Fed & the Markets (Political Deathmatch)

Title: Fed & the Markets

patriotsblade - July 1, 2009 02:27 PM (GMT)

http://www.cnbc.com/id/15840232?video=1162777547&play=1

QUOTE

"I don't think (the FED) thinks and I don't think that inflation is a clear and present danger. I don't even think it is inevitable down the road 2 or 3 years.

The Monetary Expansion has not been as great as people seem to think it has. There hasn't been an expansion "net" in the FEDs balance sheet since last December (2008). And so there is NO run away printing of money going on. And every week and month that passes these percentage changes in a three month moving averages basis, come lower and lower. Consumer Price Index (CPI=Inflation) is over a percentage point below where it was this time last year."

Robert (Bob) McTeer, Former Dallas Regional FED President and Distinguished Fellow at the National Center for Policy Analysis.

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Space Monkey - July 1, 2009 03:01 PM (GMT)

:lol: :lol: :lol: :lol: :lol: :lol:

Beyond stupid and just plain wrong. The money supply has been increasing and will increase much more when the deficit is funded by digitized currency from the Fed. Saying there hasnt been an "expansion net in the Fed's balance sheet" is irrelevant to whether or not the money supply has truly increased.

Serious signs of inflation have been popping up and the only thing holding it back is the recession. As the recession continues to diminish the inflation rate will become problematic.

Save that link and then watch it again in a few months, year, or two. Sometime in the near future this interview can go down in the annals of CNBC idiocy.

DR_PostingBillboard - July 1, 2009 04:10 PM (GMT)

so what happened with the 2 trillion dollars we printed in February?

Gabecpa - July 1, 2009 05:24 PM (GMT)

QUOTE (Space Monkey @ Jul 1 2009, 09:01 AM)

Saying there hasnt been an "expansion net in the Fed's balance sheet" is irrelevant to whether or not the money supply has truly increased.

Since December 2008.

It went from 800 billion in September to over 2 trillion in November. It has since hovered around $2t.

Anyone who thinks that will have no adverse monetary effects is, to put it simply, a fucking retard.

Space Monkey - July 1, 2009 05:37 PM (GMT)

QUOTE (Gabecpa @ Jul 1 2009, 01:24 PM)

QUOTE (Space Monkey @ Jul 1 2009, 09:01 AM)

Saying there hasnt been an "expansion net in the Fed's balance sheet" is irrelevant to whether or not the money supply has truly increased.

Although its probably too soon to have any data, January through June is probably a lull. Once the bulk of the stimulus actually gets spent the Fed is going to be buying up US debt in earnest aka "printing" digital money to buy debt.

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