Posted on 01/17/2022 8:11:41 AM PST by millenial4freedom
True. My point being that those in power don't want inflation - it gives the "slaves" too much economic freedom over the long run.
The goal of the economic tyrants throughout history has been to let the peons build asset bubbles, then the bankers collapse those asset bubbles intentionally and steal the underlying assets.
Inflation doesn't allow them to do that.
Possibly trigger a housing/stock market/automobile sales correction? lololol. That was too funny. They’re trapped. They can not print enough fake ballots to steal the midterm elections as it is, and THEN they raise interest rates? We are probably going to experience a type of hyperinflation Americans have not seen before or haven’t seen since the Confederate currency had issues.
One interesting note, will productivity really spike after the pandemic. With the pandemic teaching businesses that working from home does work (for many). with technology, training, and processes during the pandemic focused on at home working after the scamdemic is over will these productivity gains result in a huge increase in productivity for business. If so you may see growth like we haven’t in decades. If democrats are in the white house when this happens they will have something to run on. So if they continue the plandemic they actually hurt themselves in the long run. Best to end this scam now and get productivity up. Otherwise the GOP will win the White House and the economy too. Barring any cheating at the ballot box and/or another plandemic they will get 8 years for sure.
Where George does the opposite of really what should be done..and it works for him.
Loved that show!!
Who is pulling Joe's strings?
Wise words.
People have been taught in economic textbooks about the "fractional reserve" system, and how banks lend out a portion of deposits as loans, etc.
This is all completely wrong. It's not just me saying it - the central banks admits it...going so far as to state that the economic textbooks were wrong in their efforts to simplify things.
People don't even know that the Fed set the "reserve ratio" to ZERO in 2020. Banks don't lend deposits - each new bank loan creates brand new money in the money supply, once a signature is placed on the promissory note.
Same goes with credit cards. Each credit card purchase increases our nation's money supply by the amount of the purchase.
This means that the consumer is contributing directly to the price inflation that they're vociferously complaining about.
Money does get destroyed when the principle on any debt is paid - by the amount of the payment.
It happened in Argentina, but the media will not do their jobs and go do some investigative reporting down there for the cause and effect of that situation. It is almost completely parallel to our circumstance. It is a perfect model to study. Start with Ferfal....
What (s)he said...
Dream on, that's never happening again. Even raising rates to 3-4% will raise interest on $30 trillion will break the budget. We will have to give up the military and Social Security just to pay the bills. I knew 15 years ago that rates will never go above 5% again. Cash holders in retirement mode were forced to go into stocks and stay there. If interest rates get much above 2.5%-3%, the stock market will crater like 1929.
The question I have today is what, effect, if any, will Bitcoin have on the markets? Stability is supposed to be what Crypto is all about. Gold and silver are not eve standing up to these pressures. If it were, Gold would easily be above $5000 and oz and breaking new records. Bitcoin is busy setting new highs.
IMO, Bitcoin could step in and be a replacement economy once the dollar collapses. Almost anything we do, the outcome will be like printing Confederate money after the war ended. Printing script like we did in Viet Nam can only take us so far. Whatever happens it will involve a tattoo on the forehead or wrist you can bet.
Rumors about "The Reset" involve swapping your money for Bitcoin and no more cash using all digital currency. I don't believe it can ever happen unless the government controls crypto. In the mean time, bullets and beans are the currency you need.
“BUT...the monetary system is in danger of slipping into deflation (which can still have price inflation). “
How’s that? Isn’t the fed on a printing spree buying all sorts of assets and injecting trillions into the economy?
This is why computers keep getting more powerful - to keep track of all the zeros.
“time to shift assets from equities in the stock market to protect yourselves financially.”
I’m trying to figure out how to do that. Any ideas?
“The general price level cannot rise if money supply does not increase. “
Yes it can. MV=PQ.
M - money
V - velocity of money
P - price
Q - quantity of goods.
If the velocity of money increases (spending vs saving increases) then you can have price inflation even if the money supply remains the same.
And in inflationary times like we now have people are more eager to hoard stuff before prices go even higher. Hence velocity increases - which in turn leads to even higher prices.
Most definitely
“Kathie Wood also has been saying we will see deflation instead of inflation.”
Inflation is too much money chasing too few goods. I’m seeing empty shelves in every store I’ve visited. (Too few goods.) I’ve had to pay more and more for everything I’ve bought. (Inflation.) I think inflation is here and it’s not going to reverse, if it did, we’d have shelves and warehouses filled with unsold goods. Where is this flood of goods coming from? The ports are so bad off the government has told the shippers to anchor their fully loaded ships over the horizon so they can’t be easily seen. That problem is two years away from being resolved.
“The minute they do the stock market will collapse.”
I doubt that. It might correct a bit but definitely not collapse.
The market is a forward looking machine. It’s valuation is a function of what investors think is going to happen going forward.
Since the fed has announced the rate increases the market has already discounted that. We’ve seen a few percentage correction, but nothing like a collapse.
Actually, in the long run the market may see some rate increases as beneficial, since it doesn’t like inflation either.
The Fed has two ways of controlling how new money gets into the economy:
1) Controlling the FFR (Federal Funds Rate). When the rate goes up, fewer entities want new loans (debt), and the new money from new loans reduces. Existing debt is also getting paid off as time goes on - which destroys money, so that also adds to the size of the money supply.
2) QE (Quantitative Easing) - the Fed directly creates new money when it buys assets from commercial entities, using banks as the intermediary. These assets are typically toxic and of little value, but the Fed buys them at face value, pretending they are AAA rated paper. There hasn't been much QE going on lately.
Hope this helps...
Yes. Too many rich people don’t like the instability and unpredictability of inflation, for them not to.
What is 3% OF 30 Trillion? That’ll be the increase for the payment on the interest for the federal debt.
If they raise it to 3% over the next year that is.
“People have been programmed with BS fear porn about everything in our lives, reality is a lost concept.”
👍👍
Nowdays in many cases just acknowledging reality can get you in trouble, such as saying women don’t have penises and/or men can’t get pregnant.
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.