Because I live in the real world, and not in a statical make believe world, I'm begging to the fed don't do a thing. Don't raise interest rates. Don't look at those statistics that employment is rising. Pay is going up ( Raising minimum pay would do that).
To be honest in the real world the fed rate should be zero. Raising the fed rate is inflationary in it's self. Putting it in simple real world terms the cost of money goes up. If the cost of money goes up, that cost would most likely would be past on causing real world inflation ( ever so mild if interest rates are low).
Real world inflation is caused by supply and demand.
What's not inflationary is what ever the traffic can bare, even though the cost of items can go up.
In the hypothetical world if the price goes up some one will produce a cheaper version.
This used to be the case until some one discovered the phrase patent infringement.
Now for those who haven't followed this blog, the real world inflation is the price of housing in various parts of the country that go up, plus the price of food, there's bad drought in the food producing parts of the world that causes the supply to dwindle. Real world New York has greater inflation then let's say Birmingham Alabama, and nothing the Federal Reserve does is going to change that.
My reasoning is at the present time there is nothing the the Feds can do to help the economy, but it can sure mess it up.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment