``I must give him his due. He has considerably cretinized me.'' Lautréamont

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Monday, November 28, 2005

Global Work Force Helps Fed on Inflation

true but bad analysis

the fed can stop inflation with or without global workers by doing its job of adjusting the money supply

it avoids crippling the economy though if there are global workers willing to take dollars at full value

the real story is that the dollar does not fall against foreign currencies

if that happened, the same price rise that they claim is avoided, would happen

leading to the same necessity of tightening the screws to prevent inflation

Adding all those workers to the global economy has made the Federal Reserve's inflation-fighting job easier by increasing competition. That has helped hold down labor costs _ the biggest single expense for employers _ and, as a result, prices.


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