huge amount of inflation - you just haven't noticed it

So there was excessive credit in the market and the Fed just made all that excessive credit to continue...

Doesn't sound like the best thing for the economy... but that's just my subjective observation.

 

Well, I have noticed a great deal of inflation--primarily in the grocery store. The thing is, that because of housing prices going down, the calculated inflation rate has gone down. That doesn't help me, because my housing prices are steady, so my household has high inflation.

 

there was excessive credit in the housing market that led to bubble and bust. Today, thanks to Fed correctives housing market is back although not where it was in 2007 and credit is given much more selectively making a repeat of 2007 impossible.

 

And you think that is a good thing?

 

of course healthy housing market it is a good thing. Do you want housing market back in the collapse phase?????

 

Based upon the Coefficient of Absorption, I estimated that the global economy could absorb $9 TRILLION to $13 TRILLION before Monetary Inflation became a problem.

Monetary Inflation for Zimbabwe, Venezuela et al is based upon they ratio of currency to GDP, but for the US it is is based on the ratio of currency to US GDP, plus every US Dollar-denominated transaction globally.

A barrel of oil from Saudi Arabia sold in US Dollars is just as though that barrel of oil were produced in the US, as an example.

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Then most likely that has to do with Demand-pull Inflation, Cost-push Inflation or Wage Inflation, and the Federal Reserve is not responsible for the increase in prices.

 

because the money is not actually in circulation. Who really wants to loan and borrow in a socialist economy??

 

Maybe you should take a look at this article:
http://www.theguardian.com/commentisfree/2016/apr/12/house-prices-money-cheap-debt-planning

Trying to "prop up" the housing market has essentially priced out the younger generation from being able to afford a home.

Lending out more money into the economy has only driven prices up.

 

how is that possible when Fed mandate is no inflation???? and we have virtually no inflation?

 

Let me rephrase... Lending out money into the economy has kept home prices from going down, even though everything else was declining (i.e. people's wages).

Not a good thing.

 

of course absurd since if wages really went down people could not afford homes. If you want to know whats wrong with economy why not ask rather than make wild guesses yourself??

 

You know, I do wonder whether the US dollar could be vastly overvalued, because what's going to happen if or when all these other countries begin dumping their US dollar reserves back into the US economy?

When I say overvalued, I mean if we look at the fundamentals, the actual worth of the Reserve Assets on the Fed's balance sheet divided by the amount of Federal Reserve Bank notes (i.e. dollars) that are outstanding (in circulation).
And also calculating the total value of economic activity which is being taxed (yes, it is a little bit complicated).

 

absurd:

1) there is no reason to think they will begin dumping

2) if they did it would make their currency worthless so they won't do it.

next???

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especially when you skipped Econ 101 but want to act like you didn't!!! Grow up.

 

And that's what's been happening.

 

What most people don’t realize is that when the Fed keeps interest rates low it is not doing any buyer any favors because low interest rates drives price up artificially. So when interest rates go up you end up owning an overpriced property that you won’t get your price or appreciation when you try to sell years later. Just because interest rates are low doesn't mean it's not a bad time to buy.

 

This was a post someone left on another site:

Mr Jones
February 7, 2014
[HR][/HR]
Overpriced housing is not only problematic for young Americans….it’s KILLING our economy as well. Americans are leveraged soooo much for over-priced housing or are paying HUGE rents and have no money left over to support the consumer economy.
Fake housing inflation is ruining our economy.

How is the Fed propping up the Housing markets? Do I really need to answer that? Deflate interest rates and inflate housing prices. It’s a simple formula. The Fed became THE market and is financing over priced housing in hopes of keeping it overpriced, to save the banks.

But we will never have any REAL recovery until we allow interest rates to rise, until we allow defaults and bankruptcies to run wild and destroy all debt, destroy over leveraged and indebted companies and individuals.

Time to wake up.
Housing demand has been crashed and Mortgage Interest rates is at what….4.35%.
Homes are overpriced everywhere so that Americans can’t even afford mortgage rates of 4.35%. How will they afford to buy when rates go over 5%, 6%?????
Home prices need to be cut in half, that’s how.

Look at the jobs number that came out today. What a joke.
[HR][/HR]
http://www.doctorhousingbubble.com/broke-young-and-unable-to-afford-a-home/

 

who wants to borrow when republicans are trying to make it a 3rd world economy?

Trump is the only republican that gets it, the establishment republicans don't

.

 

Actually, Republicans are for capitalism because capitalism makes us rich. Remember how 120 million slowly starved to death under communism in USSR Red China. Remember East/West Germany? Remember Cuba/FLA? 1+1=2

 

actually we badly need a Nazi/liberal central govt to cut all prices in half and to double all wages!!

 

Relax Ted. He didn't mean the government should cut prices in half, that much should have been obvious. The issue is, if you had bothered to pay any attention to this thread, is that the Fed is intentionally trying to keep prices up. If the Fed just stepped out of the way and stopped trying to mess with the economy, housing prices would go down on their own. That's what this post was actually saying, that housing prices going down would be a good thing (and I agree). But many people don't think so.

 

China, Japan and South Korea have been holding talks since 2009 for a unified Asian currency. When they finally come to an agreement, they'll begin dumping US Dollars.

On what basis do you make that claim?

The value of currencies on the global market is based in part on Supply & Demand. You might want to look at the history of the Euro versus the US Dollar.

 

totally illiterate:
1) there are no serious currency talks going on
2) if they dumped dollars on market they would be worthless so there is no chance they would do it(supply and demand)
3) recent huge problems with Euro make asian curriency even more impossible!!

 

As an "economic scientist," you must have some training in higher level mathematics. What areas of math are you familiar with? (keep in mind that bookkeeping is not "advanced math")

Also, what do you know about FRB/US? I imagine that an economic scientist like yourself would have a very deep understanding of the Fed's macroeconomic model.