Did not watch the you tube. My undestanding is that the Fed will do anything to keep deflation from starting. Deflation would be a downward spiral for the econ. Why? If there is no inflation and you see, for example, a car that cost $10,000 to day costing $9,500 next month and then $9,000 next month you start thinking that you will wait till the car cost even less. This kill sales and the value of any inventory sales have. It kills production because people are not buying so what is the company going to do with all those extra cars. Now you have job loss, delievery loss, ect. The econ. crashes. If interest rates go up it makes things more expensive to buy. Buying slows to much. Fear of deflation. No interest rate raises now. People are even take out car loans for 7 and 8 years to keep the monthly payments down. That is not a good sign for what people have to spend. The news/gov. will always claim there is inflation, even if we have none. Gov./Fed do not care about how much inflation we have. The gov/fed has more money than they know what to do with. The % of total money is what they care about. Also on their top 10 is control of the people. Power is what they want. |