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joether -> RE: Health Care? (11/8/2010 10:11:26 AM)
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ORIGINAL: pahunkboy
quote:
ORIGINAL: Musicmystery
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They cant do that. There is no core inflation. Not officially.
Of course they can. One has nothing to do with the other.
AFTER they do, it's a factor.
Then that would render them part of the problem, not the solution.
The FED says there is no inflation. People and businesses have plans based on what the fed says.
Really? Common people have plans based on what the Fed says? If that were even remotely true, the country would not be in a recession, nor would have there have been a push to put American Recovery and Reinvestment Act of 2009 in to effect. Nor do common people have a plan if deflation occurs. Most Americans, before 2006, gave a small percentage to savings based on their paychecks. The amount of money owed on different forms of credit (i.e. credit cards) was staggeringly high. Your going to convince me, that common people, have plans in place in the event of a deflation or inflation of U.S. Dollars (USD)?
Most business, likewise, do not have such a plan in place. Why would a plumbing company that makes less then $220,000 a year, have a real workable plan in place, if inflation or deflation starts happening? The only folks that you could argue to have such a plan, would be from the financial industry. Accountants, CFPs, Brokers, and more, would be more likely to understand and pay attention to changes in the direction and speed of that direction, of USD.
There is no inflation, pahunkboy. At least not yet. Barring great disasters, I do not see inflation or deflation as the problem. As the economy grows, inflation will rise in tiny amounts. Will it be noticable by the common purchaser of milk and cereal at the store? Not really. The ones that will, are the folks that exchange multiple millions of dollars a day. Just a 1% change can cost a brokerage firm a small fortune. Should we pay attention to it? Of course, and we always will.
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