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Inflation occurs in a perfectly healthy economy.
brain dead lunacy. Inflation occurs and distorts an economy only if libturds create it!!! Did you think the Girl Scouts created it??
and ofocourse it would have been better still without liberal inflation1900's was a period of the greatest wealth creation and economic expansion the world has ever seen.
The hyperinflation of Weimar Germany was a different animal.
dear once inflation is policy you can always create a little more and then a little more rather than tax a little more and a little more. IS that really over your head?? We live on a slippery slope as the current housing bubble and worldwide depression prove. The best policy is to simply make inflation illegal as there are no advantages other than to enable idiotic liberalism.
Get this through your head: hyperinflation is a completely different animal than inflation. Hyperinflation is a chaotic economic progression and breakdown crisis which results in a total rejection of the currency.
yes dear almost like the liberal housing bubble and Great Depression. The best policy is to simply outlaw liberal monetary policy!!
How would you make inflation illegal btw?
How would you make inflation illegal btw?
too stupid, you'd simply change the Feds mandate
Inflation occurs in a perfectly healthy economy.
brain dead lunacy. Inflation occurs and distorts an economy only if libturds create it!!! Did you think the Girl Scouts created it??
and ofocourse it would have been better still without liberal inflation1900's was a period of the greatest wealth creation and economic expansion the world has ever seen.
The hyperinflation of Weimar Germany was a different animal.
dear once inflation is policy you can always create a little more and then a little more rather than tax a little more and a little more. IS that really over your head?? We live on a slippery slope as the current housing bubble and worldwide depression prove. The best policy is to simply make inflation illegal as there are no advantages other than to enable idiotic liberalism.
You're a fucking riot, I love this forum.Get this through your head: hyperinflation is a completely different animal than inflation. Hyperinflation is a chaotic economic progression and breakdown crisis which results in a total rejection of the currency.
yes dear almost like the liberal housing bubble and Great Depression. The best policy is to simply outlaw liberal monetary policy!!
So does it make sense to say the dollar has lost value? Of course not.
'Make inflation illegal'
too stupid!! Ever heard of the Hoover Dam stimulus project???? See why we are positive a liberal will be slow???Herbert Hoover was a Republican.
if I disagreed wit the aboive I'll pay you $10,000. Bet or run away once again with another of your liberal strawmen between your legs.I would also point you to the 19th century and some of the banking panics which occurred every ten years. There were also Republicans involved, but don't let things like history get in your way.
The housing bubble did start under the 2nd term of the Clinton Administration, as a byproduct of the domestic private sector going into deficit, which cause people to borrow to finance consumption.
The statement 'inflation is a tax' is polemic and unsubstantive. This claim would be correct if you assume people aren't that intelligent and don't understand that inflation occurs. If your statement was correct, it would mean the whole rational for markets wouldn't exist. People make choices with rational expectation going forward.
Well this is complete and utter nonsense. Inflation is VERY MUCH a tax, if people know it occurs or not. How else could government fund things with inflation otherwise? People knowing about inflation only affects how much holders of cash or loans lose or win. The tax can't disappear though.
The fact is, government spends money on something. This something is no longer available to the private sector. Thus it's a tax. It's not a tax that's sized according to inflation rate, as some people benefit and some lose due to the inflation itself (which just means that this tax has more consequences than other taxes) - more people have to lose though. Rather, the inflation tax is as high as the amount of increase in government's spending power due to it.
Thus you get government budget constraint which is: Money printing+other taxes + burrowing.
Inflation tax is commonly called "Seigniorage".
People innately understand that inflation occurs and plan according which means it's not theft. Individuals can invest in real assets, such as gold, silver or real estate if they're really worried about inflation, although stocks and bonds have historically performed MUCH better. As a matter of fact, inflation is a normal part of economic growth, and can be a positive since it gives people a reason not to hoard cash, which keeps money flowing in the economy as investments and consumption.
Damn, you are big on free cakes. You could be right if the printed money was given to every holder of cash in propotion. However, the printed money is given to government and thus it's a tax and a way of funding the government. This is a game where private sector loses and government gains. A tax. Also I disagree that hoarding of money is a problem, it's just a form of speculation, but let's not get into that.
The FED can keep interest rates at zero for as long as they need to. Take a look at Japan, they have massive deficits, experienced deflation and have had a zero interest rate policy for years. By the way, I'm not suggesting a 20 year policy of zero interest rates. My point is, people make a big deal out of ZIRP, when it's required if the FED is going to engage in QE. This has to occur or else the FED wouldn't be able to maintain control of any positive interest rates since excess reserves would create competition in the interbank market and decrease interest rates.
I am not familiar with Japan, but no central banks can't. As inflation raises due to artificially low interest rates (which must happen), the interest rates will have to raise. And what can the Fed do to control inflation? Raise interest rates. This is just econ 101, interest rates can not be controlled in the long run, by the central banks at least. The FED is planning to pay banks to hold their reserves - this is one way to go about decreasing inflation, but will increase the deficit. Again, no FREE CAKE! It's a deficit or inflation.
There could be various reasons why extended low interest rates are possible though, but in USA, in this situation. Not really. In fact pretty much every measure that counters inflation such as: Credit destruction, balance of payments deficit, has been already used in historically high doses.
Also, I can engage in a similar polemic: deflation is theft. For example, debts are fixed in nominal terms, so when wages and prices fall, debtors have a problem servicing their debts. People would ostensibly have to pay back their debts with a dollar having stronger purchasing power.
Yes inflation and deflation benefits different people. The difference is inflation is a tax, deflation is a tax break. There is no free lunch or taxes.
When government expands the money supply, it takes from the private sector. When it decreases money supply, it gives back to the private sector (and this must be funded with other taxes). No violation of the free lunch principle!
You on the other hand seem to be thinking government can buy anything with printig money and no one will be taxed out of anything... No, in money printing some people lose, some gain, and in addition, the private sector is a net loser. Like in all taxes. However, sometimes inflation MAY lead to more efficient economy. Which means gain for everyone. Like if wages are too high and they fall. Other taxes may lead to more efficient economy as well, they are still taxes. On the other hand, most taxes lead to less efficient economy, I think this is the case with inflation as well, most of the time.
BTW, more efficient economy doesn't always mean higher GDP, sometimes free time is valued more than production itself.
Again, so what if China unloads US Treasuries? The only way to rid themselves of dollar holdings is purchase real goods and services produced by Americans. By the way, China has increased in their purchase of Treasuries. As a matter of fact, most bond auctions are oversubscribed, meaning there's more buyers than available paper.
Well usually in auctions there are more buyers than sellers. It just depends on what price they want to pay. The highest bidder gets all. Again, I am not american, since you are a bond trader, you would probably know more. However, similar things can be said of all bubbles (e.g. people greatly overvaluing an asset).
The chinese can buy all the used goods as well. Or the existing capital. Which will just devastate the gdp even more. But the main problem is that the DOLLARS will be coming back to USA. Which can result in heavy inflation, which means FED can no longer print bunch of money and loan it to government. Government, not being able to burrow from Chinese either will go bust when that happens. Which means a lot of angry people who want their benefits. That will be to consequence of this spending and burrowing party, that should be obvious to everyone. To what degree it will happen? No one knows.
EDIT: This post only relates to inflation as monetary government created phenomenon. Which is usually root cause for rising prices. As market phenomenon inflation is NOT a tax. It would be probably better to just say "printing of money" than inflation. That is the old and still sometimes used definition though.
Jesus H. Christ. I may have to go shoot myself. That was one of the stupidest posts ever. And ed is posting here. Between the two of you, you may have the IQ of a single normal person. JESUS.Well this is complete and utter nonsense. Inflation is VERY MUCH a tax, if people know it occurs or not. How else could government fund things with inflation otherwise? People knowing about inflation only affects how much holders of cash or loans lose or win. The tax can't disappear though.
The fact is, government spends money on something. This something is no longer available to the private sector. Thus it's a tax. It's not a tax that's sized according to inflation rate, as some people benefit and some lose due to the inflation itself (which just means that this tax has more consequences than other taxes) - more people have to lose though. Rather, the inflation tax is as high as the amount of increase in government's spending power due to it.
Thus you get government budget constraint which is: Money printing+other taxes + burrowing.
Inflation tax is commonly called "Seigniorage".
Damn, you are big on free cakes. You could be right if the printed money was given to every holder of cash in propotion. However, the printed money is given to government and thus it's a tax and a way of funding the government. This is a game where private sector loses and government gains. A tax. Also I disagree that hoarding of money is a problem, it's just a form of speculation, but let's not get into that.
I am not familiar with Japan, but no central banks can't. As inflation raises due to artificially low interest rates (which must happen), the interest rates will have to raise. And what can the Fed do to control inflation? Raise interest rates. This is just econ 101, interest rates can not be controlled in the long run, by the central banks at least. The FED is planning to pay banks to hold their reserves - this is one way to go about decreasing inflation, but will increase the deficit. Again, no FREE CAKE! It's a deficit or inflation.
There could be various reasons why extended low interest rates are possible though, but in USA, in this situation. Not really. In fact pretty much every measure that counters inflation such as: Credit destruction, balance of payments deficit, has been already used in historically high doses.
Yes inflation and deflation benefits different people. The difference is inflation is a tax, deflation is a tax break. There is no free lunch or taxes.
When government expands the money supply, it takes from the private sector. When it decreases money supply, it gives back to the private sector (and this must be funded with other taxes). No violation of the free lunch principle!
You on the other hand seem to be thinking government can buy anything with printig money and no one will be taxed out of anything... No, in money printing some people lose, some gain, and in addition, the private sector is a net loser. Like in all taxes. However, sometimes inflation MAY lead to more efficient economy. Which means gain for everyone. Like if wages are too high and they fall. Other taxes may lead to more efficient economy as well, they are still taxes. On the other hand, most taxes lead to less efficient economy, I think this is the case with inflation as well, most of the time.
BTW, more efficient economy doesn't always mean higher GDP, sometimes free time is valued more than production itself.
Well usually in auctions there are more buyers than sellers. It just depends on what price they want to pay. The highest bidder gets all. Again, I am not american, since you are a bond trader, you would probably know more. However, similar things can be said of all bubbles (e.g. people greatly overvaluing an asset).
The chinese can buy all the used goods as well. Or the existing capital. Which will just devastate the gdp even more. But the main problem is that the DOLLARS will be coming back to USA. Which can result in heavy inflation, which means FED can no longer print bunch of money and loan it to government. Government, not being able to burrow from Chinese either will go bust when that happens. Which means a lot of angry people who want their benefits. That will be to consequence of this spending and burrowing party, that should be obvious to everyone. To what degree it will happen? No one knows.
And you must understand that ed is a con tool, paid to post con dogma. He can never ever say that a republican, for instance, was behind stimulus. Like hoover dam. so, he apparently thinks hoover was a dem. Poor ignorant con tool. Which would mean that Eisenhower was a dem. He pushed and got the interstate highway system done. And Reagan must be a dem. He spent stimulatively like crazy and increased the size of the national debt.So does it make sense to say the dollar has lost value? Of course not.
if I said the dollar has lost value I'll pay you $10,000. Bet or run away once again with your liberal strawman between your legs.
'Make inflation illegal'
dear why are you so afraid to say exactly why its a riot? What does your fear tell us about th eliberal IQ and chararacter.
too stupid!! Ever heard of the Hoover Dam stimulus project???? See why we are positive a liberal will be slow???
if I disagreed wit the aboive I'll pay you $10,000. Bet or run away once again with another of your liberal strawmen between your legs.I would also point you to the 19th century and some of the banking panics which occurred every ten years. There were also Republicans involved, but don't let things like history get in your way.
The housing bubble did start under the 2nd term of the Clinton Administration, as a byproduct of the domestic private sector going into deficit, which cause people to borrow to finance consumption.
and your point is?????????????????????????????
Jesus H. Christ. I may have to go shoot myself. That was one of the stupidest posts ever. And ed is posting here. Between the two of you, you may have the IQ of a single normal person. JESUS.
I would like to know, why you think that?
Not that I particularly care, as you take the cake for some of the most idiotic posts here... AKA, tax hikes being a stimulus. In a world where up is down I am happy to have the credit for stupidest post.
He can never ever say that a republican, for instance, was behind stimulus. Like hoover dam. so, he apparently thinks hoover was a dem.
Poor ignorant con tool. Which would mean that Eisenhower was a dem. He pushed and got the interstate highway system done. And Reagan must be a dem. He spent stimulatively like crazy and increased the size of the national debt.
so???? if I were a communist socialist or Fabian I could not do it either. Why are you stuck on stupid????Which shows you where ed comes from. He is a libertarian, who can not name a libertarian economy that exists today.
And he simply posts dogma. From bat shit crazy con web sites that he cruises,
So, that is another way of saying, ed is of NO IMPORT WHATSOEVER. It is simply like trying to have a discussion with a turnip. No actual brain activity.
He can never ever say that a republican, for instance, was behind stimulus. Like hoover dam. so, he apparently thinks hoover was a dem.
there was little Republican/libertarian consensus until Friedman; so by today's standards Hoover was a tax raising dam building forsaken liberal. Is that really over your head?? It always like arguing with a child.
Poor ignorant con tool. Which would mean that Eisenhower was a dem. He pushed and got the interstate highway system done. And Reagan must be a dem. He spent stimulatively like crazy and increased the size of the national debt.
Buckley hated Eisenhower and Grover said the tax increases were a mistake. Fortunately the Party is much purer today, but you have to keep in mind that with elections decided by flip flopping independents the parties will never be very pure. I know I'm way over your head here, but why not see if Mom can help you understand.
so???? if I were a communist socialist or Fabian I could not do it either. Why are you stuck on stupid????
And he simply posts dogma. From bat shit crazy con web sites that he cruises,
too stupid. Conservatism is 2000 years old so who needs modern web sites to repeat what Aristotle Jefferson and Friedman knew long ago. See why we say slow???
So, that is another way of saying, ed is of NO IMPORT WHATSOEVER. It is simply like trying to have a discussion with a turnip. No actual brain activity.
if you disagree with Aristotle Jefferson or Friedman please say exactly why or admit as a liberal you lack the IQ to do so.
Just normal for ed. Nobody pays much attention to him. He posts all day, has no job. but does get paid to post his conservative propaganda.He can never ever say that a republican, for instance, was behind stimulus. Like hoover dam. so, he apparently thinks hoover was a dem.
there was little Republican/libertarian consensus until Friedman; so by today's standards Hoover was a tax raising dam building forsaken liberal. Is that really over your head?? It always like arguing with a child.
Buckley hated Eisenhower and Grover said the tax increases were a mistake. Fortunately the Party is much purer today, but you have to keep in mind that with elections decided by flip flopping independents the parties will never be very pure. I know I'm way over your head here, but why not see if Mom can help you understand.
so???? if I were a communist socialist or Fabian I could not do it either. Why are you stuck on stupid????
too stupid. Conservatism is 2000 years old so who needs modern web sites to repeat what Aristotle Jefferson and Friedman knew long ago. See why we say slow???
So, that is another way of saying, ed is of NO IMPORT WHATSOEVER. It is simply like trying to have a discussion with a turnip. No actual brain activity.
if you disagree with Aristotle Jefferson or Friedman please say exactly why or admit as a liberal you lack the IQ to do so.
This is one of the most insulting and meanest posts I have read.
Your mother should be embarassed you talk to other people that way.
Just normal for ed. Nobody pays much attention to him. He posts all day, has no job. but does get paid to post his conservative propaganda.there was little Republican/libertarian consensus until Friedman; so by today's standards Hoover was a tax raising dam building forsaken liberal. Is that really over your head?? It always like arguing with a child.
Buckley hated Eisenhower and Grover said the tax increases were a mistake. Fortunately the Party is much purer today, but you have to keep in mind that with elections decided by flip flopping independents the parties will never be very pure. I know I'm way over your head here, but why not see if Mom can help you understand.
so???? if I were a communist socialist or Fabian I could not do it either. Why are you stuck on stupid????
too stupid. Conservatism is 2000 years old so who needs modern web sites to repeat what Aristotle Jefferson and Friedman knew long ago. See why we say slow???
if you disagree with Aristotle Jefferson or Friedman please say exactly why or admit as a liberal you lack the IQ to do so.
This is one of the most insulting and meanest posts I have read.
Your mother should be embarassed you talk to other people that way.
I am a bit more irritated with ed than normal, as he took a post of mine, changed the wording to what he wanted, and reposted it sayingt that I said what he had modified. I find that completely dishonest, and i find ed to be without integrity. Not the first time he has done this. But, the last. As I will not bother responding to him again. Just a waste of time.
amd admit to being a human with views from both sides.
Well this is complete and utter nonsense. Inflation is VERY MUCH a tax, if people know it occurs or not. How else could government fund things with inflation otherwise? People knowing about inflation only affects how much holders of cash or loans lose or win. The tax can't disappear though.
The fact is, government spends money on something. This something is no longer available to the private sector. Thus it's a tax. It's not a tax that's sized according to inflation rate, as some people benefit and some lose due to the inflation itself (which just means that this tax has more consequences than other taxes) - more people have to lose though. Rather, the inflation tax is as high as the amount of increase in government's spending power due to it.
Thus you get government budget constraint which is: Money printing+other taxes + burrowing.
Inflation tax is commonly called "Seigniorage".
Damn, you are big on free cakes. You could be right if the printed money was given to every holder of cash in proportion. However, the printed money is given to government and thus it's a tax and a way of funding the government. This is a game where private sector loses and government gains. A tax. Also I disagree that hoarding of money is a problem, it's just a form of speculation, but let's not get into that.
I am not familiar with Japan, but no central banks can't. As inflation raises due to artificially low interest rates (which must happen), the interest rates will have to raise. And what can the Fed do to control inflation? Raise interest rates. This is just econ 101, interest rates can not be controlled in the long run, by the central banks at least. The FED is planning to pay banks to hold their reserves - this is one way to go about decreasing inflation, but will increase the deficit. Again, no FREE CAKE! It's a deficit or inflation.
There could be various reasons why extended low interest rates are possible though, but in USA, in this situation. Not really. In fact pretty much every measure that counters inflation such as: Credit destruction, balance of payments deficit, has been already used in historically high doses.
Yes inflation and deflation benefits different people. The difference is inflation is a tax, deflation is a tax break. There is no free lunch or taxes.
When government expands the money supply, it takes from the private sector. When it decreases money supply, it gives back to the private sector (and this must be funded with other taxes). No violation of the free lunch principle!
You on the other hand seem to be thinking government can buy anything with printig money and no one will be taxed out of anything... No, in money printing some people lose, some gain, and in addition, the private sector is a net loser. Like in all taxes. However, sometimes inflation MAY lead to more efficient economy. Which means gain for everyone. Like if wages are too high and they fall. Other taxes may lead to more efficient economy as well, they are still taxes. On the other hand, most taxes lead to less efficient economy, I think this is the case with inflation as well, most of the time.
BTW, more efficient economy doesn't always mean higher GDP, sometimes free time is valued more than production itself.
If the government were to constantly run a balanced budget, where spending was equal to tax revenue, the domestic private sector's net financial wealth would be zero.
amd admit to being a human with views from both sides.
too stupid!! The views then would be contradictory!!! Is the concept over your pea brained liberal head??? Plato believed in a Nazi liberal top down central government of extremist elitists while Aristotle believed in a conservative bottom up civilization based on the common individual and common family!! The Constitution and Jefferson of course are/were Aristotelian
So you believe in a top down government enforcing your religion on Oregon ?
