1. "These actions--along with a host of interventions by other policymakers in the United States and throughout the world--helped stabilize global financial markets, which in turn served to check the deterioration in the real economy and the emergence of deflationary pressures."
2. "Following this logic, Tobin suggested that purchases of longer-term securities by the Federal Reserve during the Great Depression could have helped the U.S. economy recover despite the fact that short-term rates were close to zero, and Friedman argued for large-scale purchases of long-term bonds by the Bank of Japan to help overcome Japan's deflationary trap."
3. "Such signaling can also increase household and business confidence by helping to diminish concerns about "tail" risks such as deflation."
4. "Overall, however, a balanced reading of the evidence supports the conclusion that central bank securities purchases have provided meaningful support to the economic recovery while mitigating deflationary risks."
5. "And despite periodic concerns about deflation risks, on the one hand, and repeated warnings that excessive policy accommodation would ignite inflation, on the other hand, inflation (except for temporary deviations caused primarily by swings in commodity prices) has remained near the Committee's 2 percent objective and inflation expectations have remained stable."
Ben Shalom is so obsessed with preventing deflation that he wrote an entire article about it titled "Deflation: Making Sure It Doesn't Happen Here". It's in this article that he made his famous helicopter drop reference.
I know the Fed chairman has a PhD in economics from M.I.T. and all, but that doesn't make him a good person. If he really wanted to help the citizens of this country he would be doing everything in his power to create deflation, not fight it. Even the QE bears understand that deflation is a good thing.
Lady Bear: So why do they want to print the money?
Male Bear: Because they say we have the deflation, and the deflation is very bad.
Lady Bear: What is the deflation?
Male Bear: The deflation is when prices of the things we buy go down.
Lady Bear: Isn’t that good? Doesn’t it mean the people can buy more of the stuff?
Male Bear: Yes, but the Fed said this is bad, especially during the recession.
Lady Bear: So they think that during the recession, when the people have less money to buy the stuff, it is bad that the prices go down?
Male Bear: Yes, the Fed would rather have the inflation.
That video has more truth in it than every Bernanke speech put together. This whole economic system that we are trapped in is absolute madness.
Despite Bernanke's wishes we're going to get the deflation anyway, thank God. Everyone, including governments, is up to their eyeballs in debt and not in a position to keep spending money they don't have on shit they don't need in order to keep up with the Kardashians. And the US military, who really runs this planet, aren't going to let a putz PhD blow up their fuel budget for the war machine by printing more trillions and sending gasoline prices to the moon.
So the deflation is coming, and we'll all be better off for it.
Happy Labor Day.
Ben Shalom is so obsessed with preventing deflation that he wrote an entire article about it titled "Deflation: Making Sure It Doesn't Happen Here". It's in this article that he made his famous helicopter drop reference.
I know the Fed chairman has a PhD in economics from M.I.T. and all, but that doesn't make him a good person. If he really wanted to help the citizens of this country he would be doing everything in his power to create deflation, not fight it. Even the QE bears understand that deflation is a good thing.
Lady Bear: So why do they want to print the money?
Male Bear: Because they say we have the deflation, and the deflation is very bad.
Lady Bear: What is the deflation?
Male Bear: The deflation is when prices of the things we buy go down.
Lady Bear: Isn’t that good? Doesn’t it mean the people can buy more of the stuff?
Male Bear: Yes, but the Fed said this is bad, especially during the recession.
Lady Bear: So they think that during the recession, when the people have less money to buy the stuff, it is bad that the prices go down?
Male Bear: Yes, the Fed would rather have the inflation.
That video has more truth in it than every Bernanke speech put together. This whole economic system that we are trapped in is absolute madness.
Despite Bernanke's wishes we're going to get the deflation anyway, thank God. Everyone, including governments, is up to their eyeballs in debt and not in a position to keep spending money they don't have on shit they don't need in order to keep up with the Kardashians. And the US military, who really runs this planet, aren't going to let a putz PhD blow up their fuel budget for the war machine by printing more trillions and sending gasoline prices to the moon.
So the deflation is coming, and we'll all be better off for it.
Happy Labor Day.
