Comments on: How’s the Fed done in maintaining the purchasing power of the US$? http://www.ritholtz.com/blog/2009/11/hows-the-fed-done-in-maintaining-the-purchasing-power-of-the-us/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Sat, 20 Mar 2010 19:28:15 -0400 http://wordpress.org/?v=2.9.2 hourly 1 By: f16hoser http://www.ritholtz.com/blog/2009/11/hows-the-fed-done-in-maintaining-the-purchasing-power-of-the-us/comment-page-1/#comment-240751 f16hoser Thu, 10 Dec 2009 02:25:06 +0000 http://www.ritholtz.com/blog/2009/11/hows-the-fed-done-in-maintaining-the-purchasing-power-of-the-us/#comment-240751 Basically, we need regulators to regulate the regulators. We should dissolve our Securities and Exchange Commission, Go back 15 years and prosecute all the Commissioners and Enforcement Chiefs since then. That should send a message. It's getting harder and harder to stay optimistic about our financial future.... Basically, we need regulators to regulate the regulators. We should dissolve our Securities and Exchange Commission, Go back 15 years and prosecute all the Commissioners and Enforcement Chiefs since then. That should send a message. It’s getting harder and harder to stay optimistic about our financial future….

]]> By: TaurenHunter http://www.ritholtz.com/blog/2009/11/hows-the-fed-done-in-maintaining-the-purchasing-power-of-the-us/comment-page-1/#comment-235374 TaurenHunter Wed, 18 Nov 2009 03:12:47 +0000 http://www.ritholtz.com/blog/2009/11/hows-the-fed-done-in-maintaining-the-purchasing-power-of-the-us/#comment-235374 Under the Fed, the purchasing power of the dollar fell 91% and its performance is getting exponentially worse in recent decades... Funny that you posted this, Mr. Ritholtz. The other day my comment against Sarbannes-Oxley left you all bent out of shape. I hope today's post has made you rethink your opinion. Maybe someday you will post an article titled "How’s Sarbannes-Oxley done in protecting investors and improving the accuracy and reliability of corporate America?" Under the Fed, the purchasing power of the dollar fell 91% and its performance is getting exponentially worse in recent decades…

Funny that you posted this, Mr. Ritholtz. The other day my comment against Sarbannes-Oxley left you all bent out of shape. I hope today’s post has made you rethink your opinion.

Maybe someday you will post an article titled “How’s Sarbannes-Oxley done in protecting investors and improving the accuracy and reliability of corporate America?”

]]> By: watchman58 http://www.ritholtz.com/blog/2009/11/hows-the-fed-done-in-maintaining-the-purchasing-power-of-the-us/comment-page-1/#comment-235315 watchman58 Tue, 17 Nov 2009 23:35:58 +0000 http://www.ritholtz.com/blog/2009/11/hows-the-fed-done-in-maintaining-the-purchasing-power-of-the-us/#comment-235315 My suggestion is Social Credit. I did a deep study and read all CH Douglas's books and it will work. It would already be in place in Canada if the Elites had not frustrated the government of Alberta in 1935. This will only happen if there is a grass-rtoots movement to spread the word and people who are not too lazy to learn a better way. We're at the junction where Franklin's words are about to be tested, "A people who will not defend their liberty are a people destined to loose it." Here's the big problem though. The system is broken but how do you fix it? Who do you vote for to get the job done Now you know the answer. Check out Wikipedia and find out how the people of Alberta did it in 1935. Watch the movie "Gandhi" and rediscover the power of non-violent protest. There is only 1 bankster/corporate magnate for every 100,000 of us. We just need to know what we want. All most of us know is what we don't want. My suggestion is Social Credit. I did a deep study and read all CH Douglas’s books and it will work. It would already be in place in Canada if the Elites had not frustrated the government of Alberta in 1935. This will only happen if there is a grass-rtoots movement to spread the word and people who are not too lazy to learn a better way. We’re at the junction where Franklin’s words are about to be tested, “A people who will not defend their liberty are a people destined to loose it.” Here’s the big problem though. The system is broken but how do you fix it? Who do you vote for to get the job done Now you know the answer. Check out Wikipedia and find out how the people of Alberta did it in 1935. Watch the movie “Gandhi” and rediscover the power of non-violent protest. There is only 1 bankster/corporate magnate for every 100,000 of us. We just need to know what we want. All most of us know is what we don’t want.

]]> By: RodgerMitchell http://www.ritholtz.com/blog/2009/11/hows-the-fed-done-in-maintaining-the-purchasing-power-of-the-us/comment-page-1/#comment-235292 RodgerMitchell Tue, 17 Nov 2009 22:51:51 +0000 http://www.ritholtz.com/blog/2009/11/hows-the-fed-done-in-maintaining-the-purchasing-power-of-the-us/#comment-235292 The Fed has a target inflation of about 1.5% -2%. With an 81% loss in dollar value over 32 years, something costing $1 in 1971 would cost $5.25 today. That's more than 5% average annual inflation. Why has the Fed missed its target? Three main reasons: 1. Inflation is impossible to measure over the long term. That "basket of identical goods" davossherman suggests is impossible. What goods from 1971 are identical to those in 2009? Virtually none. Even hamburgers are different. All machinery, electronic products, textiles and every sort of equipment you can think of have changed -- mostly improved. 2. The Fed believes a weak dollar stimulates exports. 3. The Fed believes raising interest rates to fight inflation, is bad for business. Number 2 may be true. Number 3 is false. There is no relationship between interest rates and GDP growth. Check the graph at http://rodgermmitchell.wordpress.com/2009/09/09/low-interest-rates-do-not-help-the-economy/ Mr. Hoffer, your question, "How does one have a ‘Free Market’ in an Economy with a monopolized Currency?" is interesting. What do you suggest? Rodger Malcolm Mitchell The Fed has a target inflation of about 1.5% -2%. With an 81% loss in dollar value over 32 years, something costing $1 in 1971 would cost $5.25 today. That’s more than 5% average annual inflation.

Why has the Fed missed its target? Three main reasons:

1. Inflation is impossible to measure over the long term. That “basket of identical goods” davossherman suggests is impossible. What goods from 1971 are identical to those in 2009? Virtually none. Even hamburgers are different. All machinery, electronic products, textiles and every sort of equipment you can think of have changed — mostly improved.

2. The Fed believes a weak dollar stimulates exports.

3. The Fed believes raising interest rates to fight inflation, is bad for business.

Number 2 may be true. Number 3 is false. There is no relationship between interest rates and GDP growth. Check the graph at http://rodgermmitchell.wordpress.com/2009/09/09/low-interest-rates-do-not-help-the-economy/

Mr. Hoffer, your question, “How does one have a ‘Free Market’ in an Economy with a monopolized Currency?” is interesting. What do you suggest?

Rodger Malcolm Mitchell

]]> By: Mark E Hoffer http://www.ritholtz.com/blog/2009/11/hows-the-fed-done-in-maintaining-the-purchasing-power-of-the-us/comment-page-1/#comment-235051 Mark E Hoffer Tue, 17 Nov 2009 11:45:15 +0000 http://www.ritholtz.com/blog/2009/11/hows-the-fed-done-in-maintaining-the-purchasing-power-of-the-us/#comment-235051 Peter, nice article, but BR tells us: "We live in a Free Market"..How does one have a 'Free Market' in an Economy with a monopolized Currency? let alone, one issued by a Private Bank? What gives? also, davossherman, re: CPI, good point. Buy TIPS ! Right? lol.. Moss, you bet, it's, exactly, like that. Peter,

nice article, but BR tells us: “We live in a Free Market”..How does one have a ‘Free Market’ in an Economy with a monopolized Currency? let alone, one issued by a Private Bank?

What gives?

also, davossherman, re: CPI, good point. Buy TIPS ! Right? lol..

Moss,

you bet, it’s, exactly, like that.

]]> By: davossherman@gmail.com http://www.ritholtz.com/blog/2009/11/hows-the-fed-done-in-maintaining-the-purchasing-power-of-the-us/comment-page-1/#comment-235030 davossherman@gmail.com Tue, 17 Nov 2009 04:24:07 +0000 http://www.ritholtz.com/blog/2009/11/hows-the-fed-done-in-maintaining-the-purchasing-power-of-the-us/#comment-235030 I enjoyed this read very much. One thing I would point out is that the way they calculate CPI uses substitution so that basket isn't always matching steak to steak it could be steak in 1989 and beanie weenies in 2009. John Williams over at Shadow Stats keeps his statistics with the baskets of identical goods. Like night and day from what the BLS feeds us. I enjoyed this read very much. One thing I would point out is that the way they calculate CPI uses substitution so that basket isn’t always matching steak to steak it could be steak in 1989 and beanie weenies in 2009.

John Williams over at Shadow Stats keeps his statistics with the baskets of identical goods.

Like night and day from what the BLS feeds us.

]]> By: Moss http://www.ritholtz.com/blog/2009/11/hows-the-fed-done-in-maintaining-the-purchasing-power-of-the-us/comment-page-1/#comment-234978 Moss Mon, 16 Nov 2009 23:14:03 +0000 http://www.ritholtz.com/blog/2009/11/hows-the-fed-done-in-maintaining-the-purchasing-power-of-the-us/#comment-234978 But who prey tell has 'pocketed' the most of the excess dollars? This is the real question and the answer of course is the elites who control the legislative branch of the US government. But who prey tell has ‘pocketed’ the most of the excess dollars? This is the real question and the answer of course is the elites who control the legislative branch of the US government.

]]> By: Pat G. http://www.ritholtz.com/blog/2009/11/hows-the-fed-done-in-maintaining-the-purchasing-power-of-the-us/comment-page-1/#comment-234977 Pat G. Mon, 16 Nov 2009 23:11:15 +0000 http://www.ritholtz.com/blog/2009/11/hows-the-fed-done-in-maintaining-the-purchasing-power-of-the-us/#comment-234977 Yeah, they suck!! Perhaps you should check out this site... http://mwhodges.home.att.net/inflation.htm Yeah, they suck!! Perhaps you should check out this site…

http://mwhodges.home.att.net/inflation.htm

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