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From the Associated Press, about one month ago:

Even though the prospects of deflation - a widespread and prolonged drop in prices for goods, the value of stocks and homes and in wages - is remote, some Fed officials are worried about it. Keeping rates low would help prevent deflationary forces from taking hold.

Emphasis mine.

From the Wall

Comments

[brak55]

Investors strike me as a bunch of ADD children. Our economic signals are mixed at the moment. One day new orders are up, next day new jobs is down. It's hard to tell what exactly is going on with the only concrete thing being we aren't going anywhere fast.

Investors see these announcements and its like waving a set of keys in front of them. "OOOOOOOHHHHHH. New Orders are up. BUY! BUY! BUY!"

15 minutes later "AHHHHHHH. Jobs are down. SELL! SELL! SELL!"

[draggonlaady]

http://www.newsweek.com/2010/07/30/don-t-panic-about-the-economy.html

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That article makes sense to me. We're turning into a global economy, like it or not, and that means that lifestyles are going to start averaging out, which means that--guess what--this unsustainable American lifestyle we've been saying for decades is, well, unsustainable? We're about to find out what unsustainable actually fucken means.

[draggonlaady]

Yep. Also, you might try wandering through http://xthread.livejournal.com/
He posts lots of good economic stuffs.

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Ooooh, I'ma spend some time wandering through that landscape. Thanks!

[valatan]

It always seemed to me that everyone who was actually paying attention was always most concerned about deflation. Most of them were angry that the stimulus, which was originally designed to fight deflationary pressure, was too small and too targeted at tax cuts.

And this is also why conservatives going ballistic over the deficit right now are idiots. inflation isn't the risk right now--it's deflation that'll kill us. If they gave a damn about the deficit or inflation, they woudl have fixed the current account and budget deficit problems under Reagan, Bush, or Bush. Instead, they endorsed polices that made all of these things worse.