that announced the ZIRP (zero interest rate policy) at least until the late 2014, with indication that the US central bank may further "accommodate" (QE3) the still-sluggish "recovery" of the US "economy". Probably just in time for the re-election campaign to be mounted in earnest by the incumbent.
Zero Hedge has a comparison of December and January FOMC statements, here.
As Japan could easily tell to Ben "Bernank" Bernanke, once ZIRP, always ZIRP. Or at least 2 decades and counting.
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2 comments:
For anyone thinking there is NO INFLATION, go shopping at the US grocery store--each week is worse. You can see the prices increase 10% or more every week, or on each restock of shelves. On the other hand many areas in the USA, home values are dropping thru the basement, in California its difficult and getting worse. So ZERO rates-is nuts, and the current US Treasury Secretary is heading for the hills. He certainly has taken his cut, made profits and is getting out of government as fast as he can. Probably afraid of getting the old fashioned Wild West treatment of "Tar and Feathering"..then run out of town on a rail. Maybe should be done to officials in Japan as well...
Well, remember the core inflation doesn't exclude food. But I agree with you. I'm being priced out of the non-organic supermarkets like Safeway and Nob Hill. Good time to go on a starvation diet.
Also remember that Japan has been trying to cause price inflation for the past 20 years. It has seemingly failed, but because of ZIRP there, money people (particularly on a fixed income) can spend has declined significantly. Net result is the equivalent of inflation, IMHO.
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