Okay, so we can definitely print money faster now.

[Post-Keynesian Economics]

The Fed has not yet tapered its current policies, so logically we should be looking to see some massive inflation soon.

Except not so much. Inflation is actually down as of this last report that came out a few hours ago.

http://www.chicagotribune.com/business/sns-rt-us-consumer-inflation-20131120,0,389896.story

U.S. consumer prices unexpectedly fell in October and the annual inflation rate was the lowest in four years, which should give the Federal Reserve room to maintain bond purchases for a while.

The Labor Department said on Wednesday its Consumer Price Index slipped 0.1 percent last month as gasoline prices fell sharply, after rising 0.2 percent in September.

In the 12 months through October, the CPI increased 1.0 percent, the smallest gain since October 2009. It had advanced 1.2 percent in September.

Economists polled by Reuters had forecast consumer prices unchanged last month and increasing 1.0 percent from a year ago.

So, 1% inflation flat. Noticeably lower than a healthy target. This is actually pretty logical because it means that these dollars are in places where they won't drive up prices, something that happens pretty easily when unemployment is still so high and the Fed doesn't give out automatically anyway.

This only supports what I've been saying, which is that the money supply in the United States is actually lower than it should be right now logistically.

So, fiscal hawks, can we please go ahead and accelerate printing now?

[Ostroeuropa]

1% is abysmally low. We're in danger of deflation if this carries on dropping, and that'd be a complete death sentence on the economic recovery.

[Post-Keynesian Economics]

1% is abysmally low. We're in danger of deflation if this carries on dropping, and that'd be a complete death sentence on the economic recovery.

Completely agree.

[Ostroeuropa]

1% is abysmally low. We're in danger of deflation if this carries on dropping, and that'd be a complete death sentence on the economic recovery.

Completely agree.

What do you think would be a good rate?
I've heard 2.8 thrown around as healthy.

[New Laikland]

"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered...I believe that banking institutions are more dangerous to our liberties than standing armies... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." - Thomas Jefferson

[Post-Keynesian Economics]

Completely agree.

What do you think would be a good rate?
I've heard 2.8 thrown around as healthy.

Okay, so it depends on what we're looking for. If we want to match the weighted average inflation rate of our trading partners for an effective international "zero" then we're looking at 2.26% (that's my own math, and I can "show my work" if necessary). The empirical rule for inflation is that 2.0% flat is healthy. Personally, I would like to see us go a bit faster than our trading partners so that the debts of our private citizens are paid off faster than the private citizens of other countries. Going with that logic, 2.8% would sound pretty nice.

[Post-Keynesian Economics]

"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered...I believe that banking institutions are more dangerous to our liberties than standing armies... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." - Thomas Jefferson

I am well aware of Thomas Jefferson's opinion on the issue. But seeing as in this quote he doesn't warrant his argument, it doesn't really add to the discussion.

[New Laikland]

I am well aware of Thomas Jefferson's opinion on the issue. But seeing as in this quote he doesn't warrant his argument, it doesn't really add to the discussion.

It does add to the discussion, because the US currency has been inflating and now deflating, meaning some bad shit is probably about to happen.

[Ostroeuropa]

What do you think would be a good rate?
I've heard 2.8 thrown around as healthy.

Okay, so it depends on what we're looking for. If we want to match the weighted average inflation rate of our trading partners for an effective international "zero" then we're looking at 2.26% (that's my own math, and I can "show my work" if necessary). The empirical rule for inflation is that 2.0% flat is healthy. Personally, I would like to see us go a bit faster than our trading partners so that the debts of our private citizens are paid off faster than the private citizens of other countries. Going with that logic, 2.8% would sound pretty nice.

Pretty much right. The main concern I have at the moment though is a deflationary spiral, so i'd be happy with 2.26.

[Post-Keynesian Economics]

I am well aware of Thomas Jefferson's opinion on the issue. But seeing as in this quote he doesn't warrant his argument, it doesn't really add to the discussion.

It does add to the discussion, because the US currency has been inflating and now deflating, meaning some bad shit is probably about to happen.

I understand that. I don't even necessarily disagree. But my question to you would be this: what is the alternative?

[New Laikland]

I understand that. I don't even necessarily disagree. But my question to you would be this: what is the alternative?

To create growth and lower unemployment which raises inflation.

Cut taxes, increase subsidies, etc.


Since that's unlikely, we just need to die off and then have a decent president (preferably dictator) save our asses.

[Post-Keynesian Economics]

I understand that. I don't even necessarily disagree. But my question to you would be this: what is the alternative?

To create growth and lower unemployment which raises inflation.

Cut taxes, increase subsidies, etc.


Since that's unlikely, we just need to die off and then have a decent president (preferably dictator) save our asses.

Ah, okay, I misunderstood the argument you were trying to make with the Jefferson quote. I thought you were suggesting that we abolish the Federal Reserve.

[Ostroeuropa]

Well, we can create growth and cut taxes / create jobs by raising the bottom tier income tax allowance.

If we allow people more money before income tax kicks in it'll help the poor most of all, and the poor usually spend their money unlike the rich. It does also help the middle class slightly, but less so, and the rich EVER so slightly. So it'd all go back into the economy, drive up demand (causes inflation), cause more supply to be needed (increases job numbers), and raises the living standard of the poor, which means the taxes we just cut may well end up as a small saving if we need to spend less on welfare as a result.

[New Laikland]

Ah, okay, I misunderstood the argument you were trying to make with the Jefferson quote. I thought you were suggesting that we abolish the Federal Reserve.

Now that you mention it, yeah.

[Farnhamia]

"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered...I believe that banking institutions are more dangerous to our liberties than standing armies... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." - Thomas Jefferson

I am well aware of Thomas Jefferson's opinion on the issue. But seeing as in this quote he doesn't warrant his argument, it doesn't really add to the discussion.

Jefferson never said that. It appears to have been made up in a 1937 Congressional report.

[Post-Keynesian Economics]

Ah, okay, I misunderstood the argument you were trying to make with the Jefferson quote. I thought you were suggesting that we abolish the Federal Reserve.

Now that you mention it, yeah.

Oh. Why?

[Post-Keynesian Economics]

I am well aware of Thomas Jefferson's opinion on the issue. But seeing as in this quote he doesn't warrant his argument, it doesn't really add to the discussion.

Jefferson never said that. It appears to have been made up in a 1937 Congressional report.

Good find!

[New Laikland]

Jefferson never said that. It appears to have been made up in a 1937 Congressional report.

my life is a lie

Nonetheless, it's still a valid, true quote.

[Siaos]

I am well aware of Thomas Jefferson's opinion on the issue. But seeing as in this quote he doesn't warrant his argument, it doesn't really add to the discussion.

Jefferson never said that. It appears to have been made up in a 1937 Congressional report.

Its almost scary how fast you found that.

[Blasveck]

Jefferson never said that. It appears to have been made up in a 1937 Congressional report.

my life is a lie

Nonetheless, it's still a valid, true quote.

Lets see here.

Do I still own property?
Do corporations rule over all of us?

No?

Case closed.
Just because somebody somewhere said something, even if said somebody was important, does not make it true.

[Greed and Death]

Completely agree.

What do you think would be a good rate?
I've heard 2.8 thrown around as healthy.

Depends on the growth of the economy.

[New Laikland]

Lets see here.

Do I still own property?
Do corporations rule over all of us?

No?

Case closed.
Just because somebody somewhere said something, even if said somebody was important, does not make it true.

Because a gradual, slow process that takes place over years and years happens because of a .1% drop in inflation...

[New Laikland]

Oh. Why?

It's a private bank that has total control over printing our currency; it's just a horrible idea.

[Natair]

1% is abysmally low. We're in danger of deflation if this carries on dropping, and that'd be a complete death sentence on the economic recovery.

Wait, the dollar being worth more is bad?

[Blasveck]

Oh. Why?

It's a private bank that has total control over printing our currency; it's just a horrible idea.

It actually isn't a private bank.

http://www.federalreserve.gov/faqs/about_14986.htm