wrote in message
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On Fri, 09 Jul 2010 11:06:07 -0500, Jim wrote:

No, not "sure." Inflation is not a tax on the thrifty in a "normal"
economy. Coca-cola going from 5 cents 50 cents hasn't hurt anybody.
There has "always" been inflation. Wages and cost of goods have
"always" inflated. Market forces maintain an equilibrium.
Ordinarily interest gained on savings beat inflation by a couple points.
And fixed income instruments are tied to interest rates.

Maybe

No. Mostly just untrue. Deflation is a threat that's greater in some
respects to inflation (not hyper-inflation of course).

Social security has COLA.

Not this year and the future is uncertain. We could even see a
reduction in SS payments.

That's not saying much... sure, the future is uncertain.


Virtually zero interest rates and zero inflation are unnatural.
The only reason they exist is the Fed manipulation of money supply.
That is done so money is shoveled into Wall Street, which is where the
Fed manipulators come from and who they cater to.
With zero interest on savings, savings is discouraged.

The zero interest rate the fed has is just another debt.
It is simply a price we will be paying later when they can no longer
manipulate the interest rates because the people who buy our bonds
demand more return for their risk.

The Fed always manipulates rates... this ensures stability, which is why
they're around.

wrote in message
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On Fri, 9 Jul 2010 11:43:34 -0700, "nom=de=plume"
wrote:

Ordinarily interest gained on savings beat inflation by a couple points.
And fixed income instruments are tied to interest rates.

Maybe

No. Mostly just untrue. Deflation is a threat that's greater in some
respects to inflation (not hyper-inflation of course).


There is no guarantee that investment interest beats inflation. In
fact over my lifetime I have lived through several periods when
inflation outraced investment by huge numbers. (Think Carter)

Not sure of your point. Yes, you're right. What's that got to do with
deflation?


The zero interest rate the fed has is just another debt.
It is simply a price we will be paying later when they can no longer
manipulate the interest rates because the people who buy our bonds
demand more return for their risk.

The Fed always manipulates rates... this ensures stability, which is why
they're around.



It works as long as people continue to buy our bonds at an interest
rate we can afford. The future of that is uncertain too.

Well, yeah, the future is uncertain. That's not going to change. You can
base your life around fear and live in a hole in the ground or you can plan
for the worst and expect better.

wrote in message
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On Fri, 9 Jul 2010 15:01:07 -0700, "nom=de=plume"
wrote:

It works as long as people continue to buy our bonds at an interest
rate we can afford. The future of that is uncertain too.

Well, yeah, the future is uncertain. That's not going to change. You can
base your life around fear and live in a hole in the ground or you can
plan
for the worst and expect better.


I am certainly a lot more concerned about the economy than I am about
global warming.

Unfortunately, they are tightly related and will be even more so in the
future.

wrote in message
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On Fri, 9 Jul 2010 20:49:50 -0700, "nom=de=plume"
wrote:

I am certainly a lot more concerned about the economy than I am about
global warming.

Unfortunately, they are tightly related and will be even more so in the
future.

I agree, the carbon tax, if enacted, will crush any chance of a
recovery.

That's certainly unlikely. Again, a right-wing talking point. We generally
have a progressive tax policy. There's no reason to think that it would be
different here.