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so what does the Fed do to attack disinflation?
How about "easing" $80B/month directly to the 99% instead of financing the Wall St casino?
sameIt is notable that the Fed’s FOMC, already a bit worried about disinflation, is meeting as we speak.
so what does the Fed do to attack disinflation?
How about "easing" $80B/month directly to the 99% instead of financing the Wall St casino?
A HUGE LIE from right-wingers here, and Repugs, was Obama's "out-of-control-spending" stimulus was sure to bring HYPERINFLATION
WRONG and/or LYING, yet again.
how could posters have been lying about predicting the future?
because they don't GAF about hyperinflation, only about 1) privatizing "bankrupt" SS 2) drowning govt in a bathtub by starving it of tax revenues.
sometime you barely make sense at all, boutons.
what's nonsensical?
1) privatizing "bankrupt" SS 2) drowning govt in a bathtub by starving it of tax revenues.
... exactly are planks in Repug/Wall St strategy (kill USPS with insane pension funding is another one).
GOP was lying about hyperinflation eight years ago because ... the Ryan budget?
still looks like a non-sequitur to me
(shrugs)
They were lying, scare-mongering about hyperinflation to kill/reduce Obama's stimulus as hyperinflationary, when in fact they didn't give a about hyper-inflation. All they cared/care about was/still is DENYING Obama and Dems ANY success or PROGRESS, not matter how badly it hurts the country. All politics all the time. Way too small, Obama's stimulus was very successful as far as it went, aka government has the power to move the country forward, counter-cyclical, Keynesian spending works.
um, no one ever said Obama's stimulus would bring on hyperinflation. That's called fiscal policy.
People did say the FED monetizing all the debt would bring on inflation and eventually hyperinflation. That's called monetary policy.
BTW the stock market hit a new high today. In other news GDP came in at around 0%. Move along folks, nothing to see here.
Meanwhile...
ADP NATIONAL EMPLOYMENT REPORT: PRIVATE SECTOR EMPLOYMENT INCREASED BY 220,000 JOBS IN APRIL
http://www.adpemploymentreport.com/2...ss-Release.pdfROSELAND, N.J. –April 30, 2014 –Private sector employment increased by 220,000 jobs from March to April according to the April ADP National Employment Report®. Broadly distributed to the public each month, free of charge, the ADP National Employment Report is
produced by ADP®, a leading global provider of Human Capital Management (HCM) solutions, in collaboration with Moody’s Analytics. The report, which is derived from ADP’s actual payroll data, measures the change in total nonfarm private employment each month on a seasonally adjusted basis.
Goods-producing employment rose by 24,000 jobs in April, down from 28,000 jobs gained in March. Most of the gains again came from the construction industry which added 19,000 jobs over the month, compared to 21,000 in March. Manufacturing continued to be sluggish adding 1,000 jobs in April, down from 4,000 in March.
Service-providing employment rose by 197,000 jobs in April, up from the upwardly revised 181,000 in March. The ADP National Employment Report indicates that professional/ business services contributed the most to growth in service-providing industries, adding 77,000 jobs, up from 67,000 in March. Expansion in trade/transportation/utilities grew by 34,000, about equal to the 35,000 jobs added in March. The 8,000 new jobs in financial activities mark the strongest pace of growth in the industry since June 2013.
"The 220,000 U.S. private sector jobs added in April is well above the twelve-month average,” said Carlos Rodriguez, president and chief executive officer of ADP. “Job growth appears to be trending up and hopefully this will continue.” ... Mark Zandi, chief economist of Moody’s Analytics, said, "The job market is gaining strength. After a tough winter employers are expanding payrolls across nearly all industries and company sizes. The recent pickup in job growth at mid-sized companies may signal better business confidence. Job market prospects are steadily improving.”
"service providing jobs" = junk food, retail, ty wages.
good jobs gone and not coming back, ty jobs for which REPUGS refuse to raise the minimum wage, dominate.
beggar thy neighbor is back. six years after the 2008 bust, the globe still faces deflationary headwinds:
http://www.telegraph.co.uk/finance/e...the-world.htmlThe world's oldest central bank has ventured into uncharted territory.
Last week, Sweden's Riksbank slashed its main policy rate into negative territory.
In doing so, it became the 14th central bank to ease monetary policy so far this year, but the first to actually take its "repo rate" below zero to -0.1pc. This means Sweden is actually charging its banks to lend money. In Britain, the same interest rate currently stands at a historic low of 0.5pc, but could well be cut further if Mark Carney is to be believed.
Switzerland and Denmark have already sent their deposit rates to -0.75pc to prevent currency appreciation and defeat deflation.
The map above shows how this extraordinary central bank action has become the new normal in the developed world.
Faced with the twins threats of deflation and economic stagnation, monetary policymakers are reaching for their interest rate levers and digital money-printing tools in a bid to stave off recessions and debt deflationary dynamics.
so much for hyperinflation
hyperinflation was just another REPUG lie to kill any possibility of any more of Obama's successful stimulus
Historically these swings have come in waves and the pendulum tends to over swing in both directions.
when was the last time we had hyperinflation in the US?
define hyper.
I certainly remember the prime rate being 21.5% in my adult lifetime.
... when there was dampening, resistance in the system to slow down the rates and amplitudes of the swings, ie, regulations on the financial sector and aggressive income tax rates, two conditions which haven't existed at least since 1980.
Sure, hyperinflation is extremely unlikely, but very high inflation could be problematic in the future. Depends on how the FED handles it. M2 has literally skyrocketed. The money supply has grown at an incredible rate these last few years. But there is a reason why it hasn't caused a rise in prices. The FED decided to start paying interest on bank reserves. So this increase in the money supply is being held as excess reserves by banks at historical levels. When the FED bumps up interest rates, banks are going to have to have an incentive to loan out those reserves unless there is a corresponding rise in the Interest rate being paid on those reserves. That causes its own problems. Of course the FED can try and sell assets to counter the effect this will have.
Times should get interesting. Question is if the FED will be able to pull it off.
ter McGee
Also, no one ing knows if the stimulus was successful, looking at the data at least. One thing is becoming clear in academia though. Cutting unemployment benefit extensions is what has improved the labor market.
What's more intriguing to me is the cause of such prolonged deflation. Is it China's growth into a manufacturing superpower, a country that manipulates it's currency to stay compe ive?
Is it companies hoarding cash due to, among other things, tax avoidance? IIRC, there's almost $5 trillion stashed overseas (1/3 of our annual GDP) waiting for some tax holiday.
Any other reasons? I suspect it's a mix of all of them.
The data said the OBAMA stimulus saved and/or created some x M jobs.
OTOH, the Repugs at state level have laid off 100Ks of state employees, which was a serious drag on the economy regaining speed, while pushing those people onto public assistance, which the Repugs also cut. Repugs everybody they can, it's their ideology.
eg, Texas already has one of the meanest, stingiest Medicaid systems, restrained only by Federal rules, from which they will probably be seeking wavers so Repugs can kids, old, poor, disabled even more, while give about $20B/year in corporate expenditures (subsidies, tax breaks, etc)
The global bankers are robbing Americas wealth like they robbed Great Britains....There is no hyper-inflation because of wage stagflation for a majority of American workers...to make problems worse the GOP and its goon of party racists want to close the border and rob us of future tax payers and producers...
that's what killed inflation, dummy
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