Low Inflation…Apparently Is A Bad Thing? According to the headline in my local paper;
The headline is a link to the full article, but here are a few “precious” quotes from the article…Sorry to Adam Smith;
“what the global economy could use right now is a dose of higher prices.” [perhaps the authors have not ridden to the gas pumps or shopped at the grocery store lately]
The front page of my paper offered a story this morning. It was, again, front page, above the fold. I was relieved to learn that;
Whew. As a father of two in college I feel a lot better as I would like to retire in seven years, but probably cannot for anther ten at least as of right now. Of course Sallie Mae is not a parent, but the comments were made on behalf of the student lender through Sarah Ducich, Sallie Mae’s senior vice president for public policy. Sallie Mae makes an interesting argument, but I don’t agree with the way the concept is framed, hence this post. As I do in “Phraseology” here are some key phrases from the original article which is linked if you click on the article title;
It seems like just yesterday that I wrote about how Obama’s Administration and Czars are prodding us back to living like the early days of our nation. Actually that is not true they are prodding us to become like some small European nation even though our country is more vast and our populations are more spread out. Our slow decline into European living took another step today as American Electric Power (“AEP”) announced that in order to comply with EPA emissions standards they will be shutting down five power stations and spending up to $8 billion to upgrade some remaining plants.
A little over two weeks ago I wrote, excitedly, about a potential Republican candidate for president in 2012. Jon Huntsman had resigned as Ambassador to China and started an exploratory committee to seek the GOP nomination. Huntsman seems to have the right credentials for a Republican nod, but a few on the right are already criticizing both his cozy ties with Obama and China. I have pretty much given up on having another Ronald Reagan at the helm of the Republican Party and because I live in Pennsylvania with its late primary election date, the candidates are usually chosen. Huntsman or perhaps more for me his father seemed a likely middle ground.
Silver and gold, silver and gold
Ev’ryone wishes for silver and gold
How do you measure its worth?
Just by the pleasure it gives here on earth
Actually according to economist Milton Friedman a lot of people wished for silver and gold as a monetary standard (bimetallism), but the gold standard was slowly and steadily adopted by the world. That is before “fiat” money (currency not backed by a commodity like gold or silver) became the rage and allowing governments to crank up the presses. These are my words not Friedman’s.
No this is not a post about the American peoples’ rejection of Obama/Pelosi/Reid/Washington politics. Many others are having fun welcoming the Republican wave that swept away many notable Democrats…though not nearly enough. Jerry Brown as governor? California you have got to be kidding me. I am holding in a wait-and-see position having been sorely disappointed by Republicans far too many times.
Unbeknownst to many Americans the Federal Reserve (The Fed) had scheduled a meeting today to decide future monetary policy. I find it interesting that they chose the day after a hotly contest mid-term election to meet and announce their policies. The centerpiece of their plan is Quantitative Easing 2 (“QE2”). The Wall Street Journal describes QE2 as: