You Call This A Middle Class?

[mpholland]

I am sure in that day and age, training 52,000 people to fill a workforce of 15,000 was a nightmare. It was probably easier to just pay them a little more.

[finnbow]

Originally Posted by 4-2-7

Would you please stop talking politics with monetary policies set and done by the Fed. This is were you get lost and what they want you to do. Saying "we print the money" is asinine and shows no knowledge.(Not trying to be mean but wake up)

Right now we have been Quantitative easing for 5 years.
One of two thing are going to happen.

1) Stop printing and we will have a stock market crash, I should say Bond Market. This will take out the USD and our whole financial institution.

2) Keep printing and we will have hyperinflation.

Thats it thats all, there is no other direction, no taper. We could be seeing a stock crash by september 2014. But Im sure you don't want to know until it happens. Then you can say nobody knew it was coming.
http://www.politicalchat.org/showthread.php?t=7054

Then why is our inflation rate a paltry 1.6% after 5 years of QE?

[mpholland]

Originally Posted by finnbow

Then why is our inflation rate a paltry 1.6% after 5 years of QE?

Because there is too little money chasing too many goods.

[donquixote99]

Originally Posted by mpholland

Because there is too little money chasing too many goods.

Which suggests that without the QE we would have had deflation, and an economy in great depression.

[mpholland]

Originally Posted by donquixote99

Which suggests that without the QE we would have had deflation, and an economy in great depression.

True, but some skulls are so thick there's no room left for brains.

[4-2-7]

Originally Posted by finnbow

Then why is our inflation rate a paltry 1.6% after 5 years of QE?

I have already disproved that finn. If you refuse to logically look at it thats your loss.

[4-2-7]

Originally Posted by donquixote99

Which suggests that without the QE we would have had deflation, and an economy in great depression.

Please do tell me whats wrong with deflation?

[4-2-7]

By the way the other day they said that the S&P is on it's 5th year anniversary of a bull market.

Gee I wonder what coincides with that.

[finnbow]

Originally Posted by 4-2-7

Please do tell me whats wrong with deflation?

You're a self-proclaimed economic guru and you don't know the answer to this?

In a nutshell, with deflation people realize that things will be cheaper later than they are today. They will continue to defer purchasing things, thereby reducing demand (and production). This reduction in demand further decreases prices and causes the problem to worsen.

[mpholland]

Let's see here. While you might look at the short term price reductions as a good thing, in the long term it leads to lower demand for goods, which in turn leads to lower production and lower wages. This in turn leads to lower prices, and lower demand and lower wages. This in turn leads to lower demand and lower production and lower wages....and so on, and so on. At the same time this is happening, it is increasing the real value of debt. Sounds like just the cure for our economic woes, doesn't it?

(looks like someone else with a brain beat me to the punch)