About Fed's Printing Policy

Alchemist

Printing money means weak $$$ and probable inflation in the future, yet there's no way left for Fed but to do it.
The point is, when to stop and unwind? Here's my 2 cents.

(1) Bad inflation is not likely to happen in the near term, e.g., in the year 2010;
if it happens right after that, it would be a disaster for the presidential election, that's political suicide.

(2) Weak dollar make import more expensive, this is more serious for oil.
High oil price would choke off the economy, esp. while considering 2/3 of the economy is based on consuming.

So there must be a limit of the printing policy, the problem is where it is?
I feel recently that the oil price is controlled around or under $80/barrel.

As a frog, it's very possible that I am wrong at the price, but I think it's worth to note.

dara

basically right now FED/government is looking for a balance.

Still printing money to stimulate econ but hold inflation.

If inflation really goes out of control, it is not good for most of those oil countries either.

Diver

I guess they will keep printing $$$ until the end of Obama's presidency.

Although they wish the inflation and oil price would be under control, however, they will go out of control eventually.

Printing money means weak $$$ and probable inflation in the future, yet there's no way left for Fed but to do it.
The point is, when to stop and unwind? Here's my 2 cents.

(1) Bad inflation is not ...
Alchemist 发表于 2009-11-16 18:27

kosh

If the now cheap import will become too expensive one day due to weak dollars, hopefully it will motivate manufacturing in the US? That'll take a long time though and many could be really messed up.

It is strange that with a consuming-based economy, after shifting manufactures to foreign countries, US now wants the exchange rate favoring a weak dollar. Wouldn't that be like choking itself? What will be next?

coexist

oil price is usually weak during year-end period.

hbw

油价被控，美元的指引目前就靠黄金了。

busywind

ding

X!nG

All i want to say is this:

people should be more concerned about deflation instead of possible inflation down the road...