Dealing with inflation in America. (currencies, job, payments, government)
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There is no real inflation. The question is why production hasn’t rebounded much at all? The Fed wants you to believe that it is supply bottlenecks and input shortages. There absolutely are supply problems (automobile manufacturing output and etc.), but that isn’t the whole story. According to the Fed's latest estimates through June 2021 (released just few days ago), total manufacturing output was still 0.6% less than it had been in February 2020 and 3.6% below August 2018. The entire manufacturing sector hasn’t yet recovered the COVID recession let alone the pre-COVID recession preceded it. Instead producers are willing to sit mostly idle even as consumer (and producer) prices have jumped over the past few months. Unable, or unwilling?
Me thinks producers are expecting the goods economy splurge to run its course and for retail sales to head back lower as the transitory impact of the government’s influence wanes (even as that same government is now paying people for having children on a monthly basis).
In other words, demand falls to converge with low supply. Inflation, therefore, also not real inflation.
No it is still inflation, just another type. There is demand pull inflation, the excess of money supply in the economy. Then there is supply shock or cost push inflation, the inability to supply the goods and services to the market at least at the prices they could in the past if at all. It is still inflation just a different type.
I'm looking forward to reading some of your work tonight and into tomorrow.
Here is a good start. My books Modern Applied Macroeconomics and Euro Crisis. You can read them for free at the following link.
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Modern Applied Macroeconomics has letter from the British Finance Minister at the time in it who thanks me for the paper and states that he will use the work in the future, which he subsequently did.
Euro Crisis is listed as one of the resources for the Euro at the European University Institute. See the link below. Scroll down the page to see it listed below.
Instead of increasing the interest rate to reduce inflation the rate of pension saving can increase to reduce inflation. It has been used in the United Kingdom over the past ten to fifteen years and it worked well, it is also less expensive than increasing the interest rate when government debt is high due to the increase in the return payment increasing with a higher marketer rate of interest.
Tell us about the future unfunded liabilities of the UK.
get used to some inflation,the rest of the world have,why cant we?
eat a little less,use the fan or open the window instead of A/C,wear warm clothese in winter,look into your closet,you have enough shoes,clothes,dresses,shirts ,you dont need more !
get used to some inflation,the rest of the world have,why cant we?
eat a little less,use the fan or open the window instead of A/C,wear warm clothese in winter,look into your closet,you have enough shoes,clothes,dresses,shirts ,you dont need more !
There is a reason, in America 10 percent of the government debt is inflation linked. This means if inflation rises the return payment has to rise with it, which would cost a fortune. So they have to control inflation to make sure the government debt interest payments don't spiral out of control. In the United Kingdom 25 percent of the government debt is linked to inflation, so an increase in inflation is something of a concern.
Tell us about the future unfunded liabilities of the UK.
Do you mean the shortfall in pension values to what they are supposed to payout? If so there is an issue here, but if they increase pension saving to reduce inflation it should solve it. This is my plan and has worked to some degree in the United Kingdom over the past ten to fifteen years.
Inflation (in the US) is often seen as breaking of Trust between "we the people" and the Banks which actually run and operate US.
You follow the US is actually running the most massive con-job ever on the entire world? Since 1971 or so when US was caught abusing the position of Trust as maintaining the World Reserve Currency Status, we have been substituting (more and more) debt in place of anything of value.
That is what the whole Neo-Liberal-Hayek-Reagonomics Imported "Free Trade" (world imports to US, we send them worthless paper) operates on. Send US stuff that we use for about 6 months average, then STD (straight to dumpster) while we send them "currency" debt. If the world ever wakes up, US is completely screwed.
We sort of all know it will end one day in a rather massive collapse and conversion to something else -- probably much LESS favorable to US.
[quote=Morganist;61457412]I am a macroeconomist located in the United Kingdom and have my own school of economic thought 'Morganist Economics', which the British government uses extensively. I have written an article explaining how pension saving can be used to control inflation instead of the interest rate or taxation. There is a report below the article that displays the outcome of the use of pension economic control in the United Kingdom over the last ten to fifteen years. You can read the article for free at the link below.
There is a reason, in America 10 percent of the government debt is inflation linked. This means if inflation rises the return payment has to rise with it, which would cost a fortune. So they have to control inflation to make sure the government debt interest payments don't spiral out of control. In the United Kingdom 25 percent of the government debt is linked to inflation, so an increase in inflation is something of a concern.
This is what I heard,that Fed is buying 120 B of treasury debts else the interest the Government has to pay will double.
OUr dollar is still the world currency as we are the best house in a bad neighborhood.
But there is something else in play here=political stability,no one wants to turn on the radio and find out the president has been assasinated,the military has taken over, the government key figures have fled the country or half of the country has sank into the ocean.
Kuwait defense minister fled Kuwait when it was invaded by Iraq,Kuwaiti citizens found out their credit cards do not work and their Kuwaiti money is not accepted in neighboring countries.
When East germany reunited with West,East German just trashed their currencies and kept walking west.
We have a large Vietnamese population here,many survived by carrying gold -gold tooth,gold bars,gold coins,gold rings when they fled the country.
NOW IF they only have bitcoins!!!!!!!.
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