Get ready for hyperinflation

DamnYankee

DamnYankee

Loyal to the end
The percentage increase in the monetary base is the largest increase in the past 50 years by a factor of 10 (see chart nearby). It is so far outside the realm of our prior experiential base that historical comparisons are rendered difficult if not meaningless.
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http://online.wsj.com/article/SB124458888993599879.html
 
Topspin said:
I agree to a point,
but look closley at wages.
You rarely have inflation without rising incomes.
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Why does it matter? You won't be able to borrow money except at incredibly high interest rates. Besides, wage inflation always comes later and lower than the cost of goods.
 
generally (not always tools) wage inflation is the main driver of inflation. that's according to most economist not me.
IF many are not employed you can't have wage inflation due to oversupply of workers.
 
Topspin said:
I agree to a point,
but look closley at wages.
You rarely have inflation without rising incomes.
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Is your salary tied to inflation? Most people's isnt. And it appears there will be no more new jobs. Our leadership is burning the place down.
 
Watch out, Watermark will come and post another thread about how inflation isn't that high yet.
 
Topspin said:
generally (not always tools) wage inflation is the main driver of inflation. that's according to most economist not me.
IF many are not employed you can't have wage inflation due to oversupply of workers.
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That would be if there was low unemployment, since the scarcity of jobs would drive up wages, and product prices would follow. Here inflation will be created by over expanding the money supply (think Wiemar Republic), so product prices will increase and wages will follow.
 
Watermark said:
LOL, posting an article from Laffer.

Just LO fucking L.
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Your hero Keynes agrees with him in part:

...As recounted by Wanniski (associate editor of The Wall Street Journal at the time), in December 1974, he had dinner with [Laffer] (then professor at the University of Chicago), Donald Rumsfeld (Chief of Staff to President Gerald Ford), and Dick Cheney (Rumsfeld's deputy and my former classmate at Yale) at the Two Continents Restaurant at the Washington Hotel in Washington, D.C. While discussing President Ford's "WIN" (Whip Inflation Now) proposal for tax increases, I supposedly grabbed my napkin and a pen and sketched a curve on the napkin illustrating the trade-off between tax rates and tax revenues. Wanniski named the trade-off "The Laffer Curve."

...

The Laffer Curve, by the way, was not invented by me. For example, Ibn Khaldun, a 14th century Muslim philosopher, wrote in his work The Muqaddimah: "It should be known that at the beginning of the dynasty, taxation yields a large revenue from small assessments. At the end of the dynasty, taxation yields a small revenue from large assessments."

A more recent version (of incredible clarity) was written by John Maynard Keynes...
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SmarterThanYou said:
so lets restart the credit/debt economy that failed in the first place. brilliant idea, bumpkin.
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That's not how economics works.

To save, you have to invest. Everyone in the world wants to save right now, no one wants to invest it on anything. This makes a huge imbalance, and completely eliminates the reason behind saving. Your hero Reagan through off the balance and annihilated America's thrift through his deregulation. Spending is not "re-inflating the bubble" - we are going to restore equilibrium, and then put the proper regulations back in place to make sure it stays that way.
 
Watermark said:
That's not how economics works.

To save, you have to invest. Everyone in the world wants to save right now, no one wants to invest it on anything. This makes a huge imbalance, and completely eliminates the reason behind saving. Your hero Reagan through off the balance and annihilated America's thrift through his deregulation. Spending is not "re-inflating the bubble" - we are going to restore equilibrium, and then put the proper regulations back in place to make sure it stays that way.
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A bit of a difference between saving and investing.
Those who saved in secure govt backed methods lost nothing except some possible loss of more gains by "investing". But then that did not seem to work out too well for most investors recently.

I have lost nothing yet from this downturn.
 
Southern Man said:
That would be if there was low unemployment, since the scarcity of jobs would drive up wages, and product prices would follow. Here inflation will be created by over expanding the money supply (think Wiemar Republic), so product prices will increase and wages will follow.
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...scarcity of jobs would drive up wages,....

what? I stopped reading after you essentially said the sky was green.

ECON101:
too many people needing work means they will work for less.
Scaricty of jobs=too many people needing jobs
 
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