/Hot like hell.

Doesn't Fark have an OBVIOUS tag?

And do you think Bush's bailout plan won't cause inflation? The government is injecting many hundreds of billions into the economy. I'd think inflation is inevitable.

At least the dollar is stronger. It's strange that despite our cratering economy, the US dollar has soared against the Euro and other major currencies in the last few months. I suppose the fact that the EU countries are in financial crisis too, in some cases worse than we are, is why. When everything sucks, there's a run to US dollars. The dollar had almost hit $1.60 per Euro a few months back. Now it's $1.28. That's still lower than it was a few years back, but damn...

The $700 billion we gave to the bankers is a completely different situation. A lot of those dollars will be funneled back to Congress as bribes. The stimulus, on the other hand, is going to ordinary Americans, who will just waste it on things like food, rent, and clothing.

patrick767: And do you think Bush's bailout plan won't cause inflation? The government is injecting many hundreds of billions into the economy. I'd think inflation is inevitable.

it can be countered by the fed raising interest rates.

burndtdan
it can be countered by the fed raising interest rates.

Which is an unlikely move when the economy is in the crapper.

I am very shocked that the Wall Street Journal is against a bailout led by the Democrats.

I thought stinky was tossed on the trashheap of history with the rest of his his fellow travelers as pj media? This isn't interesting, it's yet more screed from an endless supply of goddamned demagogues with trickly bladders. Inflating our deflating currency is the objective.

patrick767: burndtdan
it can be countered by the fed raising interest rates.

Which is an unlikely move when the economy is in the crapper.

but not necessarily afterward. they're going to have to raise rates eventually anyways; they can't really just leave them at nil.

patrick767: burndtdan
it can be countered by the fed raising interest rates.

Which is an unlikely move when the economy is in the crapper.

Well, at least they have a low starting point

In 1998, Japan's rate went negative (new window)

.

Bored Horde: I am very shocked that the Wall Street Journal is against a bailout led by the Democrats.

It is nice to see the WSJ show a hint of fiscal restraint, given how they completely abandoned it during the Bush years.

Considering how quite a few economists think we're on the cusp of a deflationary spiral, I think inflation might be just what we need.

Control_this: Bored Horde: I am very shocked that the Wall Street Journal is against a bailout led by the Democrats.

It is nice to see the WSJ show a hint of fiscal restraint, given how they completely abandoned it during the Bush years.

Suddenly, things are very, very quiet from over there and the Free Market Orthodoxy crowd.

But I still believe it. The markets can regulate themselves. People with money know what they are doing, and we can defer to them because the know-how it takes to be very successful means we can trust them. The Free Market will always find the best solution for the most people.

.

The Icelander: Considering how quite a few economists think we're on the cusp of a deflationary spiral, I think inflation might be just what we need.

Here's a debunking of the risk of a deflationary spiral. LINK Your response?

patrick767: And do you think Bush's bailout plan won't cause inflation?

Who?

says the WSJ opinion page, who championed the republican deregulation that got us into this mess in the first place. no thanks, WSJ - we don't need another republican depression.

Inflation is the least of your problems and might actually be a good thing. With a National debt of $10 Trillion dollars. You may want those dollars undervalued.

Assume 10 Trillion dollars amounts to 5 Billion tonnes of materials/goods and 5 Billion person/weeks of labour/services. With 10%inflation over 10 years, your national debt will only be 2 Billion tonnes of matrials/goods and 2 Billion person/weeks of labour/services.

/not an econmist
//not very smart

Control_this: Here's a debunking of the risk of a deflationary spiral. LINK Your response?

Not much of a debunking. All he says is that while housing prices have deflated, the price of other things hasn't deflated. Well, what happens when they do start to deflate? Without people being able to go out and spend money, prices are going to drop. And since most of the US economy has been on credit and that credit's drying up, purchasing power is going down.

Then he goes on a tirade about how he'd destroy the US economy in the name of inflation, which isn't what the plan is.

Control_this: The Icelander: Considering how quite a few economists think we're on the cusp of a deflationary spiral, I think inflation might be just what we need.

Here's a debunking of the risk of a deflationary spiral. LINK Your response?

He didn't really debunk, as Icelander said. At best he said it's possible for a relative deflation instead of a general deflation. However, it's quite obvious that a general deflation was and has been possible, if not still. We are hemoraging jobs, and we were in a bank run (though not obvious to the general investor) until about 2-3 weeks ago. September through January was a bank run.

Moreover, he makes no note of the fact that the Fed recognizes the inflationary pressures, and intends to deflate them after the assumed inflation works. He's really ignoring the concept at hand, and only quotes a notably conservative econ professor, to prove his mainly political point- OMG Scary INFLATION, OH NOES!!

patrick767: And do you think Bush's bailout plan won't cause inflation? The government is injecting many hundreds of billions into the economy. I'd think inflation is inevitable.

At least the dollar is stronger. It's strange that despite our cratering economy, the US dollar has soared against the Euro and other major currencies in the last few months. I suppose the fact that the EU countries are in financial crisis too, in some cases worse than we are, is why. When everything sucks, there's a run to US dollars. The dollar had almost hit $1.60 per Euro a few months back. Now it's $1.28. That's still lower than it was a few years back, but damn...

Well, the pound is going to keep dropping. The British economy is almost entirely financial. They don't have a lot of resources and the BBC had an economist from the UK talking about how low it actually might go. It's pretty scary. We are lucky that the dollar is still a good bet, and that won't change as things get worse overseas. I think a big part of our recovery will be because of that fact.

patrick767: burndtdan
it can be countered by the fed raising interest rates.

Which is an unlikely move when the economy is in the crapper.

But it will happen. Inflation won't hit for a while yet, and the plan is to raise them once things are in recovery, slowly, and try to keep the inflation to a minimum. They want some inflation to help reduce the deficit, but it won't by hyper inflation.

Apparently, they've already printed a shiat ton of money, as much as they are willing to, it just isn't in circulation yet.

FlashHarry: says the WSJ opinion page, who championed the republican deregulation that got us into this mess in the first place. no thanks, WSJ - we don't need another republican depression.

If you think deregulation got us here you don't understand whats going on.

Ah, the WSJ editorial page - Free Republic with a veneer of intellectualism.

We must do everything to stop inflation because when has deflation ever hurt this country during an economic down turn.



Oh yeah, then.

Arnold T Pants: FlashHarry: says the WSJ opinion page, who championed the republican deregulation that got us into this mess in the first place. no thanks, WSJ - we don't need another republican depression.

If you think deregulation got us here you don't understand whats going on.


Neoliberal Deregulation got us here. (mp3)

Arnold T Pants: If you think deregulation got us here you don't understand whats going on.

The lack of self-awareness inherent in that statement is mind blowing.

Come on hyper-inflation!

I want to pay my student loans with my lunch money.

I want to be a Zimbabwean billionare.

Arnold T Pants: FlashHarry: says the WSJ opinion page, who championed the republican deregulation that got us into this mess in the first place. no thanks, WSJ - we don't need another republican depression.

If you think deregulation got us here you don't understand whats going on.

Read up on: Grham-Leach-Biley act and Credit Default Swaps and then tell me how those are not a major cause of all this. And then explain how LESS regulation would have helped.

/hint, if it was regulated like insurance should be, banks would have had to keep enough money on hand to cover any loses.

Do nothing. The fundamentals of the economy are strong!!

Tax Cuts!!!

and all the other Republican ideas, because you know, they work!!


or, um not

Arnold T Pants: If you think deregulation got us here you don't understand whats going on.

Sure, the CDS market had nothing to do with it...

And remember throwing a trillion down a rat hole in Iraq is smart but spending a trillion to create jobs for the average joe during a depression is "waste".

I'm not an economist, but as has been mentioned above, isn't some limited inflation necessary to turn back the results of this devastating deflation and recession?

I mean, its not like we'll start paying $4.00 a gallon for gas or anything. The government would never allow that kind of price gouging to happen.

How it warms my heart to know that our country has come down to the Democrats, and Republicans trying to one-up each another while running a train with our economy/liberty/government.

Well, the republicans raped the economy so now its our turn.

LOL @ | Opinion Journal

Have I not been saying this in every single bailout thread?! MAN ALIVE!

h8_u_2: Do nothing. The fundamentals of the economy are strong!!

Tax Cuts!!!

and all the other Republican ideas, because you know, they work!!


or, um not

Exactly

We need to listen to republicans on the economy.

And then we need to get advice on how to make cars from the guys that designed the Chevy Vega.

DistendedPendulusFrenulum: Suddenly, things are very, very quiet from over there and the Free Market Orthodoxy crowd.

They're equally as irritating as socialists and for the same reason. "But it would work perfectly if there weren't flawed human beings involved!" Oh, STFU with your stupid ideology.

IOW, the economic stimulus is dangerous because it might work.

Well, we can't be having any of that.

TofuTheAlmighty: Ah, the WSJ editorial page - Free Republic with a veneer of intellectualism.

Exactly. Where's the WHARRGARBL tag?

Or you know because we don't HAVE a trillion dollars.

But that longwinded explanation works too subby.

whatsupchuck: IOW, the economic stimulus is dangerous because it might work.

Well, we can't be having any of that.

This

We have been in a deflationary period. Which is perfectly normal for a bust, and actually a good thing. Lower prices mean the reduced wages and unemployed people will better be able to afford things. Eventually the deflation period will end and inflation will take over.

The issue is how much inflation. If you truly believe we are about to see massive inflation, then put your money where your mouth is and buy gold. It is always the best bet against inflation.

Yay change!

GOBAMA

dodecahedron: TofuTheAlmighty: Ah, the WSJ editorial page - Free Republic with a veneer of intellectualism.

Exactly. Where's the WHARRGARBL tag?

Quick: name a major newspaper that increased circulation in 2008.

This article is mostly bullshiat since it doesn't take into account the fact that if the stimulus has the desired effect then the increase in GDP will offset the extra money injected into the system. There may still be some inflation, but it's likely to be very mild and only short term.

Hell, pretty much all Republican arguments against the stimulus as spending absolutely have to ignore this point or they go nowhere, so consider it par for the course.

burndtdan: patrick767: burndtdan
it can be countered by the fed raising interest rates.

Which is an unlikely move when the economy is in the crapper.

but not necessarily afterward. they're going to have to raise rates eventually anyways; they can't really just leave them at nil.

he said, with his fingers crossed and eyes closed.

Spending a trillion dollars that doesn't exist will have consequences. It's amazing that they're being ignored.

LibertyFirst: We have been in a deflationary period. Which is perfectly normal for a bust, and actually a good thing. Lower prices mean the reduced wages and unemployed people will better be able to afford things. Eventually the deflation period will end and inflation will take over.

The issue is how much inflation. If you truly believe we are about to see massive inflation, then put your money where your mouth is and buy gold. It is always the best bet against inflation.

I keep telling that to "US cash should be on the gold standard" people. I say well just invest all your money in gold and stop ranting. Funny how they don't put their money where there mouth is.

Also funny the are not aware we had years of 20% inflation with the gold standard.

All this is BS.
You can call whatever in the heck you want "stimulus".
Boynton Beach, FL does not need a butterfly park.
Take this kind of crap out.
Spend my money on something meaningful.

This editorial has convinced me to go back to the GOP plan of doing absolutely nothing.

hockeyfarker: burndtdan: patrick767: burndtdan
it can be countered by the fed raising interest rates.

Which is an unlikely move when the economy is in the crapper.

but not necessarily afterward. they're going to have to raise rates eventually anyways; they can't really just leave them at nil.

he said, with his fingers crossed and eyes closed.

Spending a trillion dollars that doesn't exist is borrowedwill have consequences. It's amazing that they're being ignored Lenny is so damned good-looking.

FTFY

Shryke: Quick: name a major newspaper that increased circulation in 2008.

USA today!

Bucking the trend: Gannett's (nyse: GCI - news - people ) USA Today, the nation's largest-circulation daily, with average daily circulation of 2,284,219, up 0.27% and The Wall Street Journal, the second-largest daily, which said daily circulation inched up 0.35% to 2,069,463. The Journal was acquired in December by News Corp. (nyse: NWS - news - people ).

"Weekly World News" had a high circulation too at one point, so what's your point?