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"Good deflation stems from a positive supply shock, e.g., a string of major innovations that combine to push down costs and prices while opening up new markets and opportunities."
... are you actually suggesting that economics are contingent on something other than policy? :O
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Originally Posted by pknopp
Sorry, I am going to completely ignore these claims from here on out. If you want to discuss what is happening fine. If you want to discuss what the government is claiming I am no longer interested.
Conspiracy theories just don't help your credibility.
QE doesn't cause inflation because printing money isn't the trigger for inflation. The money velocity equation has several variables. Why isn't QE inflationary? Look at where that money ends up... (Hint: not in the economy)
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Originally Posted by pknopp
I remember it being pretty ugly in the late 70's and early 80's.
Did it destroy the country?
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Originally Posted by pknopp
Again, I have no interest in discussing what is being claimed.
...data?
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Originally Posted by pknopp
It isn't just lower operating expense that is helping profits. Costs are going up for business also. Our transportation costs for our products have skyrocketed. Yes, there are less people doing more also but the government pumping the markets are making paper gains. Business isn't hiring because they are not producing more. Demand is not there even though income is up. That's not good.
I am not sure what you are talking about, but it is not a government claim, but a simple fact: increasing money supply should feed inflation. Feel free to disagree, but it won't change facts, or make the facts "goverment claims".
It "should" but it doesn't always.
The formula is as follows:
M * V = P *Y
M = money supply
V = velocity of money
P = price level
Y = quantity of output
QE is a bank bailout. It has no money velocity, thus canceling out the equation.
This thread is hilarious. I'm no economist, and I'm glad some on this thread aren't either. Economics trumps political ideology. To assume that 'liberals' are doing unjust things with the economy and are no-nothings undermines any credibility some of you may have had.
I am not sure what you are talking about, but it is not a government claim, but a simple fact: increasing money supply should feed inflation. Feel free to disagree, but it won't change facts, or make the facts "goverment claims".
Sometimes this is fun and sometimes it just gets old. That is not what you said.
Increasing money supply should feed inflation and it is feeding real inflation. You said it wasn't.
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Some actions feed inflation and some deflation. QE should feed inflation, but it hasn't done that.
Massive fail, since one of the greatest periods of growth came during the 1950s with no Real Inflation.
LOL, ahh yes. When facts fail apparently out and out lies work?
Jan 1, 1960 1.03% Jan 1, 1959 1.40% Jan 1, 1958 3.62% Jan 1, 1957 2.99% Jan 1, 1956 0.37% Jan 1, 1955 -0.74% Jan 1, 1954 1.13% Jan 1, 1953 0.38% Jan 1, 1952 4.33% Jan 1, 1951 8.09% Jan 1, 1950 -2.08%
Thats "no real inflation". (Average of 1.86% per year)
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Your understanding of investments approaches insect-level. Inflation is not a consideration when investing.
Really? Who here actually believes that?
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I don't hand you a promissory for $100,000 because I think there's going to be "inflation" (snicker) -- not that you actually know what it is.
snicker back.
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I give you $100,000 because you're going to start a business or expand a business that will allow you to realize a nice chunk of revenues out of which you're going to pay me 12% interest.
What if I say "loan me 100K at 1% interest?" Would you do it? Of course not!
What if I said "loan me 100K at 12% interest" and we knew for a FACT that inflation was going to hit 20%?
uh huh.
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Apparently for you it is.
I think I and most others reading this would disagree....
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Wrong.
People's month-to-month income does not increase with "inflation."
Really? Sooo...that 2% cost of living raise that was on top of my last performance raise that increased my month to month income didn't happen? To be fair you could have argued that the increases tended to happen YEARLY not monthly instead of trying to misguide folks....
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You're the Fallacy King, so like you should be talking?
Conspiracy theories just don't help your credibility.
QE doesn't cause inflation because printing money isn't the trigger for inflation. The money velocity equation has several variables. Why isn't QE inflationary? Look at where that money ends up... (Hint: not in the economy)
It ends up in the markets....more specifically commodities. Prices are up. Prices up is inflation.
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Did it destroy the country?
Did I say it did?
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....businesses are hiring. Profits are up.
I noted that profits are up and why. Hiring is dragging.
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