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TGOLFERMAN

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Balancing Imbalances!
Articles Posted: 71  Links Seeded: 100
Member Since: 1/2008  Last Seen: 3/20/2010

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{"contentId":"2132808","authorDomain":"tgolferman"}

Fed Vows To Fight Deflation: With What? Rates Can't Get Much Lower

News Type: Event — Seeded on Thu Nov 20, 2008 2:43 PM EST
Read ArticleArticle Source: FT.com
world-news, economics, federal-reserve, inflation, credit-crisis, deflation
Seeded by tgolferman
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These guys engineered the problem and have interest rates at Depression era levels and they are going to do what exactly? Free Money? These guys have proven they're not capable of managing the system and we're supposed to get the warm fuzzies because they say they'll fight deflation.

Hello, Hello, is anybody out there? If you all haven't figured it out by now, they're blowing smoke up your skirt. If you participate in flawed trade deals no amount of cheap money is going to hide the fact that good paying jobs are being exported with the trade deals.

How can there be deflation right now might I ask? There is so much money in the system right now with the record debt levels, how could prices be declining? Prices were rigged, the stock market is rigged, the real estate market was rigged, and the FED is going to swim up river against the flow of the Niagra and try and undo what it engineered? Have they purchased new printing machines that can crank out money faster than the old ones?

One of the FED mandates is price stability. Meaning if technology or changes in business method achieve production savings that might result in a price decrease for a product or service, the FED will work its magic to ensure that prices remian stable. Wouldn't you call that defying the laws of economics? What's the point to competition and R&D expenditures if the process doesn't give the customer more features for the same price or the same features for a lesser price, which would drive sales and reward the producer for their effort to improve the product or reduce the cost of manufacturing which would drive sales?

So exactly what are they trying to prevent from happening now? They let all of our home values go lower. Are they trying to prevent medical, legal, insurance, and auto prices from equalizing? If so, why? Shouldn't everyone feel the pain equally. They engineered bailouts of banks, investment banks, and insurance companies why would they not be pushing for businesses that are the foundation of our economy to be assisted at this time? There's something funny going on here!

Now either a whole lot of folks are holding on to all the money in circulation or my everything has been rigged theory is being proven correct, because with all the cash out there we should be fighting inflation pretty hard. Either that or the FED forgot how big the U.S. Economys is and they think they can steer or accelerate like they're piloting a speed boat, when in reality they're navigating a super, super, super ocean liner and when they turn the wheel or accelerate or decelerate we don't feel the adjustment for a year of so.

I'm sorry for the rambling rant, but these guys make me sick.

Related Articles
Oil groups expect $40 barrel – CNOOC headFT.comWed Nov 190Comments
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Falling demand raises deflation fearsThe Press-EnterpriseThu Nov 202Comments
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{"commentId":4156183,"authorDomain":"stopthenwonow"}
Stop The NWO Now

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Deflation is NOT a problem.  The Federal Reserve has been inflating prices for decades by overprinting money to the point that the USD is worth only 4% of what it was worth in 1913. Inflation is a TAX--make no mistake about it.

We need a HUGE correction--not more price fixing--in order to get back to truly FREE markets.  If that takes irresponsible corporations down with it, so be it.  When an entrepreneur creates a business, he/she takes all risk and reward.  Taking all risk away from massive corporations is not only unfair, it is Fascist. 

Henry Paulson, for example, has a revolving door with the Federal Reserve and Goldman Sachs. After leaving Goldman Sachs and becoming Treasury Secretary of the Federal Reserve, he gave massive amounts of money to international banks when they made high-risk, irresponsible "business" choices.  This causes UNNECESSARY inflation and the US taxpayer foots the bill--a double stab.

Watch Paulson go back to work for Goldman Sachs when he is done lining their pockets at our expense.

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http://www.wsws.org/articles/2008/sep2008/paul-s23.shtml

http://www.opensecrets.org/revolving/rev_summary.php?id=70162

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