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The Fed is "unconcerned" about inflation...

jmski52jmski52 Posts: 22,824 ✭✭✭✭✭
in Precious Metals
I am happy to report that CNBC just flashed this information across the screen - that the Fed is unconcerned about inflation.

I guess I could interpret that in two different ways:

1) The Fed is so totally out of it that they wouldn't see inflation unless they found that their own personal finances were destroyed.

2) The Fed knows exactly how much inflation they have created and they simply do not give a damn because well - let them eat cake. N'est pas?

Q: Are You Printing Money? Bernanke: Not Literally

I knew it would happen.

Comments

  • ksammutksammut Posts: 1,074 ✭✭✭


    << <i>I am happy to report that CNBC just flashed this information across the screen - that the Fed is unconcerned about inflation.

    I guess I could interpret that in two different ways:

    1) The Fed is so totally out of it that they wouldn't see inflation unless they found that their own personal finances were destroyed.

    2) The Fed knows exactly how much inflation they have created and they simply do not give a damn because well - let them eat cake. N'est pas? >>



    I will go with number 2 plus they need inflation but will not and cannot admit it.
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  • DrBusterDrBuster Posts: 5,378 ✭✭✭✭✭
    That's nice.
  • cladkingcladking Posts: 28,639 ✭✭✭✭✭
    3) The Fed knows inflation must be coming but are unconcerned and continuing the status quo.
    Tempus fugit.
  • DrBusterDrBuster Posts: 5,378 ✭✭✭✭✭
    Honestly, until economics or politics come on TMZ or Extra or Sportscenter or whatever, 80-90% of the populace won't notice outside of wondering why gas is $4+.
  • TheBigBTheBigB Posts: 942 ✭


    << <i>I am happy to report that CNBC just flashed this information across the screen - that the Fed is unconcerned about inflation. >>

    image
  • CaptHenwayCaptHenway Posts: 32,118 ✭✭✭✭✭
    Sounds like the spin doctor on the Titanic who made the announcement:
    .
    "FREE ICE ON THE FOREDECK!"
    .
    Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
  • HigashiyamaHigashiyama Posts: 2,192 ✭✭✭✭✭

    Regarding option "2) The Fed knows exactly how much inflation they have created and they simply do not give a damn because well - let them eat cake. N'est pas?", our ability to project inflation is quite crude - the Fed should know that it is adding to inflationary pressures, but not much more.

    Regarding Cladking's third option (3) The Fed knows inflation must be coming but are unconcerned and continuing the status quo. ), I tend to agree with this, but I think they are engaged in wishful thinking; certainly Bernanke does not want his legacy to be as the Fed Chairman who rekindled inflation; the problem (which I would slightly arrogantly add that Ben probaby does not fully appreciate) is that inflation has a "binary" aspect to it. If something happens to raise inflationary expectations and velocity of money, the situation can change from quite tame to quie ferocious rather quickly. The Fed may in fact be able to defuse inflation, but if they do there will have been an element of luck.



    Higashiyama
  • DoubleEagle59DoubleEagle59 Posts: 8,307 ✭✭✭✭✭
    "I believe that banking institutions are more dangerous to our liberties than standing armies. "
    Thomas Jefferson
    "Gold is money, and nothing else" (JP Morgan, 1912)

    "“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)

    "I only golf on days that end in 'Y'" (DE59)
  • TheBigBTheBigB Posts: 942 ✭
    The Fed wants a certain background level of inflation for the foreseeable future to deal with debts and entitlements.

    The issue is can they control it?
  • ttownttown Posts: 4,472 ✭✭✭
    Why should they be concerned? In 1980 they fixed that problem with those pesky numbers. I've heard you calculate inflation with the old system and It'd be closer to 10 percent. Sounds like they've got it under control to me.......
  • percybpercyb Posts: 3,324 ✭✭✭✭
    Bernake is a liar!
    "Poets are the unacknowledged legislators of the world." PBShelley
  • PerryHallPerryHall Posts: 46,113 ✭✭✭✭✭
    The Fed is VERY concerned. They're just putting on a happy face so we don't panic.

    Worry is the interest you pay on a debt you may not owe.
    "Paper money eventually returns to its intrinsic value---zero."----Voltaire
    "Everything you say should be true, but not everything true should be said."----Voltaire

  • secondrepublicsecondrepublic Posts: 2,619 ✭✭✭


    << <i>The Fed wants a certain background level of inflation for the foreseeable future to deal with debts and entitlements. >>



    Agreed.
    "Men who had never shown any ability to make or increase fortunes for themselves abounded in brilliant plans for creating and increasing wealth for the country at large." Fiat Money Inflation in France, Andrew Dickson White (1912)
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭


    << <i>Why should they be concerned? In 1980 they fixed that problem with those pesky numbers. I've heard you calculate inflation with the old system and It'd be closer to 10 percent. Sounds like they've got it under control to me....... >>



    Pretty much. By switching from home values to imputed rents in 1983, followed by geometric weighting, substitutional effects, quality factors, and reweightings in the 1990's, they
    effectively defused the "volatile" CPI-U. Where it once measured the price level of a fixed basket of the same quality goods/serivices, now it measures a variable basket of goods with
    varying quality. Rather than a cost of living index, it's now a cost of survival index, n'est ce pas? "Qu'ils mangent de la brioche."

    The FED knows exactly what's going on with inflation. They just don't have a better option.

    roadrunner

    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • mrearlygoldmrearlygold Posts: 17,858 ✭✭✭
    The Fed is "unconcerned" about inflation



    The fed is unconcerned about anything other than fattening themselves and their friends just like in any banana republic.

    Coin's for sale/trade.


    Tom Pilitowski
    US Rare Coin Investments
    800-624-1870

  • JustacommemanJustacommeman Posts: 22,847 ✭✭✭✭✭
    The dollar is coming unhinged at the seams today and the stock market is up. What much more could the fed want.....Inflation? pffftttt

    MJ
    Walker Proof Digital Album
    Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
  • RedTigerRedTiger Posts: 5,608 ✭
    There was a Fed banker meeting with ordinary folks and food prices were mentioned. The Fed guy was asked if he had been to a supermarket recently and the rising prices for food. The answer was beyond belief, he started talking about Ipads and how innovation was lowering prices all around. When the revolution comes, the battle cry might be "let them eat Ipads!"
    WSJ blog link

    Add to that, a big name politician was asked about rising gasoline prices. His response? He berated the questioner for the size of his vehicle and told the questioner to trade in for a more fuel efficient vehicle. As unbelievable as that question and response is, what is worse is that the AP wire folks scrubbed that Q&A from their wire report, it is as if it never happened.
    Investment blog: gold, stocks and more
  • yellowkidyellowkid Posts: 5,486 ✭
    Inflation? What inflation? A big screen TV is cheaper than ever. Now if we could just eat one, or use it to warm our homes......image
  • cladkingcladking Posts: 28,639 ✭✭✭✭✭


    << <i>The Fed wants a certain background level of inflation for the foreseeable future to deal with debts and entitlements.

    The issue is can they control it? >>




    I think they want to raise this background inflation to the five or six percent level but the less
    he public anticipates it the better. A lot of smart people think they can control it but I'm not so
    sure they have such great control. Sure, they can pick any inflation rate they want but the dog
    might get wagged to death if they try to massage this tail wrong.
    Tempus fugit.
  • TheBigBTheBigB Posts: 942 ✭


    << <i>

    << <i>The Fed wants a certain background level of inflation for the foreseeable future to deal with debts and entitlements.

    The issue is can they control it? >>




    I think they want to raise this background inflation to the five or six percent level but the less
    he public anticipates it the better. A lot of smart people think they can control it but I'm not so
    sure they have such great control. Sure, they can pick any inflation rate they want but the dog
    might get wagged to death if they try to massage this tail wrong. >>



    I recall Jim Grant saying that the Fed has moved into the business of central planning, which was not its original mission.

    A very dangerous situation.
  • renman95renman95 Posts: 7,037 ✭✭✭✭✭
    Clad's right. The Fed is egocentric enough to think they can contain inflation to syphon j6p out of their $$ without them knowing it.

    I wonder how much inflation is in the cards to repay our debt?
  • BearBear Posts: 18,953 ✭✭✭
    When it comes to Government officials, from any Party and any nation.....

    "TRUST NO ONE, SUSPECT EVERYONE" They will lie, obfuscate, mislead

    and speak with forked tongue every time all the time.
    There once was a place called
    Camelotimage
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