Our biggest problem is deflation - not inflation

[DarthTrader]

The reason Todd is such a moron is he claims that a Treasury is an asset (collateral) when it is impossible to ever be used as such per the law passed by Congress when creating the Federal Reserve.

So he sits here and strokes his little tiny cock trying to say I'm wrong that Gold is the ONLY asset that's viable on the Fed balance sheet.

Fuck off Todd, you're a loser.

Reducing the value of all long-dated treasuries by some 90% would cause world wide famine and nuclear war.

 

[Toddsterpatriot]

But the GAO says lowering budget deficit will lower value of dollar by lowering interest rates.

Where did they say deficit spending is deflationary?

 

[DarthTrader]

Where did they say deficit spending is deflationary?

When they said reducing the deficit is inflationary, moron.

 

[Toddsterpatriot]

Now you really prove how fucking retarded you are.

If the FED were to shut down and the Congress balance the books. All bonds would lose 90% of their value.

That would literally be a world ending catastrophy.

Why would the Fed shut down? Why would Congress "balance the books" if they did?

You're going further and further off course.

 

[Toddsterpatriot]

When they said reducing the deficit is inflationary, moron.

Where did they say reducing the deficit is inflationary?

 

[Toddsterpatriot]

The reason Todd is such a moron is he claims that a Treasury is an asset (collateral) when it is impossible to ever be used as such per the law passed by Congress when creating the Federal Reserve.

So he sits here and strokes his little tiny cock trying to say I'm wrong that Gold is the ONLY asset that's viable on the Fed balance sheet.

Fuck off Todd, you're a loser.

Reducing the value of all long-dated treasuries by some 90% would cause world wide famine and nuclear war.

The reason Todd is such a moron is he claims that a Treasury is an asset (collateral) when it is impossible to ever be used as such per the law passed by Congress when creating the Federal Reserve.

Cool story!
Post that law.

Reducing the value of all long-dated treasuries by some 90% would cause world wide famine and nuclear war.

We should never reduce the value of all long-dated treasuries by some 90%.

Are we safe?

 

[BackAgain]

I’m (obviously) not an economist nor a student of economics. But I’ve always understood it that simply “printing” money (electronically or in the form of paper) was a basis to create inflation. A major supply of “money” (especially measured in multiple trillions of dollars) but each unit becoming progressively less and less valuable.

And that’s what we’ve been doing for several administrations now. So how is this anything but INFLATIONARY?

 

[DarthTrader]

The reason Todd is such a moron is he claims that a Treasury is an asset (collateral) when it is impossible to ever be used as such per the law passed by Congress when creating the Federal Reserve.

Cool story!
Post that law.

Reducing the value of all long-dated treasuries by some 90% would cause world wide famine and nuclear war.

We should never reduce the value of all long-dated treasuries by some 90%.

Are we safe?

It's literally quoted in the video I sent. Doofus.

It's really sad you're such a loser

 

[DarthTrader]

I’m (obviously) not an economist nor a student of economics. But I’ve always understood it that simply “printing” money (electronically or in the form of paper) was a basis to create inflation. A major supply of “money” (especially measured in multiple trillions of dollars) but each unit becoming progressively less and less valuable.

And that’s what we’ve been doing for several administrations now. So how is this anything but INFLATIONARY?

Because we haven't been printing money like we did the last 3 years, in a long time.

QE by itself isn't as inflationary as money printing but it does keep rates low over time.

 

[Samofvt]

I’m (obviously) not an economist nor a student of economics. But I’ve always understood it that simply “printing” money (electronically or in the form of paper) was a basis to create inflation. A major supply of “money” (especially measured in multiple trillions of dollars) but each unit becoming progressively less and less valuable.

And that’s what we’ve been doing for several administrations now. So how is this anything but INFLATIONARY?

That's getting at the truth of the matter.

Another analogy being left out of the discussion, and which is causing DarthTrader the worry about "deflation", comes from the lesson we learned about MATCHSTICK EMPIRES in 1929. When the interest rates go up and there isn't as much free money flowing, investors are going to scrutinize their investments. How many matchstick empires are they trading on the markets? A LOT of them, in my appraisal. So while money will cost more and real goods and services will go up in cost, ticker-tape companies values will deflate since the investor has to sell speculative investments to cover their ass for real goods and services.

Just one other point: gold is pretty, but is it the mineral of most concern? I suggest you look at hydro-carbons instead, if you want to examine the basis of resource backed mineral economy.

 

[BackAgain]

Because we haven't been printing money like we did the last 3 years, in a long time.

QE by itself isn't as inflationary as money printing but it does keep rates low over time.

Sorry. Not convincing. We’ve been printing money like crazy for several administrations. And the money supply being measured in the TRILLIONS absolutely makes each unit less valuable. We’re not in Weimar Republic territory yet, but it takes an assload more money now to buy the basics than it has in many years. And the debt and deficit problem holds no promise of relief.

There’s nothing deflationary in what you’re talking about.

 

[DarthTrader]

Sorry. Not convincing. We’ve been printing money like crazy for several administrations. And the money supply being measured in the TRILLIONS absolutely makes each unit less valuable. We’re not in Weimar Republic territory yet, but it takes an assload more money now to buy the basics than it has in many years. And the debt and deficit problem holds no promise of relief.

There’s nothing deflationary in what you’re talking about.

It's complex and I try to explain it but then dumbasses like Todd whip out their tiny peepee.

For instance, trade deficits are deflationary.

Money velocity slowing is deflationary.

Etc.

So as a whole the FED has done a decent job up until covid of handling the money supply.

 

[Toddsterpatriot]

It's literally quoted in the video I sent. Doofus.

It's really sad you're such a loser

The law is in a video? DURR.

Try again?

 

[Toddsterpatriot]

QE by itself isn't as inflationary as money printing

Why is it less inflationary?

 

[Samofvt]

It's complex and I try to explain it but then dumbasses like Todd whip out their tiny peepee.

For instance, trade deficits are deflationary.

Money velocity slowing is deflationary.

Etc.

So as a whole the FED has done a decent job up until covid of handling the money supply.

I have to agree about the FED. They are tasked with making things run no matter what policy the current political regime puts in place. At that, I'd say it's amazing how well they have gotten the job done.

We were on decent footing even after the wars in the middle east by Bush Sr and Bush Jr. The real first blow was struck with Obama "Care": trillions lost with no significant benefit to the general population. Then the trillions in goods and services lost due to the shutdowns and then the trillions spent on pandemic recovery spending, the second package rushed through by the newly elected president being superfluous hogwash that nobody even knows where the money went.

These things will ripple through for a long time to come.

 

[Toddsterpatriot]

For instance, trade deficits are deflationary.

You said budget deficits are deflationary.

 

[DarthTrader]

Why is it less inflationary?

Because all QE does is free up the balance sheets of the owner..the owner doesn't necessarily extend more credit and in fact hasn't. By-in-large banks have made less loans in the past few years keeping their balance sheets much better capitalized than in the last 20 years.

 

[DarthTrader]

You said budget deficits are deflationary.

Since less deficit is inflationary more deficit is deflationary therefore deficits are deflationary. Per the GAO.

 

[DarthTrader]

Why is it less inflationary?

Easy...oh tiny peepee'd one...

If 1 $ of qe = $0.50 inflation. And 1 $ of helicopter money = $1. Then qe is less inflationary.

 

[Toddsterpatriot]

Since less deficit is inflationary more deficit is deflationary therefore deficits are deflationary. Per the GAO.

Excellent!

Now show where the GAO said "less deficit is inflationary" or "more deficit is deflationary".

Or you could change the subject again?