121–130 of 304 posts
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So how much has the money supply increased/decreased according to your sources?
You're the one who made the assertion - curious on your sources. If you're simply looking at fiscal stimulus spending that's a pretty naive view of economics.
Look at 5 year view.
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All you have to do is look at the Fed balance sheet to get an inkling of what's going on. They are monetizing the debt. Inflation is a very simple concept to understand. It's too many dollars facing too few goods. I understand no one wants a panic, but you also don't want to bury your head in the sand.
6% inflation is nothing to panic over. People equate the fed not hitting their 2% target with hyperinflation and it’s absolutely maddening to see the level of discourse drop to astounding lows when this happens.
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> the Federal reserve also has no leverage to modify the prime interest rate to combat this inflation, as it already sits near-zero ...huh? If you want to lower inflation you'd typically raise interest rates... (These sorts of stupid-simple mistakes are pretty typical from inflation fearmongers in threads like this one... a lot of words that make it sounds like they know what they're talking about but sprinkled with…
Right but with massive debts and a fairly weak economy that is show signs of continuing to slow, this is exactly why the Fed is between a rock and a hard place. The smart mmoney is on rates staying low for a long time which shows you just how powerless the Fed is right now. They would LOVE to raise rates. They can't.
lol? whut? Stop talking about government debt, it's a stupid talking point used to beat people over the head with who want to govern by misleading voters into believing that government debt is the same as household debt.
Also, what weak economy? Economic growth is up, wages are up, unemployment is down, personal debt is down. The only thing that is currently "weak" in the US economy is our JIT supply lines, and that will work itself out eventually.
Some journalists must be happy with this news. https://mises.org/power-market/inflation-celebration
There's a reason exactly zero of top econ journals or economists[2] are Mises.org Austrian economists - they don't have a track record of anything resembling accuracy, predictions, or theory that works. In fact, it's hard to find much even on Google Scholar.... [1] https://ideas.repec.org/top/top.journals.all.html [2] https://ideas.repec.org/top/top.person.all.html
Neither does academic economics; there's absolutely zero consequence for an economist who repeatedly makes incorrect predictions. The ones who actually can make predictions with statistically significant accuracy work as quants or traders, not economists, as anyone who can make accurate predictions of the future can easily make six to seven figures doing so.
That aside, the fundamental predictions in microeconomics between Austrian and neoclassical economics are pretty similar, so you can't say Austrian theory doesn't work without also saying foundational neoclassical microeconomics doesn't work.
Hey everyone - we need to chill out for a second. Stop buying the knee jerk reaction of the media trying to freak everyone out and get some good advertising dollars. This is going to take until after the new year maybe Q1-Q3 timeframe to see if it is transitory. Reminder: we had an unprecedented global supply collapse followed by shutdowns and border closures for more than a year combined with historic levels of fast…
You miss the key point on why this is happening and will continue to get significantly worse. What happens when the number of dollars approximately doubles in 2 years as it happened? Do you think prices stay the same and everything is just 50% off? Reality is that the current number is off by reality quite a bit, real number has to be much higher. It's just math and the worst part... it can't be just reversed.
I am now starting to wonder if the unrealized gains tax is the 'reversal' and the interdemensional checkmate on hidden wealth.
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I have no idea what you are saying. Also what is "just math" and why can't it be reversed? Inflation can go down, it's not a purely up percentage, you can have negative inflation. What do you mean by "number of dollars approximately doubles in 2"?
You can have negative inflation, but don't central banks work really hard to avoid that because (the theory goes) deflation will kill spending?
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I have no idea what you are saying. Also what is "just math" and why can't it be reversed? Inflation can go down, it's not a purely up percentage, you can have negative inflation. What do you mean by "number of dollars approximately doubles in 2"?
> What do you mean by "number of dollars approximately doubles in 2"? I think OP was talking about monetary inflation. We nearly double the money supply so it should translate to a nearly double price inflation.
Interest rates really should have went up a couple of years ago. Not just for the sake of stemming inflation, but what good is the tool of lower rates in bad times when they are already at bottom in good times? If something goes wrong (or more wrong) we will have no effective economic tools available because they are constantly running as if we are in crisis already.
Interest rates really should have went up a couple of years ago. Not just for the sake of stemming inflation, but what good is the tool of lower rates in bad times when they are already at bottom in good times? If something goes wrong (or more wrong) we will have no effective economic tools available because they are constantly running as if we are in crisis already.
They were going up a couple of years ago. https://fred.stlouisfed.org/series/FEDFUNDS