Shiny Things (05May2012) wrote:Topic:'Interest rate' solution to inflation- a case of mere optical illusion?
This guy doesn't understand how monetary policy works.
The point of fiddling with interest rates is to control the price of money - and therefore the quantity of borrowing - and therefore the rate of economic growth. It has nothing to do with shifting things in and out of the CPI.
(Also, mate, using a lot of ten-dollar words and footnotes doesn't make you an expert; it makes you a poser. The stuff you're writing in here would get you booted out of a Macroeconomics 101 class. You're making yourself look like a raving loon; please stop.)
Kindly read my last comment to 'lzydata' [Link] indicating my wish to remove the issue of 'debt ceiling' from this discussion as it pertains more to countries immediately involved in the 'debt crisis' rather than Singapore which I understand is 'healthy' since as proclaimed, the assets (GIC (US$330Billion in 2008), Temasek (S$193Bil in 2011), as well as nett foreign reserves of US$243Billion in Mar 2012 acc. MAS]) that the SG govt holds far exceed its liabilities (/debt): S$490Billion being the most recent figure bandied on the news recently [pict].
Never in my post(s) have I ever insisted that I am an expert in 'monetary policy'- what I write is merely opinion/ perhaps the way that I see how monetary policy is currently working in the world today. For yourself to make such a judgmental comment without adequate substantiation is perhaps presumptuous to say the least... not very friendly I think.
"The point of fiddling with interest rates is to control the price of money"- I never disagreed with your general opinion that high interest rates means a high price to borrow money- I just added the perspective that it is not just speculators who borrow money but some poorer people too- for their daily needs at that- by making money expensive to borrow- aren't you possibly enriching the rich and penalizing the poor?
Perhaps the government should be focusing more on uplifting the poor rather than on economic growth.
The theory that the more parties that the rich enjoy, the more crumbs there will be for the poor to pick just wont cut it for the next century- I don't think the earth has sufficient natural resources to support such debauchery- and the issue of whether interest rates appear on the CPI or not is secondary to the issue of whether a raise in interest rates benefits the rich or the poor.
A 'growing economy' is still no more than 'lipstick on a pig' in so far as the poor have to unnecessarily suffer as far as I'm concerned.
Anyhow, a nice 'lipstick-on-a-pig' photo 'footnote' for this post, at the bottom.
Rgds, your darling raving loon,
C6.
[Lipstick on Pig: photo source]
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05May2012: 'Interest rate' solution to inflation- a case of mere optical illusion?
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