Krugman- Not Enough Inflation......

[MMC]

No, the real reason the attacks on Mr. Bernanke from the right are so destructive is that they’re an effort to bully the Fed into doing exactly the wrong thing. The attackers want the Fed to slam on the brakes when it should be stepping on the gas; they want the Fed to choke off recovery when it should be doing much more to accelerate recovery. Fundamentally, the right wants the Fed to obsess over inflation, when the truth is that we’d be better off if the Fed paid less attention to inflation and more attention to unemployment. Indeed, a bit more inflation would be a good thing, not a bad thing.

First, about inflation obsession: For at least three years, right-wing economists, pundits and politicians have been warning that runaway inflation is just around the corner, and they keep being wrong. Do you remember the tirades about “debasing the dollar” around this time last year? Do you remember the scorn heaped on Mr. Bernanke last spring when he argued that the bulge in inflation taking place at the time was just a temporary blip caused by gasoline prices and would soon recede? Well, he was right. At this point, inflation is once again running a bit below the Fed’s self-declared target of 2 percent.

True, Mr. Bernanke likes to insist that he and his colleagues aren’t affected by politics. But that claim is hard to square with the Fed’s actions, or rather lack of action. As many observers have noted, the Fed’s own forecasts indicate that while things have been looking up a bit lately, it still expects low inflation and high unemployment for years to come. Given that prospect, more of the “quantitative easing” that is now the main tool of Fed policy should be a no-brainer. Yet the recently released minutes from a March 13 meeting show a Fed inclined to do nothing unless things take a turn for the worse.....snip~

http://www.nytimes.com/2012/04/06/opinion/krugman-not-enough-inflation.html?_r=3

Looks Like Now Krugman gets that point on inflation. Day late and a dollor short brutha. Yet this douche-bag wants more Quantative Easing. Can you believe it.....More QE? Spend spend spend. Krugman has lost his head. He is to busy worried about getting aatcks off on those from the right. They should drop him from the NY Times. He is not concenered about economics anymore. It's all about his loyalty to those on the left. Thoughts?

[keyser soze]

He's been right so far...have you read The Shock Doctrine? Here's some video....this is what's being done here and around the world...it doesn't benefit the people.

If you watch on youtube you can see there are 6 parts, each numbered in the right hand margin.


http://www.youtube.com/watch?v=Ka3Pb_StJn4

[Mister D]

"The people". lol

[keyser soze]

We're a democracy, like it or not.

[MMC]

Hes been right about what? Nothing but how much more everything is costing people. Krugman is nothing more than a left-wing liberal that thinks spending is the way to get out of debt. Now he just rails at what he calls economists on the right. Even if they are independant.

This guy is like the type to tell you to use your credit card to pay your bills. While adding all that interest to it. Hey the bill gets paid.....huh? Yet it didn't get rid of the debt now did it. Just added more to it. Pay more than one should. Is that how people want to defend Keyensian Economics?

[keyser soze]

He's more than that but you'd never recognize it. Have a nice day....

[MMC]

He's more than that but you'd never recognize it. Have a nice day....


I don't need to recognize anything but the basics. But then again being a supporter of the DNC and throwing out those 2500 dollar checks to people does kinda put him in a certain perception.....huh? He must of forgot what John Kennedy Said. Oh, and you have a nice day to.

I got the sun out shining by me and and its going to be 65-70 degrees. That helps! :wink:

[Peter1469]

Krugman is a bucket carrier for the DNC. He has stopped writing about real economics a long time ago. He does manage to write two articles a year that I agree with.

[waltky]

U.S. data point to strong domestic demand, stirring inflation...
http://www.politicalforum.com/images/smilies/icon_omg.gif
U.S. retail sales point to strong domestic demand
June 14, 2016 - U.S. retail sales rose strongly in May as Americans bought automobiles and a range of other goods, even as they paid more for gasoline, suggesting that economic growth was gaining steam despite a sharp slowdown in job creation.


Other data on Tuesday hinted at a steady build-up of inflation pressures, with import prices recording their largest increase in just over four years in May as the drag from a strong dollar and lower oil prices fades. "As has been the case in the prior two years, the modest first-quarter disappointment in consumer spending now appears to be a short-lived soft patch," said Michael Feroli, an economist at JPMorgan in New York. "This number also lends credence to the idea that the big miss on May payrolls may have been sending an overly pessimistic signal on growth."

The Commerce Department said retail sales increased 0.5 percent last month after surging by an unrevised 1.3 percent in April. The second straight month of gains boosted sales 2.5 percent from a year ago. Excluding automobiles, gasoline, building materials and food services, retail sales rose a solid 0.4 percent last month after an upwardly revised 1.0 percent increase in April. These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product. They were previously reported to have risen 0.9 percent in April. Economists had forecast both overall retail and core sales gaining 0.3 percent last month.


https://www.yahoo.com/sy/ny/api/res/1.2/SxujaqXo9J7C2TnYkeV_jQ--/YXBwaWQ9aGlnaGxhbmRlcjtzbT0xO3c9NDUwO2g9MzAwO2lsPX BsYW5l/http://media.zenfs.com/en_us/News/Reuters/2016-06-14T125317Z_2_LYNXNPEC5D0RG_RTROPTP_2_USA-DAILYLIFE.JPG.cf.jpg
A woman carries shopping bags while walking in lower Manhattan borough of New York City

In a separate report, the Labor Department said import prices increased 1.4 percent last month, the largest rise since March 2012, after advancing 0.7 percent in April. In the 12 months through May, import prices fell 5.0 percent, the smallest decline since November 2014. The dollar's surge and a plunge in oil prices between June 2014 and December 2015 had dampened inflation. But with the dollar weakening 1.5 percent against the currencies of the United States' main trading partners this year and oil prices near $50 per barrel, that drag is starting to lift. The signs of fairly healthy domestic demand and rising imported inflation will likely be welcomed by officials at the Federal Reserve, who convene for a two-day meeting starting on Tuesday.

While May's weak employment report has all but ruled out an interest rate increase at this meeting, the steady flow of upbeat economic reports keeps a hike in July on the table. The economy added only 38,000 jobs in May, the smallest gain since September 2010. "This won't spur the Fed to raise interest rates tomorrow, but it could cast a more positive tone on the statement... setting the stage for an increase in July," said Sal Guatieri, a senior economist at BMO Capital Markets in Toronto. The dollar rose against a basket of currencies, while U.S. stocks fell. Prices for U.S. government debt rose marginally.

STRONG CONSUMER SPENDING EYED (https://www.yahoo.com/news/may-retail-sales-beat-expectations-point-strong-demand-124605955--business.html?ref=gs)

[MisterVeritis]

We're a democracy, like it or not.
Really? What country?

[Common]

Man were digging up some old threads

[waltky]

Consumer prices rose more than expected in August...
http://www.politicalforum.com/images/smilies/confused.gif
U.S. inflation stirring as healthcare, housing costs surge
Fri Sep 16, 2016 | WASHINGTON - U.S. consumer prices rose more than expected in August as healthcare costs recorded their biggest gain in 32-1/2 years, pointing to a steady build-up of inflation that could allow the Federal Reserve to raise interest rates this year.


The cost of living last month was also pushed up by sustained increases in rents. The uptick in inflation is likely to be welcomed by Fed officials when they gather next week to deliberate on monetary policy, though a rate hike is not expected at that meeting. "The economy may not be firing on all cylinders, but growth is enough to spark a little more inflation than we thought. The Fed decision is going down to the wire," said Chris Rupkey," chief economist at MUFG Union Bank in New York.

The Labor Department said on Friday its Consumer Price Index increased 0.2 percent last month after being unchanged in July. In the 12 months through August, the CPI increased 1.1 percent after advancing 0.8 percent in the year through July. The so-called core CPI, which strips out food and energy costs, rose 0.3 percent last month, the biggest increase since February, after gaining 0.1 percent in July. Economists had forecast the CPI nudging up 0.1 percent last month and the core CPI gaining 0.2 percent. The core CPI increased 2.3 percent in the 12 months through August after rising 2.2 percent in the year through July.

The dollar rallied against a basket of currencies on the data, while prices for U.S. Treasuries were mixed. U.S. stocks were trading lower, with sentiment also hurt by declining oil prices and the U.S. Justice Department's demand for $14 billion from Deutsche Bank to settle claims related to sales of mortgage-backed securities. The Fed is expected to leave interest rates unchanged next week against the backdrop of a raft of disappointing economic reports for August, including weak retail sales and industrial production as well as a slowdown in job growth.

A separate report on Friday, however, showed consumer sentiment was steady in early September, suggesting retail sales could rebound in the coming months. The U.S. central bank has a 2 percent inflation target and tracks an inflation measure that has been stuck at 1.6 percent since March. Fed Governor Lael Brainard said on Monday she wanted to see stronger consumer spending data and signs of rising inflation before hiking rates.

'DARK CLOUD' (http://www.reuters.com/article/us-usa-economy-idUSKCN11M193)

[Peter1469]

This was a rare time when Krugman was correct.

[waltky]

The flip side of the rise of the stock market...
http://www.politicalwrinkles.com/images/smilies/eek.gif
Food prices surge in July; UN agriculture agency cites cereals, sugar and dairy as main drivers
Friday 4th August, 2017 -- Driven mainly by higher cereal, sugar and dairy quotations, global food prices rose for the third consecutive month in July, according to the United Nations agriculture agency.


"The FAO [Food and Agriculture Organization] Food Price Index ["] averaged 179.1 points in July, its highest value since January 2015, marking a 2.3 per cent increase from June 2017 and 10.2 per cent rise from its level a year earlier," FAO said in a press statement. Firmer wheat and rice quotations have supported a rise in the FAO Cereal Price Index, which, up 5.1 percent in July, has been surging consistently over the past three months. "Wheat values rose the most in July, as continued hot and dry weather conditions hampered spring wheat crops in North America, while seasonal tightness pushed up rice prices," FAO explained. "On the other hand, maize prices remained largely steady," it added.


At the same time, the FAO Dairy Price Index gained 3.6 per cent in July, in what the UN agriculture agency says was underpinned by stronger prices of butter, cheese and whole milk powder. "Tighter export availabilities pushed butter prices to a new high in July, widening further the spread between butter quotations and other dairy products," the statement continued.



http://cdn.bignewsnetwork.com/un-1501773663.jpg


Although the FAO Sugar Price Index rose by 5.2 per cent in July, it was the first monthly increase since the beginning of the year. "The strong appreciation of the Brazilian real was the main driver behind this rebound in sugar values. Despite the latest increase, sugar prices remain 26 per cent below the corresponding period last year," FAO maintained. Meanwhile, the FAO Vegetable Oil Price Index fell 1.1 per cent from June to its lowest level since August 2016. "The July slide primarily reflected good production prospects for palm oil in Southeast Asia and weak global import demand," according the statement.


Finally, the UN agricultural agency pointed to a steady FAO Meat Price Index, concluding "an increase in international prices for bovine meat in July was offset by downward price movements in bovine, pig and poultry sectors." The FAO Food Price Index is a monthly measure of trade-weighted, index tracking international market prices of five major food commodity groups.


http://www.bignewsnetwork.com/news/254217380/food-prices-surge-in-july-un-agriculture-agency-cites-cereals-sugar-and-dairy-as-main-drivers