Originally Posted by Fearsome Forehand
Pretty easy to control inflation if there is no demand/growth.
While exchange rates certainly affect the cost of foreign goods and well as exports (the yin/yan of a weak or strong currency), you can't ignore the printing of huge amounts of currency in devaluing the existing stock. (Let's not even talk about the insane debt burden.) Mark my words, once the economy recovers, the chickens will come home to roost and we will have a period of stagnation combined with high inflation and high interest rates a la the Carter years.
Current US Fiscal policy is absolutely suicidal. Not a good thing. The plan seems to be to monetize the debt.
That said, it is obvious Costco is the prime mover and is clearly evil.
Like the unemployment rate, the inflation rate is all in the way it is calculated. As always, the devil is in the details
ok. this will be hard to argue, especially as im reduced to typing with one hand.
but i thought your quantitative easing argument would rest primarily on an inflation argument (at least in the context of this discussion)
and yes, it matters how the calculation is done, but i believe they at least have to be CONSISTENT in ther method.
anyway, i'm not sure i'm qualified to discuss the current economic status / policy of the us / world