tag:blogger.com,1999:blog-11719208.post5501021794144321184..comments2023-11-05T04:36:14.223-08:00Comments on The Mess That Greenspan Made: Like the Mafia buying "protection"?Timhttp://www.blogger.com/profile/16530974968126497397noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-11719208.post-43758907847606193082009-03-21T11:31:00.000-07:002009-03-21T11:31:00.000-07:00If the Fed buys enough TIPS it will be even easier...If the Fed buys enough TIPS it will be even easier to default on US Treasury debts by inflation.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11719208.post-42592024386839306342009-03-20T14:49:00.000-07:002009-03-20T14:49:00.000-07:00It just struck me how unholy the idea of the Fed b...It just struck me how unholy the idea of the Fed buying TIPS really is. The difference between regular U.S. bonds and inflation-protected U.S. bonds is (along with the consumer sentiment/confidence surveys) one of two primary measures of "inflation expectations" used by the Fed to conduct monetary policy. For them to be buyers and sellers in the TIPS market allows them to directly impact these "expectations". Not that these "expectations" are worth much anyway - more than anything else, people judge inflation by changes in the price of gasoline.Timhttps://www.blogger.com/profile/16530974968126497397noreply@blogger.comtag:blogger.com,1999:blog-11719208.post-6551156267101530972009-03-20T12:36:00.000-07:002009-03-20T12:36:00.000-07:00Another idiot opens his mouth. He needs to distin...Another idiot opens his mouth. He needs to distinguish between price deflation and wage deflation - price deflation without wage deflation does not pose the problem he posits. On the other hand, price inflation without wage inflation DOES pose the problem he posits - and that is exactly what the Fed's actions will do. We cannot have wage inflation b/c the government's globalist policies will equalize wealth across the working classes worldwide, which means the BRIC and other countries will have richer workers, and the US will have poorer workers. No amount of inflation or deflation will affect this - the standard of living in the US is going to collapse. Period.<BR/><BR/>Now even if the Fed action causes wage inflation (again - VERY unlikely, due to competitive pressures from BRIC country labor), it would still have to exceed real-world inflation (food, energy, etc.) to avoid a loss of standard of living. Won't happen.<BR/><BR/>Bonds at 4% in a currency being inflated? What idiot buys that? Only those without any options, and the Fed. The Fed won't be the lender of last resort - it will be the lender of only resort.<BR/><BR/>It amazes me what idiots we have for economists.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11719208.post-84745046626459267292009-03-20T10:23:00.000-07:002009-03-20T10:23:00.000-07:00"You've got a very nice army base 'ere Colonel. W..."You've got a very nice army base 'ere Colonel. We wouldn't want anything to happen to it."Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11719208.post-26420239175748453542009-03-20T07:52:00.000-07:002009-03-20T07:52:00.000-07:00But the Fed is not against just deflation, it also...But the Fed is not against just deflation, it also is against simply allowing the dollar to stay at the same value. Instead the Fed has always been at war with dollar holders and rewarded debtors. Just look at how little a dollar in 2009 will buy compared to what it bought in 1913. <BR/><BR/>And today they no longer just rig the system in favor of debtors, they are now shoveling taxpayer money into the hands of the biggest debtors in the world, namely the big international banks. And the reason why these big banks are the biggest debtors is that that is how they got to be the biggest banks, they leveraged huge amounts of debts and liabilities to become big. They are so deep in debt that today without the Treasury and FED these banks would have collapsed into debt hole they themselves created<BR/><BR/>DJFAnonymousnoreply@blogger.com