A Short History on Inflation - Why Component Costs and No Costs Are Going Down Soon

[bjdiaz3190]

Certainly not everyone is impacted the same and what you mentioned certainly should be a part of the discussion. My main point is that only knowing half of the equation doesn't tell the whole story.

Good one to remember (wrote it down in my personal notes)... "Knowing half of the equation doesn't tell the whole story"

 

[bjdiaz3190]

More taxes are never good for finances, as more taxes especially when its the government spending the money is really inefficient and winds up mis allocating capital efficiently to the economy.

The same way, more inflation is never a good thing because it makes your dollars and savings worth less, and diminishes your purchasing power. And even if you get raises, its with a lag and a long negotiation, and may not wholly compensate for inflationary forces.

You also can't spend the equity in your main asset your home. So your home value inflates, how can you efficiently take that asset value to gas pump and buy $4 gasoline? When you start trying to spend "inflated asset value" that was purchased with borrowed money, ie debt, that's where you really get in a bind, and get set up for a double whammy.

Nope, inflation, especially when rampant and out of control, hurts anyone who gets paid in dollars or currency.

Its not our friend.

Stable money and inflation say in the 2-3% range which is manageable inflation is ok. 7-8% and greater inflation like we have now is not a good thing. When it becomes, 20%, we become Venezuela.

I'm a Venezuelan.... I think you meant 2000000000% RUN!!!

 

[QuietTexan]

Creating 'money' out of thin air can't be dismissed as a factor

Remember, the modern monetary theorists honestly 100% believe that it's ok to make money out of thin air, because the economy is constrained by nothing less than the total value of everything in the country. The government can spend and make money and do whatever it wants as long as it wants, right up until they start pricing people out the market ("inflation", or the government dollars being more valuable than the little people dollars).

The MMT solution to control inflation is through taxation: government makes you give money back to them to depress demand and through that reduce prices.

Setting aside wondering if that logic ^^^ is a steaming file of fecal matter or not for a moment, the truly scary part to me is the people who really believe in MMT aren't actually trying to raise taxes, thus violating their own internal logic.

Truly Scary Part #2 - They're starting to run around saying we aren't doing MMT correctly, and if only we'd do more it would work better. It's like the Russians during Glasnost, you can complain about the system but the only solution is more of it, not actually changing anything.

Truly Scary Part #3 will be the recession, depression, and result of unconstrained monetary debt as predicated by all the less-insane schools of economics.

 

[Veteran]

Yes, Dumber than Dirt Crazy.....Let the Chinese and Russians do MMT.

 

[Hand Skills]

Truly Scary Part #3 will be the recession, depression, and result of unconstrained monetary debt as predicated by all the less-insane schools of economics.

I'm no economist, but I reckon ~30 trillion of 'quantitative easing' could make 2008 look like a hiccup.

Ahh well, I guess it's about time for one world currency anyway...

 

[jbs2014]

Any examples of this so called "Climate Change Crisis"? Everything I've read about the predictions have been nothing more than fear mongering, and massive profit taking by the "climate change" proponents.

I went back and looked at some of their predictions from the early 2000s. One said that the UK was going to be underwater by 2021.

 

[QuietTexan]

Ahh well, I guess it's about time for one world currency anyway...

The way it's looking - copper and lead are in the lead for that universal currency.

 

[Hand Skills]

maybe so, this Central Bank Digital Currency thing is giving me the creeps.