Top Federal Reserve officials sent a clear signal that the Fed is unlikely to follow the European Central Bank in lifting interest rates from rock-bottom levels anytime soon, playing down the idea that soaring commodity prices will lead to broader U.S. inflation.
At the Economic Club of New York on Monday, Janet Yellen, the Fed’s vice chairwoman, said U.S. monetary policy “continues to be appropriate.”
Recent increases in prices of oil, grain and other commodities are “unlikely to have persistent effects on consumer inflation or to derail the economic recovery” and are “not likely to warrant any substantial shift in the stance of monetary policy,” she said. The key, Ms. Yellen added, is that households and businesses don’t expect inflation to take off in the long run.
They are lying. But then they don’t know what to do and Obama can’t admit, for the risk of hurting his re-election bid, that we are now in a stagflation economy.
Sorry #1, they aren’t lying, just not telling the truth. Somewhere around the year 2000 the powers that be adopted ‘core inflation’ as a measuring stick, and core inflation excludes the pesky things like food and fuel. So if you look at everything other than food and fuel and stuff like that, then inflation in the U.S. is not a big problem at the current time. The use of core inflaton, rather than a true measure of what’s actually happening, allows the FedChair and the Chief Tax Cheat to pretend that ‘quantitative easement’ (which you and I learned as monetizing the debt, a no no, and eventually the cause of run away inflation) is not straining the system. Of course, to the average wage earner and family that have to buy food and fuel, core inflation is a myth.
How can they say, with a straight face, that we don’t have inflation? Everyone sees the gas prices rise because they are posted in our face every time we drive down the street, but Corn, Wheat and Sugar prices have risen by a higher percentage than gas since 1 January. Every family in the country is affected by these three commodities, even if they don’t have a car. Those on a fixed income
are already hurting.
Sorry #1, they aren’t lying, just not telling the truth. Priceless. I didn’t lie, I just didn’t tell the truth. Sorry, they are lying.
“Sorry #1, they aren’t lying, just not telling the truth. Priceless. I didn’t lie, I just didn’t tell the truth. Sorry, they are lying. ”
“I didn’t inhale”
“We are from the Government and we are here to help you”
“We’re glad you’re here.”
They never lie, although they are “economical with the truth”.
If you are so unfortunate as to be a Time Clock Puncher, the days you are working for a nickle an hour are fast approaching…
I’m 64. I’ve noticed over the years that when federal reserve notes inflate (become worth less) wages are static. Taxes, inflation and low quality Chinese goods are three ways to cheat working people. THAT is the game being played.
At some point it will be a waste of time and money to go to work. I think it already is.
If nothing is done there WILL be a big adjustment of some kind. It’s well past midnight and the party is over…