Inflation is coming

#1
MG1968

MG1968

That’s No Moon…
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#1
thanks to the politicians in DC. They've dumped nearly 2 trillion US dollars into the world economy. If deficit spending under Bush was bad, it should be bad now, but because all this money is going to be used for a stimulus program that doesn't have a chance to work, the inflationary pressure is going to make the Carter years seem like a boom time.

St. Louis Fed: Series: AMBNS, St. Louis Adjusted Monetary Base

AMBNS_Max_630_378.png
 
#5
#5
SavageOrangeJug said:
MG, is talking runaway inflation. Double digit inflation like in the Carter years.

Lil' Hussein isn't going to be near as popular with his flock of sheep in a couple of years.
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So it's Obamas $850M and not Bush's $750M that is the problem? Labeling future inflation (which will most certainly occur) on Obama alone is just an weak attempt to support your position against him. Spending like this will obviously create inflation, everyone knows that. However, the economy needs an immediate jump start to stem systemic failure -- as in days not months. The conservative logic of corporate tax cuts and repealing capital gains tax simply won't have the immediate impact this economy needs.

Do you think Citi and BOA are going to make quick turns with a few tax cuts? Do you think the market will be flooded with investment if the capital gains tax are reduced (particularly considering the commercial lending market is still garbage)? The impact of these measures take time -- unfortunately, our economy needs more immediate action in the short-term.
 
#6
#6
Do you think Citi and BOA are going to make quick turns with flawed money injections that end up getting spent on retaining the same people that failed in the first place?

We don't need them to turn around. We need them to fail so that it can make room for more competent companies.
 
#7
#7
VolByBirth said:
So it's Obamas $850M and not Bush's $750M that is the problem? Labeling future inflation (which will most certainly occur) on Obama alone is just an weak attempt to support your position against him. Spending like this will obviously create inflation, everyone knows that. However, the economy needs an immediate jump start to stem systemic failure -- as in days not months. The conservative logic of corporate tax cuts and repealing capital gains tax simply won't have the immediate impact this economy needs.

Do you think Citi and BOA are going to make quick turns with a few tax cuts? Do you think the market will be flooded with investment if the capital gains tax are reduced (particularly considering the commercial lending market is still garbage)? The impact of these measures take time -- unfortunately, our economy needs more immediate action in the short-term.
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I don't need to support my position on Obama. He is doing a fine job of proving it himself. Unqualified and unfit to be POTUS.
 
#8
#8
SavageOrangeJug said:
I don't need to support my position on Obama. He is doing a fine job of proving it himself. Unqualified and unfit to be POTUS.
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The right wing argument against Obama in a nutshell. Hasn't even been president a week and already he is self justifying your argument that he is a bad president.

Nice.
 
#9
#9
rjd970 said:
The right wing argument against Obama in a nutshell. Hasn't even been president a week and already he is self justifying your argument that he is a bad president.

Nice.
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part of that is that he has been nothing akin to his campaign lies.
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#11
#11
rjd970 said:
How is that different from any other president?
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for one thing, no other President has had so much of the media throwing their underwear at him. Chris Matthews practically had orgasms on national TV on election night and during the Inauguration. It wasn't too long ago that he declared that it's his job to make the Obama Presidency succeed.
 
#12
#12
IPorange said:
Do you think Citi and BOA are going to make quick turns with flawed money injections that end up getting spent on retaining the same people that failed in the first place?

We don't need them to turn around. We need them to fail so that it can make room for more competent companies.
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Do you have any clue what the failure of these two companies will do not only to the U.S. but global economy? These companies are so intertwined with every financial aspect of the economy that I would argue the words like "depression" might hold some merit if this were to happen. Lehman's failure took down the whole shadow banking community. We're talking now about true depository institutions.

I struggle with the "too big to fail" doctrine that U.S. typically goes by -- but in this case, it's true.

I agree with your comments about flawed money injections -- but that has almost nothing to do with Obama at this point. Paulson had a blank checkbook writing checks with zero oversight. The TARP funds have been poorly appropriated but worse is the lack of direction and purpose of these funds.
 
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#13
#13
SavageOrangeJug said:
I don't need to support my position on Obama. He is doing a fine job of proving it himself. Unqualified and unfit to be POTUS.
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You might -- considering he has a 75% approval rating (not that I'm saying this has any merit on his actual Presidency). I would argue most of the country disagrees with you. Does that make you wrong? No. But it does mean you should probably support your position.
 
#14
#14
MG1968 said:
for one thing, no other President has had so much of the media throwing their underwear at him. Chris Matthews practically had orgasms on national TV on election night and during the Inauguration. It wasn't too long ago that he declared that it's his job to make the Obama Presidency succeed.
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What does this have to do with Obama's (as of yet in his week old presidency) to follow or not follow through with campaign lies and promises?
 
#15
#15
dont be suprised if Citi or BoA have a merger or go under. I also have heard Sears/kmart are on the verge of going under but for now they r gonna close several stores
 
#16
#16
Dustin4Vols said:
dont be suprised if Citi or BoA have a merger or go under. I also have heard Sears/kmart are on the verge of going under but for now they r gonna close several stores
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I really doubt they go under -- acquisition (no idea who could do that) or (gulp) nationalization might be the only options. However, nobody wants that which is why the gov't is trying in earnest to recapitalize these banks -- it just seems to be an endless battle with poor oversight. I wouldn't be surprised if we see some sort of government entity formed to buy up bad debt (I think it was the RTC during the S&L crisis). That would be the format.
 
#17
#17
I don't believe in "too big to fail". We are to learn from our mistakes or we will repeat the same. If we continue to support these companies, what is the cutoff point? Ten billion in assests, more than 100k employees or should we save the mom n pop business as well. They didn't do anything worse than the large companies. Bad policies led to decline in revenue, expenses are to high, the same as any business that is failing.
 
#18
#18
#19
#19
MG1968 said:
If deficit spending under Bush was bad,
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If??

There was more deficit spending under Bush then any President in history and you say if? Isn't that a little biased?

Bush doubled the national debt in 8 years, an additional 4.3 trillion dollars. No other President comes close. Obama wont either.
 
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#20
#20
oklavol said:
If??

There was more deficit spending under Bush then any President in history and you say if? Isn't that a little biased?

Bush doubled the national debt in 8 years, an additional 4.3 trillion dollars. No other President comes close. Obama wont either.
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You're out of your mind of you believe today that Obama won't again double the debt.
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#23
#23
oklavol said:
If??

There was more deficit spending under Bush then any President in history and you say if? Isn't that a little biased?

Bush doubled the national debt in 8 years, an additional 4.3 trillion dollars. No other President comes close. Obama wont either.
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And yet Obama is proposing yet more spending, above and beyond what Bush has done. How is that not worse considering how horrible Bush was? And yet we are being biased?
 
#24
#24
is what i dont get is this new "stimulus" package, where is the money coming from? Contrary to what most of St. Obama's constiuancy belief, you cannot simply just print money and it fix things,
 
#25
#25
GASOUTHERNVOL said:
is what i dont get is this new "stimulus" package, where is the money coming from? Contrary to what most of St. Obama's constiuancy belief, you cannot simply just print money and it fix things,
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I believe they are starting to talk this down some saying it won't have a very big effect on the economy. Why spend all this money at this time if you don't think it will have a big effect on the economy?
 
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