Mr Bernanke how does Inflation work with the new global market?

[LostCat]

Mr Bernanke, I have one question for you. How does the us economy work when the dollar weakens in this new global economy where American’s don’t buy anything made in the USA?

Logically it seems this would be the scenario:

The US Dollar is declining at a very alarming rate. The Euro, the pound and even the Canadian dollar are worth more than the USA Dollar. I am not sure what other currencies are making ground? Mexico’s peso (nothing against Mexico)?

So about 30 years ago, the majority of USA goods were produced, developed and manufactured here in the states. When the dollar dumped and the outside world become too expensive for us, only good came from it. We continued to buy our own oil, our own cars, our own produced clothing and our own home grown food. Countries outside the USA started to purchase our well made, top of the line products. The cost to buy a car wasn’t any more than any other time. With inflation, prices went up, but so did pay checks. So really, things, like housing, which were at that time a fixed cost, actually were easier to pay for.

Now, the USA is significantly dependent on foreign resource. Everything from our Autos, clothing (China), food (south America), etc. is purchased over seas. The Fed continues to print more money, which is causing our dollar to become worth less internationally. Normally in this situation, it would seem to me, this would be considered inflation, unfortunately because our dependence on foreign goods, it feels more like stagnation. Our dollar is becoming worth less, the Fed is printing more off it, I am not seeing anymore of it in my paycheck, and everything from cars to Wal-Mart T_shirts are costing me more and more. How can this be called inflation? Wasn’t the last time something like this happened, it was called the great depression?

I am not saying it is upon us, but the future doesn’t look to great for us here. Mr. Bernanke, can you please explain what the hell you are doing and why Mr Bush has spent so much on an endless war when our domestic infrastructure and services are falling apart (aka Fema and New Orleans)?

The world has caught up with America. We are no longer in first place. And falling fast.

[bsrsharma]

No sense in blaming BB for America’s problem. Inflation is the language rest of the world is using to tell us to produce more, consume less and save more. Inflation will end up causing that – trade deficits are already coming down as people consume less. Now, savings rate will increase as economic uncertainity rises.

[bsrsharma]

No sense in blaming BB for America’s problem. Inflation is the language rest of the world is using to tell us to produce more, consume less and save more. Inflation will end up causing that – trade deficits are already coming down as people consume less. Now, savings rate will increase as economic uncertainity rises.

[bsrsharma]

No sense in blaming BB for America’s problem. Inflation is the language rest of the world is using to tell us to produce more, consume less and save more. Inflation will end up causing that – trade deficits are already coming down as people consume less. Now, savings rate will increase as economic uncertainity rises.

[bsrsharma]

No sense in blaming BB for America’s problem. Inflation is the language rest of the world is using to tell us to produce more, consume less and save more. Inflation will end up causing that – trade deficits are already coming down as people consume less. Now, savings rate will increase as economic uncertainity rises.

[kewp]

Inflation is the language rest of the world is using to tell us to produce more, consume less and save more.

Exactly.

Americans are over-consumers. They shove their obese butts in a SUV, drive down to Frys to buy a high-def TV & PS3 (on credit), stopping at Wendy’s for a biggie-size fries and shake on the way home.

Can’t say I’ll shed a tear to see that era come to end.

(but I’ll give up my Wii when you pry it from my cold, dead hands)

[kewp]

Inflation is the language rest of the world is using to tell us to produce more, consume less and save more.

Exactly.

Americans are over-consumers. They shove their obese butts in a SUV, drive down to Frys to buy a high-def TV & PS3 (on credit), stopping at Wendy’s for a biggie-size fries and shake on the way home.

Can’t say I’ll shed a tear to see that era come to end.

(but I’ll give up my Wii when you pry it from my cold, dead hands)

[kewp]

Inflation is the language rest of the world is using to tell us to produce more, consume less and save more.

Exactly.

Americans are over-consumers. They shove their obese butts in a SUV, drive down to Frys to buy a high-def TV & PS3 (on credit), stopping at Wendy’s for a biggie-size fries and shake on the way home.

Can’t say I’ll shed a tear to see that era come to end.

(but I’ll give up my Wii when you pry it from my cold, dead hands)

[kewp]

Inflation is the language rest of the world is using to tell us to produce more, consume less and save more.

Exactly.

Americans are over-consumers. They shove their obese butts in a SUV, drive down to Frys to buy a high-def TV & PS3 (on credit), stopping at Wendy’s for a biggie-size fries and shake on the way home.

Can’t say I’ll shed a tear to see that era come to end.

(but I’ll give up my Wii when you pry it from my cold, dead hands)

[cr]

Wii… so fun. Can’t wait to play GH3.

Back on topic, it seems to me BB in his background of the Great Depression and Keynesian Economics, and his words/actions, is more concerned about keeping banks soluble, rather than the keeping dollar that banks hold worth anything.

[cr]

Wii… so fun. Can’t wait to play GH3.

Back on topic, it seems to me BB in his background of the Great Depression and Keynesian Economics, and his words/actions, is more concerned about keeping banks soluble, rather than the keeping dollar that banks hold worth anything.

[cr]

Wii… so fun. Can’t wait to play GH3.

Back on topic, it seems to me BB in his background of the Great Depression and Keynesian Economics, and his words/actions, is more concerned about keeping banks soluble, rather than the keeping dollar that banks hold worth anything.

[cr]

Wii… so fun. Can’t wait to play GH3.

Back on topic, it seems to me BB in his background of the Great Depression and Keynesian Economics, and his words/actions, is more concerned about keeping banks soluble, rather than the keeping dollar that banks hold worth anything.

[NotCranky]

I got a good laugh out of that Coop. If there is another definition for soluble than what I learned in chemistry, please just leave me laughing. Got disolving banks? Yeah probably. What is the solvent? Mortgages. Can the banks stay solvent themselves? Yes with Ben the alchemists help.Watch him make paper into gold and money into smoke.

[NotCranky]

I got a good laugh out of that Coop. If there is another definition for soluble than what I learned in chemistry, please just leave me laughing. Got disolving banks? Yeah probably. What is the solvent? Mortgages. Can the banks stay solvent themselves? Yes with Ben the alchemists help.Watch him make paper into gold and money into smoke.

[Author]

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