Inflation

[vmfedor]

To counter the dangerous inflation that our dollar is experiencing, couldn't the federal government start accepting silver as a method of tax payment and mint silver coins for a few years instead of $20.00, $50.00 and $100.00 bills?

Pardon me because I know nothing about economics... this is just something that I was wondering about.

 

[uscitizen]

Proper inflation saves gas.

 

[Mad Scientist]

That would interfere with their Money Printing Scam they have going.

 

[EdwardBaiamonte]

To counter the dangerous inflation that our dollar is experiencing,

can you say what makes you think there is dangerous inflation??????????

 

[vmfedor]

To counter the dangerous inflation that our dollar is experiencing,

can you say what makes you think there is dangerous inflation??????????

The fact that any money that was invested in the year 2002 by now has now lost more than 1/5 of its value. The investment would have needed an interest rate of 5% just to maintain its value against inflation.

 

[expat_panama]

Let's sort this out.

...I know nothing about economics...

That's hard to believe, but the key question here is whether you want to know more or not.

...the dangerous inflation that our dollar is experiencing...

We are not having a general dangerous inflation. Sure, we hear that nonsense a lot, but that's because bad news sells whether it's true or not. Inflation's measured by price changes, not talk.

...couldn't the federal government start accepting silver as a method of tax payment and mint silver coins for a few years instead of $20.00, $50.00 and $100.00 bills?...

HIstorcal price records show that inflation was at its worse during times with silver or gold money than since federal reserve notes came into use, but metal vendors won't tell you that.

 

[expat_panama]

...money that was invested in the year 2002 by now has now lost more than 1/5 of its value. The investment would have needed an interest rate of 5% just to maintain its value against inflation.

For one thing, money is not an investment. It's a medium of exchange, a unit of account, but it's not an investment. The other thing is math, that 20% in ten years is less than 2% per year (1.02^10=1.22).

 

[pinqy]

To counter the dangerous inflation that our dollar is experiencing,

can you say what makes you think there is dangerous inflation??????????

The fact that any money that was invested in the year 2002 by now has now lost more than 1/5 of its value. The investment would have needed an interest rate of 5% just to maintain its value against inflation.

5% interest for 10 years, compounded annually gives a total increase of X*1.05^10 = x*1.629....62.9% increase. To get a 20% increase the APR would be 1.8%

Overall, Since January 2002, average prices have increased around 30%...that's less than 2%/year. Hyperinflation is usually considered about 50%/MONTH.

Inflation is NOT a current problem...if anything it's too low, as evidenced by the lack of COLA increases in 2009 and 2010 because of low or negative inflation.

 

[expat_panama]

...a total increase of X*1.05^10 = x*1.629....62.9% increase...

He said he knew nothing about economics, but maybe he forgot to mention knowing nothing about math.

 

[pinqy]

...a total increase of X*1.05^10 = x*1.629....62.9% increase...

He said he knew nothing about economics, but maybe he forgot to mention knowing nothing about math.

To be fair, his math error wasn't unusual. I had to double check to make sure I was doing the math right.

I'm still trying to figure out a formula for the intial monthly payment of powerball. I know that the current jackpot is 212 million and that the annuity payments are increased every year by 4% but I can't figure out a simpler formula than 212,000,000 = X(1.04^0+1.04^1+1.04^2+...+1.04^29). there has to be an easier way than manually adding the sum, I just can't remember it.

ETA: ok figured it out...the 1st year's payout is $212,000,000/((1-1.04^30)/(1-1.04)) = $3,779,981.02
and the payout in year 30 would be $11,788,443.28

 

[expat_panama]

... his math error wasn't unusual. I had to double check to make sure I was doing the math right...

Exactly, and anyone who doesn't double check is someone who doesn't understand math and not understanding math is not that unusual.

...trying to figure out a formula for the intial monthly payment of powerball....

I remember when I was 15 studying Agebra, my parent laughed when I told them I planned to apply math to make a fortune in Las Vegas. I had the last laugh though becuase what the math told me was to buy Casino stocks.

 

[EdwardBaiamonte]

To counter the dangerous inflation that our dollar is experiencing,

can you say what makes you think there is dangerous inflation??????????

The fact that any money that was invested in the year 2002 by now has now lost more than 1/5 of its value. The investment would have needed an interest rate of 5% just to maintain its value against inflation.

5% inflation when homes have decreased 33%?? and CPI shows 3% excluding homes.

Inflation is not our worry now, depression is. Also a little inflation now is good in that it encourages people a little to spend their money.

What we really need now is to go back to basics in many areas, starting with fixing the housing market that liberals broke with their schemes to subvert the free market in order to get everyone into homes.

 

[ccravens]

We are going thru something now that's sometimes referred to as a recession, or sometimes referred to as deflation, not inflation.

The dollar has LOST value, or deflated.

 

[expat_panama]

We are going thru something now that's sometimes referred to as a recession, or sometimes referred to as deflation, not inflation. The dollar has LOST value, or deflated.

You might want to edit that post.


Deflation is falling prices. It happened in '09 and it's deadly. Fortunately for the past couple years now prices have been stable/rising. That's the ideal, low inflation.

 

[iamwhatiseem]

... his math error wasn't unusual. I had to double check to make sure I was doing the math right...

Exactly, and anyone who doesn't double check is someone who doesn't understand math and not understanding math is not that unusual.

...trying to figure out a formula for the intial monthly payment of powerball....

I remember when I was 15 studying Agebra, my parent laughed when I told them I planned to apply math to make a fortune in Las Vegas. I had the last laugh though becuase what the math told me was to buy Casino stocks.

OK....that is just hilarious.

 

[DSGE]

Inflation is not our worry now, depression is. Also a little inflation now is good in that it encourages people a little to spend their money.

Whoa whoa whoa. Edward, saying that some easier monetary policy would be good? Has the world gone topsy turvy?

 

[EdwardBaiamonte]

Inflation is not our worry now, depression is. Also a little inflation now is good in that it encourages people a little to spend their money.

Whoa whoa whoa. Edward, saying that some easier monetary policy would be good? Has the world gone topsy turvy?

we have a little now and its hardly a significant issue- right? Can you ever think of a significant issue??

 

[OohPooPahDoo]

To counter the dangerous inflation that our dollar is experiencing, couldn't the federal government start accepting silver as a method of tax payment and mint silver coins for a few years instead of $20.00, $50.00 and $100.00 bills?

The dollar isn't dangerously inflating.

Pardon me because I know nothing about economics... this is just something that I was wondering about.

Clearly.

 

[OohPooPahDoo]

To counter the dangerous inflation that our dollar is experiencing,

can you say what makes you think there is dangerous inflation??????????

The fact that any money that was invested in the year 2002 by now has now lost more than 1/5 of its value. The investment would have needed an interest rate of 5% just to maintain its value against inflation.

You're horrible at math. Its closer to 2%, not 5%. 2% inflation is about perfect.

 

[EdwardBaiamonte]

can you say what makes you think there is dangerous inflation??????????

The fact that any money that was invested in the year 2002 by now has now lost more than 1/5 of its value. The investment would have needed an interest rate of 5% just to maintain its value against inflation.

You're horrible at math. Its closer to 2%, not 5%. 2% inflation is about perfect.

the liberals stealing 2% of everyones assets is perfect?? Why??