Fed Prays For Inflation -- It's Our Only Hope

[Ares]

Everyone thinks the Fed's job is to fight inflation, but right now the Fed is actually doing everything it can to cause inflation.

Why?

It part to help the economy get cranking again. Inflation provides an incentive for people to spend cash rather than saving it, because if they save it, the cash will lose value rapidly.

Inflation also helps solve another problem, though--our debt problem. The more inflation we have, the less our dollars will be worth. Because our debts are based on a specific number of dollars and not a specific value, the less our dollars are worth, the easier it will be for us to pay off our debts.

(Imagine owing someone 100 Zimbabwe dollars at a time when the currency is collapsing. If you wait a week, the value of the Zimbabwe dollar will have collapsed, and you'll be able to pay off your 100 Zimbabwe-dollar debt with currency that is only worth half as much as it was the week before).

The Fed can't admit that one reason it wants high inflation is to reduce the real burden of our debt, but you can bet that that's one of its objectives. What's more, says Nobel-winning economist Paul Krugman, inflation should be one of the Fed's objectives. Because that's how we've gotten out from under debt burdens in the past.

http://finance.yahoo.com/tech-ticker

Help me Obiwan Bernanke, you're my only hope. :-X

[WebTech]

But how can they get inflation without paying the peeps a lot more money?

[Ares]

But how can they get inflation without paying the peeps a lot more money?




Once you answer that question you might want to let Bernanke know, as he'll probably give you a Trillion dollars because you just saved his ass.

[Hellsbane]

Jimmy? Jimmy Carter? Is that you in there?

[Brent]

A World War would cause some nice inflation.

[Ponce]

The plan is a simple one, to have most people get rid of the dollar and then come out with a new one......but.......allowing the old dollar to still be go, however, not many people will have the old dollar.

The future will be of a Crdit-Debit card........what you earn goes in there and what you spend comes from there.

[Destro]

Sh!t like this is a perfect example of the complete bullsh!t being put out.

The Fed is wishing for inflation? Why would they want that?? And what mechanism would be used to create this inflation? Is the Fed creating this inflation?...and if so they really don't need to pray do they? They can just do it. But they won't.

[Ares]

Sh!t like this is a perfect example of the complete bullsh!t being put out.

The Fed is wishing for inflation? Why would they want that?? And what mechanism would be used to create this inflation? Is the Fed creating this inflation?...and if so they really don't need to pray do they? They can just do it. But they won't.


It's not as easy as that. They want inflation, they've been doing it since the Great Depression, inflating away the dollar.

The problem is money velocity, before people just got a HELOC, or got a 2nd or 3rd mortgage on the house since as the saying went "real estate never drops in value".

The FED can print, create digital numbers on a screen until they are blue in the face, but what they cannot do is raise peoples salary which has been stagnant since the 80's. With no means for the money to enter the market the FED is hoping for something, anything to get velocity going again.

[techguy]

Sh!t like this is a perfect example of the complete bullsh!t being put out.

The Fed is wishing for inflation? Why would they want that?? And what mechanism would be used to create this inflation? Is the Fed creating this inflation?...and if so they really don't need to pray do they? They can just do it. But they won't.


The opposite of inflation is deflation, and the system is setup such that it only works when there is positive inflation. All signs right now point to deflation (for now). They are desperately trying to reverse it. That is how they were able to push all the stimulous and spending. In a normal economy all that spending would be highly inflationary. But right now they are trying to counter the black hole all the money is falling into with the bad mortgages, busted banks, etc... So they are spending frantically to bring the inflation back.



If they cannot stoke the fires of inflation, then as HT Carl would say the entire system goes.. "POOF"

o

[Destro]

You still haven't explained why the Fed would want inflation?

And the Fed has absolutely not been doing that since the last depression.

Since Bretton Woods was instituted, the Fed has done no such thing whatsoever...until the past year where they've dabbled.

All inflation is done at the branch banks...not at the Fed.

The branch banks own the property all the inflation was created from, why would they give that property up through hyperinflation?

Do you know who owns the Fed?

[Destro]

The opposite of inflation is deflation, and the system is setup such that it only works when there is positive inflation.

If they cannot stoke the fires of inflation, then as HT would say the entire system goes.. "POOF"

[/quote]

I couldn't agree more.

You do understand that the POOF benefits certain people right?

[techguy]

You still haven't explained why the Fed would want inflation?

And the Fed has absolutely not been doing that since the last depression.

Since Bretton Woods was instituted, the Fed has done no such thing whatsoever...until the past year where they've dabbled.

All inflation is done at the branch banks...not at the Fed.

The branch banks own the property all the inflation was created from, why would they give that property up through hyperinflation?

Do you know who owns the Fed?


So are you referring to printed dollars? If so the amount of printed dollars in circulation has been fairly constant.

The real inflation has been happenning in digital dollars. BIG DIFFERENCE. This is where all the money that is being used by the banks, mortgages, stock market, etc etc lives.

Here there has been severe inflation until just recently, when the digital dollars started dissapearing due to bad mortgages, insolvent banks, etc etc.

[techguy]

The opposite of inflation is deflation, and the system is setup such that it only works when there is positive inflation.

If they cannot stoke the fires of inflation, then as HT would say the entire system goes.. "POOF"



I couldn't agree more.

You do understand that the POOF benefits certain people right?
[/quote]


"If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered." Thomas Jefferson, Letter 1802 to Secretary of the Treasury, Albert Gallatin

[Carl]

If they cannot stoke the fires of inflation, then as HT would say the entire system goes.. "POOF"

Hey dude the "POOF!" descriptive is mine, not HT's.

Don't make me come through this screen............. >:(


.

[Ponce]

"They only tell us what they want us to know, or what they cannot longer hide"... Ponce

All that I see is lip service and nothing more....keep the sheep's calm at all cost.

[Destro]

So are you referring to printed dollars? If so the amount of printed dollars in circulation has been fairly constant.

[/quote]

Printed dollars are meaningless.

I'm referring to the total credit market debt.

Severe inflation until recently? I disagree.

Up until the 90's I think inflation somewhat fairly follwed the increases in production, inflation is a necessary.


It's only been the past 2 decades where things were done.

[Desolation LineTrimmer]

The fed wants its standard operating inflation, i.e. annual at 3%. So far as out of control inflation -- the Chinese will not allow it. No one has ever accused Chinese of being stupid when it comes to money, and if this country wants to continue borrowing from the Chinese, inflation will be kept in check.

[Destro]

The fed wants its standard operating inflation, i.e. annual at 3%. So far as out of control inflation -- the Chinese will not allow it. No one has ever accused Chinese of being stupid when it comes to money, and if this country wants to continue borrowing from the Chinese, inflation will be kept in check.


The Fed wants its standard inflation? You mean the standard profit it recieved for the past 66 years? I believe the Fed is actually run as something of a non-profit - any profits they make get returned to the .gov. Even better though is to let deflation take control and collect their 100% which they actually get to keep, no?

[kregener]

The...'dollar'...has lost 95% of its purchasing power since 1913.

There ya go then.

[uranian]

http://www.shadowstats.com/imgs/sgs-m3.gif

http://research.stlouisfed.org/fred2/data/MULT_Max_630_378.png

both the money supply and velocity are collapsing. i.e. the end is nigh, as fiat can only work if the money supply expands. if the fed wants to retain power, doesn't really matter whether we have in- or deflation, what matters is that they cause economic crisis and then the govt. steps in with troops.

[Desolation LineTrimmer]

The fed wants its standard operating inflation, i.e. annual at 3%. So far as out of control inflation -- the Chinese will not allow it. No one has ever accused Chinese of being stupid when it comes to money, and if this country wants to continue borrowing from the Chinese, inflation will be kept in check.


The Fed wants its standard inflation? You mean the standard profit it recieved for the past 66 years? I believe the Fed is actually run as something of a non-profit - any profits they make get returned to the .gov. Even better though is to let deflation take control and collect their 100% which they actually get to keep, no?


And like any "non profit" operating costs are deducted. If you are making $250,000. annually is it really non profitable? So far as you question about deflation: deflation is the destruction of the state. I'm all for deflation, but don't expect to see it gather much steam.

[techguy]

If they cannot stoke the fires of inflation, then as HT would say the entire system goes.. "POOF"

Hey dude the "POOF!" descriptive is mine, not HT's.

Don't make me come through this screen............. >:(


.



No kidding? Sorry dude! All those inflation/deflation end is nigh threads have merged together. Original post corrected.

[Horn]

The Fed wants its standard inflation? You mean the standard profit it recieved for the past 66 years? I believe the Fed is actually run as something of a non-profit - any profits they make get returned to the .gov. Even better though is to let deflation take control and collect their 100% which they actually get to keep, no?

Thru counterbalances of stagflation and price creation (any price denominated in dollars is wrong currently) and will continue to be, until markets shift away from the U.S. control.

This current game of control provides time necessary to transfer the assets into the new bank's coffers until such time as dollar destruction begins.

The New Bank will be full vested and controlled by those same owners as the Fed.

[Desolation LineTrimmer]

[quote]

This current game of control provides time necessary to transfer the assets into the new bank's coffers until such time as dollar destruction begins.



What will be the Japanese and Chinese response to the destruction of the dollar? The system will collapse without the sponsorship of Japanese and Chinese. The fed is probably not eager for that to happen. When inflation takes off the Fed will raise interest rates.

[Horn]

[quote]

This current game of control provides time necessary to transfer the assets into the new bank's coffers until such time as dollar destruction begins.



What will be the Japanese and Chinese response to the destruction of the dollar? The system will collapse without the sponsorship of Japanese and Chinese. The fed is probably not eager for that to happen. When inflation takes off the Fed will raise interest rates.


At that time nobody will need or want the Fed. not even the Fed.

The overall idea that the Asian block countries are so concerned with $ values will be shed in a couple months time when a viable alternative is offered.

If no viable alternative is offered, then we will have a complete collapse.

[Desolation LineTrimmer]

[quote]

This current game of control provides time necessary to transfer the assets into the new bank's coffers until such time as dollar destruction begins.



What will be the Japanese and Chinese response to the destruction of the dollar? The system will collapse without the sponsorship of Japanese and Chinese. The fed is probably not eager for that to happen. When inflation takes off the Fed will raise interest rates.


At that time nobody will need or want the Fed. not even the Fed.

The overall idea that the Asian block countries are so concerned with $ values will be shed in a couple months time when a viable alternative is offered.

If no viable alternative is offered, then we will have a complete collapse.


Do you have a guess what that "viable alternative" is going to be?

[Horn]

http://www.businessweek.com/news/2010-04-09/bric-leaders-to-discuss-currencies-for-trade-at-brasilia-summit.html

[Desolation LineTrimmer]

http://www.businessweek.com/news/2010-04-09/bric-leaders-to-discuss-currencies-for-trade-at-brasilia-summit.html



At that time nobody will need or want the Fed. not even the Fed.

I don't understand why the Fed would want the above to happen? Yes, other countries are making provisional moves to drop the dollar but why would the Fed want this to happen? They'll raise interest rates first.

[Spectrism]

New paradigm. We can't be limiting our understanding of these snakes to just what happened in the past, although that will give us good insights. These next months will be unlike any that have ever gone before. How?

1. World government. Pieces are just about all put into place now for the coalescing of world forces into one dictatorship.

2. Technology. Control is the name of the game and with computers, sensors, communication, RFID, etc... it is all here now.

3. Babel. The leader of Babel is ready to be recognized as preeminent in the world. He seeks worship and many will fawn all over him.

[Trinity]

The fed is praying for inflation.
And the Chinese (plus other Asian countries) will deliver.
Notice the Chinese money supply and raw materials bottoming and taking off at the same time in the charts.

[Horn]

I don't understand why the Fed would want the above to happen? Yes, other countries are making provisional moves to drop the dollar but why would the Fed want this to happen? They'll raise interest rates first.

It's like asking a ghost if he'd like to stay for dinner. It's a private corporation, wants and needs will change overnight.

[Desolation LineTrimmer]

It's a private corporation, wants and needs will change overnight.



I understand it is more like a non profit. It is claimed the Fed turn their excess profits over to the government.