tag:blogger.com,1999:blog-6616959642391988608.post3159801821061970458..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: Inflation is still within the Fed's target rangeScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-6616959642391988608.post-37359699254579927132010-06-29T14:26:55.738-07:002010-06-29T14:26:55.738-07:00scott:
I know, the velocity of money is below 1, ...scott:<br /><br />I know, the velocity of money is below 1, sure if/when it rises again there is a real risk of inflation, but that assumes that no action would be taken by the Feds. My gut instinct is that the Fed is better equipped for dealing with inflation than deflation -- come to think of it, what mechanisms are available to counter deflation?Frozen in the Northhttps://www.blogger.com/profile/04901959687094626879noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-13571649205100820172010-06-29T10:05:01.014-07:002010-06-29T10:05:01.014-07:00Frozen: inflation is low because the demand for mo...Frozen: inflation is low because the demand for money, which in turn is being fueled by great fear and uncertainty, is high. Bond yields are falling because people are extremely concerned about the economy's ability to grow. Imagine what could happen if fears began to decline. Everything could reverse very quickly.Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-67169261374135046542010-06-29T08:26:15.971-07:002010-06-29T08:26:15.971-07:00The market is rolling over. Our debt problems and ...The market is rolling over. Our debt problems and over investment were never corrected. <br /><br />Actually, they were made worse with government backed interventions of all sorts. <br /><br />We didn't need more cars, houses, or insolvent banks yet we find ourselves up to the gills in all three. <br /><br />Hang on to your seatbelts, cuz this here is the wildest ride in the wilderness!<br /Public Libraryhttps://www.blogger.com/profile/00017383928897945054noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-59875271687092013082010-06-29T07:59:14.583-07:002010-06-29T07:59:14.583-07:00No one living today, well almost no one, has lived...No one living today, well almost no one, has lived through deflation. Has anyone noticed the amount of cash going into bond recently. PIMCO which was telling everyone about the risk of inflation, is now a very long buyers of 5y and 0y T-bills. That is a real statement about inflation expectations in the U.S. Massive excess capacity (around 7% at last count), too many malls, and houses. This Frozen in the Northhttps://www.blogger.com/profile/04901959687094626879noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-17321298692333006962010-06-29T06:51:45.951-07:002010-06-29T06:51:45.951-07:00Scott, no sign of that bull market you were expect...Scott, no sign of that bull market you were expecting in the wake of the Chinese currency revaluation.Robhttps://www.blogger.com/profile/16062180895899998738noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-33818568496980409462010-06-28T23:31:45.573-07:002010-06-28T23:31:45.573-07:00Bill: feel sorry for Krugman. I had dinner with hi...Bill: feel sorry for Krugman. I had dinner with him once many years ago. During the course of the conversation, I remember him saying he was very proud of the fact that he could write a column faster than anyone. Speed does not always lead to sound thinking or accuracy.<br /><br />It is too bad that he still has a lot of influence, but he is losing it by the day.Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-18447954497279931592010-06-28T18:48:09.452-07:002010-06-28T18:48:09.452-07:00If Krugman wasn't so influential, I'd actu...If Krugman wasn't so influential, I'd actually feel sorry for him. I don't think I've ever seen him smile (except for when he won the Nobel, but it was more of a smirk). He just seems to be always pissed about something.Billhttps://www.blogger.com/profile/06910619601367464068noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-26181809398082463332010-06-28T16:29:25.759-07:002010-06-28T16:29:25.759-07:00Well, our 'Nobel Prize' winning economist ...Well, our 'Nobel Prize' winning economist Dr. Paul Krugman is apparantly feeling he isn't getting enough attention in the gloom sweepstakes so he has come out with his latest entry: <br /><br />"We are in the early stages of a THIRD DEPRESSION" (emphasis mine)<br /><br />Writing in that bastion of economic journalism, the New York Times, Professor K is lamenting the Johnhttps://www.blogger.com/profile/11652253509768573561noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-81913923255740266282010-06-28T14:37:29.538-07:002010-06-28T14:37:29.538-07:00perhaps the inflation you search for is in asset p...perhaps the inflation you search for is in asset prices, exactly as the fed wants; indulge high unemployment through "tight money" at the general public level, but float asset prices through extensive liquidity/credit to the banks.septizoniomhttps://www.blogger.com/profile/14253705209662419429noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-91899685551316244202010-06-28T14:26:26.233-07:002010-06-28T14:26:26.233-07:00Inflation is still tame to date -- agreed. Howeve...Inflation is still tame to date -- agreed. However, how is California going to manage if a budget compromise is not reached? I read that Gov Schwarzenegger is trying to pressure Sacramento by proposing that all state workers be held to minimum wage earnings until a budget plan emerges. Will Californians eventually agree to the austerity measures that will be required in order to live within a McKibbinUSAhttps://www.blogger.com/profile/10545798495680527622noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-45356506721163858522010-06-28T12:12:59.914-07:002010-06-28T12:12:59.914-07:00"I must admit that for about the past year I ..."I must admit that for about the past year I have been expecting inflation to move higher, and so far I have been dead wrong on this."<br /><br />Perhaps you have been listening to false signals--commodities and gold, which respond to global demand way more than Fed policy. <br /><br />Anyway, MZM is down from last year. <br /><br />Qualitative easing makes sense right now. <br /><br />Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.com