Inflation Is The One Promise Central Banks Can Deliver Ep 76

Published: April 22, 2015, 1:15 p.m.


\n\t* Markets have been volatile but economic data still looking bad
\n\t* Chicago Fed National Activity Index: contrary to expectations, came in at -.42 in addition a downward correction for last week to a 2-year low
\n\t* Weekly Redbook Same Store Sales Survey down to lowest annual increase in 4 years with a dramatic rate of decline in recent months
\n\t* Implausible excuses, such as the weather or the timing of Easter, attempt to mask the fact that the economy is just weak
\n\t* Oil prices moved above $57, forming a sizable W-bottom
\n\t* Canadian dollar up about 5%
\n\t* Canadian inflation, especially food prices up
\n\t* This signals the end of rate-cutting cycle in Canada
\n\t* Central banks around the world are going to have to dial back on their cheap money policies
\n\t* The "Threat of Deflation" will be in the rear view mirror
\n\t* Central banks may like high prices, but consumers don't
\n\t* President of the Federal Reserve Bank of Boston Eric Rosengren stated our 2% inflation goal is "too low"
\n\t* He thinks higher inflation allows for more growth, and allows interest rates to remain low
\n\t* Cheap money does not create economic growth and doesn't create employment - it undermines both
\n\t* Cheap money applied to a slower economy creates a vicious cycle
\n\t* A weakening dollar will put upward pressure on already rising consumer prices
\n\t* The Fed is hinting at a higher inflation goal
\n\t* The problem is we can't do anything about our inflation because our debt is out of control
\n\t* Fiscally solvent countries are able to raise rates and still service their debt
\n\t* All the U.S. can do is "talk tough"
\n\t* If they had a "Hall of Economists" in Disneyland, the Keynesians would have to be in Fantasyland
\n\t* Paul Krugman's Keynesian experiment is blowing up the U.S. economy
\n\t* Everybody will figure it out before Paul Krugman does
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