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Old 05-10-2018, 01:50 PM
 
2,360 posts, read 1,041,823 times
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Quote:
Originally Posted by jetgraphics View Post
Though classic inflation is defined as too much money chasing too few goods, the obvious fact that there is both inflation (or devaluation of the current money supply) and money scarcity (driving the demand for credit) as well as surplus labor (unemployed / underemployed), surplus productive capacity (closed retailers, closed factories) and unmet demand rebuts that assertion. Current inflation is a complex web of usury, socialism, and tax shift inflation from income taxation, as past tax bills are shifted into future retail prices.

However, keeping money tokens out of circulation by hoarding them defeats the purpose and function of money - a medium of exchange to facilitate trade when barter is insufficient.
So business has tax problems and wants the consumers to bail them out? ( 2000 all over again)
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Old 05-10-2018, 01:56 PM
 
5,612 posts, read 4,180,293 times
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Quote:
Originally Posted by hitpausebutton2 View Post
Didnt say highway robbery, but amount of money they are banking on interest is just painful to look at. I absolute hate things that wants to "bank" off interest on everything we buy. Borrowing/Lending and nearly paying double back the amount funded is just not right. If it wasnt for all the "extra" fees, a simple 100k house can be paid back quickly in a 15 year loan, but once you add all the BS fees your just in more debt longer, and that is what i have a problem with. ( in your case feel).

Back to the topic.. were consistently inflating prices for what reason? How about we just stop inflation all together?
Stop inflation? First of all exactly how does one do that and secondly zero inflation is not good since it leads to poor economic growth and frequently a down turn in jobs and wages. Not to mention that low inflation in one area doesn’t mean low inflation in all areas. While the CPI (consumer price index) shows a 2.5% increase over the last 12 months, housing prices where I live rose 8.9% on average. That’s because very few homes are on the market. It’s a simple case of supply and demand. Every house that’s come on the market in my neighborhood has sold in a couple days, with multiple offers and for over asking price. Clearly many people can afford homes and are competing to do so.
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Old 05-10-2018, 02:04 PM
 
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Quote:
Originally Posted by Thatsright19 View Post
Youre free to loan your money out to others without charging interest.
Or the OP should charge the 5% like he thinks it works. Id LOVE to borrow 100K at 5% for 15 years and pay the 5K in interest the OP thinks is fair. In fact at that deal, Id liquidate everything I own and borrow as much as I possibly could. Id make a killing.
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Old 05-10-2018, 02:15 PM
 
8,306 posts, read 3,481,171 times
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Quote:
Originally Posted by UNC4Me View Post
Or the OP should charge the 5% like he thinks it works. Id LOVE to borrow 100K at 5% for 15 years and pay the 5K in interest the OP thinks is fair. In fact at that deal, Id liquidate everything I own and borrow as much as I possibly could. Id make a killing.
If you have good credit your bank may give you such a loan. That's roughly what I would pay with my personal line of credit. I would like to know how you would make your killing.
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Old 05-10-2018, 03:03 PM
 
5,612 posts, read 4,180,293 times
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Quote:
Originally Posted by Hoonose View Post
If you have good credit your bank may give you such a loan. That's roughly what I would pay with my personal line of credit. I would like to know how you would make your killing.
Yeah, I can get a low interest personal loan too, but not as low as the OP thinks. OP thought the interest paid over a 15 year mortgage at 5% was a total of $ 5,000 when in reality it’s in excess of 42K. He didn’t get how mortgage loans actually work. His math ($100K principal + 5K interest) reflects a 15 year interest rate of .0033 APR. Any investor could make bank with that loan. But, sadly, even with an 848 credit score, I’m not getting that rate.
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Old 05-10-2018, 03:06 PM
 
5,251 posts, read 2,399,515 times
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Quote:
Originally Posted by Hoonose View Post
The Feds QE program resulted in huge excess bank reserves. And as there were not enough qualified borrowers since the crash, the vast majority of the money just sat/sits.

https://www.federalreserve.gov/monet...esbalances.htm
Here is your claim:

Quote:
Originally Posted by Hoonose
Well, what you are saying about the loss of use of the $100K is no longer true. Banks have vast excess reserves since the crash, and actually get paid to store the cash. So the effective 'loss' is minimal. Loans create deposits. More modern money descriptions reveal this.

http://www.theguardian.com/commentis...land-austerity

So excessively high rates in a low inflation environment like today is highway robbery. Not so in 1980 when I took a 14% mortgage.
The highlighted portion above is true. The interest paid on reserve requirements is currently 3 percentage points less than prime. Banks aren't made whole on money sitting in reserve, and current market rates of interest are necessary to compensate lenders for their loans.
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Old 05-10-2018, 03:45 PM
 
Location: Raleigh
7,071 posts, read 5,254,744 times
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Quote:
Originally Posted by hitpausebutton2 View Post
Yea like the oil market? We all know its manipulated base on false speculation that never happens, and yet we allow it?

Doesnt the bank reserve try to adjust the interest base on what the banks are holding/providing? If we want the government to stay out of business, then why are pushing government interest on others?
The oil market isn't a great example. Oil is heavily influenced by OPEC, a conglomeration of oil rich countries that sit down at a table, and decide how much oil they'll pump and sell in a given year.

If Coke and Pepsi (or Apple and Samsung or Wells Fargo and BOA) did that, their corporate leadership would be locked away.
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Old 05-10-2018, 04:21 PM
 
2,360 posts, read 1,041,823 times
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Quote:
Originally Posted by JONOV View Post
The oil market isn't a great example. Oil is heavily influenced by OPEC, a conglomeration of oil rich countries that sit down at a table, and decide how much oil they'll pump and sell in a given year.

If Coke and Pepsi (or Apple and Samsung or Wells Fargo and BOA) did that, their corporate leadership would be locked away.

So you denied saying speculators are not corrupted? They are the most corrupted group ever in our financial system. When they ever been right?
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Old 05-10-2018, 04:25 PM
 
2,360 posts, read 1,041,823 times
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Quote:
Originally Posted by UNC4Me View Post
Stop inflation? First of all exactly how does one do that and secondly zero inflation is not good since it leads to poor economic growth and frequently a down turn in jobs and wages. Not to mention that low inflation in one area doesnt mean low inflation in all areas. While the CPI (consumer price index) shows a 2.5% increase over the last 12 months, housing prices where I live rose 8.9% on average. Thats because very few homes are on the market. Its a simple case of supply and demand. Every house thats come on the market in my neighborhood has sold in a couple days, with multiple offers and for over asking price. Clearly many people can afford homes and are competing to do so.

Not sure how it leads to poor economic growth? you cant just make up money out of thin air, or turn a $10 into $100. Dont you want the the CPI to be going down to make things cheaper and more desirable to afford for every body, not just selective groups? Only a moron would pay over asking price or value of the home. Dont care how bad of a house I want, not going to over pay thats for damn sure. But the seller is happy and im sure they wont be over paying their next home with the funds.
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Old 05-10-2018, 04:30 PM
 
5,251 posts, read 2,399,515 times
Reputation: 5124
Quote:
Originally Posted by hitpausebutton2 View Post
Not sure how it leads to poor economic growth? you cant just make up money out of thin air, or turn a $10 into $100. Dont you want the the CPI to be going down to make things cheaper and more desirable to afford for every body, not just selective groups? Only a moron would pay over asking price or value of the home. Dont care how bad of a house I want, not going to over pay thats for damn sure. But the seller is happy and im sure they wont be over paying their next home with the funds.
So, if a house was worth $200,000 to you, the seller was asking $175,000, and had an offer for $180,000, you wouldn't "overpay" and offer $185,000 for the house?

You are one astute buyer, that's for sure. Good for you, not letting a seller get one over on you.
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