Forum
»
U.S. inflation hit a 39-year high of 6.8%
12-10-2021, 08:19 PM
-
#31
- Paul Kreul
- Registered User
-
- Paul Kreul
- Registered User
- Join Date: Apr 2006
- Location: United States
- Posts: 33,385
- Rep Power: 316746
-
-
Originally Posted By NYPat⏩
Within the next week, Patricia will claim inflation is good for the economy, & that we are doing great with Xiden in charge.Companies are price gouging under the excuse of "inflation". They are making record profits as a result.
First the media will claim it, then Pat will rely the message here per usual.
12-10-2021, 08:29 PM
-
#32
- DuracellBunny
- Has new batteries!
-
- DuracellBunny
- Has new batteries!
- Join Date: Nov 2005
- Posts: 15,594
- Rep Power: 201320
-
-
Change the definition of woman, to make men women.
Change the definition of vaccine, to make snake oil a vaccine.
Change the definition of inflation, to make inflation go away.
Theydidrun onchange......
Change the definition of vaccine, to make snake oil a vaccine.
Change the definition of inflation, to make inflation go away.
Theydidrun onchange......
Screw nature; my body will do what I DAMN WELL tell it to do!
The only dangerous thing about an exercise is the person doing it.
They had the technology to rebuild me. They made me better, stronger, faster......
12-10-2021, 08:31 PM
-
#33
>Food costs(makes up 14% of overall CPI), jumped 0.7% for the month and6.1% year-over-year,with the CPI for meats jumping by 16% year-over year.
>Energy costs(7.5% of overall CPI) spiked by 3.5% for the month and by33% year-over-year:
* Gasoline +58.1% year-over-year
* Utility natural gas to the home: +25.1% year-over-year
* Electricity service: +6.5% year-over-year.
> The CPI forused cars and trucks(makes up 3.4% in overall CPI) jumped by 2.5% for the month, and by31.4% year-over-year.
> The CPI fornew cars and trucks(makes up 3.9% in overall CPI) spiked by 1.1% for the month and by11.1% year-over-year.
>Energy costs(7.5% of overall CPI) spiked by 3.5% for the month and by33% year-over-year:
* Gasoline +58.1% year-over-year
* Utility natural gas to the home: +25.1% year-over-year
* Electricity service: +6.5% year-over-year.
> The CPI forused cars and trucks(makes up 3.4% in overall CPI) jumped by 2.5% for the month, and by31.4% year-over-year.
> The CPI fornew cars and trucks(makes up 3.9% in overall CPI) spiked by 1.1% for the month and by11.1% year-over-year.
Inflation in consumer prices is another term for the loss of the purchasing power of the consumer’s dollar. In November, the purchasing power of what was $1 in January 2000 dropped to 60.81 cents:

https://wolfstreet.com/2021/12/10/wo...n-in-40-years/
"I am a rational animal who occupies the intermediary position between angel and beast"
"The upper class is afforded their position by the collective burden the underclass must carry for them"
**Summer Walker Crew**
12-10-2021, 08:32 PM
-
#34
lol @ this evil regime wanting us to believe their numbers are accurate. It's way higher than that.
One party system; Most Republicans are Democrats, but no Democrats are Republicans.
Hayek and Mises were right; they're all socialists.
"To Call something fair or unfair is a subjective value judgment and not liable to any verification" Ludwig Von Mises
12-10-2021, 10:16 PM
-
#35
- Fishman15
- Ultra Dark MAGA
-
- Fishman15
- Ultra Dark MAGA
- Join Date: Jan 2013
- Location: United States
- Posts: 28,522
- Subscribers: 3
- Rep Power: 329377
-
-
Originally Posted By DuracellBunny⏩
And "change" is all we are going to have left in our pocket...Change the definition of woman, to make men women.
Change the definition of vaccine, to make snake oil a vaccine.
Change the definition of inflation, to make inflation go away.
Theydidrun onchange......
Change the definition of vaccine, to make snake oil a vaccine.
Change the definition of inflation, to make inflation go away.
Theydidrun onchange......
Hey Timmy, show us on the boy doll where the tampon goes...
12-10-2021, 10:41 PM
-
#36
- AlwaysFocus
- Registered AI
-
- AlwaysFocus
- Registered AI
- Join Date: Sep 2016
- Location: BC, Canada
- Posts: 43,341
- Rep Power: 354666
-
-
The definition of inflation will just have to be redefined
12-11-2021, 06:13 AM
-
#37
- Benji Snap
- Registered User
-
- Benji Snap
- Registered User
- Join Date: Oct 2005
- Location: Australia
- Posts: 6,869
- Rep Power: 20127
-
-
Has the $trillions for Biden's "Build Back Better" been injected into the economy yet?
If that deal hasn't even passed yet, what will happen with inflation when it is?
If that deal hasn't even passed yet, what will happen with inflation when it is?
12-11-2021, 06:21 AM
-
#38
- chaunce54
- Platinum User
-
- chaunce54
- Platinum User
- Join Date: Feb 2010
- Age: 50
- Posts: 32,523
- Rep Power: 202517
-
-
Originally Posted By Benji
Biden Bill Could Add $3T to Deficits if Made Permanent Without New Offsets: CBOHas the $trillions for Biden's "Build Back Better" been injected into the economy yet?
If that deal hasn't even passed yet, what will happen with inflation when it is?
If that deal hasn't even passed yet, what will happen with inflation when it is?
https://www.yahoo.com/now/biden-bill...234640854.html
That money has to come from somewhere...
^^Former 300+lb Crew^^
WWPB2D
Nothing worthwile is ever easy.
The beatings will continue until morale improves.
12-11-2021, 09:15 AM
-
#39
- gachase21
- Join Date: Dec 2010
- Location: Georgia, United States
- Posts: 31,767
- Subscribers: 4
- Rep Power: 389233
-
-
Originally Posted By greenleaf⏩
They would be correct- iff…. It was steady inflation somewhere between 1-2% - 1.4ish or so ideal.CNN: Why high inflation is good for the economy.
This - what we have now- it’s certainly not that
What we have now is very needless and disruptive.
There are major winners and major losers in each wealth category depending on their situation.
It isn’t a blanket for each category at all right now.
12-11-2021, 09:26 AM
-
#40
Originally Posted By gachase21⏩
How so? How does Fed controlled inflation benefit the people?They would be correct- iff…. It was steady inflation somewhere between 1-2% - 1.4ish or so ideal.
One party system; Most Republicans are Democrats, but no Democrats are Republicans.
Hayek and Mises were right; they're all socialists.
"To Call something fair or unfair is a subjective value judgment and not liable to any verification" Ludwig Von Mises
12-11-2021, 09:33 AM
-
#41
Originally Posted By gachase21⏩
LMAO.They would be correct- iff…. It was steady inflation somewhere between 1-2% - 1.4ish or so ideal.
This - what we have now- it’s certainly not that
What we have now is very needless and disruptive.
There are major winners and major losers in each wealth category depending on their situation.
It isn’t a blanket for each category at all right now.
This - what we have now- it’s certainly not that
What we have now is very needless and disruptive.
There are major winners and major losers in each wealth category depending on their situation.
It isn’t a blanket for each category at all right now.
Never fails with the boomer.
A total lack of understanding of economics.
He's even going along with CNN propaganda.
"I am a rational animal who occupies the intermediary position between angel and beast"
"The upper class is afforded their position by the collective burden the underclass must carry for them"
**Summer Walker Crew**
12-11-2021, 09:40 AM
-
#42
- gachase21
- Join Date: Dec 2010
- Location: Georgia, United States
- Posts: 31,767
- Subscribers: 4
- Rep Power: 389233
-
-
Originally Posted By Kraken⏩
I go into details on the last half of the first post of the threadHow so? How does Fed controlled inflation benefit the people?
https://forum.obnoxiousbrutes.com/showt...hp?t=179608793
High inflation is horrible though- especially when it’s disproportional to the extent it is now.
12-11-2021, 09:46 AM
-
#43
- B.O.L.A.
- Самый крутой модулятор
-
- B.O.L.A.
- Самый крутой модулятор
- Join Date: Oct 2007
- Location: Arizona, United States
- Posts: 13,749
- Rep Power: 51814
-
-
So why are gold prices relatively low rn with inflation going nuts? $1750/oz. Is is due to crypto?
BMBC
"The State is a gang of thieves writ large." - Murray N. Rothbard
12-11-2021, 09:52 AM
-
#44
- gachase21
- Join Date: Dec 2010
- Location: Georgia, United States
- Posts: 31,767
- Subscribers: 4
- Rep Power: 389233
-
-
Originally Posted By B.O.L.A.⏩
The general consensus from the major players is inflation will tank around second quarter of next year.So why are gold prices relatively low rn with inflation going nuts? $1750/oz. Is is due to crypto?
These are the same players that recently projected the 6.8%- so this report just affirmed their projections - to themselves anyway.
That could cause a bottom out on gold.- or at a minimum uncertainty
Some of the speculative definitely went to crypto.
Look at how big 10 and 30 year yields of been acting the last month.
The previous text booked of those actions is pointless now.
From a disclosure I also believe inflation is going to lower considerably around May- and the publicly traded market.
I would shift all private right now.
12-11-2021, 10:08 AM
-
#45
Originally Posted By gachase21⏩
So how does steady inflation of 1-2% compare to the absents of steady inflation? So inflation encourages debt and spending, but it also increases the rate at which we are taxed. How do these compare in value for the people? Who does inflation benefit most? Government? The rich?I go into details on the last half of the first post of the thread
https://forum.obnoxiousbrutes.com/showt...hp?t=179608793
High inflation is horrible though- especially when it’s disproportional to the extent it is now.
https://forum.obnoxiousbrutes.com/showt...hp?t=179608793
High inflation is horrible though- especially when it’s disproportional to the extent it is now.
One party system; Most Republicans are Democrats, but no Democrats are Republicans.
Hayek and Mises were right; they're all socialists.
"To Call something fair or unfair is a subjective value judgment and not liable to any verification" Ludwig Von Mises
12-11-2021, 11:33 AM
-
#46
Originally Posted By Kraken⏩
It benefits society as it forces people to grow and create.So how does steady inflation of 1-2% compare to the absents of steady inflation? So inflation encourages debt and spending, but it also increases the rate at which we are taxed. How do these compare in value for the people? Who does inflation benefit most? Government? The rich?
If we had a state of steady deflation then the value of cash rises, assets become less desirable and society advances at a slower rate.
If we have a steady state of inflation then the value of cash falls, people will exchange their cash for assets, they create and society advances at a faster rate.
Inflation reinforces work, deflation reinforces rest.
Do we want a society which is forced to work or a society that forces rest?
That is actually why the fed is here, they are here to maintain inflation at a certain level which allows a balance between work and rest. Too much work and we become a society of forced slavery. Too much rest and we have no society.
I: Self, Lord and Master.
"I rub my hands when my palms itch."
"I call you Son not because you Shine but because you Mine."
12-11-2021, 11:45 AM
-
#47
Originally Posted By Kraken⏩
I was under the impression that inflation:So how does steady inflation of 1-2% compare to the absents of steady inflation? So inflation encourages debt and spending, but it also increases the rate at which we are taxed. How do these compare in value for the people? Who does inflation benefit most? Government? The rich?
- benefits debtors IF their income adjusts upward in step with inflation
- may benefit owners of property if the property that they own inflates at a higher rate than average inflation
- benefits our indebted government which in a sense "owns everything and everyone" in the US via their authority to levy taxes and extort value from all parties to make payments on a massive debt held at artificially low interest rates
Random: I read something this morning that claimed that in the US over 50% of people get their income from the government as a government employee, government contractor, or as a beneficiary of government payment programs.
IOW the government has become so large it has crowded out most other economic activity. And it seems to me that the majority of the remaining income sources are monopolies or cartels that government has enabled or actively protects.
I think it has been some time since we had free market capitalism, or even a reasonable hybrid of democratic socialism and capitalism.
INTP Crew
Inattentive ADD Crew
Mom That Miscs Crew
12-11-2021, 11:48 AM
-
#48
Originally Posted By Abzu⏩
This is a decent argument.It benefits society as it forces people to grow and create.
If we had a state of steady deflation then the value of cash rises, assets become less desirable and society advances at a slower rate.
If we have a steady state of inflation then the value of cash falls, people will exchange their cash for assets, they create and society advances at a faster rate.
Inflation reinforces work, deflation reinforces rest.
Do we want a society which is forced to work or a society that forces rest?
That is actually why the fed is here, they are here to maintain inflation at a certain level which allows a balance between work and rest. Too much work and we become a society of forced slavery. Too much rest and we have no society.
If we had a state of steady deflation then the value of cash rises, assets become less desirable and society advances at a slower rate.
If we have a steady state of inflation then the value of cash falls, people will exchange their cash for assets, they create and society advances at a faster rate.
Inflation reinforces work, deflation reinforces rest.
Do we want a society which is forced to work or a society that forces rest?
That is actually why the fed is here, they are here to maintain inflation at a certain level which allows a balance between work and rest. Too much work and we become a society of forced slavery. Too much rest and we have no society.
You might consider though that this same argument could be used for NIRP [aka: negative interest rates] which is an idea that started getting kicked around during the last big crisis. Last I read it was actually being used by some foreign banks.
INTP Crew
Inattentive ADD Crew
Mom That Miscs Crew
12-11-2021, 11:53 AM
-
#49
Originally Posted By katya422⏩
People keep saying that inflation benefits us on government debt but what does the fed do when inflation is high?I was under the impression that inflation:
- benefits our indebted government which in a sense "owns everything and everyone" in the US via their authority to levy taxes and extort value from all parties to make payments on a massive debt held at artificially low interest rates
- benefits our indebted government which in a sense "owns everything and everyone" in the US via their authority to levy taxes and extort value from all parties to make payments on a massive debt held at artificially low interest rates
What happens to government debt when the fed raises interest rates?
Does it matter if your debt is cheaper if you still run a deficit?
I: Self, Lord and Master.
"I rub my hands when my palms itch."
"I call you Son not because you Shine but because you Mine."
12-11-2021, 12:02 PM
-
#50
Originally Posted By Abzu⏩
Deflation isn't the absents of inflation. They are not synonymous. Saying that the Fed causing inflation prevents deflation would be a fallacy. Deflation is the result of decreased supply and demand. You're speaking as if deflation is somehow triggered and THEN production is decreased. The market adjusts itself in these cases. If something isn't selling, they stop selling it. If an item is in high demand, they produce more of it. The cause of deflation would be that there aren't enough producers. In fact, government shut downs and regulations can cause supply chain issues and slowing down production, hint hint.It benefits society as it forces people to grow and create.
If we had a state of steady deflation then the value of cash rises, assets become less desirable and society advances at a slower rate.
If we have a steady state of inflation then the value of cash falls, people will exchange their cash for assets, they create and society advances at a faster rate.
Inflation reinforces work, deflation reinforces rest.
Do we want a society which is forced to work or a society that forces rest?
That is actually why the fed is here, they are here to maintain inflation at a certain level which allows a balance between work and rest. Too much work and we become a society of forced slavery. Too much rest and we have no society.
If we had a state of steady deflation then the value of cash rises, assets become less desirable and society advances at a slower rate.
If we have a steady state of inflation then the value of cash falls, people will exchange their cash for assets, they create and society advances at a faster rate.
Inflation reinforces work, deflation reinforces rest.
Do we want a society which is forced to work or a society that forces rest?
That is actually why the fed is here, they are here to maintain inflation at a certain level which allows a balance between work and rest. Too much work and we become a society of forced slavery. Too much rest and we have no society.
More often than not, government is the cause of both inflation AND deflation. When it happens naturally in the market, it's not as severe, and it's self correcting by the actions of the producers. If something is in high demand, more business want in on the action and change their behavior to make money. Deflation and inflation are monetary problems. They occur most frequently because of bad monetary policy.
So can you give examples in history of these phenomenons in history, before and after the fed, including their severities to indicate what you are saying is true?
Again, who is benefiting? The market? Or the government? Why does the government need to control it? You're giving me ideological replies, but I'm looking for market examples through out history that suggests you're right.
One party system; Most Republicans are Democrats, but no Democrats are Republicans.
Hayek and Mises were right; they're all socialists.
"To Call something fair or unfair is a subjective value judgment and not liable to any verification" Ludwig Von Mises
12-11-2021, 12:22 PM
-
#51
Originally Posted By Kraken⏩
Lol.Deflation isn't the absents of inflation. They are not synonymous. Saying that the Fed causing inflation prevents deflation would be a fallacy. Deflation is the result of decreased supply and demand. You're speaking as if deflation is somehow triggered and THEN production is decreased. The market adjusts itself in these cases. If something isn't selling, they stop selling it. If an item is in high demand, they produce more of it. The cause of deflation would be that there aren't enough producers. In fact, government shut downs and regulations can cause supply chain issues and slowing down production, hint hint.
More often than not, government is the cause of both inflation AND deflation. When it happens naturally in the market, it's not as severe, and it's self correcting by the actions of the producers. If something is in high demand, more business want in on the action and change their behavior to make money. Deflation and inflation are monetary problems. They occur most frequently because of bad monetary policy.
So can you give examples in history of these phenomenons in history, before and after the fed, including their severities to indicate what you are saying is true?
Again, who is benefiting? The market? Or the government? Why does the government need to control it? You're giving me ideological replies, but I'm looking for market examples through out history that suggests you're right.
More often than not, government is the cause of both inflation AND deflation. When it happens naturally in the market, it's not as severe, and it's self correcting by the actions of the producers. If something is in high demand, more business want in on the action and change their behavior to make money. Deflation and inflation are monetary problems. They occur most frequently because of bad monetary policy.
So can you give examples in history of these phenomenons in history, before and after the fed, including their severities to indicate what you are saying is true?
Again, who is benefiting? The market? Or the government? Why does the government need to control it? You're giving me ideological replies, but I'm looking for market examples through out history that suggests you're right.
You can take this one.
I don't feel like typing that much.
I: Self, Lord and Master.
"I rub my hands when my palms itch."
"I call you Son not because you Shine but because you Mine."
12-11-2021, 12:31 PM
-
#52
- gachase21
- Join Date: Dec 2010
- Location: Georgia, United States
- Posts: 31,767
- Subscribers: 4
- Rep Power: 389233
-
-
Originally Posted By Kraken⏩
I want to answer this question a little more in-depth and plan to do so via a voice response podcast later today. I hate making commitments to answering posts that sometimes I can't follow up on, so I'll try my best.So how does steady inflation of 1-2% compare to the absents of steady inflation? So inflation encourages debt and spending, but it also increases the rate at which we are taxed. How do these compare in value for the people? Who does inflation benefit most? Government? The rich?
I'll start with these notations- We are a debt and financing economy with a fiat currency foundation. Credit is the oxygen of our economy in a large part.
Now, I'm not saying that is a good thing - or bad- It just is what it is.
From a raw theory standpoint - I would argue if we could push the button and that not be the case- inflation would be bad for most.
However, at this point that would be like trying to put the toothpaste back in the tube- we are where we are at now.
And it's not bad regardless of all the cynicism you hear....
It could be better, and less disruptive.
The question would be regarding what is the most good, for the most people, over the longest period of time type resone.
And most importantly the common person.
Won't be great for everyone either way.
I'm going to post a few things here to reference my argument, as well as thread discussion in general.
And in the next post, I will Quote part of the 1st post in that thread I cited as a reference point for other in this thread.






Now on the income one above, I get that it's a little deceptive at face value- there are diametrically opposite examples in each income class based on certain situations.
12-11-2021, 12:35 PM
-
#53
- gachase21
- Join Date: Dec 2010
- Location: Georgia, United States
- Posts: 31,767
- Subscribers: 4
- Rep Power: 389233
-
-
This a a repeat of the portion of a post I cited above
Now that we got that out of the way, let's talk about the financial side of inflation.
First I'd like to get into a little concept thought using my old deflation post----
I wrote a simple description of how this can impact an average person back in 2013....
Yep, deflation will really suck, for all of us.
Now we were struggling with that possibility (but seem to be handling it) early as I discussed ITT
https://forum.obnoxiousbrutes.com/showt...41&pagenumber=
Now think of that in reverse as if it's inflation. Your fixed payments stay the same, your fixed debt service payment stats the same, your inventory gains value, and your revenue should increase proportional to inlfation(unless you are a potato) - so now your fixed debt, and fixed expenses, is a much lower percent portion of your monthly revenue- you are better off......
Deflation is good for people with no debt (or variable rate debt), low inventory, and a large idle cash pile (this describes a very few of us)
Inflation is good for people with long term fixed expenses and fixed-rate/payment debit, high inventory amounts, low idle cash supply. (this describes most of us). Basically your cash flow goes up, but your payments stay the same.
in this thread
https://forum.obnoxiousbrutes.com/showt...hp?t=179608793
Now that we got that out of the way, let's talk about the financial side of inflation.
First I'd like to get into a little concept thought using my old deflation post----
I wrote a simple description of how this can impact an average person back in 2013....
Originally Posted By gachase21⏩
https://forum.obnoxiousbrutes.com/showt...post1140893623Op I'm going to try to help simplify this for you with a couple of scenarios. It doesn't exactly work like this, but It will give you an Idea
1.- I'm a widget store owner. I have a $5000 a month 5-year lease in a strip plaza. I got a business loan of $200,000 to start my business. I used $50,000 for start-up cost and bought $150,000 in inventory. I estimated I could sell this inventory for $500,000(giving me a $350,00 net margin) This would cover the monthly expenses, loan amounts, reinvestment, and income.
Now lets lay a 10% deflation rate happens
-My business loan of $200,000 payment and interest rate and amount owed stays the same
-My monthly 5-year lease amount of $5000 stays the same
-my initial $150,000 inventory I already bought is now worth $135,000
-the expected revenue of this inventory I paid $150,000 for is now estimated at $450,000- a $300,000 total net margin
-so now I have a higher debt %, lower margin total, and higher monthly expense %. Also the total value of the business decreased if I were to sell it as the inventory value decrease.
2.- I'm a $100,000 a year engineer with a $200,000 house I owe $190,000 on a 30yr mortgage at 4% interest. I have a $20,000 car I owe an $18,000 payment on. I have $5,000 in credit card debt. I have $20,000 in student loan debt
10% deflation happens
-I still owe $200,000 on house at the same interest and payment, house is now worth $180,000, now I'm upside down.
-my credit card, student loan debt, and payment amounts stay the same
-my car loan and payment amount stay the same, however, the car is now only worth $18,000
-my income now drops to $90,000(this happens with deflation)
-now I make less money, owe the same amount of money, and have a lower total value in assets
3.- I'm the US government. I borrow 6 trillion dollars from china selling bonds at a 4% interest rate.
10% deflation happens
-my tax revenue per year total decreases
-my payment to china stays the same
1.- I'm a widget store owner. I have a $5000 a month 5-year lease in a strip plaza. I got a business loan of $200,000 to start my business. I used $50,000 for start-up cost and bought $150,000 in inventory. I estimated I could sell this inventory for $500,000(giving me a $350,00 net margin) This would cover the monthly expenses, loan amounts, reinvestment, and income.
Now lets lay a 10% deflation rate happens
-My business loan of $200,000 payment and interest rate and amount owed stays the same
-My monthly 5-year lease amount of $5000 stays the same
-my initial $150,000 inventory I already bought is now worth $135,000
-the expected revenue of this inventory I paid $150,000 for is now estimated at $450,000- a $300,000 total net margin
-so now I have a higher debt %, lower margin total, and higher monthly expense %. Also the total value of the business decreased if I were to sell it as the inventory value decrease.
2.- I'm a $100,000 a year engineer with a $200,000 house I owe $190,000 on a 30yr mortgage at 4% interest. I have a $20,000 car I owe an $18,000 payment on. I have $5,000 in credit card debt. I have $20,000 in student loan debt
10% deflation happens
-I still owe $200,000 on house at the same interest and payment, house is now worth $180,000, now I'm upside down.
-my credit card, student loan debt, and payment amounts stay the same
-my car loan and payment amount stay the same, however, the car is now only worth $18,000
-my income now drops to $90,000(this happens with deflation)
-now I make less money, owe the same amount of money, and have a lower total value in assets
3.- I'm the US government. I borrow 6 trillion dollars from china selling bonds at a 4% interest rate.
10% deflation happens
-my tax revenue per year total decreases
-my payment to china stays the same
Yep, deflation will really suck, for all of us.
Now we were struggling with that possibility (but seem to be handling it) early as I discussed ITT
https://forum.obnoxiousbrutes.com/showt...41&pagenumber=
Now think of that in reverse as if it's inflation. Your fixed payments stay the same, your fixed debt service payment stats the same, your inventory gains value, and your revenue should increase proportional to inlfation(unless you are a potato) - so now your fixed debt, and fixed expenses, is a much lower percent portion of your monthly revenue- you are better off......
Deflation is good for people with no debt (or variable rate debt), low inventory, and a large idle cash pile (this describes a very few of us)
Inflation is good for people with long term fixed expenses and fixed-rate/payment debit, high inventory amounts, low idle cash supply. (this describes most of us). Basically your cash flow goes up, but your payments stay the same.
in this thread
https://forum.obnoxiousbrutes.com/showt...hp?t=179608793
12-11-2021, 12:48 PM
-
#54
- gachase21
- Join Date: Dec 2010
- Location: Georgia, United States
- Posts: 31,767
- Subscribers: 4
- Rep Power: 389233
-
-
Originally Posted By Abzu⏩
https://budgetmodel.wharton.upenn.ed...overnment-debtPeople keep saying that inflation benefits us on government debt but what does the fed do when inflation is high?
What happens to government debt when the fed raises interest rates?
Does it matter if your debt is cheaper if you still run a deficit?
What happens to government debt when the fed raises interest rates?
Does it matter if your debt is cheaper if you still run a deficit?
12-11-2021, 01:07 PM
-
#55
12-11-2021, 01:10 PM
-
#56
12-11-2021, 01:15 PM
-
#57
- gachase21
- Join Date: Dec 2010
- Location: Georgia, United States
- Posts: 31,767
- Subscribers: 4
- Rep Power: 389233
-
-
Originally Posted By Kraken⏩
Am I reading this correctly?Deflation isn't the absents of inflation. They are not synonymous. Saying that the Fed causing inflation prevents deflation would be a fallacy.Deflation is the result of decreased supply and demand. You're speaking as if deflation is somehow triggered and THEN production is decreased. The market adjusts itself in these cases. If something isn't selling, they stop selling it. If an item is in high demand, they produce more of it. The cause of deflation would be that there aren't enough producers. In fact, government shut downs and regulations can cause supply chain issues and slowing down production, hint hint.
More often than not, government is the cause of both inflation AND deflation. When it happens naturally in the market, it's not as severe, and it's self correcting by the actions of the producers. If something is in high demand, more business want in on the action and change their behavior to make money. Deflation and inflation are monetary problems. They occur most frequently because of bad monetary policy.
So can you give examples in history of these phenomenons in history, before and after the fed, including their severities to indicate what you are saying is true?
Again, who is benefiting? The market? Or the government? Why does the government need to control it? You're giving me ideological replies, but I'm looking for market examples through out history that suggests you're right.
More often than not, government is the cause of both inflation AND deflation. When it happens naturally in the market, it's not as severe, and it's self correcting by the actions of the producers. If something is in high demand, more business want in on the action and change their behavior to make money. Deflation and inflation are monetary problems. They occur most frequently because of bad monetary policy.
So can you give examples in history of these phenomenons in history, before and after the fed, including their severities to indicate what you are saying is true?
Again, who is benefiting? The market? Or the government? Why does the government need to control it? You're giving me ideological replies, but I'm looking for market examples through out history that suggests you're right.
Was this a typing error or the correct argument/question point?
12-11-2021, 01:18 PM
-
#58
- ViolentZ
- Registered User
-
- ViolentZ
- Registered User
- Join Date: Nov 2008
- Age: 38
- Posts: 9,063
- Rep Power: 0
-
-
This is all trump doing, with its lockdowns and chit, it phuckked the whole economy up
~~^^Misc Twitter Crew^^~~
RonPaul2012
Wise words from Dr. Ron Paul: Maximalizing the individual Freedom leads to diminishing the Equality and to the neglect of Solidarity
Reminder: America is a terrorist nation.
12-11-2021, 01:21 PM
-
#59
- sfgiants13
- Էպշտեյնը իրեն չսպանեց
-
- sfgiants13
- Էպշտեյնը իրեն չսպանեց
- Join Date: Feb 2003
- Location: Seattle, Washington, United States
- Posts: 12,532
- Rep Power: 88624
-
-
Originally Posted By Iczer⏩
Nice. On top of the 4th of July savings on my hot dogs I can buy a new car with the extra money.Gas was down 5 cents, what more could you want for the holidays?
Thanks Biden!
12-11-2021, 01:35 PM
-
#60
- fitnessislife
- Registered User
-
- fitnessislife
- Registered User
- Join Date: Aug 2006
- Location: Michigan, United States
- Age: 37
- Posts: 27,183
- Rep Power: 223047
-
-
Originally Posted By ViolentZ⏩
3/10 effort.This is all trump doing, with its lockdowns and chit, it phuckked the whole economy up
"At the core of liberalism is the spoiled child - miserable, as all spoiled children are, unsatisfied,
demanding, ill-disciplined, despotic and useless. Liberalism is a philosophy of sniveling brats."
- PJ O'Rourke
Bookmarks
-
- Digg
-
- del.icio.us
-

- StumbleUpon
-
-
Posting Permissions
- You may not post new threads
- You may not post replies
- You may not post attachments
- You may not edit your posts