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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsFear of Froth
Anyway, the passage in question is striking; whatever it says about the Fed succession, it does give us a sense of how the people Obama listens to talk. And its not good:
So, here we are with inflation at a long-term low, many economists arguing that we need higher inflation expectations, and unemployment the overwhelming problem we face. Yet Obama appears if anything to give more emphasis to inflation-fighting than to unemployment reduction, and throws in stuff about bubbles; basically, he has a definite tight-money lean. I dont know who its coming from.
And this has, by the way, been true all along. Back in the fall of 2009 the word I got was that senior Administration officials believed that we were in a Treasury bubble,and that long-term interest rates then around 3.5 percent might soar any day now. This in turn was partly behind the disastrous pivot away from unemployment to deficits.
http://krugman.blogs.nytimes.com/2013/07/29/fear-of-froth/
And what Im looking for is somebody who understands the Fed has a dual mandate, that thats not just lip service; that it is very important to keep inflation in check, to keep our dollar sound, and to ensure stability in the markets. But the idea is not just to promote those things in the abstract. The idea is to promote those things in service of the lives of ordinary Americans getting better.
And when unemployment is still too high, and long-term unemployment is still too high, and theres still weak demand in a lot of industries, I want a Fed chairman that can step back and look at that objectively and say, lets make sure that were growing the economy, but lets also keep an eye on inflation, and if it starts heating up, if the markets start frothing up, lets make sure that were not creating new bubbles.
So, here we are with inflation at a long-term low, many economists arguing that we need higher inflation expectations, and unemployment the overwhelming problem we face. Yet Obama appears if anything to give more emphasis to inflation-fighting than to unemployment reduction, and throws in stuff about bubbles; basically, he has a definite tight-money lean. I dont know who its coming from.
And this has, by the way, been true all along. Back in the fall of 2009 the word I got was that senior Administration officials believed that we were in a Treasury bubble,and that long-term interest rates then around 3.5 percent might soar any day now. This in turn was partly behind the disastrous pivot away from unemployment to deficits.
http://krugman.blogs.nytimes.com/2013/07/29/fear-of-froth/
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Fear of Froth (Original Post)
phantom power
Jul 2013
OP
K&R I can't even bring myself to bother writing about this idiocy any more.
Egalitarian Thug
Jul 2013
#2
snot
(10,530 posts)1. Combine this with
the fact that most of the "stimulus" went to the wealthy, who are still sitting on most of it, rather than to the poor, who would have spent it in ways that might actually have stimulated the economy to the benefit of all . . . . and it's not a pretty picture.
Egalitarian Thug
(12,448 posts)2. K&R I can't even bring myself to bother writing about this idiocy any more.
Just fuck 'em all.
Politicalboi
(15,189 posts)3. And I thought this was about
Rick Santorum.