WRAPUP 1-Two Fed officials favor aggressive easing options

BOSTON, Oct 16 (Reuters) - Two top Federal Reserve officials argued for further aggressive action by the central bank, with one saying the economy needs "much more" help and the other pointing to Japan's painful lessons.

With nearly one in ten in the U.S. labor force unable to find work and already very low inflation threatening to drop further, the U.S. central bank is expected to offer the economy more support at its next policy meeting on Nov. 2-3.

Most analysts expect the Fed will embark on a fresh round of Treasury purchases, over and above the $1.7 trillion in longer-term assets it has already bought.

WRAPUP 1-Two Fed officials favor aggressive easing options | Reuters

Click to expand...

Weimar republic here we come...Everyone ready for a $10 loaf of bread?


j-mac

A fresh round of printing money to buy our own debt, and no one cares? That is the problem with America right now I tell ya.


j-mac

The math doesn't work out on your $10 loaf of bread doomsday scenario, maybe that's why.

Deuce said:

The math doesn't work out on your $10 loaf of bread doomsday scenario, maybe that's why.

Click to expand...

Yeah, the Fed, and Obama are going nuts devaluing our dollar, sinking the American economy in favor of transformation to what I don't know, and we are taking the same road the Weimar republic did in the 30s with printing more money, and buying our own debt, but it's my quip at $10 a loaf bread....Yeah that's it.....:roll:


j-mac

j-mac said:

Yeah, the Fed, and Obama are going nuts devaluing our dollar, sinking the American economy in favor of transformation to what I don't know, and we are taking the same road the Weimar republic did in the 30s with printing more money, and buying our own debt, but it's my quip at $10 a loaf bread....Yeah that's it.....:roll:

Click to expand...

Inflation is very low right now. The larger immediate risk is deflation. Printing more money can stimulate the economy and fight deflation at the same time. Although you're right that this may EVENTUALLY cause inflation, comparisons to the Weimar Republic are absurd. The worst that inflation would be is in the high single digits...not billions of percent each year.

Kandahar said:

Inflation is very low right now. The larger immediate risk is deflation. Printing more money can stimulate the economy and fight deflation at the same time. Although you're right that this may EVENTUALLY cause inflation, comparisons to the Weimar Republic are absurd. The worst that inflation would be is in the high single digits...not billions of percent each year.

Click to expand...

Does that not depend on how fast the government tries to pull all that surplus fiat currency back in, and isn't that a fragile thing?


j-mac

Downtown every City in America when Obama is finished changing things.
I still say the cure is meaningful tax reductions drastic cuts in spending huge taxes on imports and outlawing the use of imported Materials in the construction any energy production, and pass a law saying 100% of all defense materials must be made in the USA no exceptions.

The good news of this kind of moves would spark people to feel better and more confident and willing to spend more.

Our economy is based on a mind set of speculation and if optimism is high we do better, its that simple.

The Trifecta of Doom, Obama, Pelosi, Reid, spent so much time talking about how bad things were they created a self fulfilling prophecy.

So far the Trifecta has done the wrong thing and they keep talking about spending more money we don't have on fixes we know won't work, and raising taxes on the people who create jobs and start new businesses.

The Trifecta of Doom are damn fools and have the collective brain power equal to that of one dead rat, maybe. I might be giving them more credit than the idiots deserves.

Councilman said:

Downtown every City in America when Obama is finished changing things.
I still say the cure is meaningful tax reductions drastic cuts in spending huge taxes on imports and outlawing the use of imported Materials in the construction any energy production, and pass a law saying 100% of all defense materials must be made in the USA no exceptions.

The good news of this kind of moves would spark people to feel better and more confident and willing to spend more.

Click to expand...

Yes, doubling or tripling the price of most products would definitely help consumer optimism!

Jesus I mean we can't even grow basic crops at competitive prices without massive government subsidies, and America is supposed to be good at mass-production of crops!

Deuce said:

Yes, doubling or tripling the price of most products would definitely help consumer optimism!

Jesus I mean we can't even grow basic crops at competitive prices without massive government subsidies, and America is supposed to be good at mass-production of crops!

Click to expand...

We are good at it, that is if liberals don't cut the water to save a smelt.


j-mac

Kandahar said:

Inflation is very low right now. The larger immediate risk is deflation. Printing more money can stimulate the economy and fight deflation at the same time. Although you're right that this may EVENTUALLY cause inflation, comparisons to the Weimar Republic are absurd. The worst that inflation would be is in the high single digits...not billions of percent each year.

Click to expand...

First, we do not have and there is little reason to believe we will have deflation. I heard a fed bank president speak just now about the possibility of disinflation, that is lower inflation. So they want to inflate. The problem is that once it starts no one can know where it will end. That is what makes your high single digits call so funny. Nobel economists do not know, but you do!

The rise in housing prices was not a problem until it was. The same with the interest rates we have now, they are low until they turn higher.

Other than through inflation how do you think this country can get out the debt problem we have. Debt at the federal, state and private level.