Originally posted by IshDaGeggSo you're saying that due to other factors playing in the current economic climate the threat of hyperinflation is very low ? Well thank you, that's exactly my point.
That's because the expansion of the monetary base was offset by a decrease in the velocity of money.
Originally posted by whodey1) Lots of dollar debt stockpiled in other countries actually lowers the velocity of money and counteracts inflation. If all that foreign debt would suddenly released again there would be a problem of it feeling inflation though.
If you want a Congressional assessment as to the dire fiscal state of the union just look at my thread "Death of the Republic via statists". The committee that Obama appointed said that within the next 5 years they need to both raise revenue and slash spending....or else.
If you want historical examples of what has happened in the past with monetization ...[text shortened]... this sort of thing try paying off one credit card with another and see how far that takes you.
2) Explain to me why exactly the situation of the Weimar Republic is the same as the situation in America today. Just using 'monetization of the debt' is not a good answer.
3) What exactly has this to do with hyperinflation ?
Originally posted by IshDaGeggAre you saying most people are too intrinsically stupid ever to realize that 2% inflation is equivalent to a general wage cut of 2%?
I don't need inflation, personally.
I like the way, for example, the price of computers, of equivalent quality, has been steadily deflating.
Moreover, I am not sure "human beings are programmed to live with inflation".
Are you saying most people are too intrinsically stupid ever to realize that 2% inflation is equivalent to a general wage cut of 2 ...[text shortened]... hin the grasp of the person in the street, given all the money lavished on public education.
consider the content of the typical political advertisement -- appeals to rocket scientists these are not.
Originally posted by twhiteheadDon't be so sure of your intellectual superiority.
You clearly don't understand the concept at all. The price of computers has nothing to do with inflation or deflation.
If you had deflation, and the price of computers remained steady in real terms, your salary would come down with the price of computers and you wouldn't be so happy any more. You'd probably still be using a 286 from 1985.
[b]Moreover, ...[text shortened]... invest money as it comes in into types of investments that it is hard to withdraw from.
Inflation is commonly defined as a general rise in prices, deflation as a general fall.
Other respective meanings are an expansion or contraction in the money supply.
Sure, falling prices for computers are specific, just a drop in the ocean. Obviously, problems would attend a general fall in prices, due to a contraction in the money supply, or to money circulating more slowly.
But there is a lot of scaremongering generally about falling prices. For example, I am fed up with people claiming about the property market is "depressed" when house prices fall, as if there were only sellers and owners out there. What about prospective buyers? In contrast, a lot of people are inappropriately sanguine about price inflation, be it general or specific.
So I make the point about computers half-facetiously to counteract such excesses.
On the other points, I accept that people can be irrational with money, even when they understand it; however, I still teaching them to understand it better could mitigate the irrationality. For example, I bet statisticians gamble less than the general population, and economists get ripped off less.
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Originally posted by BartsAll you can do is compare the two to see where we might be headed.
1) Lots of dollar debt stockpiled in other countries actually lowers the velocity of money and counteracts inflation. If all that foreign debt would suddenly released again there would be a problem of it feeling inflation though.
2) Explain to me why exactly the situation of the Weimar Republic is the same as the situation in America today. Just using 'mone ...[text shortened]... ion of the debt' is not a good answer.
3) What exactly has this to do with hyperinflation ?
http://nowandfutures.com/us_weimar.html
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Originally posted by KazetNagorra🙄
Yes, and if you compare the U.S. and apple pie, you are all headed into an oven.
Sorry, I didn't realize that apple pie had a debt problem or even was a country.
If only we could take a slice of the middle east and eat it up with a bowl of ice cream!! Not only would our problems be over, we would also end world hunger!! 😵
Of course, this leads to an even more troubling question. If your country was an apple pie, would you eat yourself?
Originally posted by whodeyYou just typed in "Weimar USA comparison" into google didn't you ? I did and the first hit was your link. I don't feel like reading all of it as it seems the authors are trying to drown their lack of intelligent thought in a whole lot of quotes and statistics, but if you manage to find something halfway decent in there, feel free to put it here in your own words. Copying and pasting is not a discussion.
All you can do is compare the two to see where we might be headed.
http://nowandfutures.com/us_weimar.html
Originally posted by no1marauderThey say they're expecting a 25% inflation though, that's bad enough, but I still don't see on what basis they're predicting that.
From that link:
We do not expect anything even closely resembling the Weimar experience in the US in magnitude.
No we don't.
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Originally posted by BartsHa, ha, ha, you got me!!
You just typed in "Weimar USA comparison" into google didn't you ? I did and the first hit was your link. I don't feel like reading all of it as it seems the authors are trying to drown their lack of intelligent thought in a whole lot of quotes and statistics, but if you manage to find something halfway decent in there, feel free to put it here in your own words. Copying and pasting is not a discussion.
If you don't think it concerning that Uncle Ben last year said that the Fed would NEVER monetize the debt, and then does a year later, good for you. If you don't have an appreciation of how monetizing the debt historically has had extremely bad outcomes, then good for you.
As for a smoking gun proving that the US is headed towards a Weimar melt down, there is none. Speaking of smoking, you can't even prove that smoking causes cancer. Don't get me wrong, I am not saying the US will wind up exactly like the Weimer Republic, all I am saying is that bad days lie ahead.
Originally posted by whodey
If you don't think it concerning that Uncle Ben last year said that the Fed would NEVER monetize the debt, and then does a year later, good for you. If you don't have an appreciation of how monetizing the debt historically has had extremely bad outcomes, then good for you.
I'd like to see a link to that. They actually said that the FED would never ...[text shortened]... failed to give any reasonable explanation as to why we are heading to such a bleak scenario now.
Originally posted by no1marauderwe didn't have a problem economy until the Democrats and their lapdogs (3/4 or 4/5+ of the press) started playing up nonexistent problems and consumers (70 pct of spending) stopped spending.
...Outside of the obvious fact that the poorer the economy the better for Republican candidates this November, is there any other reason you'd wish for the government to do nothing in the face of massive un and underemployment of societal economic resources?
http://flowingdata.com/2009/01/01/9-ways-to-visualize-consumer-spending/