Inflation, Deflation, and General Consternation
- Heracleum Persicum
- Posts: 11822
- Joined: Sat Dec 22, 2012 7:38 pm
Inflation, Deflation, and General Consternation
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Inflation happens when prices go up
Prices go up when "purchasing power" goes up
"Purchasing power" goes up when people have "more money than they had year before"
So
If 10% of Americans lost their job, and government helps them pay bare minimum", not many have more now than they had yr ago
There no "pricing power" to raise prices.
Yes, Trillions of dollars pored into economy
But, those Trillions of dollars are not piled on 'already earnings", but , those trillions of Dollars "partially replace" LOST earnings.
Those Trillions pored into "black hole"
https://www.nytimes.com/live/2021/02/12 ... -300-years
"Britain’s economy shrank by nearly 10 percent in 2020, the most in 300 years"
Economy is in deep recession, in ICU, held alive only by Intravenous Trillions of Dollars free money
Don't hold your breath, there will be no inflation.
.
Inflation happens when prices go up
Prices go up when "purchasing power" goes up
"Purchasing power" goes up when people have "more money than they had year before"
So
If 10% of Americans lost their job, and government helps them pay bare minimum", not many have more now than they had yr ago
There no "pricing power" to raise prices.
Yes, Trillions of dollars pored into economy
But, those Trillions of dollars are not piled on 'already earnings", but , those trillions of Dollars "partially replace" LOST earnings.
Those Trillions pored into "black hole"
https://www.nytimes.com/live/2021/02/12 ... -300-years
"Britain’s economy shrank by nearly 10 percent in 2020, the most in 300 years"
Economy is in deep recession, in ICU, held alive only by Intravenous Trillions of Dollars free money
Don't hold your breath, there will be no inflation.
.
Re: Inflation, Deflation, and General Consternation
Well, if you prediction had been made for PR China, you would have been correct.
No cigar for you.
No cigar for you.
May the gods preserve and defend me from self-righteous altruists; I can defend myself from my enemies and my friends.
Re: Inflation, Deflation, and General Consternation
Well, this is new. At least it is to me.
https://archive.ph/3MX2i]New Stateman | ... inflation
https://archive.ph/3MX2i]New Stateman | ... inflation
Algorithms gone wild.The prices of most goods are [now] not set by humans, but by automatic processes set to maximise their owners’ gains.
In 2011 an Amazon seller called “profnath” listed a second-hand, out-of-print academic textbook (The Making of a Fly, by the geneticist Peter Lawrence) for $9.98. And there it would have stayed, had another seller not listed the same book using automatic pricing, which caused the original listing (also set with automatic pricing) to rise in turn. Each seller just wanted to make a slightly higher margin than the market rate, so the two listings kept bidding each other upwards until the book cost well over 23 million dollars.
May the gods preserve and defend me from self-righteous altruists; I can defend myself from my enemies and my friends.
Re: Inflation, Deflation, and General Consternation
They must come with one heck of a sleeve.Typhoon wrote: ↑Tue Jul 11, 2023 7:14 am Well, this is new. At least it is to me.
https://archive.ph/3MX2i]New Stateman | ... inflation
Algorithms gone wild.The prices of most goods are [now] not set by humans, but by automatic processes set to maximise their owners’ gains.
In 2011 an Amazon seller called “profnath” listed a second-hand, out-of-print academic textbook (The Making of a Fly, by the geneticist Peter Lawrence) for $9.98. And there it would have stayed, had another seller not listed the same book using automatic pricing, which caused the original listing (also set with automatic pricing) to rise in turn. Each seller just wanted to make a slightly higher margin than the market rate, so the two listings kept bidding each other upwards until the book cost well over 23 million dollars.
"I fancied myself as some kind of god....It is a sort of disease when you consider yourself some kind of god, the creator of everything, but I feel comfortable about it now since I began to live it out.” -- George Soros
Re: Inflation, Deflation, and General Consternation
True blue - M. Hutchinson | The correct inflation target is Zero
Jason Furman, in the Wall Street Journal, is just the latest former senior financial official (Chairman of the Council of Economic Advisors, 2013-17) to suggest the Fed should raise its inflation target above the current 2%. We know what these people want – a target high enough that rates can be reduced to zero again, below the rate of inflation, benefiting their rich friends with access to leverage. For the rest of us, there is only one proper inflation target: zero. Adopting that target would solve most of the economic problems currently plaguing the West.
May the gods preserve and defend me from self-righteous altruists; I can defend myself from my enemies and my friends.
Re: Inflation, Deflation, and General Consternation
The usual explanation for a low , but positive, inflation target is that their is a stimulus effect created by encouraging big business not to hold on to money but invest it - use it or lose it.
so in this perfect world, people with money are investing and expanding it, creating pay rises that cover the inflation.
zero inflation lets people collect interest rates while doing nothing for society - something else big business withbig money would like.
economic theory all gets wishy washy when confronted with the rich and powerful doing what they want - a tweek here or there to the rules is not going to counter it.
so in this perfect world, people with money are investing and expanding it, creating pay rises that cover the inflation.
zero inflation lets people collect interest rates while doing nothing for society - something else big business withbig money would like.
economic theory all gets wishy washy when confronted with the rich and powerful doing what they want - a tweek here or there to the rules is not going to counter it.
ultracrepidarian
Re: Inflation, Deflation, and General Consternation
True Blue - M. Hutchinson | World central banks are wimping out
Shadowstats | Alternative [US] inflation charts
Shadowstats | Alternative [US] inflation charts
May the gods preserve and defend me from self-righteous altruists; I can defend myself from my enemies and my friends.
- Heracleum Persicum
- Posts: 11822
- Joined: Sat Dec 22, 2012 7:38 pm
Re: Inflation, Deflation, and General Consternation
Typhoon wrote: ↑Tue Nov 07, 2023 6:33 am True Blue - M. Hutchinson | World central banks are wimping out
Shadowstats | Alternative [US] inflation charts
https://www.bloomberg.com/news/articles ... ckout=true
Central Bank Gold Binge Is Even Bigger Than Previously Thought
https://www.scmp.com/economy/china-econ ... -nears-end
China keeps slashing US Treasury holdings
Am astonished Dollar not yet collapsed
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Re: Inflation, Deflation, and General Consternation
You're easily astonished then.Heracleum Persicum wrote: ↑Tue Nov 07, 2023 6:08 pmTyphoon wrote: ↑Tue Nov 07, 2023 6:33 am True Blue - M. Hutchinson | World central banks are wimping out
Shadowstats | Alternative [US] inflation charts
https://www.bloomberg.com/news/articles ... ckout=true
Central Bank Gold Binge Is Even Bigger Than Previously Thought
https://www.scmp.com/economy/china-econ ... -nears-end
China keeps slashing US Treasury holdings
Am astonished Dollar not yet collapsed
.
Currently there is no viable alternative to the dollar.
Returning to a gold standard would be, I'd argue, as dumb as going all in with wind power in the sense that both cases there is little correlation be demand and supply.
May the gods preserve and defend me from self-righteous altruists; I can defend myself from my enemies and my friends.
- Heracleum Persicum
- Posts: 11822
- Joined: Sat Dec 22, 2012 7:38 pm
Re: Inflation, Deflation, and General Consternation
.
If India buying Oil from Saudi pays for the oil with Indian Rupee, Saudi has difficulty paying with Rupee buying things from Germany reason being that Germany does not buy much from India (to pay with Indian Rupee)
But Chinese Yuan has not this problem as all world nations, everybody, is buying huge amount of goods from China and any nation can pay with Yuan to China
Means, right now, real world challenger for U$ is Chinese Yuan
But this changing as India to become world's second largest economy by 2075, meaning, India will have huge trades with main economies which can settle accounts with India with Rupee.
Another danger for U$ is if BRICS have a "BRICS currency" as Europeans have Euro .. that too now in progress
So, U$ days are numbered
If India buying Oil from Saudi pays for the oil with Indian Rupee, Saudi has difficulty paying with Rupee buying things from Germany reason being that Germany does not buy much from India (to pay with Indian Rupee)
But Chinese Yuan has not this problem as all world nations, everybody, is buying huge amount of goods from China and any nation can pay with Yuan to China
Means, right now, real world challenger for U$ is Chinese Yuan
But this changing as India to become world's second largest economy by 2075, meaning, India will have huge trades with main economies which can settle accounts with India with Rupee.
Another danger for U$ is if BRICS have a "BRICS currency" as Europeans have Euro .. that too now in progress
So, U$ days are numbered
Re: Inflation, Deflation, and General Consternation
Maybe, probably not.Heracleum Persicum wrote: ↑Wed Nov 08, 2023 7:00 am .
If India buying Oil from Saudi pays for the oil with Indian Rupee, Saudi has difficulty paying with Rupee buying things from Germany reason being that Germany does not buy much from India (to pay with Indian Rupee)
But Chinese Yuan has not this problem as all world nations, everybody, is buying huge amount of goods from China and any nation can pay with Yuan to China
Means, right now, real world challenger for U$ is Chinese Yuan
But this changing as India to become world's second largest economy by 2075, meaning, India will have huge trades with main economies which can settle accounts with India with Rupee.
Another danger for U$ is if BRICS have a "BRICS currency" as Europeans have Euro .. that too now in progress
So, U$ days are numbered
Anyways, this is an economics thread about inflation and deflation, not one to gone on, yet again, about your fifth-columnist fervent hope for the imminent collapse of the USD, the US, and the West. You have the "BRICS" thread in "Current Events" to do so.
So, please stick to the topic.
May the gods preserve and defend me from self-righteous altruists; I can defend myself from my enemies and my friends.
- Heracleum Persicum
- Posts: 11822
- Joined: Sat Dec 22, 2012 7:38 pm
Re: Inflation, Deflation, and General Consternation
Typhoon wrote: ↑Thu Nov 09, 2023 12:32 amMaybe, probably not.Heracleum Persicum wrote: ↑Wed Nov 08, 2023 7:00 am .
If India buying Oil from Saudi pays for the oil with Indian Rupee, Saudi has difficulty paying with Rupee buying things from Germany reason being that Germany does not buy much from India (to pay with Indian Rupee)
But Chinese Yuan has not this problem as all world nations, everybody, is buying huge amount of goods from China and any nation can pay with Yuan to China
Means, right now, real world challenger for U$ is Chinese Yuan
But this changing as India to become world's second largest economy by 2075, meaning, India will have huge trades with main economies which can settle accounts with India with Rupee.
Another danger for U$ is if BRICS have a "BRICS currency" as Europeans have Euro .. that too now in progress
So, U$ days are numbered
Anyways, this is an economics thread about inflation and deflation, not one to gone on, yet again, about your fifth-columnist fervent hope for the imminent collapse of the USD, the US, and the West. You have the "BRICS" thread in "Current Events" to do so.
So, please stick to the topic.
True
Rising price will rise for long time for certain goods, Energy, food, things that rising "Global South" (80% of world population) countries becoming more prosperous will want to consume, their population will have cars and eat more ..
On the other side, prices for "hard assets" will fall in "western countries" because population will shrink, age, and become (relative) poorer .. deflation.
That already has started in the West ..
.
Re: Inflation, Deflation, and General Consternation
True Blue - Hutchinson | There are no independent central banks
The person running the "Shadowstats" site has been documenting the US govt diddling with the inflation data for years.
Assume the same applies to other OECD nations.
Shadowstats | Alternate Inflation Charts
The person running the "Shadowstats" site has been documenting the US govt diddling with the inflation data for years.
Assume the same applies to other OECD nations.
Shadowstats | Alternate Inflation Charts
May the gods preserve and defend me from self-righteous altruists; I can defend myself from my enemies and my friends.