djangojazz
02-10-2008, 06:33 PM
The Fed is the cause of inflation. Every dollar printed that we don't have makes every other dollar worth less. It's like adding water to milk, eventually it will stop tasting and smelling like milk.
That seems to make sense I guess considering we were off the gold standard since what the 30's? I always thought they(the Federal reserve) manipulated prime rates to adjust for inflation though? EG: rates are down and have been for a while because spending is down, when spending goes up so do rates. I won't beat myself up about it too much, I'm not too good at forecasting inflation/deflation. I know a lot of what our standard is based on is credit from what I keep hearing. But I haven't read up on it in a long time and welcome any links someone may find.
That seems to make sense I guess considering we were off the gold standard since what the 30's? I always thought they(the Federal reserve) manipulated prime rates to adjust for inflation though? EG: rates are down and have been for a while because spending is down, when spending goes up so do rates. I won't beat myself up about it too much, I'm not too good at forecasting inflation/deflation. I know a lot of what our standard is based on is credit from what I keep hearing. But I haven't read up on it in a long time and welcome any links someone may find.