Blame Congress for Inflation

Investopedia - Cite This Source - Share This
Inflation

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.

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American Heritage New Dictionary of Cultural Literacy, Third Edition - Cite This Source - Share This
inflation


A general increase in prices.


[Chapter:] Business and Economics

WordNet - Cite This Source - Share This inflation

noun
1. a general and progressive increase in prices;
 
Overspending is killing growth. When you have to repay on unproductive assets you slow growth and the imaginary "inflation" will become deflation until stable. Then you have slower rates of growth and slower growth of living standards.

Real inflation IS a Monetary Phenomenon.
 
ib1yysguy said:
He said it caused a "huge" increase in food prices. Show me the documentation or shut the fuck up.
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Ib1dumbass, where have you been during the food riots and the commodities surge. your so young and stupid your breath smells like simalac. Ask your mommy what her grociery bill is doing.:eek:
 
Superfreak said:
Try using your own link moron. The above (as I mentioned) can indeed be a cause of inflation. But how many of those definitions state something to the effect of "general increase in prices"???

Thanks again for the laugh.
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the bolded part "relating to an increase in the volume of money", is a definitive part of the definition. All price increases are not inflation, you ignorant stooge.
 
Obfuscate said:
Overspending is killing growth. When you have to repay on unproductive assets you slow growth and the imaginary "inflation" will become deflation until stable. Then you have slower rates of growth and slower growth of living standards.

Real inflation IS a Monetary Phenomenon.
Click to expand...

It can indeed be caused by a monetary phenomenon. A large portion of the inflationary pressures on oil and grain today are caused to a very loose monetary policy that has caused a decline in the valuation of the dollar and thus a subsequent increase in prices.

But the inflation caused by growth in demand outstripping growth in supply is not imaginary. In that you are incorrect.

REAL inflation is when the price goes up.... period. There are several things that can cause REAL inflation. Monetary policy is but one.... a big one to be sure, but when tallking about inflationary pressures on individual commodities you cannot overlook supply and demand.
 
AssHatZombie said:
the bolded part "relating to an increase in the volume of money", is a definitive part of the definition. All price increases are not inflation, you ignorant stooge.
Click to expand...

Yes, actually they are you moron. Monetary policy is but one way for inflationary pressure to take place. You can have a tight monetary policy and STILL see inflation you tool. Loose monetary policy will indeed be a great escalator for inflation, but it is most certainly NOT needed to have inflation.

Supply and demand also factor in. Take an economics course and then come back with your dribble and try again.

To cherry pick the definition you like the most and act as though it is the "definitive part" while ignoring the remainder of the variety of definitions is ignorance at its finest.
 
ib1yysguy said:
He said it caused a "huge" increase in food prices. Show me the documentation or shut the fuck up.
Click to expand...

Define huge you twit.... it is an arbitrary adjective.

Side note: I was responding to YOUR post where you said using grain for ethanol does not drive up the price of food.

In that you are 100% incorrect.
 
Superfreak said:
It can indeed be caused by a monetary phenomenon. A large portion of the inflationary pressures on oil and grain today are caused to a very loose monetary policy that has caused a decline in the valuation of the dollar and thus a subsequent increase in prices.

But the inflation caused by growth in demand outstripping growth in supply is not imaginary. In that you are incorrect.

REAL inflation is when the price goes up.... period. There are several things that can cause REAL inflation. Monetary policy is but one.... a big one to be sure, but when tallking about inflationary pressures on individual commodities you cannot overlook supply and demand.
Click to expand...

No your wrong. What you descibe is simply a raise in prices in a certain asset. If the money supply is stable what is gained in one sector would be lost in another. When the money supply increases prices can raise across the board and that is real inflation. I'm suprised you believe in discredited Keynesian nonsense. Asset appreciation is not real inflation.

"Inflation is ALWAYS and everywhere a Monetary Phenomenon"

Milton Friedman
 
Obfuscate said:
No your wrong. What you descibe is simply a raise in prices in a certain asset. If the money supply is stable what is gained in one sector would be lost in another. When the money supply increases prices can raise across the board and that is real inflation. I'm suprised you believe in discredited Keynesian nonsense. Asset appreciation is not real inflation.

"Inflation is ALWAYS and everywhere a Monetary Phenomenon"

Milton Friedman
Click to expand...

When discussing the economy as a whole, inflation is a general rise in the prices of a basket of goods. General inflation can be caused by many factors. One of which is monetary policy. A loose policy will devalue the dollar and drive inflation. But to pretend that monetary policy is always behind inflation is idiotic at best. You are misinterpreting Friedman.

He never stated or even suggested that monetary policy is the ONLY driver of inflation. He stated that it was the primary factor. Which in most situations it is. But only a fool would believe that demand outpacing supply is not an inflationary pressure, especially when discussing the commodities that are the lifeblood of our economy.

Monetary policy is a way to CONTROL inflation. (or loose control of it as Bernanke has managed to do)
 
You are incorrect Read:

0226264084.jpeg


9780691041476.jpg


His license plate was MV = PT for gods sake. One assets apreciation does not equal inflation.

"Inflation is ALWAYS and everywhere a Monetary Phenomenon"

Milton Friedman
 
Superfreak said:
When discussing the economy as a whole, inflation is a general rise in the prices of a basket of goods. General inflation can be caused by many factors. One of which is monetary policy. A loose policy will devalue the dollar and drive inflation. But to pretend that monetary policy is always behind inflation is idiotic at best. You are misinterpreting Friedman.

He never stated or even suggested that monetary policy is the ONLY driver of inflation. He stated that it was the primary factor. Which in most situations it is. But only a fool would believe that demand outpacing supply is not an inflationary pressure, especially when discussing the commodities that are the lifeblood of our economy.

Monetary policy is a way to CONTROL inflation. (or loose control of it as Bernanke has managed to do)
Click to expand...
You're completely and totally wrong and idiotic. Get educated and quit spreading your stupidity.
 
"Austrian school economists such as Murray N. Rothbard and monetary economists such as Milton Friedman argue against the concept of cost-push inflation because increases in the cost of goods and services do not lead to inflation without the government and its central bank cooperating in increasing the money supply. The argument is that if the money supply is constant, increases in the cost of a good or service will decrease the money available for other goods and services, and therefore the price of some those goods will fall and offset the rise in price of those goods whose prices have increased."

From Wiki...
 
Obfuscate said:
You are incorrect Read:

0226264084.jpeg


9780691041476.jpg


His license plate was MV = PT for gods sake. One assets apreciation does not equal inflation.

"Inflation is ALWAYS and everywhere a Monetary Phenomenon"

Milton Friedman
Click to expand...

I have read both.... and again, you are reading his quote as an absolute. When you look in detail at his writings, he is not suggesting that is the sole factor. He states that it is a PRIMARY factor. Because he wasn't ignorant enough to suggest otherwise. His belief is that you could use monetary policy to control the level of inflation. Which is correct. You can. But it is not the be all end all sole factor.

I never suggested that one asset equaled inflation. I stated that the rise in oil is inflationary. There is a huge difference... one you should try to learn. You are also incorrect in stating that the rise in one commodity cannot create inflation. Oil is currently the lifeblood of our economy. A drastic rise in oil alone can most certainly create inflation for the economy as a whole. With or without changes in monetary policy. Now that said, I am not suggesting that is our current situation.

In our current situation (meaning the rise over the past decade), it has been a combination of loose monetary policy coupled with a growth in demand for oil outstripping growth in supply. Monetary policy that has resulted in a devaluation of the dollar only accounts for a shift of a doubling of oil from the $20-25 range in 98 to about $40-50 today. Demand over supply accounts for a rise in oil of about another $40-$50, putting fair value right around $90 per barrell. The remainder is driven by speculation on the future supply demand expectations.

Then you factor in world demand for grain being higher than supply and you have another inflationary pressure.

The Fed needed to act Wednesday to strengthen the dollar. They failed. Once again they are playing behind the curve. That is going to hurt.
 
Superfreak said:
I have read both.... and again, you are reading his quote as an absolute. When you look in detail at his writings, he is not suggesting that is the sole factor. He states that it is a PRIMARY factor. Because he wasn't ignorant enough to suggest otherwise. His belief is that you could use monetary policy to control the level of inflation. Which is correct. You can. But it is not the be all end all sole factor.

I never suggested that one asset equaled inflation. I stated that the rise in oil is inflationary. There is a huge difference... one you should try to learn. You are also incorrect in stating that the rise in one commodity cannot create inflation. Oil is currently the lifeblood of our economy. A drastic rise in oil alone can most certainly create inflation for the economy as a whole. With or without changes in monetary policy. Now that said, I am not suggesting that is our current situation.

In our current situation (meaning the rise over the past decade), it has been a combination of loose monetary policy coupled with a growth in demand for oil outstripping growth in supply. Monetary policy that has resulted in a devaluation of the dollar only accounts for a shift of a doubling of oil from the $20-25 range in 98 to about $40-50 today. Demand over supply accounts for a rise in oil of about another $40-$50, putting fair value right around $90 per barrell. The remainder is driven by speculation on the future supply demand expectations.

Then you factor in world demand for grain being higher than supply and you have another inflationary pressure.

The Fed needed to act Wednesday to strengthen the dollar. They failed. Once again they are playing behind the curve. That is going to hurt.
Click to expand...

Inflationary is not inflation.
 
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