An Inflationary Deck of Cards

Discussion in 'Politics' started by C-101, Apr 13, 2010.

  1. C-101
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    C-101 Old School Conservative

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    The Big Picture

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    You would think at some point the government would stop printing money and realize that they're engineering a particularly nasty upswing of inflation in the near future.

    The sheer amount of money that they are putting into the system is inevitably going to lead to a huge loss in the value of the dollar.

    But, of course, they're banking on the fact that investors will continue to flock to the dollar for a sense of "security" as currencies as a whole around the world continue to lose credibility in the eyes of debt holders like China and Japan.
     
    Last edited: Apr 13, 2010
  2. Big Black Dog
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    Big Black Dog Gold Member Supporting Member

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    You'll have to have a gunny sack full of dollars to buy anything this time next year. Before long you can use the dollar to wallpaper your living room. How can you not love those dumb-assed Democrats?
     
  3. C-101
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    C-101 Old School Conservative

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    [​IMG]

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  4. KissMy
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    KissMy Free Breast Exam

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    It is worse than this chart shows. The chart is only the monetary base going from $1 Trillion to $2 Trillion. There were also $6.5 Trillion in bailout dollars lent, spent or guaranteed to turn the economy.
     
  5. Flopper
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    Flopper Gold Member Gold Supporting Member Supporting Member

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    I don't think the government has any choice but to increase the money supply and hope for a speedy recovery. We are not the only country that is doing this.

    Pardon me if I am a little cynical about economic projections. Economist have never been able to accurately project the course of the dollar. They are like the weather man. They are never wrong because they continually change their forecast.
     
  6. Avatar4321
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    Avatar4321 Diamond Member Gold Supporting Member

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    There is always a choice. And this wont be a quick fix for the economy. It's going to make things worse.

    When are we going to realize that all decisions have consequences. They may not come immediately, but they will come. And the longer we put off facing those consequences, the worse it's going to be. Pushing it off again, isn't going to fix the problem at all.

    We either have to be men willing to make hard choices now or forced to make harder choices later. I choose the first option.
     
  7. The Rabbi
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    The Rabbi Diamond Member

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    Money supply is only one factor in inflation. Velocity is the other. If we see an uptick in velocity without a reduction in supply, watch out.
    But so far this huge increase (and its old news) has not produced the expected inflation.
     
  8. editec
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    editec Mr. Forgot-it-All

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    Question for you armchair economists

    When the stock market collapsed, and when the value of real estate dropped, AND WHEN THOSE bankers -- assets with values BASED ON DEBT REPAYMENT dropped in value..

    Did THOSE EVENTS INFLATE THE MONEY SUPPLY or DEFLATE it?

    Hint...

    those events dramatically DEFLATED the money supply.

    TRILLIONS AND TRILLIONS of dollars ceased existing in the macroeconomy, OVERNIGHT.

    Now, how many of those evaporated dollars have been replaced by TARP and ARRA?

    If you cannot answer these questions (or worse, don't know why I posed these questions), then you truly do NOT understand what happened to our economy.

    The LACK of LIQUIDITY in the system meant that there was NOT enough dollars (in aggregate) to pay the contractual debt obligations (in aggregate).
     
    Last edited: Apr 14, 2010
  9. editec
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    editec Mr. Forgot-it-All

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  10. The Rabbi
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    The Rabbi Diamond Member

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    The money supply is not measured by real estate values or bonds.
     

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