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Why does the Federal Reserve aim for inflation of 2 percent over the longer run?
The Federal Open Market Committee (FOMC) judges that inflation of 2 percent over the longer run, as measured by the annual change in the price index for personal consumption expenditures, is most consistent with the Federal Reserve’s mandate for maximum employment and price stability."
ALL of the FED governors have made it clear that WE must have price inflation. "They" inflate the currency / credit supply by about 6% a year to effect 2% price inflation.
Paul Volcker: What’s wrong with the 2 percent inflation target?
"Yellen asked Greenspan: “How do you define price stability? a remarkable consensus has developed among central bankers that there’s a new “red line” for policy: A 2 percent rate of increase in some carefully designed consumer price index is acceptable, even desirable, and at the same time provides a limit."
"I puzzle about the rationale. A 2 percent target, or limit, was not in my textbooks years ago. I know of no theoretical justification"
Volker made it clear. There is no justification for ANY inflation target. He is Presbyterian so, he is odd man out.
https://www.adl.org/resources/backgr...tisemitic-myth
Bloomberg
Inflation Targeting Is a Very Stupid Policy
In trying to increase by a fairly random amount an index of prices that they largely can’t control, central banks couldn’t have done much more harm.
https://www.bloomberg.com/opinion/ar...-stupid-policy
This ALL depends on what side of the fence you are on. Since the bankers produce nothing, they should receive nothing. The 6% currency inflation ( actually credit) creates the required 2% price inflation. Since the new liquidity is channelled to the bankers first, they receive a constant supply of liquidity that they never worked for.
Volker, "The real danger comes from encouraging or inadvertently tolerating rising inflation and its close cousin of extreme speculation and risk taking, in effect standing by while bubbles and excesses threaten financial markets. Ironically, the “easy money,” striving for a “little inflation” as a means of forestalling deflation, could, in the end, be what brings it about.'
Here is a graph of the quantity of money;
https://www.goldmoney.com/images/med.../XAU_PHOTO.png
The upper loop has skimmed off $50 trillion from the lower loop. The lower loop is bust. This enormous rise in the quantity of money is a desperate scheme to stave off deflation.
The credit super-cycle is winding down and, the PTB are trying to stop it.
"A Federal Reserve official’s views on interest rates is determined, for the most part, before they’re 30 years old.
That’s not the exact wording a new study uses but is consistent with the findings — that Fed viewpoints tend to coalesce on age, gender and even religion"
"The study, from Michael Bordo of Rutgers University and Klodiana Istrefi of the Banque de France, examined Federal Open Market Committee members from the 1960s to 2015"
"The current chairman, Jerome Powell, was born during a period of both low unemployment and inflation, has a law degree from Georgetown and is Catholic"
The Federal Open Market Committee (FOMC) judges that inflation of 2 percent over the longer run, as measured by the annual change in the price index for personal consumption expenditures, is most consistent with the Federal Reserve’s mandate for maximum employment and price stability."
ALL of the FED governors have made it clear that WE must have price inflation. "They" inflate the currency / credit supply by about 6% a year to effect 2% price inflation.
Paul Volcker: What’s wrong with the 2 percent inflation target?
"Yellen asked Greenspan: “How do you define price stability? a remarkable consensus has developed among central bankers that there’s a new “red line” for policy: A 2 percent rate of increase in some carefully designed consumer price index is acceptable, even desirable, and at the same time provides a limit."
"I puzzle about the rationale. A 2 percent target, or limit, was not in my textbooks years ago. I know of no theoretical justification"
Volker made it clear. There is no justification for ANY inflation target. He is Presbyterian so, he is odd man out.
https://www.adl.org/resources/backgr...tisemitic-myth
Bloomberg
Inflation Targeting Is a Very Stupid Policy
In trying to increase by a fairly random amount an index of prices that they largely can’t control, central banks couldn’t have done much more harm.
https://www.bloomberg.com/opinion/ar...-stupid-policy
This ALL depends on what side of the fence you are on. Since the bankers produce nothing, they should receive nothing. The 6% currency inflation ( actually credit) creates the required 2% price inflation. Since the new liquidity is channelled to the bankers first, they receive a constant supply of liquidity that they never worked for.
Volker, "The real danger comes from encouraging or inadvertently tolerating rising inflation and its close cousin of extreme speculation and risk taking, in effect standing by while bubbles and excesses threaten financial markets. Ironically, the “easy money,” striving for a “little inflation” as a means of forestalling deflation, could, in the end, be what brings it about.'
Here is a graph of the quantity of money;
https://www.goldmoney.com/images/med.../XAU_PHOTO.png
The upper loop has skimmed off $50 trillion from the lower loop. The lower loop is bust. This enormous rise in the quantity of money is a desperate scheme to stave off deflation.
The credit super-cycle is winding down and, the PTB are trying to stop it.
"A Federal Reserve official’s views on interest rates is determined, for the most part, before they’re 30 years old.
That’s not the exact wording a new study uses but is consistent with the findings — that Fed viewpoints tend to coalesce on age, gender and even religion"
"The study, from Michael Bordo of Rutgers University and Klodiana Istrefi of the Banque de France, examined Federal Open Market Committee members from the 1960s to 2015"
"The current chairman, Jerome Powell, was born during a period of both low unemployment and inflation, has a law degree from Georgetown and is Catholic"
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