Fed-Head Confirms: We'll Have 0% Rates for YEARS…Here Comes Inflation

According to Glenn Rudebusch, senior vice president at the San Francisco Fed, the Federal Reserve would have to slash the Fed funds rate to a negative 5% by the end of 2009 to create the level of monetary stimulus implied by the Fed’s own economic forecasts.

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And another article...

Inflation Fears

To talk about imminently increasing inflation in the United States today is to meet with policy makers’ derision. The prevailing thinking among mainstream macroeconomists is straightforward on this point — while unemployment is rising, inflation must be low or even falling. If anything, according to Ben Bernanke and his cohorts, we should fear deflation, i.e., falling wages and prices, a damaging characteristic of the Great Depression in the 1930s. But remember, macroeconomic orthodoxy has taken a beating in the past two years. Anyone who claimed subprime mortgages and their ilk could not constitute a macroeconomic threat now has a credibility issue; this includes at least some of our most senior policy thinkers.

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If anything, according to Ben Bernanke and his cohorts, we should fear deflation, i.e., falling wages and prices, a damaging characteristic of the Great Depression in the 1930s.

Excuse me? Excuse me?!

Where does Bernanke get off on this? Does he get a sick pleasure out of spouting such nonsense out of his pie-hole?

I can't believe this guy... His stupidity know no bounds! None! Absolutely ZERO

Yeah...it's coming alright.

I've been hearing that it may be here as soon as fall of this year. It has to happen...whether people want to believe it will or not.

Even if the inflation rate is 10 percent...it would be devastating to the economy. It's the equivalent of taxing 10 percent of everyone's income and wealth. The only way to keep up with that is for everyone to suddenly bring in 10 percent more income to keep up...and I highly doubt that's going to happen. I lost my raises for the year as my company put a pay freeze on us...i suppose I should be thankful that I'm still working though...and haven't had to take a pay cut....but this is the equivalent of a paycut.

People should be warning others about inflation and stock up on canned foods and other items that last a long time to save whatever money they can...and buying seeds wouldn't hurt either..just in case.

This is what government and the fed has done to us.

Sucked us dry.

reply to post by Tentickles

...to a conference honoring the legacy of economist Milton Friedman, Bernanke said of the relationship between the Great Depression and the Fed: "We did it. We're very sorry" and "we won't do it again.

blogs.wsj.com...





[edit on 28-5-2009 by warrenb]

reply to post by warrenb


*takes out ceremonial dagger, lays down, stabs self, dies, comes back as ghost*

We wont do it again my see-thru ass.

As long as the fed exists we will have inflation. These people don't have enough discipline to turn off the printing press. We need to take it away from them, they have shown this time and time again. Just hope the economy is not so screwed up from all this mismanagement that we end up with stagflation.

[edit on 28-5-2009 by miraclerock]

Inflation will be the least of our worries.

As an economy based on industrializing debt we will, and are, experiencing a lack of outside interest.

It is no different then our automakers scratching their collective heads wondering why we or the world will not buy cars that are not even fit for rentals.

Treasury and bond rates will soar in an attempt to sucker in whomever may be left to purchase them. Albeit this well has been almost tapped.

With no new suckers buying debt from us we will collapse MUCH faster then a skyrocketing inflation rate. Although the two go hand in hand. Instead of "monetizing" debt it will not be hedged by outside infusions.

In short the Dollar is not going to survive this. Maybe this was planned, maybe this was an unforeseen consequence, but regardless the USD WILL fail.