US Consumer Prices Data Set to Show ‘Wave of Disinflation’

[Oddball]

 

[Tunafish]

Do you consider your innumeracy a badge of honor?

I do.
Go fuck yourself with a cactus

 

[Tunafish]

He talks like that to everybody.

He's fixin to spit teeth if he runs that mouth in public

 

[MinTrut]

I actually do.

Impressive.

Several times a year...

See above.

Since 2009..

Above.

Have you exhausted your smartass?

 

[MinTrut]

It isn't happening because you scream it.

It’s happening because it’s happening.

Tell me how many hours each day you spend watching FOX, or listening to Idiot Radio.

^ Trolling his own thread.

But yeah, we’re in big economic trouble, and it’s pretty much all courtesy of the Democrats.

Thanks!

 

[The5thHorseman]

Impressive.



See above.

Above.

It's fun talking shit.....until you find yourself eating it..

 

[The5thHorseman]

It’s happening because it’s happening.

^ Trolling his own thread.

But yeah, we’re in big economic trouble, and it’s pretty much all courtesy of the Democrats.

Thanks!

Why is that "trolling"?

But yeah, we’re in big economic trouble, and it’s pretty much all courtesy of the Democrats

Either you have evidence, or an arm up your ass moving your lips...

 

[Tunafish]

It's fun talking shit.....until you find yourself eating it..

How does it taste?

 

[whitehall]

Set to show? Why can't we wait until it actually shows? That ain't likely?

 

[LeroyDumonde]

What are they?

Your average Joe has more bang for his buck. Higher interest rates discourage risky speculation and incentivize savings. A quick look at the time derivative of the money equation shows that when production of goods and services increases (which is what wealth is, after all) prices decline, assuming a constant money supply.

This isn't to say that there are no down sides to deflation. Rather, inflation and deflation are normal stabilizing reactions to changes in wealth and money supply. The current and recent high inflation was caused by a collapse in production (i.e. the country got poorer) thanks to the Plandemic and a massive increase in the money supply.

 

[The5thHorseman]

Your average Joe has more bang for his buck. Higher interest rates discourage risky speculation and incentivize savings. A quick look at the time derivative of the money equation shows that when production of goods and services increases (which is what wealth is, after all) prices decline, assuming a constant money supply.

This isn't to say that there are no down sides to deflation. Rather, inflation and deflation are normal stabilizing reactions to changes in wealth and money supply. The current and recent high inflation was caused by a collapse in production (i.e. the country got poorer) thanks to the Plandemic and a massive increase in the money supply.

the time derivative of the money equation

Brutal...can this be unread?

Rather, inflation and deflation are normal stabilizing reactions

Good lord....

Are you done?

 

[LeroyDumonde]

Brutal...can this be unread?




Good lord....

Are you done?

Your counterarguments are so persuasive that I'm rethinking my entire life.

 

[The5thHorseman]

Your counterarguments are so persuasive that I'm rethinking my entire life.

the time derivative of the money equation


Are you talking about the Velocity of Money?

The reason Central Banks fear deflation more than anything is because there is no prescription to stop a downward spiral.

 

[LeroyDumonde]

the time derivative of the money equation


Are you talking about the Velocity of Money?

The reason Central Banks fear deflation more than anything is because there is no prescription to stop a downward spiral.

The money equation (also called the equation of exchange) is MV=PQ. M is the money supply, V is the velocity of money, P is the average price for goods, and Q is the total quantity of goods. So if you take the time derivative (yes, I'm pretending that the numbers are continuous even though they are actually discrete) you get:
VdM/dt + M dV/dt = QdP/dt + PdQ/dt.

To get a sense of what's going on here it helps to make some simplifying assumptions, like the constancy of M and V. Then we get:

QdP/dt = -PdQ/dt.

Q and P are both positive numbers so we can see that as the quantity of goods increases the price of goods decreases, i.e. deflation. Deflation is actually a sign of a growing economy!

Edit:

So now let's look at a disaster scenario. Prices have dropped so low that businesses can't make any money, so they stop producing. dQ/dt=0. And let's suppose the government stops printing money, so dM/dt is zero. We get:

MdV/dt = QdP/dt.

Inflation will then depend on the velocity of money. Once people figure out that businesses aren't producing any more they are going to panic. They'll withdraw money from their fat savings accounts and start buying stuff while they still can. The velocity of money will increase and so will prices. Greedy capitalists will see prices rising and want to get in on the action, so they'll start producing again.

 

[SweetSue92]

You have no idea what you're talking about.

Feel free to stop at any time.

This is a great selling point. Tell the American people that they're lying eyes are always lying, and the money in their wallet really buys more than they think it does day in and day out.

Send dementia Joe out there to say these things (with the Easter Bunny trailing him) and call it an "education tour".

Whoa.....

 

[MinTrut]

It's fun talking shit.....until you find yourself eating it..

I defer to your expertise in this area.

 

[MinTrut]

Why is that "trolling"?

Either you have evidence, or an arm up your ass moving your lips...

Again, I defer to your expertise.

But yeah - Democrats are continuing to burn the country down, including the economy.

 

[MinTrut]

Your counterarguments are so persuasive that I'm rethinking my entire life.

^ Thread win.

 

[The5thHorseman]

The money equation (also called the equation of exchange) is MV=PQ. M is the money supply, V is the velocity of money, P is the average price for goods, and Q is the total quantity of goods. So if you take the time derivative (yes, I'm pretending that the numbers are continuous even though they are actually discrete) you get:
VdM/dt + M dV/dt = QdP/dt + PdQ/dt.

To get a sense of what's going on here it helps to make some simplifying assumptions, like the constancy of M and V. Then we get:

QdP/dt = -PdQ/dt.

Q and P are both positive numbers so we can see that as the quantity of goods increases the price of goods decreases, i.e. deflation. Deflation is actually a sign of a growing economy!

Edit:

So now let's look at a disaster scenario. Prices have dropped so low that businesses can't make any money, so they stop producing. dQ/dt=0. And let's suppose the government stops printing money, so dM/dt is zero. We get:

MdV/dt = QdP/dt.

Inflation will then depend on the velocity of money. Once people figure out that businesses aren't producing any more they are going to panic. They'll withdraw money from their fat savings accounts and start buying stuff while they still can. The velocity of money will increase and so will prices. Greedy capitalists will see prices rising and want to get in on the action, so they'll start producing again.

Cigarette, or Kleenex?

Deflation isn't the falling of prices as Q increase, it is a SUSTAINED FALL in the general price level. This is the consequence of a drop in aggregate demand.

As prices fall, consumers anticipate further reductions and defer purchases.

 

[The5thHorseman]

This is a great selling point. Tell the American people that they're lying eyes are always lying, and the money in their wallet really buys more than they think it does day in and day out.

Send dementia Joe out there to say these things (with the Easter Bunny trailing him) and call it an "education tour".

Whoa.....

It's what FOX does EVERY DAY, under a democratic administration.