Here we go and what I find most amazing is they are openly admitting this suicidal policy.  This will destroy our dollar.  By the way, this is why gold is rising.

Quote[size=14]The Federal Reserve spent the past three decades getting inflation low and keeping it there. But as the U.S. economy struggles and flirts with the prospect of deflation, some central bank officials are publicly broaching a controversial idea: lifting inflation above the Fed's informal target.

The rationale is that getting inflation up even temporarily would push "real" interest rates—nominal rates minus inflation—down, encouraging consumers and businesses to save less and to spend or invest more.

Both inside and outside the Fed, though, such an approach is controversial. It could undermine the anti-inflation credibility the Fed won three decades ago by raising interest rates to double-digits to beat back late-1970s price surges. "It's a big mistake," said Allan Meltzer of Carnegie Mellon University, a central bank historian. "Higher inflation is not going to solve our problem. Any gain from that experience would be temporary," adding that the economy would suffer later.

Others warn that pushing inflation higher than the target could create public confusion and risk fueling financial bubbles and market instability. They say Fed policy already is weakening the dollar and as a result prompting a gold and commodity boom. "The Fed is treading upon a mine-laden path that has never been tip-toed through in this country," said Andrew Busch, a currency strategist at BMO Capital Markets.

With the Fed's target for short-term rates already near zero, inflation too low—floating between 1% and 1.5%, below Fed officials' informal target of between 1.5% to 2%—and unemployment, at 9.6%, too high, Fed officials are expected to embark on a new round of asset purchases to lower long-term interest rates.In the past week, two Fed officials raised the option of explicitly pursuing above-target inflation for a time to offset periods in which inflation is below target. New York Fed President William Dudley suggested that if inflation were to undershoot the central bank's target by half a percentage point next year, the Fed could offset the miss with an additional half-point increase later on[/size]...

http://online.wsj.com/article/SB10001424052748704689804575536391713801732.html?mod=WSJ_hpp_LEFTWhatsNewsCollection

Translation, Obama is willing to depreciate the value of your retirement savings in order to continue giving freebies to public sector unions and auto unions. This will be the biggest effective transfer of wealth in the history of the United States. It will dwarf any tax increase ever conceived and it will harm all seniors who have worked hard and saved for their retirements by evaporating the purchasing power of their savings.

This is disgusting. It's reprehensible. It's hateful. And it must be stopped.

I could write a BOOK on what is WRONG with the U.S. economy.  The "average Joe" has NO IDEA of the complexities involving the stock market, Wall Street banks, the Federal Reserve, securities, bonds, lending, mutual funds, hedge funds, investment schemes, inflation, deflation, etc., etc., etc.  The whole thing is almost IMPOSSIBLE to dissect into "layman's terms", and that is the way that the "power brokers" want it to be. 

We are all just trying to survive, make ends meet, put food on the table, keep our jobs, pay our bills, etc.  In the meantime, all levels of government in this country are trying to destroy everything we all have worked for. 

We have found the ENEMY, and the ENEMY is from within, just as Nikita Kruschev predicted.

The root problem is that we consume more than we make. The idea of a consumer driven economy was, and always has been unsustainable horse shit.

You can play with smoke and mirrors and gimmicks of one form or another and delay the bill, but you have to eventually settle up when you consume more than you produce.

It's not Rocket Science, if you spend more than you make you go broke.  If you save and invest you become prosperous.

Quote from: Pagan on October 07, 2010, 01:23:46 PM
It's not Rocket Science, if you spend more than you make you go broke.  If you save and invest you become prosperous.

It's obvious for you and me Pagan. But for those nitwits in DC it's like trying to crack the DaVinci Code or something.  :P

Quote from: AmericanFlyer on October 07, 2010, 09:59:06 AM
I could write a BOOK on what is WRONG with the U.S. economy.  The "average Joe" has NO IDEA of the complexities involving the stock market, Wall Street banks, the Federal Reserve, securities, bonds, lending, mutual funds, hedge funds, investment schemes, inflation, deflation, etc., etc., etc.  The whole thing is almost IMPOSSIBLE to dissect into "layman's terms", and that is the way that the "power brokers" want it to be. 

We are all just trying to survive, make ends meet, put food on the table, keep our jobs, pay our bills, etc.  In the meantime, all levels of government in this country are trying to destroy everything we all have worked for. 

We have found the ENEMY, and the ENEMY is from within, just as Nikita Kruschev predicted.

I think that was Pogo.

  When I came home from the military...I could get up at 7am have breakfast shower, leave the house and have to decide which of the 3 job offers I had by 10am...now Id have to move to china to get a job..who did that, whos fault is that...id really like to know

I read yesterday that senior citizens on Social Security will NOT get a COLA raise in benefits this year,nor did they get one last year,because of low inflation.So if the feds deliberately push up inflation then that would qualify them to get the COLA raise? The fed claims that SS raises in benefits are tied to inflation.

Pensions cost of living adjustments never keep up with hyper inflation. Look at the Russian pensioners of the 90s.

Quote from: ccd2002 on October 07, 2010, 03:17:03 PM


I read yesterday that senior citizens on Social Security will NOT get a COLA raise in benefits this year,nor did they get one last year,because of low inflation.So if the feds deliberately push up inflation then that would qualify them to get the COLA raise? The fed claims that SS raises in benefits are tied to inflation.

This is why senior citizens, along with businesses, are leaving US shores and living in the tropics in record numbers.


Billy