handed out, but a problem of spiraling healthcare costs. This strategy is absolutely legitimate.
Health costs are a problem but the entitlements area larger problem imo. SS won't be around for the younger generation unless changes are made. How can anyone think SS would be sustainable when it started out it was 50 paying in to 1 receiving, now its closer to 3 to 1. The life expectancy was shorter back then too.
Spiraling healthcare costs are once again the fault of government making regulations that destroy the free market and stifle competition. Once again government interferes, prices go up, quality goes down. Explain away why the exact same drug can be had for a lot less across the border?
The U.S. doesn't have to make extreme cuts at all; You're falling for the "we must destroy it to fix it" doctrine that has been shot down by evidence repeatedly.
no I'm not. That is your misguided assumption. Don't misrepresent my point.
Extreme are the measures put in by government that has prolonged the horrible economy.
Truth is, our fiscal situation is horribly overstated; Our short term situation, especially(most of the "increased size of government" under Obama is actually a loss of revenue combined with increased safety net spending not some kind of government takeover).
The truth is our economic situation is dire. Businesses are unsure of the future so they do not invest. We know this for a fact. After Congress screwed around taking their time deciding who would get taxed, and what amount, businesses started up again up for the simple fact they knew what direction they were heading. Not necessarily they knew whatever was passed was going to be beneficial but they at least now knew what lay ahead.
Absolutely wrong. Case and point: What about all that government spending during the Great Depression and WW2? WW2 came around, government spends more than at any other time in hostory (compared tothe size of the economy) and the following decades were the best time in U.S. history.
Absolutely wrong. Case and point the economy during the War was HORRIBLE. It was only AFTER the war when the war time economic policies that STIFLED competition were lifted. It is well known that MANY government contracts were not competitive and bids were fixed. You cannot have competition that way. We know competition increases quality for the the consumer.
It is the Governments role to ensure fair play and it is the governments role to fight recessions. This comes down to idealogy, though. I'm not going to beat on this drum, as it's a waste of time.
According to the Constitution, they specific and enumerated powers. Enforce contracts, yes Manipulating and managing the economy, no.
Gas is a good indicator because gas prices were, in part, driving the commodity bubble. As Bernanke has pointed out, much of the increase in CPI is all gas prices. If you exclude gas prices, CPI is much closer to core inflation numbers. Now, I'm not saying some prices aren't going up (wheat, corn) or that Gas wont go up again - I'm saying that these price increases are not primarily driven by inflation (I mean, unless you can explain how gas went up 160% while the USD lost only 15% of it's value? Inflation, mathematically, cannot be responsible for the entire increase in prices...)
Dunno who you are saying said inflation is the cause for the entire increase.
Why exclude gas prices when they are an important cost to almost everyone?
Gas and food prices are very important to the consumer. BOTH of those are up over last year. The economy is worse off. Gas goes up $1 in 8 months and down .20 in two months is not good news .
Of course prices are driven by inflation. We know this, none are immune.
Dunno what period you are talking about? Over the last year gas didn't go up 160 percent. If gas was 270 last year and its 350 now, thats ~30 percent. 350/270
This is true, those with lower income are effected the most, but I actually posted a couple of articles in this thread about Wheat, corn, etc that basically say food prices would have gone up, and will continue to go up with or without QE because there are supply/demand imbalances; The world population is growing and this years crops are expected to be far below average... basic economics says prices go up when demand outpaces supply (which BTW is exactly what has been happening to gas prices in recent years... demand is outpacing supply).
Gas demand is not outstripping supply. People are driving less now. AND in summer months when people do drive more the prices go down. I haven't seen an oil shortage in quite some time. I've heard some try and say there is one like when a middle eastern country gets involved in unrest. Libya was a recent example. We saw no shortage of gas yet some tried to say otherwise.
When a product is manipulated the rules of the free market do not apply. We saw this with the housing drisis and we see it with the cost of a college education now.
