the reason reserve banks keep a target of 1-2% is that there control is not perfect and a small amount of inflation is much better then a small amount of deflation which can quickly snowball into a cripling effect. the reserves could target 0 but choose not to as an error buffer.
with negative inflation, spending and investment quickly grinds to a halt, (the longer you wait the cheaper it gets) and this can escalate into rising unemployment and create a vicious circle. Vic terry12622000 [EMAIL PROTECTED] wrote: > Ok, I'm tired and I'm going to bed soon, so tired I forgot to mention > why even an average 2% inflation or even 1% is bad for workers and > those who save, because it compounds.World CEntral BAnk theory now is > that an average 1.5 to 2% inflation is price stablity, its not. Its > not so bad if you get a correct cost of living that matches your > spending needs and habits but the CPI supposedly is based on what the > average person in America spends and it doesn't even include taxes, > if you don't buy what the average person out of the 230 million > Americans in the average area buys the cost increases are not going > to reflect your cost, another big reason Central Planning does not > work very well in a efficent matter.--- In > [email protected], "terry12622000" <[EMAIL PROTECTED]> wrote: > > > > Your not serious about how wonderful Central Banking has been in > the > > past 25 years are you. Yeah we have had single digit inflation for > an > > average 1.5% to 3% if the Fed fiqures and the Labor Department > fiqures > > can be believed if they aren't outright lowballing to try to screw > over > > old people on social security or on pensions with a cola > adjustment, > > workers with cola contracts ( hell the feds get nervous when > workers > > get more money and unemployment gets lower and lower) or just make > > themselves look good which is the nature of the politicans and the > > political class to get elected so they can screw us more. Another > > therory is they are just screws as is the nature of Central > Planning. > > I think both are right, they are big screw ups, they are trying to > > scre us and they are Incrementally ( you know that word don't > you )) > > screwing up in trying to screw us up but these reform the LP > talents > > who know how to get elected but somehow can't manage to do it > unless > > they take over the LP are going to get in office and turn things > around > > for good, that is you will try but your far from enough reforms of > > governments will fail and people will blame it on libertarian > ideas, > > free markets and demand more and more state control and you will be > out > > of office. Then the state party will screw up again, then you will > get > > elected again then you will screw up again, then you will become > just > > like the Democrats and > > Republicans. > > Why is that, because you are shotting for the Maoist > > approrach that revolution comes from the barrel of the gun, you > don't > > have the talent or dignity of being an educator, being a natural > > leader, a natural salemen. --- In > [email protected], "Brian > > Holtz" <brian@> wrote: > > > > > > Full story at http://blog.360.yahoo.com/knowinghumans. > > > > > > Brian Holtz > > > 2006 California LP Platform Committee Rep > > > http://marketliberal.org/FixLP.html > > > Libertarian candidate for Congress, CA14 (Silicon Valley) > > > http://marketliberal.org <http://marketliberal.org/> > > > blog: http://knowinghumans.net <http://knowinghumans.net/> > > > > > > > > > [Non-text portions of this message have been removed] > > > > > > > > > > > > ForumWebSiteAt http://groups.yahoo.com/group/Libertarian > Yahoo! Groups Links > > > > > > ForumWebSiteAt http://groups.yahoo.com/group/Libertarian Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/Libertarian/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
