Former Fed Chair Volcker..."You don't have to predict a dollar crisis, you're in it."

[roamer65]

http://www.bloomberg.com/apps/news?pid=20601110&sid=aCGyDXfClFvI

Not a big fan of his 21% interest rates from the early 1980's, but he's dead on right now.

[Zynx]

1. The 21% interest rates were the right policy to deal with 13% inflation.

A necessary evil.

[soothsayer]

2. Well, inflation has been at about 20% or higher the last couple of years

so why are interest rates so crazy low?

[Zynx]

3. Some parts of inflation have been. Not inflation in general.

[nadinbrzezinski]

4. You are right, that is why we count Jets and luxury boats in the data

but not milk

My hubby will be glad to know we're NOT in the market for a million dollar boat, after all that one will not go up that much

But milk... ooih boy

By the way these volatile elements once WERE part of the inflation numbers. They no longer are.

Coincidence, I think not.

[Yavin4]

5. Those Parts Being Housing, Healthcare. Energy. Education, and Food

The insignificant parts. The Fed is nothing more than the economic arm of the GOP. They lower interest rates to support Republican presidents, and they raise them under a Dem.

If Obama is elected president, the Fed will re-discover inflation and raise interests rates to 22%.