F**K Me! How many of you Yanks knew this?

[Toro]

Printing money alone doesn't do that much.

Sure it does. It creates inflation.

NOT all by itself. If that were true, we could always reduce debt by printing more money. And we would already have massive inflation.

No, it's NOT good to do, but it's not the lone cause of inflationary pressures.

You miss the point. I will reiterate.

Inflation is not a change in prices. Inflation is a change in the money supply. Changes in prices are symptomatic of changes in inflation.

What we had was inflation in home prices and credit. This was mainly because the money supply grew too fast (though other factors also contributed to asset inflation.)

The fact that the CPI went up 2% p.a. in no way means that there was not inflation. It merely manifested in other ways.

 

[Toro]

And that is why inflation is currently out of control?
Geez, don't know much about monetary policy, do we?

Re-read my post.

OK. You still don't have a clue about inflation.

I sure do, pal.

 

[The Rabbi]

We have increased the money supply massively in the last 12 months and inflation is running about 3-4%. Hello??

 

[Midnight Marauder]

Again, you blame republicans solely. Even though they could have done nothing without Dem votes and support throughout, on everything.

 

[Midnight Marauder]

You miss the point. I will reiterate

You are simply wrong. Where's the inflation? It doesn't exist but by your logic, should.

Printing money does not inflation make, ALL BY ITSELF.

 

[Toro]

We have increased the money supply massively in the last 12 months and inflation is running about 3-4%. Hello??

I will explain this for a third time.

Inflation is not a change in prices. Inflation is a change in the supply of money. If you want to say that inflation is a change in prices, fine. I am saying that inflation is a change in the money supply. Friedman said that inflation is always and everywhere a monetary phenomenon. When you have massive supply coming onto the market and tremendous downward shifts in cost curves, as happened when China entered the global economy, that money has to go somewhere. This is what happens when it does.

Now, you have enormous amounts of liquidity hitting the economy, and we have gold hitting all-time highs.

So if you're looking at consumer prices, you are barking up the wrong tree. That thinking is what got us into this mess.

 

[The Rabbi]

You miss the point. I will reiterate

You are simply wrong. Where's the inflation? It doesn't exist but by your logic, should.

Printing money does not inflation make, ALL BY ITSELF.

He is clearly clueless. I'll post this link to help. But I doubt it will:
Velocity of money - Wikipedia, the free encyclopedia

 

[Toro]

Again, you blame republicans solely. Even though they could have done nothing without Dem votes and support throughout, on everything.

Republicans are mainly responsibly. From 2002 through 2006, they controlled everything and enacted their agenda. Saying that the blame is 50/50 is not a serious argument.

 

[The Rabbi]

Again, you blame republicans solely. Even though they could have done nothing without Dem votes and support throughout, on everything.

Republicans are mainly responsibly. From 2002 through 2006, they controlled everything and enacted their agenda. Saying that the blame is 50/50 is not a serious argument.

Bullshit. The Democrats fillibustered everything they could and the Republicans could not stop them. Weren't willing to, is more like it of course.
Yes the Republicans couldnt control spending, and Bush didnt veto the bills as he should.
But the Democrats campaigned in '06 on fiscal responsibility and reforming earmarks. How has that worked out for you?

 

[Toro]

You miss the point. I will reiterate

You are simply wrong. Where's the inflation? It doesn't exist but by your logic, should.

Printing money does not inflation make, ALL BY ITSELF.

He is clearly clueless. I'll post this link to help. But I doubt it will:
Velocity of money - Wikipedia, the free encyclopedia

Yeah, n00b, whatever.

http://www.usmessageboard.com/economy/79488-hyperinflation-not-in-america.html

 

[The Rabbi]

Like I said, I doubt it will do much good.

Now, when the velocity of money starts to pick up as the economy actually recovers we will see enormous 1970s-style inflation unless the Fed begins to tighten. And their history of doing so is poor.

 

[Toro]

Again, you blame republicans solely. Even though they could have done nothing without Dem votes and support throughout, on everything.

Republicans are mainly responsibly. From 2002 through 2006, they controlled everything and enacted their agenda. Saying that the blame is 50/50 is not a serious argument.

Bullshit. The Democrats fillibustered everything they could and the Republicans could not stop them. Weren't willing to, is more like it of course.
Yes the Republicans couldnt control spending, and Bush didnt veto the bills as he should.
But the Democrats campaigned in '06 on fiscal responsibility and reforming earmarks. How has that worked out for you?

Blah, blah, blah.

Republicans are all for personal responsibility until they are called to account. What a joke.

"It's not my fault, mommy! It's those nasty Democrats who made Bush, Cheney, Armey do all those things!"

 

[jillian]

I love watching the brain dead noobs embarrass themselves by insulting the people who actually know what they're talking about.

 

[The Rabbi]

I love watching the brain dead noobs embarrass themselves by insulting the people who actually know what they're talking about.

How 'bout that Springsteen?

 

[Dr Grump]

I love watching the brain dead noobs embarrass themselves by insulting the people who actually know what they're talking about.

How 'bout that Springsteen?

I'd tell you to quit while you're ahead, but you never were.....

...run along now, adults are talking....

 

[eagleseven]

No matter how you spin it, this is bad new for the US.

 

[editec]

The dollar's going down because our economy is going down.

Our ability to control the world's economy is eroding primarily because of three enormous drains on our economy

1. depedence on foreign energy, and
2. trade imbalances
3. Government overspending.

We can change ALL of those things, folks, if we find the political will to do so.

But we won't find that will because the masters in BOTH parties are doing very well, thank you very much, with things as they stand right now.

The world's stupendously rich (big wealth is loyal to no nation, folks...unless it's in their itnerests to be so) are richer than ever.

Only this nations middle class (and its Fderal state and local governmets ) are in trouble.

And that is exactly how our masters have structured this economy to GO DOWN.

They don't care because they benefit from this situation, folks.

How do I KNOW this?

Well who the fuck do you suppose created these situations in the first place?

Osama bin Laden?

The Palestinians?

The Communists?

Who?

Who controls our government, folks?

Welfare mothers?

If you want to understand how our world really works really now, FOLLOW THE MONEY

 

[Oddball]

Not a bad idea either...if the Obama admin can pull it off. The arabs will be spewing..Not too sure about the long term ramifications though

Greenback tumbles on reports of its demise - Business - NZ Herald News

Not surprising in the least.

In fact, the opinion that the Iraq invasion was at least in part an attempt to keep ME oil pegged to the USD has been around from the get-go.

 

[Oddball]

The Republicans ran on an agenda to cut taxes. I took them at their word. The day after they won in 2002, I was in the market buying gold stocks hand over fist. I was right. The dollar declined and gold soared.

The Republican's policies created structural deficits. Regardless of whether or not the deficit was falling, unless the economy was going to grow at a structural rate of 6% a year - an impossibility - the budget was never going to be balanced by the Republicans. That's not the only reason why the dollar went down and gold went up, but it contributed to it.

Today, the Democrats are also creating structural deficits, even worse than Republicans. However, the Republicans controlled everything for four years. To brush aside their responsibility during that time is not a serious argument.

Barring massive reductions in spending, the structural deficit has been on rails at least since Perot pointed to it numerous times, back in '92.

Bot sides have jumped in on the spending sprees and are equally to blame.

 

[Sunni Man]

It's all very simple to find out who controls the money and why this is happening.

Just look at who owns the banks and the big finincal institutions.

Now look at the last names of these people.

Mystery solved!!!