USG Debt bubble popping?

[the DRIZZLE]

Again then not the action of the fiscal stimulus, still the action of the central bank.

If the fiscal deficit is monetized, it is inflation from the monetary side. If the monetary side fails to raise rates in the face of inflation and causes too much low cost borrowing on the fiscal side, the monetary side has still caused the inflation.

Fiscal deficits themselves are inflation agnostic, the monetary response is the inflationary aspect.

Thanks for making my point.

No need to be a dick about it considering this a mostly a semantic argument. Its sort of like saying if two people play chicken and crash into each other its one guys fault because the other guy should have swerved.

 

[Engineer]

My post was from a prior thread with Engineer, who, if I recall correctly, thought that GDP was nominal GDP, not real GDP, thus including inflation. I could be wrong, tried to find the post for a while and gave up.

I don't recall posting about GDP in threads but I might have been posting in ignorance and just too old and stupid to remember it.D:

Pretty funny (or maybe ironic) that I'm getting called ignorant in a thread that I have posted and commented very little in (other than a graph comment) for something that I don't remember in an old thread that you cannot find. heh.

 

[bamacre]

http://sg.finance.yahoo.com/news/iPad-price-remark-gets-Fed-rsg-4151302271.html?x=0

Memo to central bankers:

Best not to cite the price of the new iPad as an example of why inflation isn't a problem when you head into a working-class neighborhood.

In Queens, New York, on Friday, New York Fed President William Dudley did just that. He got an earful.

After being bombarded with questions about food inflation, Dudley attempted to reassure his audience by putting rising commodity prices into a broader economic context -- but that only made matters worse.

"When was the last time, sir, that you went grocery shopping?" one audience member asked.

Dudley tried to explain how the Fed sees things: Yes, food and energy prices may be rising, but at the same time, other prices are declining.

He then stretched for a real world example. The only problem was he chose the Apple's latest tablet computer that hit stores on Friday, which may be more popular at the New York Fed's headquarters near Wall Street than it is on the gritty streets of Queens.

"Today you can buy an iPad 2 that costs the same as an iPad 1 that is twice as powerful," he said."You have to look at the prices of all things."

This prompted guffaws and widespread murmuring from the audience, with one audience member calling the comment "tone deaf."

"I can't eat an iPad," another said.

 

[alphatarget1]

http://sg.finance.yahoo.com/news/iPad-price-remark-gets-Fed-rsg-4151302271.html?x=0

That's elitism at its best. The Fed official probably has a housekeeper that cooks for his family and shit. Retard.

 

[LegendKiller]

That's elitism at its best. The Fed official probably has a housekeeper that cooks for his family and shit. Retard.

I would agree that it was a pretty silly statement, but I think that people need to realize that we spend less than 20% of our income on food, less than that on energy. The vast majority of our spending is in the form of housing and discretionary spending of goods/services. Since housing is in decline and goods/services have seen relatively small amounts of inflation, there isn't a huge amount of inflation in our daily lives in the broad context.

However, most people don't think broad context. They think that that extra $50/mo they have to spend on food/energy means $50 less to spend on iTunes or going out to eat. That's the problem today, 50 years ago cutting back like that would have been considered normal. Now its hardship and unfair.

This is a very spoiled nation.

 

[matt0611]

That's elitism at its best. The Fed official probably has a housekeeper that cooks for his family and shit. Retard.

Hah. "Let them eat cake...I mean, let them buy Ipads"