The Fed is teetering on the brink of Zimbabwenomics (union, credit, banks)

[Propop]

This guy here Jeremiah Babe has good podcasts. He's been predicting the economic situation in the US for a while. Of course, those of us here who have said time-and-time again to prepare were laughed at and deemed "doomsayers." Well...if you still think your 401K and pension is safe and that there's going to be a great recovery soon....I have a bridge to sell you to the moon. Get Prepared People and Good Luck!

[Hoonose]

Originally Posted by Propop

This guy here Jeremiah Babe has good podcasts. He's been predicting the economic situation in the US for a while. Of course, those of us here who have said time-and-time again to prepare were laughed at and deemed "doomsayers." Well...if you still think your 401K and pension is safe and that there's going to be a great recovery soon....I have a bridge to sell you to the moon. Get Prepared People and Good Luck!

https://www.nakedcapitalism.com/2010...0%99s-why.html

[EDS_]

Originally Posted by Taggerung

Inflation is, by definition, the expansion of the currency supply. Rising prices are a symptom of inflation, not Inflation itself.

False. I'll give you several counter examples.

Simplified greatly in deference to brevity and I'll omit some timing issues and downstream impacts because this stuff gets deep in the weeds fast.

However, first to help with an ongoing misapplied idea in your head persistent inflation is the hallmark of a great economy. The issue is economic growth must be higher than inflation. FE in The US there's been massive inflation since around 1900. But there has been even more economic growth........the yield is the average guy is better off today and by a lot all in than his 1900 kin.

Back on track.........some ways a growth in money supply will yield no change or decreasing inflationary pressures.

1. If money is added to the economy but r (bank required reserve %) is increased enough to absorb the new money - there will be no general price inflation. If changes in r result in more net new reserve money than the injection there will be deflationary pressures.

2. If aggregate saving (no letter s at the end) increases the same or more than a new money injection there will be no or negative related inflationary pressure.

3. If money supply is increased but overseas spending from US accounts increases the same there will be no inflationary pressure. If the same spending increases more than the money supply increase there will be deflationary pressure. This could be business spending, tourism, remittances, charitable giving etc.

4. The mechanisms are simple boiling down to increased cash on hand, slower/fewer transactions etc. but when the economy is slowing even massive increases in money supply may not cause inflation and typically do not. We are seeing this right now. The Fed. has spigots open, government spending is up hugely and yet we are looking at general price deflation certainly not significant general price inflation.

There are more.

______________________


You've been suckered by the broken down church of von Mises and Rothbard and some of their living acolites. Contextually speaking, you are a very low information guy with a lot of zeal and that's a really bad combination towards any level of understanding.

ETA - forgive the typos I don't have my glasses.

[EDS_]

Originally Posted by Propop

This guy here Jeremiah Babe has good podcasts. He's been predicting the economic situation in the US for a while. Of course, those of us here who have said time-and-time again to prepare were laughed at and deemed "doomsayers." Well...if you still think your 401K and pension is safe and that there's going to be a great recovery soon....I have a bridge to sell you to the moon. Get Prepared People and Good Luck!

That's sweet! Your financial/economics maven is a donation seeking real estate agent.

[Taggerung]

Originally Posted by EDS_

False. I'll give you several counter examples.

Simplified greatly in deference to brevity and I'll omit some timing issues and downstream impacts because this stuff gets deep in the weeds fast.

However, first to help with an ongoing misapplied idea in your head persistent inflation is the hallmark of a great economy. The issue is economic growth must be higher than inflation. FE in The US there's been massive inflation since around 1900. But there has been even more economic growth........the yield is the average guy is better off today and by a lot all in than his 1900 kin.

Back on track.........some ways a growth in money supply will yield no change or decreasing inflationary pressures.

1. If money is added to the economy but r (bank required reserve %) is increased enough to absorb the new money - there will be no general price inflation. If changes in r result in more net new reserve money than the injection there will be deflationary pressures.

2. If aggregate saving (no letter s at the end) increases the same or more than a new money injection there will be no or negative related inflationary pressure.

3. If money supply is increased but overseas spending from US accounts increases the same there will be no inflationary pressure. If the same spending increases more than the money supply increase there will be deflationary pressure. This could be business spending, tourism, remittances, charitable giving etc.

4. The mechanisms are simple boiling down to increased cash on hand, slower/fewer transactions etc. but when the economy is slowing even massive increases in money supply may not cause inflation and typically do not. We are seeing this right now. The Fed. has spigots open, government spending is up hugely and yet we are looking at general price deflation certainly not significant general price inflation.

There are more.

______________________


You've been suckered by the broken down church of von Mises and Rothbard and some of their living acolites. Contextually speaking, you are a very low information guy with a lot of zeal and that's a really bad combination towards any level of understanding.

ETA - forgive the typos I don't have my glasses.

You have not refuted the fact that the increasing of the currency supply is the true definition of inflation.

Creating Federal Reserve Notes out of thin air doesn't cause inflation. It is inflation.

[Thatsright19]

Originally Posted by Taggerung

You have not refuted the fact that the increasing of the currency supply is the true definition of inflation.

Creating Federal Reserve Notes out of thin air doesn't cause inflation. It is inflation.

And if there’s insatiable demand for the USD overseas?

[Hoonose]

Originally Posted by Taggerung

You have not refuted the fact that the increasing of the currency supply is the true definition of inflation.

Creating Federal Reserve Notes out of thin air doesn't cause inflation. It is inflation.

How does simply creating a pile of cash effect you or me?

[Propop]

Originally Posted by EDS_

That's sweet! Your financial/economics maven is a donation seeking real estate agent.

Uhm...He's not a real estate agent and I would advise you to take heed of his words instead of being indifferent and arrogant.

[EDS_]

Originally Posted by Taggerung

You have not refuted the fact that the increasing of the currency supply is the true definition of inflation.

Creating Federal Reserve Notes out of thin air doesn't cause inflation. It is inflation.

Sure I did. You simply don't understand any of this sufficiently enough to emerge from behind the platitudes and slogans.

Within this context you are the anti-vaccine adherent........the guy shrieking that high dose vitamin C will cure multiforme glioblastoma......the guy who thinks, "the man" is poisoning the masses with chemtrails etc.
You have certain special sources and insight that economists miss etc. It's all bunk and at some level you know it.

Why not engage reality a little and pick up a legit econ. book? What you are doing is going akin to going to the doctor for a sprained ankle and demanding an enema and an eye-patch.

[EDS_]

Originally Posted by Propop

Uhm...He's not a real estate agent and I would advise you to take heed of his words instead of being indifferent and arrogant.

https://www.realtor.com/realestateag...ings_ca_396632