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Why do we even accept inflation? I keep seeing and hearing about inflation being "in check" but why inflate at all? Is it possible to build a monetary system where a dollar today would be equal to or of lesser value that one 20 years from now? Would not technology, automation and innovation continue to reduce the costs of goods and services, making inflation disappear? Constant inflation seems to me a big problem as it causes the economy to have to "grow" faster just to make ends meet. This constant "growth" consumes more and more resources which eventually causes collapse. What's wrong with this view?
Why do we even accept inflation? I keep seeing and hearing about inflation being "in check" but why inflate at all?
We "accept it" because by law we are required to use the The Federal Reserve Note (a note of debt) "dollar" system. Since the money is now printed in bad faith debt -- bad faith because the printer of the note knows there is no possible way to repay the debt and interest issued with the note.
More worthless money is printed to cover the previous bad faith money and interest. And the cycle continues.
Is it possible to build a monetary system where a dollar today would be equal to or of lesser value that one 20 years from now?
Sure, but we would have to accept "busts" along with the "booms." That is the trade-off. On average we can not do better than average. Like Garrison Keiler says -- [we live in world where] "everyone is above average." Bernake (Fed Chief) specifically believes that inflation is better than a full bust.
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Would not technology, automation and innovation continue to reduce the costs of goods and services, making inflation disappear?
Not in the US model. All the wealth produced by the technology, automation and innovation gets sucked to the top, leaving the bottom to fight for the scraps.
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Constant inflation seems to me a big problem as it causes the economy to have to "grow" faster just to make ends meet. This constant "growth" consumes more and more resources which eventually causes collapse. What's wrong with this view?
Currency inflation is way of "taxing" the money in circulation. There is no free lunch for anyone. If, if and if we had a decent, moral top level, who limited their take, AND we wanted to run legit balanced accounts and books, AND people could live in surplus and not squander and buy worthless crap, we could all live well with legit money, and good faith.
Because of the " World Market" , today , things will be different this time around. I believe the recession will hit hard , for the US this time. depression ? , yes , depends on who and where you are.. The housing market problems are just beginning. We have way too much debt , a correction is coming , and it is needed.Other countries have gone thru this , but , whats strange , is the fall always came after huge inflation.
Bottom line , is , most of us in this country , will have to learn to start over, to live on less , and , be more fiscally responsible.
Now that everyone seems to be pessimistic about the economy, the government fesses up about its economic reports on employment and incomes. Their other motivation seems to be to pave the way for the Fed to adopt a more accomodative policy without getting criticized about fostering inflation.
I would say many parts of the country will be in a recession, but not a depression. I think it will be short lived. I don't think the elections will make much difference.
You were very, VERY wrong about "I think it will be short lived."
My view is that the Federal Reserve is doing an outstanding job steering the economy through a somewhat rough period. In summary, I would think the economy will be somewhat difficult for some folks in the short term (next year or so), but far from a tragedy.
I think that the young folks will find that the job opportunities over the next several years will be remarkable, new jobs opening from baby boomers retiring, technology creating new classes of work and international trade expanding due to the lower dollar. I believe the downturn in housing prices will not reverse soon, and this will create better purchase power for new homeowners, and those looking to move up. I think home appreciation will return within the next 3-5 years, but be inconsistent between markets, and areas within a market.
Wow, you were off by 5 years and counting!!!
Obviously, us young people wish you were right, but you were so , so very wrong about that.
I think we're definitely in recession, especially since we usually have a recession every 7 years or so.
But I think we'll start seeing a turnaround by 2009-2010.
I won't say you were wrong because I think you meant to type "by 2019-2020"
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