Posted on 11/21/2010 9:39:15 AM PST by deniss60
Was that not you?
In your desperation to “be right” on the internet (whoa, grand feat, that), you are still missing the context of a conversation between two other people that you’ve jumped into blindly.
The context involves the direction of prices during inflation.
One poster claimed that prices would fall during inflation.
I corrected him.
You’ve seen this correction, taken issue with it, and are making an entirely different argument about wealth creation, as in “wealth is not created by merely increasing prices.”
And that’s correct. Inflation doesn’t magically create wealth. Of course, no one was arguing differently, but that hasn’t stopped you from saying whatever it is that you have to say.
Sorry it was rude of me to intrude. I’ll let you be. But do us all a favor; Stop posting on economics.
You’ve certainly got gall!
*if only you had an education to mach...
You’ve certainly got gall!
*if only you had an education to match...
glad i didn’t have to sit thru this chat in real time.
Still in favor of the QE2, creating money to buy treasuries. A permanent reduction of the corporate rate to 30% from the current 35% ... that is the type of thing needed to “stimulate”. Don’t expect it from the Obambi’s.
Taxing profits is destructive and many companies have very low profit margins or ZERO profit margins. Would be better to put a 0.5% tax on revenues and reduce tax of profit accordingly.
Companies like Eastman Kodak would not get a 30-year free ride on taxes.
Where has QE ever been shown to have worked?
worked at what?
worked at stimulating an economy or worked at preventing a Deflation?
Preventing deflation.
What are you worried about, with the dollar collapsing we’ll all be rich :)
What I’m worried about is systemic deflation...such as what Japan has been suffering with for the past 21 straight years.
Debt is deflationary (magic printing presses and feats of mystical wizardry aside).
Deflation, you see, kills the buy-and-hold business model...leaving only a cash-flow business model for an economy to operate on, much like losing 4 cylinders of a good V8 leaves a high Dollar sports car with half power or less.
Run up more debt: get more deflation.
At this point in Time, inflation is a fairy tale while deflation is the monster at the door.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.