Krugman: Spend Now, Save Later

[richardhutnik]

axt113 said:

except, inflation is tame in the US, even now with the amount of money injected into the economy, why?  Because the high unemployment and low consumer spending is actually threatening a deflationary cycle without the injection of money

The government has playing games with the inflationary numbers for YEARS.  It faces a time bomb with social security, so the more it can avoid doing COLA, the better it happens.  There is also other political reasons for doing this.  Have you seen how the U.S government calculates inflation now?  By the way, check this site out regarding the stats on inflation and unemployment:

http://www.shadowstats.com/

And more on this here:

http://moneycentral.msn.com/content/p72746.asp

And more on how the shift took place:

http://www.theleftcoaster.com/archives/004721.php

http://www.financialsense.com/stormwatch/2005/0624.html

 

Feel free to do more on this and add your own clarification to it.