Robert D.

Why Everyone Is Wrong About the Inflation/Deflation Debate

It may be wise to not just focus on the domestic problems and solutions. This battle to maintain economic growth and stability, turned from a game of poker (every country for himself), to a world wide team game (everyone working together). The reality of it is that the Fed realizes how much other countries depend on our economy (at this point in time, may not be so in the future), that they are going to wait this through. (no action)

I agree with many of the posters that other countries are doing worse than the US, and yet other countries like China, are forced to manipulate their currencies in order to maintain a balance of trade. This is artificially (indirectly) adjusting our inflation problem without the Fed having to raise interest rates (at least for a while longer).

It took Japan over a decade to slowly creep out of their banking crisis (have they ever fully recovered yet?). The Fed decided to take a soft landing approach, and in doing so, they may have prolonged this "recession" for years to come (most likely resulting in stagflation).

My opinion, foreign trade policy could make a serious impact on our economy's future. There is a lot of tension/pressure on these manipulated currencies, which may indirectly reposition the US in the circle of global trade (hopefully from net buyers, to net sellers). (One can dream anyway!...)