Adjustment of View

Why don’t I like the Fed’s use of core Inflation to adjust monetary policy. First of all, I don’t think the Fed should be in the monetary policy implementation business; and if they insist, they should utilize the liquidity issue as a Whole. It is indicative of deceptive Fed policy that they don’t include a scale of core GDP when they discuss core Inflation. Such data would highlight a liquidity deficiency in core Production capitalization; this is not to say that financial instruments don’t have an overabundance of funds because of the Tax Cuts. Inflation in Energy and Food is driven by this extreme liquidity, a Private sector replacement for the Tax Cuts; while basic Business operations are impacted by the full Value of the Inflation, though they must endure restricted finance.

The German economy is much different than the American economy, but the structural problems are much the same. The real difference in economic policy is the German refusal to fuel the economy with Tax Cuts and Give-a-Ways like the American model. Interior EU pressures forestall the German implementation of stimulus programs, while American politicians are unrestricted. We will not be able to discern whether the American stimulus package worked until the new Quarter numbers are in, which is a Statement that Economists will wait to present the bad news until they have to do so. It is sufficient to say that the American economy is only Weeks away from the same economic state as Germany. Both Sides of the Atlantic await with suspense all indications that Germany is facing erosion of their Labor markets.

Two methods to present economic data exist, as Mark Perry indicates. Every item in Mark’s Post is surely accurate, but exterior conditions are left unexplored. Most Eggs in earlier years were not commercially produced, and a significant portion of the Population harvested their own Eggs from their own Poultry, even in the row Housing of Cities. Almost all Goods in his Grocery Bag came in Bulk form, requiring on-site Distribution labor. In any Case, the Food Stores needed were only a fraction of the current nutritional needs of Our population, and advanced Production methods are needed; said Practices representing a replacement of Labor with capitalized Technology. Food prices are getting relatively high under the umbrella of intense technological production. These Price increases are coming from increased Population, and therefore Demand, and inflationary pressures on the Production Costs. lgl