bush lover said:
Mr. Big Meat, the last paragraph of Mr. Buffet's speech proves my point!
Umm, no it doesn't.
bush lover said:
Our credit card isn't limitless, but will go on for decades!
According to who? Certainly not Warren Buffet. If it were decades off in the future, he wouldn't be dumping dollars here and now. He's 71, after all.
bush lover said:
And at a lousy 5% interest rate!
Historically speaking, interest rates under a gold standard generally hover around 3.5~4%, according to Larry Parks at fame.org.
bush lover said:
Agreed, 100%! As opposed to cutting one tax (income tax) and raising another tax (inflation "stealth tax"). That requires cutting
spending. In all fairness, the increase in revenues right now might be due to a lower tax rate. Or not, we don't really know for sure. It could be just another symptom of the oceans of money created in recent years.
bush lover said:
Your worry about inflation is a crock. There is no inflation.
Go back and read some of the articles I posted under "the CPI is a crock". CPI is the consumer price index. It doesn't include stock market bubbles, the increase in house prices, food, or energy. It applies laughable "hedonic adjustments", where (for example) a TV can be said to be cheaper if the picture is 20% better, despite a 10% price increase.
It also confuses the two separate types of inflation--money supply changes vs. supply/demand issues. For example, around the late 90's/early 00's there were deflation concerns. Core CPI prices went down because of free trade with China, which is a blessing. This was enough to counteract the Fed's big increases in M3 money supply, for a while. But because the Fed conflates the two types of inflation, they continued to crank out money (gotta fight deflation!), and blew a big fat bubble in the stock market--the dot-com bubble (and later, the housing bubble). Now it's spilling over into consumer prices, and we're just getting into the third bubble--commodities.
"Inflation" used to simply mean "an increase in the money supply". And here is how much inflation we've had.
Interesting side note, Greenspan gives his "Irrational Exuberance" speech sometime in 1996. Gee, why were the markets so exuberant, Mr. Greenspan?
Ooh, speaking of which. Here's an interesting read, which translated one of Greenspan's speeches from Fedspeak jibber-jabber into plain english.
What Does Mr. Greenspan REALLY think?
If anything, prices are far cheaper than 30 years ago.
Ha ha, what??
Cut interest rates now! Get that credit card rate down to 3% like when our President took office.
Crank up the printing press and we'll all be rich eh?
Am I living in america, or a bananna republic?