tag:blogger.com,1999:blog-3758330678390419129.post6584969675702963719..comments2024-02-13T02:39:22.756-05:00Comments on EconomicPolicyJournal.com: The Phony Inflation-Deflation DebateRobert Wenzelhttp://www.blogger.com/profile/14296920597416905488noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-3758330678390419129.post-35561842477966151322010-08-21T02:57:18.306-04:002010-08-21T02:57:18.306-04:00I agree that the Fed controls inflation/deflation....I agree that the Fed controls inflation/deflation. However, there really does seem to be a 38 year cycle at work too:<br /><br />http://pair.offshore.ai/38yearcycle/Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-11473323943444330362010-08-20T23:41:59.166-04:002010-08-20T23:41:59.166-04:00Japan has been waiting for a "Hail Mary"...Japan has been waiting for a "Hail Mary" pass for a couple of decades. You can grow old and die (as many have) waiting for the great hyperinflation.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-24529020287025260432010-08-20T17:13:45.370-04:002010-08-20T17:13:45.370-04:00As I understand it, we are already in a deflationa...As I understand it, we are already in a deflationary environment. Trillions in assets have already been destroyed (along with the underlying credit) and trillions more are in serious danger of being destroyed. The FED can change some policies and money will rapidly flood the market, encouraging more malinvestment in "quick sale" long-term toxic assets. This "boom" will be Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-84993664051955243802010-08-20T14:03:01.472-04:002010-08-20T14:03:01.472-04:00Anonymous because they know that if they abuse the...Anonymous because they know that if they abuse the currency too much they can hyper-inflate. They are scared of that so they try to be prudent.<br /><br />But theoretically the Fed can end price deflation any time it wants. In reality, the Fed knows price deflation is what the system needs to regenerate itself. But it wants to go through the deflationary process keeping the banks and government Hugonoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-36538603598801219432010-08-20T11:12:11.462-04:002010-08-20T11:12:11.462-04:00So why can't Japan inflate itself out of its t...So why can't Japan inflate itself out of its ten year deflationary doldrum? The fed cannot make anyone borrow. For the US to issue more T-bonds to sell to the fed requires Congress to raise the debt limit. The American public, it seems to me, is about ready to vote out of office any politician who advocates more federal debt. Greece is falling into thierd world status yet alt politicans inAnonymousnoreply@blogger.com