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Old 09-07-2012, 09:26 AM
 
Location: San Diego California
6,797 posts, read 6,122,639 times
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Hyperinflation is a Red Herring. It is constantly used to make legitimate inflation discussions and analysis seem less credible.
Inflation is now and will continue to be the mechanism by which the average American will lose their wealth.
The government has absolutely no option but to continue to print ever increasing amounts of dollars to cover its unfunded obligations.
While corporate CEO's will continue to give themselves multi-million dollar bonuses to keep ahead of inflation, the working person will continue to fall behind and see their standard of living eroded despite the continuous increases in productivity and technical advancements that decrease the cost of living.
The monetary system is designed for one purpose, which is to keep working people constantly in debt and needing to work to support themselves. After all, it is labor and not dollars which is the real measure of wealth. The wealthy derive the lion’s share of what labor produces, and without labor, the wealthy earn nothing.
Hyperinflation in the sense of what happened in Germany post WW1 will never happen, but the continual every-day inflation that keeps you in debt, discourages you from saving, and makes it nearly impossible to escape the modern day institution of wage slavery, will.
The rich will get richer, and the peasants will continue toil in ignorance to produce that wealth.
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Old 09-07-2012, 09:41 AM
 
1,730 posts, read 1,626,176 times
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Quote:
Originally Posted by jimhcom View Post
Inflation is now and will continue to be the mechanism by which the average American will lose their wealth.
The average American has hardly any savings, but a lot of debt - in such situation inflation is beneficial.

Unless the economy is so messed up, that wage increases are don't keep up with inflation.
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Old 09-07-2012, 09:48 AM
 
Location: The Triad (NC)
26,877 posts, read 57,944,657 times
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Quote:
Originally Posted by russiaonline View Post
Unless the economy is so messed up, that wage increases don't keep up with inflation.
Or (among other factors) an oversupply of labor dilutes their market value
which LOWERS their wages both as a raw number but even moreso in purchasing power.
iow... what increases?
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Old 09-07-2012, 10:39 AM
 
Location: San Diego California
6,797 posts, read 6,122,639 times
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Quote:
Originally Posted by russiaonline View Post
The average American has hardly any savings, but a lot of debt - in such situation inflation is beneficial.

Unless the economy is so messed up, that wage increases are don't keep up with inflation.
Wages never keep up with inflation. We simply benefit from advances in technology which improve productivity and offset inflation to some degree.
What you need to concentrate on is if the average person is able to accumulate real assets and real wealth.
100 years ago it was normal for an average family to own 40 acres of farmland.
As little as 50 years ago, it was normal for a family to own their home outright or to have a mortgage of less than 10 years.
Today few people have any tangible assets they own outright and most survive solely on their ability to show up to work every day.
Being in debt for consumption is never beneficial, your need to use tomorrows earnings to pay for what you consume today is proof in itself you are insolvent.
You are constantly paying for items which in many cases are worthless before they are even paid off.
In the event that you are able to accumulate some degree of wealth, for example through equity in your home, you are encouraged by the system to borrow and spend that equity in order to eliminate it.
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Old 09-07-2012, 10:56 AM
 
1,730 posts, read 1,626,176 times
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Originally Posted by jimhcom View Post
Wages never keep up with inflation. We simply benefit from advances in technology which improve productivity and offset inflation to some degree.
That's a historical perspective - the future may very well be different. And in case of a hyperinflation, it sure will. Debts will be erased, as well as financial assets of the rich (that's more than just people's debts). The average John will win big time (in the medium to long-term, considering that economy will take a hit).

Quote:
What you need to concentrate on is if the average person is able to accumulate real assets and real wealth.
I'm aware about the situation, and it's a primary reason, why I sometimes say that America sucks. Americans (much more than others) sure look like slaves (or indentured servants).
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Old 09-07-2012, 12:30 PM
 
Location: Ohio
18,045 posts, read 13,255,239 times
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Quote:
Originally Posted by jimhcom View Post
Hyperinflation is a Red Herring. It is constantly used to make legitimate inflation discussions and analysis seem less credible.
Look, it's not my fault stupid people have internet access and can act stupidly on the internet.

Quote:
Originally Posted by jimhcom View Post
Inflation is now and will continue to be the mechanism by which the average American will lose their wealth.
Did you figure that out all by yourself?

Quote:
Originally Posted by jimhcom View Post
The government has absolutely no option but to continue to print ever increasing amounts of dollars to cover its unfunded obligations.
So he says, throwing out a Red Herring to divert attention from Reality™.

You don't have a single shred of proof to back up your claim.

Worse than that, you don't even understand what Inflation is, or that there are 6 different types of Inflation, each with its own very unique root cause, and accordingly, each with its own very unique solution to the problem.

Oh, wait a minute, I used to say there were 5 different types. Yes, that's because of people like you. Cost-push Inflation and Demand-pull Inflation would put the zap on people's heads, so for simplicity's sake, I meld the two together and just call it Cost Inflation.

So, according to you, the Federal Reserve is responsible for the bad weather that resulted in a dreadful corn harvest so far and the likelihood that your total corn harvest will be 50%-60% less than average resulting in December corn futures being $9+/bushel and driving up the price of food and gasoline for then next 8 months.

So how exactly does the Federal Reserve control the weather? Do they use HAARP or chemtrails or a combination of both?

How exactly does one spread mega-tonnes of sulfur dioxide in the upper atmosphere 30 miles above Earth when no aircraft on Earth can fly higher than 11 miles?

Does the Federal Reserve maintain its own secret airbases with special top secret stealth chem-trail rocket-aircraft? And it would be rocket aircraft, since jet propulsion fuels don't work at those altitudes, you know, because of the lack of oxygen in the upper atmosphere.

And who flies those rocket-ships? Bankers specially trained as rocket-ship pilots?

Who is responsible for Interest Inflation? Uh, definitely the Federal Reserve, and also the government. Student loans should be in the 14% to 26% range (depending on the individual and other factors), not 8%-10%. The prime rate should be 9%-10% right now. Those things tied to interest rates, education, housing, cars, big-ticket items (durable goods -- washing machines, water heaters, refrigerators, chest freezes etc) and even some appliances are over-inflated in price because of artificially low interest rates and too much available credit.

And then Natural Inflation. I'm assuming you want to get ahead in life and if you, then you just caused Inflation.

Wage Inflation is not an issue, and I dare say won't be an issue for some time.

Real Inflation, that's a mild 3%, which is slightly above average for the US. Out of the 190-odd countries in the word, only two countries do better than the the US and its central bank -- known as the Federal Reserve.

Hyper Real Inflation, you're going to have that. It's inevitable, and you'll start seeing it about 11 years from now. And it won't be averaging 6%-10% per year. It will averaging 35%-45% per year for about a decade before it tapers off.

And to make matters worse, on top of the 35%-45% annual Real Hyper-Inflation, you're going to have Cost Inflation for many items -- just because of supply and demand issues.

Quote:
Originally Posted by jimhcom View Post
While corporate CEO's will continue to give themselves multi-million dollar bonuses to keep ahead of inflation, the working person will continue to fall behind and see their standard of living eroded despite the continuous increases in productivity and technical advancements that decrease the cost of living.
Your standard of living is being eroded because the countries that you oppressed and barred from developing, are now developing and they are consuming and their consumption increases demand on a system that is already supply-tight for the most part, which drives up prices for everyone.

And what productivity and technical advancement exist that decrease the cost-of-living? They actually increase the cost-of-living, not decrease it.

Quote:
Originally Posted by jimhcom View Post
The monetary system is designed for one purpose, which is to keep working people constantly in debt and needing to work to support themselves. After all, it is labor and not dollars which is the real measure of wealth. The wealthy derive the lion’s share of what labor produces, and without labor, the wealthy earn nothing.
You can start you're own business anytime you want. Let me guess, you want everyone else to do the work for you for free, right?

You're afraid to take any risks, won't invest your own time, offer relatively nothing, bring nothing to the table, and your skills are on a par with dogs and monkeys, but then you expect to be richly rewarded.

It doesn't work that way.

Economically...

Mircea
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Old 09-07-2012, 12:35 PM
 
Location: San Diego California
6,797 posts, read 6,122,639 times
Reputation: 5171
Quote:
Originally Posted by russiaonline View Post
That's a historical perspective - the future may very well be different. And in case of a hyperinflation, it sure will. Debts will be erased, as well as financial assets of the rich (that's more than just people's debts). The average John will win big time (in the medium to long-term, considering that economy will take a hit).

I'm aware about the situation, and it's a primary reason, why I sometimes say that America sucks. Americans (much more than others) sure look like slaves (or indentured servants).
Average people do not win, and the wealthy do not lose.
The world banking system controls everything, and they are now in complete control except for Iran, N.Korea and Cuba, and I will bet it is a matter of months before Cuba and Iran are on board.
Why would anything change? It is the way they want it to be. They are now spreading their religion of materialism through debt worldwide. They have people believing they would be happy if they just had an IPhone or television with 100 channels.
Most of the world’s population will work their entire lives and never really have anything to show for it.
In places like Greece they test the people to see how much they will take before they revolt.
The people of Iceland had the courage to tell the bankers to go to hell and they benefited from it, but they are the exception and not the rule.
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Old 09-07-2012, 12:56 PM
 
1,730 posts, read 1,626,176 times
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Quote:
Originally Posted by jimhcom View Post
Average people do not win, and the wealthy do not lose.
That's how things are in America. But it's unrelated to inflation.

Quote:
Why would anything change? It is the way they want it to be. They are now spreading their religion of materialism through debt worldwide. They have people believing they would be happy if they just had an IPhone or television with 100 channels.
A century ago capitalist Russia suddenly became anti-capitalist. Today Russian president is successfully pushing truly massive government's expenditures - that neo-liberals (including those entrenched in the Central Bank) fought/fight to death (of their jobs) to avoid, because they will rip the rich apart to the people's benefit.

It happened in Russia, it's happening again... so, it is possible.

In America the situation is really bad, but even it can be fixed.

Quote:
The people of Iceland had the courage to tell the bankers to go to hell and they benefited from it, but they are the exception and not the rule.
This example should be really promoted by people. Remarkable, truly.
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Old 09-07-2012, 01:02 PM
Status: "My eyes are rolled back so far I can see my brain." (set 15 days ago)
 
Location: Here.
13,390 posts, read 11,891,181 times
Reputation: 15722
I bet Germans thought the same thing in 1921.
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Old 09-07-2012, 02:14 PM
 
Location: San Diego California
6,797 posts, read 6,122,639 times
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Quote:
Originally Posted by russiaonline View Post
That's how things are in America. But it's unrelated to inflation..


It is how things are everywhere. Inflation is the tool used by banks to discourage savings, and encourage debt. Why would you save if you know those savings will buy less in the future? Why would you not purchase something with credit today if you know you will be paying back the loan with money that is worth less? From the time the US was formed until 1913 there was no inflation, because there was no central bank. After the creation of the Federal Reserve, it only took 16 years to flood the economy with enough debt to create the great depression. It is debt creation that causes inflation. Russia is facing a huge problem itself right now with bonds issued decades ago that are now due. Eventually the government there will have to deal with those bonds by rolling them into new debt which will in turn devalue the currency.


Quote:
Originally Posted by russiaonline View Post
A century ago capitalist Russia suddenly became anti-capitalist. Today Russian president is successfully pushing truly massive government's expenditures - that neo-liberals (including those entrenched in the Central Bank) fought/fight to death (of their jobs) to avoid, because they will rip the rich apart to the people's benefit.

It happened in Russia, it's happening again... so, it is possible.

In America the situation is really bad, but even it can be fixed. .

It is not really a question of Capatalism vs Socialism. Neither country is one or the other, we are a mixture of both. Many believe the revolution in Russia was engineered by the Rothchilds and Europes banks.
History is much different than what our governments try to tell us.
As far as a solution goes, the only solution is education. I do not know how it is in Russia, but here in the US there is only a very small minority of people who understand what is happening or have any interest in knowing. We have become victims of our own prosperity. Too comfortable and too many distractions to bother educating ourselves or becoming involved in our local government.
Our schools are controled by government , which in turn is controled by bankers. They teach mostly consumerism and to follow rules.
In order for things to be fixed, people would have to understand the problem, and have the educational background to understand what is nesisary to change. I am sorry to be pessimistic, but I just do not see that ever happening.


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Originally Posted by russiaonline View Post
This example should be really promoted by people. Remarkable, truly.
Yes it is.
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