ArnoldCountry

The Deflation/Inflation/Stagnation Debate

I agree with the article but think that the Fed could have done things differently that would have made for a softer landing. For example, on housing, they could have provided a homebuyer tax credit if anyone buys a home in the next two years of $10,000 to $15,000.00. This would have brought out buyers. While home prices would continue to decline, the rate would slow with the increased demand. Energy prices could get under better control with an inverted windfall profit tax... the higher the price for fuel, the greater the tax on the oil companies. That would create incentives to try and keep prices down. Oil should also be removed as a comodity in the open market and the Federal government should be the direct purchaser of oil from the suppliers and then reselling it the oil companies for refining and distributing. Now, we have so many middlemen speculating, that is more driving the price then true supply and demand. Finally, we should impose a food/fuel supplement. Food export cost has a percent to percent increase in relation to oil. If oil increases by 25%, all food exports increase by 25%. If the government is the purveyor of oil, the supplement can be be used to offset the rising cost of oil.