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Old 07-16-2008, 04:40 PM
 
Location: Great State of Texas
86,068 posts, read 74,746,517 times
Reputation: 27602

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Funny but true read on the various problems of our economy with sarcasm thrown in for good measure.

The Big Picture | Taxes and Policy

A snippet from it:

"Books will be written about this period of time, and our descendants will wonder in awe as to how this was allowed to happen. Tulips got nothing on us! "
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Old 07-16-2008, 07:53 PM
 
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,248 posts, read 21,896,726 times
Reputation: 3587
Quote:
Originally Posted by HappyTexan View Post
Funny but true read on the various problems of our economy with sarcasm thrown in for good measure.

The Big Picture | Taxes and Policy

A snippet from it:

"Books will be written about this period of time, and our descendants will wonder in awe as to how this was allowed to happen. Tulips got nothing on us! "
I don't think anybody is fiddling. The experts, politicians and Federal Reserve are all on the case doing what needs to be done. We will be fine.
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Old 07-16-2008, 08:37 PM
 
Location: Great State of Texas
86,068 posts, read 74,746,517 times
Reputation: 27602
ROFL..they are trying to undo what they did years ago. They are trying to bandaid a hemorrhaging patient.
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Old 07-16-2008, 10:01 PM
 
Location: Sitting on a bar stool. Guinness in hand.
4,429 posts, read 5,806,909 times
Reputation: 1708
Look the answer to a lot of todays problems economically is to let the markets clear itself out.
Watching the testimony from Monday, I realized that Paulson is a tool, this only idea of solving this problem is to throw money at it. Unfortunately Paulson would be getting that money most likely from U.S. taxpayer. So basically the guy go not plan.
I know this will crazy to some. But it time for Bernake to stiffen up his backbone and become a Paul Volker and slowly start raising interest rates and fighting inflation no matter how much the market cries. It's time for tough love kids.
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Old 07-17-2008, 12:38 AM
 
Location: Ohio
21,284 posts, read 15,082,050 times
Reputation: 17714
Quote:
Originally Posted by baystater View Post
I know this will crazy to some. But it time for Bernake to stiffen up his backbone and become a Paul Volker and slowly start raising interest rates and fighting inflation no matter how much the market cries. It's time for tough love kids.
Raising interest rates will not fight "inflation."

There are different types of inflation, and each as a different cause, and a different resolution.

The inflation experienced now is Cost Inflation caused by a world wide shortage of commodities like wheat, rice, corn, and oil, and by US$ that has declined in value.

Raising interest rates will neither increase production of commodities that are in short supply (in fact it may exacerbate the shortages) and it will not strengthen the US$.
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Old 07-17-2008, 05:11 AM
 
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,248 posts, read 21,896,726 times
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Inflation is just something that we are going to have to learn to live with- again.
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Old 07-17-2008, 08:37 AM
 
Location: Sitting on a bar stool. Guinness in hand.
4,429 posts, read 5,806,909 times
Reputation: 1708
Quote:
Originally Posted by Mircea View Post
Raising interest rates will not fight "inflation."

There are different types of inflation, and each as a different cause, and a different resolution.

The inflation experienced now is Cost Inflation caused by a world wide shortage of commodities like wheat, rice, corn, and oil, and by US$ that has declined in value.

Raising interest rates will neither increase production of commodities that are in short supply (in fact it may exacerbate the shortages) and it will not strengthen the US$.
The shortage of wheat is caused by more corn being planted instead of wheat in the U.S. If the U.S. and Canada decide to plant more wheat than corn, there goes your price inflation for wheat. Corn is high(er) because we are using it for a dual use. Which is fuel and food. Of course we are now finding ethanol is a joke and will not be a suitable renewable resource. Eventually ethanol production will be pushed back. And more corn will go to food. Now both of these crops are dependent of the weather. But form the info I'm getting even after the flooding that happen in the Midwest farms have a pretty good shot at at least recovering a bit.
The Associated Press: Corn prices fall to 1-month low on Midwest weather (broken link)
As for Rice inflation well to be honest. That not a U.S. problem over all. Yes we do grow rice. But the shortage is in the east of the world not here.

Now with Oil. You know Oil is still tied to the dollar and the weaker the dollar the higher the price for the U.S. to buy it. Raising interest rate will in the short term will take the edge off the price of oil. Granted in the long term a raise in interest rate will eventually mean nothing because of shrinking oil reserves. Of course this depends if your a believer of the peak oil theory, which I am. Of course I'm still not that worried over all because of
1. most of our home's power is supplied by coal or nuclear not oil.
2. There is already battery technology that will allow for us to commute to work, this is where we use a lot of our oil. (please see who killed the electric car if you don't believe me.)
3. People will eventually either move to more of the new urbanism lifestyle (where you live very close to work instead of a suburb.) or become country livers. These life styles will lend themselves to a much lower dependence on oil.

Granted there are some concerns. Petroleum products are used a lot in farming for Fertilizer and some pesticides. This could produce a major problems in the future if we don't start looking to alternatives to petroleum product. Home heating will eventually become a problem when oil and natural gas dwindles away. Not sure how we will address this problem. Though I heard that solar heating is a good possibility. I think Philip T posted something awhile ago about it. but I can't source the tread where it was at.

Phil do you still have the information?
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Old 07-17-2008, 09:21 AM
 
5,090 posts, read 10,042,952 times
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Quote:
Originally Posted by baystater View Post
But it time for Bernake to stiffen up his backbone and become a Paul Volker and slowly start raising interest rates and fighting inflation no matter how much the market cries. It's time for tough love kids.
The kill-zone will fire up soon enough. But NOT until after the election. Never spook the cattle when they are walking up the ramp to the slaughter-house.

If they woke US up from our credit-crack stupor before the election, folks might become aware they do not HAVE to vote for either corporate D=R party "choice," and could en masse crash the election with a nationwide write-in vote. That could lead to the death of whole banking scam.

Not saying it would happen, there is just extreme political risk for the banker/corporate set. So they will let it ride for now, and shoot US in the head a little later and have their harvest feast. Easy money when it is known what is going to happen before it does.
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Old 07-17-2008, 09:37 AM
 
Location: Georgia, on the Florida line, right above Tallahassee
10,474 posts, read 14,165,924 times
Reputation: 6374
My Torino cost $3000 dollars in 1970..actually 4000 dollars, 'cuz it was optioned out. I know this because I have the original window sticker/sales cost information. Inflation has been with us since 1970......

You can't buy a car like that brand new for $3,000 dollars any more.

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Old 07-17-2008, 11:38 AM
 
3,460 posts, read 5,071,229 times
Reputation: 6677
Quote:
Originally Posted by Mircea View Post
The inflation experienced now is Cost Inflation caused by a world wide shortage of commodities like wheat, rice, corn, and oil, and by US$ that has declined in value.
In another post, you're claiming that the dollar is pegged to oil, which would make cost inflation based on oil impossible. Your theories are stumbling over themselves.....
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