What Everyone Should Know About Budget Deficits and Public Debt

[eagle1462010]

Consumer Price Index, 1913- | The Federal Reserve Bank of Minneapolis

Poppycock.................

Ummmmmmmmm What's the CPI anyway...............

Our dollar just buys us more and more these days doesn't it. BTW They have changed the way the CPI has been measured over the last few decades.

 

[eagle1462010]

What Is the Value of the US Dollar

In December of 2007 the dollar was worth 1.44 Euro's...............

Imagine that as you cherry pick your data

 

[oldfart]

Consumer Price Index, 1913- | The Federal Reserve Bank of Minneapolis

Poppycock.................

Ummmmmmmmm What's the CPI anyway...............

Our dollar just buys us more and more these days doesn't it. BTW They have changed the way the CPI has been measured over the last few decades.

Inflation and foreign exchange fluctuations are two different things. Which do you want to talk about?

 

[eagle1462010]

What Is the Eurozone Crisis

If it doesn't matter then why are these European countries in crisis...................

Why did Russia fall due to debt..........................

Somebody forgot to tell them that all they needed to do is print more money because it doesn't matter anyway.

Wow. If only you'd have been there in time to tell Greece that. You could have saved the world and Greece a lot of dang trouble Old Fart.

Rush over there and set them straight please.

 

[Rshermr]

Dollar decline

What are the reasons why the U.S. dollar is declining?

In 2009 one US dollar bought 0.69 Euros. Today it buys 0.74 Euros. Somebody is trying to sell you something by creating a false illusion of a falling dollar.

Will it hurt or help the U.S. economy? Is it enough to cause a complete collapse of the dollar, as many are warning? Most importantly, what can you do do protect your financial well-being?
The dollar declines when it loses value in relationship to foreign currencies. When this happens, the dollar can buy fewer foreign goods, increasing the price for imports and causing inflation. In addition, investors in U.S. Treasury bonds will sell their dollar-denominated holdings.

Balderdash and poppycock. The exchange rate variations are not large enough to cause significant changes in export and import balances. Besides, a falling dollar would reduce imports and encourage exports, adding to production and employment. Sounds good to me.

Yup. Sounds good to you for honest economic reasons. Sounds bad to eagle because, well, it just sounds bad. Makes you wonder why eagle posts what he posts.
Could be foxbusiness.com. Or any of a number of far right wing web sites. But no impartial sites that I can find.
Hmmmmmmmmmm.

 

[eagle1462010]

Consumer Price Index, 1913- | The Federal Reserve Bank of Minneapolis

Poppycock.................

Ummmmmmmmm What's the CPI anyway...............

Our dollar just buys us more and more these days doesn't it. BTW They have changed the way the CPI has been measured over the last few decades.

Inflation and foreign exchange fluctuations are two different things. Which do you want to talk about?

The direct relationship to debt, value, and the cpi

 

[eagle1462010]

The Rising Price Of the Falling Dollar - Forbes

Yet, the basic reason for higher energy prices is being overlooked, even though it is right before our eyes: Oil prices are up because the value of the dollar is down. Our common sense hides this source of higher prices because we view the dollar as fixed, and prices as moving. News reports explain the sharp rise in consumer prices in February were caused by higher energy and food prices, implying that higher prices cause inflation. Of course, higher prices do not cause inflation. Higher prices are inflation.

The cost of this deception goes well beyond the vilification of the oil industry and free markets. The real price of the on-going debauchery of the dollar is measured by the loss of our prosperity and the debasement of our liberty.

comment

You need to set these Forbes guys straight while your at it.

 

[eagle1462010]

So, both of you believe that the debt has nothing to do with inflation or the value of the dollar.................

That the original article is the truth, and we just need to simply print more money to pay for anything we want because it doesn't matter anyway.................

Then why do prices go up in relation to debt. Why does the value of the dollar go down in relation to debt.............

Why then have countries like GREECE fall to debt.
Why did Russia Fall....
Why did Britain stop being the world's reserve note.

 

[eagle1462010]

16 Things You Need to Know About Government Debt - My Money (usnews.com)

Another foolish article.

He states that more Gov't debt raises prices. He complains about QE programs in there.

Another tool who just doesn't understand what these posters already know.

That debt doesn't mean anything. We just print more money and pay the bills it doesn't matter.

Now if I did it at home, I'd go to prison, but of course I'm not the Gov't.

 

[Rshermr]

The Rising Price Of the Falling Dollar - Forbes

Yet, the basic reason for higher energy prices is being overlooked, even though it is right before our eyes: Oil prices are up because the value of the dollar is down. Our common sense hides this source of higher prices because we view the dollar as fixed, and prices as moving. News reports explain the sharp rise in consumer prices in February were caused by higher energy and food prices, implying that higher prices cause inflation. Of course, higher prices do not cause inflation. Higher prices are inflation.

The cost of this deception goes well beyond the vilification of the oil industry and free markets. The real price of the on-going debauchery of the dollar is measured by the loss of our prosperity and the debasement of our liberty.

comment

You need to set these Forbes guys straight while your at it.

Eagle, you are a clown. Forbes prints op ed pieces. The article you referenced was not done by 'fobes guys", as you surely know. It was done by someone writing an OP ED PIECE, as you surely know. Unless, of course, you are stupid as a post.
So, who wrote your op ed piece?? Why, it was Charles Kadlec. Now, anyone who knows anything about Kadlec knows he is a far right wing nut case, writing for far right wing bat shit crazy web sites. He has a HUGE RIGHT WING AGENDA. Only a con tool would use Kadlec as a source. Because he has zero value as an impartial source. It would be like someone from the far, far left useing moveon as a source, dipshit. And those with integrity do not use partial sources.

Oh, and by the way. Kadlec was one of two economic advisers to Herman Cain during his ill fated presidential run. Jesus, get a clue.

 

[eagle1462010]

The Rising Price Of the Falling Dollar - Forbes

Yet, the basic reason for higher energy prices is being overlooked, even though it is right before our eyes: Oil prices are up because the value of the dollar is down. Our common sense hides this source of higher prices because we view the dollar as fixed, and prices as moving. News reports explain the sharp rise in consumer prices in February were caused by higher energy and food prices, implying that higher prices cause inflation. Of course, higher prices do not cause inflation. Higher prices are inflation.

The cost of this deception goes well beyond the vilification of the oil industry and free markets. The real price of the on-going debauchery of the dollar is measured by the loss of our prosperity and the debasement of our liberty.

comment

You need to set these Forbes guys straight while your at it.

Eagle, you are a clown. Forbes prints op ed pieces. The article you referenced was not done by 'fobes guys", as you surely know. It was done by someone writing an OP ED PIECE, as you surely know. Unless, of course, you are stupid as a post.
So, who wrote your op ed piece?? Why, it was Charles Kadlec. Now, anyone who knows anything about Kadlec knows he is a far right wing nut case, writing for far right wing bat shit crazy web sites. He has a HUGE RIGHT WING AGENDA. Only a con tool would use Kadlec as a source. Because he has zero value as an impartial source. It would be like someone from the far, far left useing moveon as a source, dipshit. And those with integrity do not use partial sources.

Oh, and by the way. Kadlec was one of two economic advisers to Herman Cain during his ill fated presidential run. Jesus, get a clue.

Again, go to Greece, explain your BS to them, and tell them simply to print more Euro's because it doesn't matter anymore.

Save Greece. Do it now.

 

[eagle1462010]

Currency war warnings follow US Fed?s ?quantitative easing? | Global Research

Interviewed by the Financial Times last Thursday, Mantega said the US move was “protectionist” and could have drastic consequences for the rest of the world. “It has to be understood that there are consequences,” he told the newspaper. The Fed’s latest move would have only marginal benefits, he said. There was already plenty of liquidity in the economy but it was not going into production. The real purpose of the measures was to depress the value of the dollar and boost US exports, he added.

China is also concerned about the impact of the Fed’s actions. The head of the country’s central bank, Zhou Xiaochuan, publicly released criticisms he made last April of the “quantitative easing” program. He said the continued injections of cheap credit were not working and more targeted measures should be developed to get money where it was needed.

China has two concerns about the fall in the value of the American dollar. It tends to push up the value of the yuan, which impacts on Chinese export markets, and reduces the value of the more than $1.2 trillion of US treasury bonds that Beijing holds.

While the Fed’s measures have almost no impact on investment and jobs, they do give a boost to financial markets. Since the collapse of September 2008, the Fed has followed a clear agenda. The banks and finance houses, whose speculative activities, some of them of an outright criminal character, triggered the crisis, have been given endless supplies of ultra cheap money. Profits are being made through the elevation of the price of financial assets resulting from the injection of more money from the Fed.

However, the stagnation and outright recession in the real economy means that this process cannot continue indefinitely and the house of cards must collapse. The interventions by the world’s three major central banks—the US Fed, the European Central Bank and the Bank of Japan—means that rather than being able to provide further bailout money, they will themselves be dragged into the maelstrom.

 

[eagle1462010]

Those G8 and G20 nations on the economy are talking about currency wars or an impression of it.

By the last article, they claim the U.S. is purposely weakening the dollar by the QE programs. China is saying it's lowering their bond holdings, and artificially increasing the yuan.

But none of that matters here either.

They are saying the dollar goes down as we print and influx money.

So now you guys need to educate the G20 with your op as well.

 

[Kimura]

An incredibly long winded piece. It boils down to: 'We can always print more money, so it is OK to borrow more'.

Which is 'OK' in the sense that living in the Weimar Republic was kind of 'OK'.

Weimar Republic - Wikipedia, the free encyclopedia

The Weimar Republic is a terrible example. Hyperinflation is MUCH more than a monetary event. Weimar Germany had its debt denominated in Sterling, and its industrial capacity was wiped out by war, so its industrial capacity was pretty much useless. Its output was effectively controlled by other countries.The more they printed, it wasn't being off-put by real goods and services, which is what caused the hyperinflation. This can't happen in the United States. Sorry to burst your bubble.

 

[Kimura]

Those G8 and G20 nations on the economy are talking about currency wars or an impression of it.

By the last article, they claim the U.S. is purposely weakening the dollar by the QE programs. China is saying it's lowering their bond holdings, and artificially increasing the yuan.

But none of that matters here either.

They are saying the dollar goes down as we print and influx money.

So now you guys need to educate the G20 with your op as well.

QE isn't printing money, it's an asset swap, as there isn't an increase in net financial assets.

 

[Kimura]

The Rising Price Of the Falling Dollar - Forbes

Yet, the basic reason for higher energy prices is being overlooked, even though it is right before our eyes: Oil prices are up because the value of the dollar is down. Our common sense hides this source of higher prices because we view the dollar as fixed, and prices as moving. News reports explain the sharp rise in consumer prices in February were caused by higher energy and food prices, implying that higher prices cause inflation. Of course, higher prices do not cause inflation. Higher prices are inflation.

The cost of this deception goes well beyond the vilification of the oil industry and free markets. The real price of the on-going debauchery of the dollar is measured by the loss of our prosperity and the debasement of our liberty.

comment

You need to set these Forbes guys straight while your at it.

Eagle, you are a clown. Forbes prints op ed pieces. The article you referenced was not done by 'fobes guys", as you surely know. It was done by someone writing an OP ED PIECE, as you surely know. Unless, of course, you are stupid as a post.
So, who wrote your op ed piece?? Why, it was Charles Kadlec. Now, anyone who knows anything about Kadlec knows he is a far right wing nut case, writing for far right wing bat shit crazy web sites. He has a HUGE RIGHT WING AGENDA. Only a con tool would use Kadlec as a source. Because he has zero value as an impartial source. It would be like someone from the far, far left useing moveon as a source, dipshit. And those with integrity do not use partial sources.

Oh, and by the way. Kadlec was one of two economic advisers to Herman Cain during his ill fated presidential run. Jesus, get a clue.

Again, go to Greece, explain your BS to them, and tell them simply to print more Euro's because it doesn't matter anymore.

Save Greece. Do it now.

Greece isn't a currency issuer, so your example makes zero sense.

 

[Norman]

Those G8 and G20 nations on the economy are talking about currency wars or an impression of it.

By the last article, they claim the U.S. is purposely weakening the dollar by the QE programs. China is saying it's lowering their bond holdings, and artificially increasing the yuan.

But none of that matters here either.

They are saying the dollar goes down as we print and influx money.

So now you guys need to educate the G20 with your op as well.

QE isn't printing money, it's an asset swap, as there isn't an increase in net financial assets.

Yeah if you define things unconventionally like MMTers do. If you don't then it by all means is printing money. It is annoying to debate about schematics... Guy 1 states something and Guy 2 says the same exact thing in some other words. And they both argue that the other guy is totally wrong! That is pretty much every MMT debate ever for you.


Anyway one thing that is kookoo about MMT is the fact that demand for money is NOT created by taxes. That is not how people behave at all, and we must remember that economics is all about behavior.

 

[Rshermr]

The Rising Price Of the Falling Dollar - Forbes

Yet, the basic reason for higher energy prices is being overlooked, even though it is right before our eyes: Oil prices are up because the value of the dollar is down. Our common sense hides this source of higher prices because we view the dollar as fixed, and prices as moving. News reports explain the sharp rise in consumer prices in February were caused by higher energy and food prices, implying that higher prices cause inflation. Of course, higher prices do not cause inflation. Higher prices are inflation.

The cost of this deception goes well beyond the vilification of the oil industry and free markets. The real price of the on-going debauchery of the dollar is measured by the loss of our prosperity and the debasement of our liberty.

comment

You need to set these Forbes guys straight while your at it.

Eagle, you are a clown. Forbes prints op ed pieces. The article you referenced was not done by 'fobes guys", as you surely know. It was done by someone writing an OP ED PIECE, as you surely know. Unless, of course, you are stupid as a post.
So, who wrote your op ed piece?? Why, it was Charles Kadlec. Now, anyone who knows anything about Kadlec knows he is a far right wing nut case, writing for far right wing bat shit crazy web sites. He has a HUGE RIGHT WING AGENDA. Only a con tool would use Kadlec as a source. Because he has zero value as an impartial source. It would be like someone from the far, far left useing moveon as a source, dipshit. And those with integrity do not use partial sources.

Oh, and by the way. Kadlec was one of two economic advisers to Herman Cain during his ill fated presidential run. Jesus, get a clue.

Again, go to Greece, explain your BS to them, and tell them simply to print more Euro's because it doesn't matter anymore.

Save Greece. Do it now.

Well, me boy. Now that was a profound post. Greece does not print it's own currency. It is on the euro, as you should know. So, it prints nothing, dipshit.

 

[Kimura]

Those G8 and G20 nations on the economy are talking about currency wars or an impression of it.

By the last article, they claim the U.S. is purposely weakening the dollar by the QE programs. China is saying it's lowering their bond holdings, and artificially increasing the yuan.

But none of that matters here either.

They are saying the dollar goes down as we print and influx money.

So now you guys need to educate the G20 with your op as well.

QE isn't printing money, it's an asset swap, as there isn't an increase in net financial assets.

Yeah if you define things unconventionally like MMTers do. If you don't then it by all means is printing money. It is annoying to debate about schematics... Guy 1 states something and Guy 2 says the same exact thing in some other words. And they both argue that the other guy is totally wrong! That is pretty much every MMT debate ever for you.


Anyway one thing that is kookoo about MMT is the fact that demand for money is NOT created by taxes. That is not how people behave at all, and we must remember that economics is all about behavior.

Operationally, QE is nothing more than a large scale asset purchase. All the Federal Reserve does is buy Treasuries and sells the dollars it creates. After this asset awap occurs, the primary dealer that sold the Treasuries to the Federal Reserve now has dollars as opposed to Treasuries and the Federal Reserve has Treasuries as opposed to dollars.

As a matter of fact, QE is deflationary since it moves interest beating assets, which would add to income, out of the general economy, swapping them out for non-interest bearing assets.

By the way, the term 'printing money' isn't really applicable under a fiat system. It's a leftover term from the days of the gold standard.

 

[Norman]

QE isn't printing money, it's an asset swap, as there isn't an increase in net financial assets.

Yeah if you define things unconventionally like MMTers do. If you don't then it by all means is printing money. It is annoying to debate about schematics... Guy 1 states something and Guy 2 says the same exact thing in some other words. And they both argue that the other guy is totally wrong! That is pretty much every MMT debate ever for you.


Anyway one thing that is kookoo about MMT is the fact that demand for money is NOT created by taxes. That is not how people behave at all, and we must remember that economics is all about behavior.

Operationally, QE is nothing more than a large scale asset purchase. All the Federal Reserve does is buy Treasuries and sells the dollars it creates. After this asset awap occurs, the primary dealer that sold the Treasuries to the Federal Reserve now has dollars as opposed to Treasuries and the Federal Reserve has Treasuries as opposed to dollars.

Yes, but a different view is that operationally QE is nothing more but printing money(maybe digitally) and having the government spend it. Both of these views are 100% correct. It just depends at what level and how you choose to look at the economy. MMT definitions are cool, but they are different from pretty much any other definitions people use.

As a matter of fact, QE is deflationary since it moves interest beating assets, which would add to income, out of the general economy, swapping them out for non-interest bearing assets.

By the way, the term 'printing money' isn't really applicable under a fiat system. It's a leftover term from the days of the gold standard.

Again you are using widely different definitions than most of the people. We are actually not arguing about any substance but just the use of language and definitions. To me QE means inflation in the way I define inflation. To you it may not since your definition of inflation and it's consequences are widely different. Same applies to printing money.