Blame Congress for Inflation

[Cancel 2016.2]

Thanks to bio-fuels the inflationary aspects of both oil and grain are now intertwined. Considering the falling dollar and US real estate, not to mention heating and air conditioning, coupled with food costs, exacerbated by oil and bio-fuels, we're caught.

No, there is a direct course of action the Fed should have taken.

They should have raised rates hard on Wednesday. A rise in rates would have strengthened the dollar. That would have led to a subsequent drop in grain and energy prices. (probably a significant drop as speculators would shift towards bearish positions)

As for biofuels, that too is simple to correct. Stop using food for fuel. Period.

 

[Obfuscate]

Rising oil = rising inflation is cost push. That is your whole argument on this whole thread and it's nonsense. Without the increase in the amount of money what is gained in one area is lost in another. An increase in velocity can appear to be inflation but velocity will come to equalibrium when the velocity decreases on the back end hence not real inflation.

Now were just making the same points over and over. Your more than welcome to believe in cost push, I certainly don't as I believe MV = PT...

 

[Cancel 2016.2]

Rising oil = rising inflation is cost push. That is your whole argument on this whole thread and it's nonsense. Without the increase in the amount of money what is gained in one area is lost in another. An increase in velocity can appear to be inflation but velocity will come to equalibrium when the velocity decreases on the back end hence not real inflation.

Now were just making the same points over and over. Your more than welcome to believe in cost push, I certainly don't as I believe MV = PT...

You seem to have a severe reading comprehension disorder. I stated rising oil = inflationary. NOT inflation. There is a difference. Do try to learn it.

How long you been in the business world? Just curious.

 

[Kamala Trump]

You seem to have a severe reading comprehension disorder. I stated rising oil = inflationary. NOT inflation. There is a difference. Do try to learn it.

How long you been in the business world? Just curious.

How is it inflationary considering that inflation has to do with price increases STRICTLY due to monetary supply? It's hard on consumers, but it has NOTHING to do with inflation.

 

[Cancel 2016.2]

How is it inflationary considering that inflation has to do with price increases STRICTLY due to monetary supply? It's hard on consumers, but it has NOTHING to do with inflation.

For the final time moron. Inflation is price increases on a basket of goods. IT IS NOT "STRICTLY" due to monetary supply. Only strict monetarists believe such nonsense. Monetary policy is the primary driver. To continue to act as though supply and demand are not a part of the equation is idiotic. You and Obfuscate seem to believe that monetary policy is the only cause of inflation. That is fine. But you are both incorrect.

Oil prices rising is inflationary because it adds to the costs of goods sold to just about every product you or I buy.

 

[Kamala Trump]

For the final time moron. Inflation is price increases on a basket of goods.

No it's not. It's only the part of the increase due to excess money supply and actual inflation

IT IS NOT "STRICTLY" due to monetary supply.

Yes it is.

Only strict monetarists believe such nonsense. Monetary policy is the primary driver. To continue to act as though supply and demand are not a part of the equation is idiotic.

Its apart of rising prices, but has nothing to do with inflation. Inflation and supply demand issues both contribute to higher prices, but are essentially undrelated.

You and Obfuscate seem to believe that monetary policy is the only cause of inflation. That is fine. But you are both incorrect.

No. Execessive government spending (fiat currency creation) also contributes, and I do no consider that monetary policy. Monetary policy is what goes on at the fed.

Oil prices rising is inflationary because it adds to the costs of goods sold to just about every product you or I buy.

It's not inflationary, it just contributes to higher prices in a way completely unrelated to actual inflation.

 

[Cancel 2016.2]

No it's not. It's only the part of the increase due to excess money supply and actual inflation

Yes it is.

Its apart of rising prices, but has nothing to do with inflation. Inflation and supply demand issues both contribute to higher prices, but are essentially undrelated.

No. Execessive government spending (fiat currency creation) also contributes, and I do no consider that monetary policy. Monetary policy is what goes on at the fed.


It's not inflationary, it just contributes to higher prices in a way completely unrelated to actual inflation.

LMAO... So inflation is only the portion of price increase that is due to monetary/fiscal policy??? The stupidity of that is astounding.

Yes, monetary policy is what goes on at the Fed, but the government cannot create money... that is what the fed does. For the government to spend that new money, the Fed has to create it.

For the final time inflationary means the prices rise. Please take an economics class before posting on this topic again.

 

[Kamala Trump]

LMAO... So inflation is only the portion of price increase that is due to monetary/fiscal policy???

Close.
Inflation is the part due to excess money creation, specifically.

The stupidity of that is astounding.

No. Your stupidity is astounding

Yes, monetary policy is what goes on at the Fed, but the government cannot create money... that is what the fed does.

Sometimes at the request of the government. The fed is partially government and partially private, that's why it's the lynchpin of fascist control in our society/

For the government to spend that new money, the Fed has to create it.

And they always do.

For the final time inflationary means the prices rise.

No. It a price rise due specifically to money supply.

Please take an economics class before posting on this topic again.

You. Dumbshit.

 

[Obfuscate]

I bet Superfreak doesn't know what MV = PT means, or understands the mathmatics of it. I've clearly shown more knowledge and more in depth answers. I'd like to see Superfreak go to University of Chicago econ department and talk about cost push inflation then be a smart ass when all the Nobel winners disagree....

Superfreak, there are differant schools of economic thought, if you took Theory in school you would know this. If you want to be on the side of the Keynesians go ahead.

 

[Obfuscate]

Alright I'm heading to Duluth to take the kids to the waterpark hotel for the weekend. If they have wireless I'll talk to you fools later...

 

[Topspin]

the monerterist theorist are funny, nice you remember your schooling.
Now, the real world shows you whats happening and no theory works all the time.
Moneitist, meet the globalist. If world demand for all commodities is going up as it is then price follows.

 

[Obfuscate]

Not true toppy, the excess you spend on the commodities ect takes away money you would have spent somewhere else. The increase of prices across the board is due to the money supply. The only problem with Monetarism is it can be bad for short term predictions due to changes in the velocity of circulation.

 

[Topspin]

put your blinders on and stick to your textbook if you like.
the rest of the world is tightening in the face of this inflation, I'll use that as a que to tell me what assets to buy.

 

[Obfuscate]

What assets to buy in the stock market is much differant than what causes inflation.

The prices are going up due to low rates IE 1% with Greenspan and 2% with Bernanke. Historic lows just check the history of the Fed Funds rate and you can see why we have so much inflation now. I don't know how anyone could blame the current inflation on gas prices when low interest rates and growth in the money supply are what are the main culprit of the rise in gas and commodities. Price gas in Gold and tell me the problem isn't loose Monetary policy.

Do you think if we held the funds rate at approx 4% from 01- now instead of 1 and 2% we would have the inflation we have? Because that seems to be Superfreak and your position.

 

[Beefy]

Classic skewering of Superfreak on this thread. Wow. Homeslice is ALL over the place.

 

[Cancel 2016.2]

I bet Superfreak doesn't know what MV = PT means, or understands the mathmatics of it. I've clearly shown more knowledge and more in depth answers. I'd like to see Superfreak go to University of Chicago econ department and talk about cost push inflation then be a smart ass when all the Nobel winners disagree....

Superfreak, there are differant schools of economic thought, if you took Theory in school you would know this. If you want to be on the side of the Keynesians go ahead.

For the final time you twit.... if you wish to be a pure monetarist, that is your choice. Only a complete fool would do so. Even Friedman was not. He did firmly believe that inflation was largely a product of monetary policy. In that he is correct. He further argued that cost-push was not the predominant factor. In that, he was also correct.

But to act as though a commodity like oil, which when its price rises effects the price of production of damn near every single product and service in the world, does not effect inflation is idiotic.

To state my position one last time with the hope that this time you might be able to comprehend it. Monetary policy is the primary driver in inflation. It can either moderate inflation or exacerbate it. That is why it is so crucial. But cost-push is also a factor.... especially when talking about oil and energy prices as a whole. Yes, certain sectors will do well when energy prices advance and other sectors goods/services will be sacrificed by consumers. But that does not change the very simple fact that the cost of production/service INCREASES as oil/energy prices go up. Some companies may have wide enough profit margins to be able to eat part of the increases in production costs, others will not.

 

[Cancel7]

I bet Superfreak doesn't know what MV = PT means, or understands the mathmatics of it. I've clearly shown more knowledge and more in depth answers. I'd like to see Superfreak go to University of Chicago econ department and talk about cost push inflation then be a smart ass when all the Nobel winners disagree....

Superfreak, there are differant schools of economic thought, if you took Theory in school you would know this. If you want to be on the side of the Keynesians go ahead.

No seriously, can we do a poll asking who the biggest pompous ass on the board is?

I can't stand this fucking guy.

 

[Cancel 2016.2]

What assets to buy in the stock market is much differant than what causes inflation.

The prices are going up due to low rates IE 1% with Greenspan and 2% with Bernanke. Historic lows just check the history of the Fed Funds rate and you can see why we have so much inflation now. I don't know how anyone could blame the current inflation on gas prices when low interest rates and growth in the money supply are what are the main culprit of the rise in gas and commodities. Price gas in Gold and tell me the problem isn't loose Monetary policy.

Do you think if we held the funds rate at approx 4% from 01- now instead of 1 and 2% we would have the inflation we have? Because that seems to be Superfreak and your position.

No, we would not be seeing the same level of inflation today had we held the fed funds rate constant. You seem to be ignoring the fact that I have stated time and again that monetary policy is the primary force with regards to inflation. Had the Fed kept rates higher, inflation would be lower today as the value of the dollar would have remained stronger, thus not putting as much inflationary pressure on commodities such as oil, nat gas and grain.

But again, you are a complete fool for thinking that monetary policy is the only driver. Yes, it is always present. But it is not the only driver of inflation.

 

[Cancel 2016.2]

I bet Superfreak doesn't know what MV = PT means, or understands the mathmatics of it. I've clearly shown more knowledge and more in depth answers. I'd like to see Superfreak go to University of Chicago econ department and talk about cost push inflation then be a smart ass when all the Nobel winners disagree....

Superfreak, there are differant schools of economic thought, if you took Theory in school you would know this. If you want to be on the side of the Keynesians go ahead.

I challenge you to actually comprehend what has been stated prior to asserting such idiotic challenges.

Which of us is adhering strictly to ONE line of thinking? You.

Which of us has stated clearly that there are multiple factors involved in inflation? That would be me. Your complete inability to comprehend that I am not advocating that inflation is strictly cost-push or any other such nonsense is astounding. YOU are the one that created that strawman and have stuck by it.

 

[Cancel 2016.2]

No seriously, can we do a poll asking who the biggest pompous ass on the board is?

I can't stand this fucking guy.

So I am pompous because I try to defend my actual position to his strawman argument?

LMAO.