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Take my downvote, clanker.
72% of the dollar's purchasing power was destroyed in just four episodes
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Re: 72% of the dollar's purchasing power was destroyed in just four episodes
#72Note that most of this period falls before the modern inflation target was established in 1995. In the past 30 years we've had 75% accumulated annual inflation (aka prices have increased be a factor of exp(0.75) = 2.1) of which 16% (aka 21% of the total) took place during an inflation excursion (which lasted 2.5 years aka 8% of the total time period). If anything the data points at "inflation targeting works and is p…
The devaluation also mostly happened during the periods that everyone calls good old times now.
Hum... I don't think people refer to the world wars as good times.
Out of them, there's one single interval that most people that talk about it refer as "the end of the good times" (but yeah, I've seen people refer as good times too) and the COVID pandemic.
Re: 72% of the dollar's purchasing power was destroyed in just four episodes
#73Earlier quoted context omitted.
Iran is also playing its own Uno card here by saying that it would consider allowing some oil and gas shipments through the Strait if they have been bought with Chinese Yuan, than the US dollar. ( The Islamic Republic may grant safe passage to oil tankers if the cargo is traded in Chinese yuan - https://www.lbc.co.uk/article/iran-allow-chinese-ships-hormu... ).
This is particularly funny if you consider petrodollar to be a bad deal for US, not a good one. Ironically, if yuan becomes new petroleum currency, it might hurt Chinese long term.
long term in a sense of centuries? i think they can afford this.
Re: 72% of the dollar's purchasing power was destroyed in just four episodes
#74Earlier quoted context omitted.
One of the goals of the Heritage Foundation is a weak dollar. They believe they can bring manufacturing back to the US this way. I don't think they're right. I do think they will continue weakening the dollar.
The bigger question is, why is that even the primary goal?
Because Conservative politics is about returning to a past that often can no longer exist.
Re: 72% of the dollar's purchasing power was destroyed in just four episodes
#75Re: 72% of the dollar's purchasing power was destroyed in just four episodes
#76This article over and over describes inflation as a tax or destruction, without backing those claims up. It would be a much stronger article if it focused on the main point rather than having it interspersed with the author's personal opinion of changes in the denominator of a fraction.
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Mods, can we please remove this and other obviously AI-generated comments from this account?
Re: 72% of the dollar's purchasing power was destroyed in just four episodes
#77This supports my hunch that the current Iran war creates a lethal trifecta that could potentially cause a dollar collapse. 1. Massive military overspend. 2. Petrodollar squeeze (Strait of Hormuz). 3. Allies pulling out: Europe and the Gulf diversifying both their investments and defense purchases. #1 creates oversupply of dollars and #2 and #3 lower demand. This study supports the idea that wars can indeed destroy pu…
> Europe and the Gulf diversifying both their investments and defense purchases.
With what? The euro, yuan? Or weapons from france?
I hate to admit it, but it's much less that the US is great because it's the reserve currency, and much more that the world reserve currency is the dollar because the US is what it is.
Weapons are expensive, and it only makes sense to buy them from a country that specializes in them. And a country that makes weapons at huge scale is likely to be big enough tilt the direction of the country to be all the ugly things the modern US military industrial complex is.
Re: 72% of the dollar's purchasing power was destroyed in just four episodes
#78I'm trying to read this and not feel like an idiot. Can someone explain to me how post-covid is considered one of the 4 episodes? it looks to me that the dips at 1933-1936 or 1956-1958 are much more significant - are these just "regular" inflation? Are we ignoring these because we can't tie them to some specific current event?
Appeal to readers' recency bias. Covid is the most recent big change for the readers so the article has to make it more significant than it actually was. If it only talked about things happened <40years people would be 'so what?' and bounce out.
Re: 72% of the dollar's purchasing power was destroyed in just four episodes
#79The value of the dollar over time is largely meaningless unless you are a dollar investor (i.e. sit on lots of cash in consumer tier bank accounts). Generally once you have enough cash that this would meaningfully impact you, you are already beyond sitting on cash. At the end of the day, the dollar or any other currency, is just a conversion tool for [value created] to [goods/services received]. A ratio of 3/1 is equ…
It's meaningful because you pay capital gains on nominal increase in dollar value even if there is no real change in value. Inflation is thus a tax on realized non-gains at roughly 1/5th the cumulative inflation.
Re: 72% of the dollar's purchasing power was destroyed in just four episodes
#80They make it sound like it’s a bad thing.