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Old 09-27-2013, 02:35 PM
 
Location: TX
795 posts, read 1,388,463 times
Reputation: 786

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Quote:
Originally Posted by MTAtech View Post
It's interesting that people claim that something always happens in full view Of it not happening. In the current economic environment increasing the money stock hasn't resulted in inflation nor devaluation.
I suspect the backseat economists just imagine it is like a simple fraction, where a growing denominator leads to a smaller number.

Too bad that's not at all how infl/deval works.
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Old 09-27-2013, 02:44 PM
 
9,470 posts, read 6,951,083 times
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Quote:
Originally Posted by celcius View Post
I suspect the backseat economists just imagine it is like a simple fraction, where a growing denominator leads to a smaller number.

Too bad that's not at all how infl/deval works.
The ultimate eventual result WILL BE that. You cannot defy gravity.

But smart people always believe they're so smart they've managed to defeat the tyranny of the small minded limits of reality, and rationalize, via every scrap of expedient data they can find, doing what it is they want to do, even though reality points to the future being a disaster.

Smart people designed, floated, built, and managed the Titanic. They just had terrible judgment.
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Old 09-27-2013, 04:32 PM
 
Location: TX
795 posts, read 1,388,463 times
Reputation: 786
No one is attempting to defy gravity. The point you missed was that's not even the formula. Infl/deval is not a simple fraction, so any conclusion made off that assumption is layman's garbage.

But here we go with the conspiracy chorus. "You just wait."
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Old 09-27-2013, 09:39 PM
 
9,470 posts, read 6,951,083 times
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Quote:
Originally Posted by celcius View Post
No one is attempting to defy gravity. The point you missed was that's not even the formula. Infl/deval is not a simple fraction, so any conclusion made off that assumption is layman's garbage.

But here we go with the conspiracy chorus. "You just wait."
Nobody said it was simple or "a fraction".

But I did see you say that that growing the denominator will lead to a smaller number - except that it supposedly doesn't.

Growing the amount of cash in an economy in an effort to grow that economy via consumption... will inevitably result in inflation. No amount of fancy verbiage trying to dispute "more dollars chasing fewer goods will cause inflation" will make it untrue. And, no amount of simplistic charts claiming that "there's no inflation to be seen, you must be wrong" changes that fact. The point is, many factors are at work, and some will counteract others. But not forever. You can't defy gravity. It can be counteracted by other forces, but unless your supply of "other forces" is unlimited, you eventually lose, and gravity wins.
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Old 09-28-2013, 11:44 AM
 
Location: TX
795 posts, read 1,388,463 times
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"More dollars chasing fewer goods" is a fraction: goods over dollars. As I suspected, you are the other detractors see infl/dev as a fraction, when it's not. I can't make this any clearer.
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Old 09-28-2013, 01:09 PM
 
Location: San Diego
306 posts, read 655,446 times
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Quote:
Originally Posted by hnsq View Post
Once the coming market downturn happens, move them back into equity to ride the resulting upswing.

"Volatility is opportunity"
Most regular people believe a downturn will never happen. A downturn in housing - NEVER, a downturn in stocks - NEVER, rising of interest rates - NEVER, infact most people are expecting another 10% appreciation in housing even though in markets like Los Angeles real estate is up almost 30% in the last 12 months and on top of that interest rates have jumped 1%. Now the market is seriously "hiccupping" itself and sellers are too late to the party trying their luck to get multiple bids but there are no takers.

Only good times from here on...

The problem here is people are getting the cheap mortgage credit but that is NOT necessarily reducing their expenses, INSTEAD the cheap credit is being used by the buyer to stretch himself to buy the ever increasing home price while his income remains the same. This is a recipie for disaster.
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Old 09-29-2013, 09:41 AM
 
9,470 posts, read 6,951,083 times
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Quote:
Originally Posted by celcius View Post
"More dollars chasing fewer goods" is a fraction: goods over dollars. As I suspected, you are the other detractors see infl/dev as a fraction, when it's not. I can't make this any clearer.
The only thing you can't make clearer, is that you choose to misrepresent what other people say, for purposes of personally discrediting them, as a defense tactic for an indefensible argument.

More dollars chasing fewer goods is not a fraction, it is a description of human behavior, which is why your argument is utterly absurd. When cash is pumped into the economy, resources are diverted from producing wealth, to producing consumption. Thus, there's more money, but less wealth created. This alteration of the economy results in rising unemployment - which causes Keynesians to believe they need to pump MORE cash into the economy. Eventually, the whole system is running on printed money to pay for consumption, while nobody produces wealth.

And the INEVITABLE result is that currency devalues.
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Old 09-29-2013, 12:03 PM
 
30,876 posts, read 36,834,852 times
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If people want to do something that's actually effective to stop it, they will have to do public protests on the streets. That means they will have to block traffic and most likely get arrested. Most people don't want to do that, which is why we're becoming an oligarchy/dictatorship.
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Old 09-29-2013, 12:07 PM
 
30,876 posts, read 36,834,852 times
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Quote:
Originally Posted by hnsq View Post
The big question I keep asking is why aren't 2-3 finance courses mandatory curriculum in every high school in the country? Imposing that requirement alone would solve a lot of our problems.
It's deliberate. The powers that be don't want a financially educated populace. They want poor and lower middle class folks to be slaves to the welfare state and the middle and upper middle class to be slaves to consumerism.
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Old 09-29-2013, 03:46 PM
 
5,252 posts, read 4,654,910 times
Reputation: 17362
The average American wants to believe in the hybrid state/capitalist construct managed by those in DC and on Wall Street, because of that widespread buy-in we probably won't see much of a change in the coming years except for the fact of more spend and pretend policies and the willingness on the part of the public to accept it.

All the talk about our failing economic situation seems to be aimed at the fed policies, seldom do we hear the open criticism of the lack of democracy in all things economic. We are supposedly a democratic society, but, most people haven't a clue as to who really rules the land, (hint) it aint the masses.

Until democracy can be restored to America we'll be seeing the rise of a darker side of our financial world, Wall Street is now riding high on the cash from uncle sugar, the QE was just another round of private pilfering of the publics wallet. And that has been the norm for a number of years, this isn't about the Republicans or the Democrats, this is about a long and profitable saga that spins a tale of two governments, one, for the people, and one for the ruling class.
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