Inflation will haunt the Kerry Administration...

[kentuck]

It appears inflation is already rearing its ugly head. It is not a temporary problem. It looms on the horizon.
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http://www.boston.com/news/globe/editorial_opinion/oped/articles/2004/05/02/the_perilous_bush_recovery/

<snip>
Bush is also atop an increasingly inflationary system -- in one sense confirming evidence of a recovery that is real, but one whose main elements are injurious to ordinary Americans. It is also a system where long-term interest rates are on the rise -- reflecting not only concern about more inflation, but also about the impact of astronomical budget and trade deficits and a low-valued dollar. Rich people have more juicy tax cuts to look forward to; ordinary Americans, their wages essentially flat, can expect an even tighter squeeze.

The country's economic geniuses regarded last week's news that the economy's output has been rising for nine consecutive months with a large yawn -- in part because the first quarter's increase in the total production of goods and services was up by less in the preliminary estimate than expected, in part because of some mildly disturbing results in output measurement.

Not the least of these involves inflation -- quiet since the tight money policies of former Federal Reserve chairman Paul Volcker wrung the wretched excess of the 1970s out of the system. The inflation part of the first quarter's gross domestic product was up an eyebrow-raising 3.2 percent, more than double the previous quarter's pace.

The government noted that roughly a third of a percentage point of the increase during the January-March period represented the modest increase in civilian and military pay legislated last year. The proper interpretation, however, is that inflation appears to be coming back, powered by increases in the cost of necessities. In addition, the business world is awash in comment from executives that pricing power is more and more with them.

..more

[ComerPerro]

1. Shh!

You aren't supposed to talk about inflation until Kerry gets sworn in. Then, start screaming about it.

You know, sorta like spending.

[whistle]

2. Funny, but those "wretched excesses of the 1970's"...

...seemed to be occurring as the result of a prolonged war in Vietnam and a substantial and unprecedented gap between the incomes of the poor and the rich in this country. De ja vous all over again!

[The Backlash Cometh]

3. If he can get rid of Greenspan, at least we'll know that any signs

of inflation won't come as the result of a political Republican ploy.

I think it's obvious that Greenspan has allowed Republican administrations to run amok and used Democratic administrations to make corrections. I wouldn't mind getting someone else in there to see if another pattern emerges.

[DaveSZ]

4. Yes

Yes we need to replace Greenspan, but with whom?

Also when is Greenspan's term up?

[The Backlash Cometh]

5. Paul Krugman is the only man capable of taking Greenspan's position.

Greenspan's term was up about a year ago, but Bush kept him on. (Gee, I can't imagine why?)

[orwell]

7. King Krugman

Krugman would never be nominated for Fed chairman. He may be considered for the council of economic advisors, but not Fed chairman.

I suspect that Kerry would offer the job to Greenspan again, detestable as that would be.

I would like to see Catherine Austin Fitts. Now that would be shocker.

O

[orwell]

6. Deep Elephant Doo Doo

I fear deflation caused by a credit implosion more than inflation.

In any case, Kerry will have a raft of crap to deal with left by the Bush elephant. If he reins in the deficit and interest rates rise by a couple of hundred basis points, the economy will cool quickly.

O