Gavin Newsom's military tribunal

[Walt]

it does happen from too much money supply.

It can happen because of too much money supply, but that is not the primary pusher of it. And the money supply probably is not what you think it is.

The amount of money chasing goods and services is the money supply multiplied by the velocity of money. That second part (multiplied by the velocity of money) causes a couple of major problems. It means that as inflation goes up, people become interested in spending or investing their money as quickly as possible, which increases the velocity of money, which in turn causes more inflation. The deflationary version is even more brutal. Neither are easy to reverse with changes to the money supply.

But even the money supply is not what you think it is. The money supply is not the amount of money the US Government prints. The money supply also includes money that the banks have effectively created, and only exists in electronic form. Fractional banking means that banks will give out loans that are greater than their deposits. During times of growth, there is an incentive to give out a higher loan to deposit ratio.

 

[Truck Fump / h1b]

It can happen because of too much money supply, but that is not the primary pusher of it. And the money supply probably is not what you think it is.

The amount of money chasing goods and services is the money supply multiplied by the velocity of money. That second part (multiplied by the velocity of money) causes a couple of major problems. It means that as inflation goes up, people become interested in spending or investing their money as quickly as possible, which increases the velocity of money, which in turn causes more inflation. The deflationary version is even more brutal. Neither are easy to reverse with changes to the money supply.

But even the money supply is not what you think it is. The money supply is not the amount of money the US Government prints. The money supply also includes money that the banks have effectively created, and only exists in electronic form. Fractional banking means that banks will give out loans that are greater than their deposits. During times of growth, there is an incentive to give out a higher loan to deposit ratio.

yes. fractional reserve banking contributes to inflation a lot.

what is the fraction banks must have on hand right now to lend against?

do you know?

 

[Walt]

yes. fractional reserve banking contributes to inflation a lot.

what is the fraction banks must have on hand right now to lend against?

do you know?

Somewhere along the line, you seem to have missed that some inflation is a good thing. That deflation is the worst thing. Since the Great Recession we have been on the verge of a deflationary trap. In that sense, we are all happy to see inflation, but this is clearly too high of inflation.

The deflationary threats since the Great Recession has caused them to mostly give up absolute reserve requirements. It is now more about having enough investor assets on hand to survive extreme stress tests without losing depositor's money. That would mean that technical reserve requirements are zero, but actual reserve requirements are based on the risks of loans, and is in the 5 to 25% range.

 

[Truck Fump / h1b]

Somewhere along the line, you seem to have missed that some inflation is a good thing. That deflation is the worst thing. Since the Great Recession we have been on the verge of a deflationary trap. In that sense, we are all happy to see inflation, but this is clearly too high of inflation.

The deflationary threats since the Great Recession has caused them to mostly give up absolute reserve requirements. It is now more about having enough investor assets on hand to survive extreme stress tests without losing depositor's money. That would mean that technical reserve requirements are zero, but actual reserve requirements are based on the risks of loans, and is in the 5 to 25% range.

you're a fucking idiot.

hit the campaign trail with "inflation is good".

I dare you.

 

[Truck Fump / h1b]

politicians like to inflate their way out of debt. they will also defend it. it's not like THEY work for a fixed wage, they're kleptocrats.

 

[Walt]

you're a fucking idiot.

hit the campaign trail with "inflation is good".

I dare you.

Reasonable inflation got FDR elected four times, while deflation lost Hoover the election.

 

[Truck Fump / h1b]

Reasonable inflation got FDR elected four times, while deflation lost Hoover the election.

biden: deflation hawk.....


that's a winner. go with that. it's a great point.

 

[Walt]

biden: deflation hawk..... that's a winner. go with that. it's a great point.

Biden, strong growth, is a winner. Remember it is the feeling right before the election that counts. So if inflation is dropping, and we have strong growth, two and a half years from now, Biden will be reelected. The worse you make things sound now, the easier it is for Biden to improve things between now and the election.

Or maybe Biden will be standing trial at Gitmo before the election? LMAO!!! Sorry, but it is hard to take you seriously.

 

[Truck Fump / h1b]

Biden, strong growth, is a winner. Remember it is the feeling right before the election that counts. So if inflation is dropping, and we have strong growth, two and a half years from now, Biden will be reelected. The worse you make things sound now, the easier it is for Biden to improve things between now and the election.

Or maybe Biden will be standing trial at Gitmo before the election? LMAO!!! Sorry, but it is hard to take you seriously.

how do you see inflation dropping?

you're an idiot.

 

[Walt]

how do you see inflation dropping?

It will probably drop as rising prices cause production to move from services to goods. It might not, because inflation might be becoming entrenched. Even if it does become entrenched, people will become used to it. Exaggerating it right now will make it easier to seem like it is dropping.

I am predicting that inflation will not be a winner in 2024, but that is far from a certain prediction.

More importantly, Gitmo trials will not even be on the radar screen of voters in 2024, because they are not happening.

 

[Truck Fump / h1b]

It will probably drop as rising prices cause production to move from services to goods. It might not, because inflation might be becoming entrenched. Even if it does become entrenched, people will become used to it. Exaggerating it right now will make it easier to seem like it is dropping.

I am predicting that inflation will not be a winner in 2024, but that is far from a certain prediction.

More importantly, Gitmo trials will not even be on the radar screen of voters in 2024, because they are not happening.

so your plan is to convince people inflation is no big deal.

that should work.

good strategy, Einstein.

 

[Walt]

so your plan is to convince people inflation is no big deal.

that should work.

good strategy, Einstein.

No, the plan is to convince people that inflation is a diminishing deal

 

[Truck Fump / h1b]

No, the plan is to convince people that inflation is a diminishing deal

even better! smarter!

 

[Walt]

even better! smarter!

Voters are looking for getting better. That was why trump was going to lose the election even before Covid-19. If anything, Covid-19 helped his chances.

 

[Truck Fump / h1b]

Voters are looking for getting better. That was why trump was going to lose the election even before Covid-19. If anything, Covid-19 helped his chances.

it's interesting how your only plan is what propaganda to use, and how fixing things isn't even a thought you have.

 

[Walt]

it's interesting how your only plan is what propaganda to use, and how fixing things isn't even a thought you have.

I find it interesting that you make up imaginary Gitmo trials rather than deal with the real issues.

 

[Truck Fump / h1b]

I find it interesting that you make up imaginary Gitmo trials rather than deal with the real issues.

well we talked about inflation and your plan is to minimize and lie.

 

[Walt]

well we talked about inflation and your plan is to minimize and lie.

We were first talking about your fantasies about Gov Newsom being tried in Gitmo. Then I explained inflation to you. Then I rebutted your argument that inflation would lose Biden the election. If inflation is going down two and a half years from now, Biden will be fine. More important is economic growth.

 

[Truck Fump / h1b]

We were first talking about your fantasies about Gov Newsom being tried in Gitmo. Then I explained inflation to you. Then I rebutted your argument that inflation would lose Biden the election. If inflation is going down two and a half years from now, Biden will be fine. More important is economic growth.

how do you see it going down?

you're going to be framing inflation as growth.

your plan is to just keep lying.

this is why you suck.

you're a liar and you're stupid.

 

[Walt]

how do you see it going down?

you're going to be framing inflation as growth.

your plan is to just keep lying.

this is why you suck.

you're a liar and you're stupid.

What I am saying is that growth is the most important. If inflation is going down, that would be seen as a positive.

The election is more than two and a half years away, we will have to see where the economy is then.