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Sure, sure, Dr. Economist. But how do you get hyperinflation out of capacity utilization of 68.3%? If increasing demand causes prices to rise, how long do producers -- who are paying significant fixed costs for all this idle capacity -- just sit around before they crank up production and therefore output, an increase in which puts downward pressure on prices again? Any clues?
Wow, why the deviation from civil discourse through snide remarks?
I don't think either of us are 100% sure whether we will follow a hyperinflationary path. My only assertion is a deflationary period can often be tailed by an explosively high inflationary period, perhaps hyperinflationary.
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I would doubt that also. But it does appear to me that some like to spend time dreaming up paths that would take us there.
I don't think anyone's dreamed up paths will affect the outcome, whatever that is. There is also nothing wrong with some people hedging their bets and preparing for the worst. As long as one's keeps semblence of their faculties, they'll likely fare off much better than their peers in such an environment. The only guaranteed folks who would suffer are the poor and undersupplied.
Wow, why the deviation from civil discourse through snide remarks?
I didn't mean to single you out as the source of all hyperinflation silliness, but if you are going to stand with the rioters, you do run the chance of being fire-hosed and tear-gassed.
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Originally Posted by summers73
I don't think either of us are 100% sure whether we will follow a hyperinflationary path. My only assertion is a deflationary period can often be tailed by an explosively high inflationary period, perhaps hyperinflationary.
Do you have examples of this actually occurring? Would you say that capacity utilization will have to rise considerably from 68.3% before as much as inflation can occur again, much less hyperinflation?
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Originally Posted by summers73
I don't think anyone's dreamed up paths will affect the outcome, whatever that is. There is also nothing wrong with some people hedging their bets and preparing for the worst. As long as one's keeps semblence of their faculties, they'll likely fare off much better than their peers in such an environment. The only guaranteed folks who would suffer are the poor and undersupplied.
Well, one can't be too careful. I've recently identified new profit-making potential as a retailer of supplies necessary to protect against the devastating effects of elephant stampedes. Shall I send you a catalog?
All that hyperinflation you all keep talking about? Where do you expect that to come from with capacity utilization now below 70%? You live in a dream world...
As usual, your entire rationale is based off of some obscure technicality that has no basis whatsoever in formulating an honest response. This time? You use a single inflation rate, May 2009, to make your point.
I don't recall anyone saying that in May 2009 there was hyperinflation. Why do you insist on making liberals look even more foolish with your diversionary tactics?
It may work for your flunkie followers, but it doesn't work with me. Sorry.
I didn't mean to single you out as the source of all hyperinflation silliness, but if you are going to stand with the rioters, you do run the chance of being fire-hosed and tear-gassed.
Just because you have a contrarian opinion does not mean I would assume you to be ignorant of the facts.
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Well, one can't be too careful. I've recently identified new profit-making potential as a retailer of supplies necessary to protect against the devastating effects of elephant stampedes. Shall I send you a catalog?
Those in Argentina and Zimbabwe who have hoarded gold are getting a fantastic deal on products and services relative to the general population. As long as they don't flaunt it (hinting they have a ton of resources to pay for said products/services), they should be fine.
As usual, your entire rationale is based off of some obscure technicality that has no basis whatsoever in formulating an honest response. This time? You use a single inflation rate, May 2009, to make your point.
Actually, the point was made using capacity utilization, which is entirely valid.
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I don't recall anyone saying that in May 2009 there was hyperinflation. Why do you insist on making liberals look even more foolish with your diversionary tactics?
It may work for your flunkie followers, but it doesn't work with me. Sorry.
I can't speak for liberals or flunkies, but anyone with reasoning ability can understand why an underutilized economy isn't ripe for hyperinflation.
As usual, your entire rationale is based off of some obscure technicality that has no basis whatsoever in formulating an honest response. This time? You use a single inflation rate, May 2009, to make your point.
No one told you to go off on some silly Misery Index rant. You put your foot in it all by yourself. And your own 13.57% and 21.98% numbers relied on how many inflation rates again?
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Originally Posted by AeroGuyDC
I don't recall anyone saying that in May 2009 there was hyperinflation. Why do you insist on making liberals look even more foolish with your diversionary tactics? It may work for your flunkie followers, but it doesn't work with me. Sorry.
I believe that the thread title deals somehow with hyperinflaion being "on its way"...brought on it seems by Obama and that awful ARRA. But no one seems to be able to identify any sequence of events that leads from where we are today to anywhere near hyperinflation. Talk about looking foolish...
Actually, the point was made using capacity utilization, which is entirely valid.
I can't speak for liberals or flunkies, but anyone with reasoning ability can understand why an underutilized economy isn't ripe for hyperinflation.
Under-utilized economy is the basis for debunking inflationary threat? I suppose historically low interest rates and excess money supply are no factor in your world? Where did you guys go to school? Remind me to avoid it like the plague.
Under-utilized economy is the basis for debunking inflationary threat? I suppose historically low interest rates and excess money supply are no factor in your world? Where did you guys go to school? Remind me to avoid it like the plague.
Based on the suggested theory, Zimbabwe must have utilization coming out of their ears
Based on the suggested theory, Zimbabwe must have utilization coming out of their ears
Zimbabwe's capacity utilization is below 20%, and like us, they have seen deflation over recent months. The formation of the unity government has allowed things in the country to stabilize somewhat, leading some analysts toward optimism over the country's future. Zimbabwe is of course a less developed country and economy that has been racked by civil strife. It is not remotely comparable to the US and its economy. That right-wingers have to reach to Zimbabwe to find something to use in support of their hair-brained arguments is a sign of their desperation, not of their global or economic insight...
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