Posted on 03/19/2021 2:27:23 PM PDT by fruser1
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This will give you a hearty belly laugh. This dope is CONVINCED ‘Stagflation’ will never return! Whatever.
https://www.thebalance.com/what-is-stagflation-3305964
“The unusual conditions that created stagflation in the 1970s are unlikely to reoccur.”
Well, it won’t be exactly the SAME conditions, but it WILL be the same consequences!
I lived through it, too. I joined the Army because there were no jobs, no gasoline and little hope for a fresh-faced girl from Wisconsin in those days. (Best thing I ever did, actually. Thanks, Carter, you POS!)
“The paper we pass around as money is worthless. Making more of it makes it even more worthless.”
A wrong and worthless statement on it’s face, obviously.
Obunghole’s stated dream of $5.00 gas is finally on its way...
Memorial Day, 4th of July, or Labor Day would be my guess for that important communist benchmark...
Of course, in any case, driving anywhere may be problematic unless you have an up-to-date chicom-virus vaccine passport...
“Gas prices? Wait till this summer.”
Up around a dollar a gallon in the last 90 days. I’m just waiting for the progressives and ‘wokesters’ to blame THE OIL COMPANIES!
MMT does not deny that printing money produces inflation. The key to understanding MMT is simply that it is a unique interpretation of the concept of money that the promoters use to justify the same policies that we’ve been pursuing for the last 80 years anyway. Nothing is new except the pinhead logic behind it.
Good comment. Inflation has been around all my life, and even during short bouts of deflation people yammer about inflation.
Griping about inflation is just an excuse for not going out and beating it. And beat it is all you can do. You can’t change it, you can’t outlaw it, it’s been around longer than any of us and it’s not going away.
You just have to outrun it, that’s all. The tools do so are available. If they weren’t, no one would be wealthy. But more people are wealthy than ever. How can it be?
One word:
“Duh.”
Just because the dollar is currently the world’s reserve currency does not mean it will remain in that position. Other currencies have been dominant and have fallen: https://www.pragcap.com/wp-content/uploads/2014/06/gundlach1.png
Biggest signs of inflation are; the huge head of foam on the markets, and the 1.6 trillion gain of the crypto market cap in one year.
"Quality" has always been one of the most difficult things to measure and compare in price inflation.
They are going to do negative interest rates. The more the Treasury borrows from the FED, the lower the debt will go.
And we will pay the banks to hold our money.
Hopefully they will eliminate the federal income tax.
Yeah, I hate what Biden is doing to the energy sector and that may well result in inflation which will spread through the other products.
But it might be mitigated. The world changed last year. Work from home is now a permanent thing. And it may grow rather than revert back to pre-covid.
Once my company realized the work was still getting done they gave us a choice of work from home 100%, work from office 100% or 50/50. I chose work from home 100%.
I’ve cut my gas expenditures by over $3000/year to 1/16th of what it was. And even after covid is over, it will probably still be 1/8th of pre-covid.
US transportation accounts for 70% of US oil consumption. And 65% is for personal vehicle consumption. So 65% * 70% is 45% of US oil consumption.
Now if 20% of the workforce switches to permanent work from home, that’s a permanent 9% drop in oil consumption.
And while oil does impact everything from fertilizer costs to plastics to you name it, it’s often a small percent of the total product costs.
I found a couple of charts. From 2000 to 2012 Oil increased from $20 a barrel to $120 a barrel. In that same time, the FAO food index increased from 80 to 220.
So a 6x increase in oil prices coincided with a 2.75x increase in food prices during the same 12 year period. 2.75x/6x = 0.46.
Oil is currently $65/barrel. So if oil doubles from here, we could expect to see up to a 46% increase in the price of food. I don’t remember food prices falling with the oil price drop, so food prices might be able to absorb some significant oil price increases before having to adjust upward.
Jimminey Carter....16 percent interest rates on home loans and more. You cannot repeal the law of supply and demand.
Perhaps you could explain how I'm obviously wrong? (I doubt you can.)
I remember the super high interest rates during the Jimmy Carter administration. A few years later, they tried to blame it on the Reagan administration.
“Continuing to print money and continuing to deficit-spend do have consequences”
no such thing as “deficit spending” in MMT. You print your own money in MMT, but there is no oweing anybody for it. That is what we do now.
“A wrong and worthless statement on it’s face, obviously.”
Perhaps you could explain how I’m obviously wrong? (I doubt you can.)
Tongue in cheek. Worthless is worthless. If it could get more worthless, it must have worth first. The statement contradicts itself.
The entire discussion is moot. The fact that the dollar loses value over time just means we have to make more money to keep building any wealth and pay the bills. The tools to do just that are always available. The worth of certain things changes faster than inflation, invest in them and prosper.
Duh, did I really need to include a sarcasm tag?
The reality is that the only reason the paper that we pass around has any value is because we have been duped into thinking it has value. Once people realize it has no inherent value the whole thing comes crashing down. As spending and printing continue into oblivion even the dumbest among us will figure this out.
We have asset inflation right now.
The price of homes is going way up.
People with money are trying to get into real assets as fast as they can.
Very sad. Inflation is a tax on the middle class who have savings but perhaps little property or stocks.
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