St. Bernanke's Fight Against the Deflation Dragon

[ruger17hmr]

St. Bernanke's Fight Against the Deflation Dragon


One thing for sure, there will be another round of QE about to be launched. Only time will tell if all these QEs were warranted.



St. Bernanke's Fight Against the Deflation Dragon

 

[Expat]

I actually feel sorry for Bernanke. He has to try to stabilize the economy while the Obama Administration does everything it can to destabilize it.

 

[Carmelbythecorn]

I would like someone to explain to me why the "deflation dragon" needed to be fought and or slain.

Does not the free market itself take care of such things??

 

[iwearcowboyboots]

I would like someone to explain to me why the "deflation dragon" needed to be fought and or slain.

Does not the free market itself take care of such things??

What free market?

Deflation in a Keynesian model is bad because it means you are doing it wrong. Keynes also wasn't fond of inflation, but he never had to run for re-election so his opinion doesn't matter.

 

[ghunter]

They need to stop printing money and pretending that it retains its value. Right now, our money is worth less. After QE five or six, it will be just plain worthless.

 

[CarmelHP]

In a deflation, your money would be worth more and have greater purchasing power. Does anyone really believe that is what is going on? We're in stagflation right now.

 

[Carmelbythecorn]

In a deflation, your money would be worth more and have greater purchasing power. Does anyone really believe that is what is going on? We're in stagflation right now.

That's right

here because

You must spread some reputation around....

 

[ATOMonkey]

In a deflation, your money would be worth more and have greater purchasing power. Does anyone really believe that is what is going on? We're in stagflation right now.

The article mentions how the Fed policy has increased the cost of commodities with the hope that wages would follow.

I think these geniuses have cause and effect confused.

 

[rambone]

I would like someone to explain to me why the "deflation dragon" needed to be fought and or slain.

Does not the free market itself take care of such things??

Free Market? Now there's a mythical beast.

 

[RockofStrength]

They need to stop printing money and pretending that it retains its value. Right now, our money is worth less. After QE five or six, it will be just plain worthless.

That's not the scary thing. The scary thing is when the large majority of the population gets their minds around that concept. Look at the effect of the U.S. bank bailout to the Greek bailout and then compare that to the Spanish one, for example. Each time the market sees diminishing returns, to the point where the Spanish bailout floated the markets for...what, a day? maybe half a day?

 

[IndyDave1776]

That's not the scary thing. The scary thing is when the large majority of the population gets their minds around that concept. Look at the effect of the U.S. bank bailout to the Greek bailout and then compare that to the Spanish one, for example. Each time the market sees diminishing returns, to the point where the Spanish bailout floated the markets for...what, a day? maybe half a day?

Nothing like selling hopes, dreams, and Monopoly money, is there?

 

[Lex Concord]

St. Bernanke's Fight Against the Deflation Dragon


One thing for sure, there will be another round of QE about to be launched. Only time will tell if all these QEs were warranted.



St. Bernanke's Fight Against the Deflation Dragon

No time needed. Not warranted, and not helpful...it's as plain as the beard on his face.