Republican president kills currency

[boosetiger]

I've been thinking. There are two components of inflation- money supply and velocity.The Fed and the government have created a money supply that is historically unmatched. Despite all the Fed's efforts there has been no inflation so all this money has created a giant inflationary bomb. The Fed's only real tool to stop inflation is to raise rates (without going into the weeds about open market operations). A "data dependent" Fed would never be able to catch run away inflation. If a Republican president cut taxes and takes Obama's regulatory foot off the economy, velocity will take off and the Fed will be helpless to put out the inflationary fire that results. Huge currency crisis ensues. Are we stuck in the ultimate conundrum?

 

[chassc]

a Repub isn't getting the White House anytime soon, so it really doesn't matter.

 

[anon_s7mtzi79509cl]

Completely agree. We need to move to an 8 team playoff.

 

[tigerGUY]

a Repub isn't getting the White House anytime soon, so it really doesn't matter.

U

I've been thinking. There are two components of inflation- money supply and velocity.The Fed and the government have created a money supply that is historically unmatched. Despite all the Fed's efforts there has been no inflation so all this money has created a giant inflationary bomb. The Fed's only real tool to stop inflation is to raise rates (without going into the weeds about open market operations). A "data dependent" Fed would never be able to catch run away inflation. If a Republican president cut taxes and takes Obama's regulatory foot off the economy, velocity will take off and the Fed will be helpless to put out the inflationary fire that results. Huge currency crisis ensues. Are we stuck in the ultimate conundrum?

Really? God Bless the Fed and endless spending? I hope a mainstream Republican isn't elected. Just like moronic Libs. I'll take one of several Conservatives that are running. HUGE freaking difference in a Republican and a Conservative.

 

[CU1TruTiger4Life]

a Repub isn't getting the White House anytime soon, so it really doesn't matter.

False

 

[OrangeBaron]

A repub will be in the White House. No way a dem gets in after Obama's miserable performance. Obama makes Bush look like a decent president. That says a lot.

 

[godabo44]

A repub will be in the White House. No way a dem gets in after Obama's miserable performance. Obama makes Bush look like a decent president. That says a lot.

Rubio .

 

[tigersrule#]

a Repub isn't getting the White House anytime soon, so it really doesn't matter.

lmao

 

[gardentiger]

Hillary/Jeb 2016 what difference does it make?

 

[Pomaria Tiger]

Give me a ticket of Rubio/Carson and I'll take it.

 

[boosetiger]

So none of you think the inflation bomb goes off if a Repub is elected?

 

[The tigerdoc]

I'm a physician and know nothing about economics, but isn't an inflation bomb inevitable regardless? Obama seems to have put us in that position with his monetary policy regardless of who the next pres is.

 

[boosetiger]

I'm a physician and know nothing about economics, but isn't an inflation bomb inevitable regardless? Obama seems to have put us in that position with his monetary policy regardless of who the next pres is.

Not without velocity.

 

[igachoochoo]

I've been thinking. There are two components of inflation- money supply and velocity.The Fed and the government have created a money supply that is historically unmatched. Despite all the Fed's efforts there has been no inflation so all this money has created a giant inflationary bomb. The Fed's only real tool to stop inflation is to raise rates (without going into the weeds about open market operations). A "data dependent" Fed would never be able to catch run away inflation. If a Republican president cut taxes and takes Obama's regulatory foot off the economy, velocity will take off and the Fed will be helpless to put out the inflationary fire that results. Huge currency crisis ensues. Are we stuck in the ultimate conundrum?

no inflation?? Do you ever go to the grocery? Higher prices and smaller packages. ever go to the hardware? two bucks fifty for one oz of two cycle oil. Make the minimum wage $15/hour?? good grief man, if you believe gov't statistics on inflation you are one hurting buckaroo.

 

[boosetiger]

no inflation?? Do you ever go to the grocery? Higher prices and smaller packages. ever go to the hardware? two bucks fifty for one oz of two cycle oil. Make the minimum wage $15/hour?? good grief man, if you believe gov't statistics on inflation you are one hurting buckaroo.

How can there be inflation with low interest rates? Inflation is not a subjective calculation made by the government. It is determined each day in the market based on discounted earnings. Surely you are not saying oil has gone up in price are you? Ever walk in Walmart and see all the stuff from China. Have any idea how much that stuff would cost if made in the US? The minimum wage is not $15, that would be inflationary.

 

[igachoochoo]

How can there be inflation with low interest rates? Inflation is not a subjective calculation made by the government. It is determined each day in the market based on discounted earnings. Surely you are not saying oil has gone up in price are you? Ever walk in Walmart and see all the stuff from China. Have any idea how much that stuff would cost if made in the US? The minimum wage is not $15, that would be inflationary.

Ok, fine, boose, you are a good guy and I won't unload on you......but you did not respond to my question.....government inflation measurements exclude basic necessicities like food....you and Fail Krugman.....good grief man...learn a thing or two

 

[clempzenbill]

We are immune from inflation for the most part because our currency is the world's currency. The dollar is for the time being the standard stable, tradable and reliable currency on the world market. Many thought the Euro or Chinese currency would surpass the dollar. So far this hasn't happened. Heaven help us when it does.... We can print money now without repercussion. Whenever the rest of the world catches up it becomes a much more probolamatic proposition

 

[cp1275]

Not without velocity.

Velocity is best when self-imposed and self-controlled. Velocity will come either way, it's just either soon by policy changes or later at a much greater velocity when no one wants to buy our bonds and the rates skyrocket over night.

 

[boosetiger]

Ok, fine, boose, you are a good guy and I won't unload on you......but you did not respond to my question.....government inflation measurements exclude basic necessicities like food....you and Fail Krugman.....good grief man...learn a thing or two

The are two types of government inflation numbers- "top line inflation or head line inflation" which excludes oil and food. The other measure of inflation is the rate charged on TIPS (Treasury Inflation Protected Securities) and then sold in the market. The two rates have run close to each other since TIPS. I have been to the grocery store and food prices are ridiculous but they have been offset by cheap imports.