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Printing money does no good when all the new money ends up at the top. All it does is cause inflation of high end/luxury goods, while the masses wade through a deflationary funk. The proper way out of this is to cater to the needs of the wealthy. This is achieved by producing high quality goods and services that wealthy folks demand.
Unfortunately, the direction this country chose to take was to compete on price... A battle we just cannot win. As a result, politicians have capitalized on the income disparity by encouraging class warfare. Nice work America. Now we are fostering a dysfunctional economy that simply is not sustainable.
It's not like the rich keep their money in a giant Scrooge McDuck Vault. They do just like the middle class and invest it, and invested money is utilized by companies to expand, innovate, and hire.
Why do people insist that the storage of weath is a bad thing? Shoot, not even my savings account is sitting idle for me, those funds have been lent out half a dozen times over.
because companies are expanding disproportionally to where the money is coming from. The US/western countries might buy the most iphones, but the iphones aren't made where the money is coming from...
It doesn't have to sit in a vault to do a country no good... all you do is subsidize the companies and their profits.
really depends on which side of the financial line you're standing on. For me deflation is more advantageous.
No, it's not. Deflation is not more advantageous for anyone. An economy in deflation is unsustainable.
Quote:
Originally Posted by andywire
Printing money does no good when all the new money ends up at the top. All it does is cause inflation of high end/luxury goods, while the masses wade through a deflationary funk. The proper way out of this is to cater to the needs of the wealthy. This is achieved by producing high quality goods and services that wealthy folks demand.
I am starting to think the only way to way out of all the various crises (federal debt, student loan debt, consumer loans, underfunded pensions) is to turn on the currency printing press and put it in overdrive.
If done fast enough, all debts will shrink. Of course, the poor slobs holding the debt will be the losers. Since many are overseas investors or have counterpart insurance on debt instruments, much of the losses will be "socialized" across the world.
Have you read the fine print in your mortgage and credit card agreements?
No, it's not. Deflation is not more advantageous for anyone. An economy in deflation is unsustainable.
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There is nothing wrong with short term deflation. Again it's a matter of opinion. If I have a million dollars and houses cost 500,000 I can buy two houses. If deflation happens and houses drop to 300,000 each I can now buy 3 houses. Granted at some point you want it to stop or start inflating again.
Massive inflation isn't good either. But there are people who will make money in either type of economy
No, it's not. Deflation is not more advantageous for anyone. An economy in deflation is unsustainable.
It's perfectly sustainable.
Quote:
Originally Posted by Opin_Yunated
Is this a joke?
No, but your theories are.
Quote:
Originally Posted by Electrician4you
There is nothing wrong with short term deflation.
Or long-term Real Deflation.
The arguments against Real Deflation were developed in the 18th and 19th Centuries, and reflect the values of people living at that time, as well as the economic realities, and the level of development.
To suggest that a Consumer Culture existed or a Consumption Economy existed at those times is absurd and just plain wrong.
72% of Americans live paycheck-to-paycheck, and will continue to do so regardless of Economic conditions and not save a dime.
The remainder of Americans will spend as normal. You live in a Consumer Culture and have a Consumption-driven Economy. Worse than that, unlike the 18th and 19th Centuries where focus was on family, in the later 20th and early 21st Century, you have a very heavily me-oriented Culture, which has translated into a Me-Oriented Consumer Culture.
Americans spend.....that's what they do...and they'll do it regardless of Monetary Inflation or Monetary Deflation.
Culturally...
It's not like the rich keep their money in a giant Scrooge McDuck Vault. They do just like the middle class and invest it, and invested money is utilized by companies to expand, innovate, and hire.
Why do people insist that the storage of weath is a bad thing? Shoot, not even my savings account is sitting idle for me, those funds have been lent out half a dozen times over.
"Storage of wealth", AKA saving is not a bad thing. As a matter of fact, if Americans across the board would save more, we would probably have a more sustainable economy, and be less susceptible to wild boom-bust cycles.
I never said investment is a bad thing. At the same time, corporations figured out that they could use their stock as a source of revenue, thanks to QE. Basically, making money by purchasing stock instead of actually running a business like a business. That is not natural capitalism. That's voodoo economics, or possibly akin to a night out at Vegas.
I am starting to think the only way to way out of all the various crises (federal debt, student loan debt, consumer loans, underfunded pensions) is to turn on the currency printing press and put it in overdrive.
If done fast enough, all debts will shrink. Of course, the poor slobs holding the debt will be the losers. Since many are overseas investors or have counterpart insurance on debt instruments, much of the losses will be "socialized" across the world.
Wage driven inflation, not money driven inflation. No one has tried upping the minimum wage enough to restructure a nations debts but it should work.
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