Nitro Power said:
You are still with this ***** First time it was humorous, now it's pathetic. Devaluation of money is not a good thing. Hope this helps.
BadMoonRisin said:
Hey OP let's do a thought experiment.
Let's print $1M for each and every person that lives in the United States and give it to them.
Now that we are all millionaires, what would happen to the price of goods, that we cant just make up out of nowhere and still need to be produced?
Oldag2020 said:BadMoonRisin said:
Hey OP let's do a thought experiment.
Let's print $1M for each and every person that lives in the United States and give it to them.
Now that we are all millionaires, what would happen to the price of goods, that we cant just make up out of nowhere and still need to be produced?
Obviously there is a hard limit on spending. The increase in demand must remain below our economic productive capacity.
There is an optimal level of spending(debt). Many studies have suggested our current optimal debt/gdp level is 185%. Currently our debt/gdp is around 125%. Clearly a far cry from optimal.
BudAg97 said:
OP, at least cite that wall of garbage you pasted.
Post a link.
Unless it was a result of too much Woodford.
Deputy Travis Junior said:BudAg97 said:
OP, at least cite that wall of garbage you pasted.
Post a link.
Unless it was a result of too much Woodford.
He read an economist (Stephanie Kelton) so stupid that only Bernie listens to her.
rab79 said:op is as ignorant about physics as they are about economicsOldag2020 said:BuddysBud said:Oldag2020 said:
Demand is temporarily outpacing our production(supply). Due to covid shut downs and supply chain disruptions. Ex. Lumber prices were inflated, now they are correcting themselves.
Once our supply chains are back up to full capacity, the added demand created by the stimulus will not cause long lasting inflation.
Our productive capacity is so high, in fact, I believe our biggest fear should be deflation, not inflation. Our productivity growth is not disappearing any time soon. The inputs to production are 1. Technological advancements and 2. Increase in labor force. Our computing power doubles every 18 months. Clearly this growth will not disappear.
It's no accident that we have continued to spend more and more throughout the last several decades with little to zero long term negative consequences.
In fact, the fed has struggled the last decade to maintain their inflation level goal of 2%. This even Despite massive spending in 2008 and artificially low interest rates.
Another reason we should not be concerned by the massive spending is that $1 in government spending = greater than $1 in gdp growth.
Gdp growth = 1/ the propensity to save
The propensity to save is currently ~ 20%
Therefore every dollar spent today grows our gdp tomorrow by $5
This $5 of gdp growth then increases tax revenue by $5.
This increase in tax revenue is used to service the debt.
Basically, we can spend as much as we want with little to zero negative consequences. Long term inflation is not on the way.
Be sure to allocate portfolios accordingly.
This reads like a perpetual motion machine.
Put a big fan in front of a windmill to blow on the blades to generate electricity that powers the fan. The fan blowing the windmill will never stop because the windmill keeps turning by the fan blowing on it. Easy.
Look, and endless supply of energy.
That is precisely where we are. I don't believe I could have said it any better!
SexyAg said:
Did Maplethorpe reincarnate as the OP?
If not, I am guessing he is smiling somewhere
BCG Disciple said:
OP's perspective is the trending left wing theory, MMT. It is a circular theory being used to try to explain the lack of inflation when we injected trillions into our money supply during the Great Recession QE. It is a socialists power grab of an explanation.
Why didn't we have massive inflation in 2012-2016? MMT says it's because government can print without boundaries. It states the only check is inflation. It's old theory dressed up as new, with a dash of more nebulous concepts. The biggest criticism here is that MMT offers no explanation on how we get to inflation. It takes the approach used to identify porn - I'll know it when I see it. So when do we turn the printers off? Well, when there is inflation. When can we see inflation? Errrr, when it's here!!
Friedman type economics explains the lack of inflation in a way that does not attempt to move us toward socialism. We did not have the expected money multiplier because banks and companies sat on QE injections to shore up balance sheets. It did not create new loans, new deposits, new loans, etc. Partly because they didn't know the true fallout from the housing crisis, and partly because the administration was not business friendly in their rhetoric and a bank preferred to not lend and a business preferred to not spend on capex. It's why you also saw an explosion of economic activity in the trump era. To a certain extent, it was pent up demand from an idiotic administration.
In my mind, we will certainly see inflation this time around. Completely different environment with healthy balance sheets for the most part. Maybe we see USD spent internationally as a result of administration. Right now we're seeing this money go into real estate with a record number of investor buyers as smart money seeks an inflationary hedge (real estate).
Oldag2020 said:DallasAg 94 said:He is the guy with the Capital One credit card being charged 30% for a maxed out card, brand new $50K car at 10% interest, trying to get a $400K mortgage at 5% interest while making $30K/yr and can't understand why he is broke.Onceaggie2.0 said:
I hope OP is not in charge of anything important in their life
I'm not sure you comprehend the difference in government debt and individual debt.
Oak Tree said:Grapes said:
Greece was not the worlds reserve currency.
What does it matter if China convinces its sphere of influence to do business in the yuan. The entire world is not going to abandon the US.
Absolute worst case conservative Americans get what they want. An isolated America.
Conservatives want the Fed to stop printing money, the House to massively reduce spending, and pay off the debt. Conservatives will never get what they want because the DC Republicans don't represent them.
Democrats are giving US enemies, China and Russia, money and control over our country. Is being against that make me an isolationist?
Buglerank62 said:
tell that story to the people of Greece. There is no free lunch. If the government keeps spending more and more and adding to the debt there will be a day of reckoning I can assure you. It may be you or your kids or your grand kids but it will come. See Venezuela, Cuba, Greece and Italy.
Helicopter Ben said:
Look man, I like that you're discussing this topic. Not enough people care about these issues and I think this is the single biggest problem we are facing today. Of course, it's all caused by too much government. Giving government control of the money supply is what allowed it to metastasize to the destructive monster it currently is.
But the problem is that "what you know, just aint so."
I'm going to stop beating around the bush and state it plainly. Keynesian thinking is WRONG.
Please be honest here. Have you read ANY opposing viewpoints from Austrian or supply-side economists? People like Hayek, Mises, or Rothbard?
If you read a few books or essays from any of those guys and still think the same way, I'll have to believe you're trolling.
I hate to break it to you, but this stuff is coming out of the econ departments now. I was lucky enough to have a professor who taught both schools of thought. Most professors nowadays teach almost exclusively Keynesian and MMT.DallasAg 94 said:
Gawd I hope he is in the Anthropology Dept because to think this came out of the Business ... or Economics Dept is downright frightening.
FIFY.....Helicopter Ben said:
Look man, I like that you're discussing this topic. Not enough people care about these issues and I think this is the single biggest problem we are facing today. Of course, it's all caused by too much government. GivinggovernmentPRIVATE CENTRAL BANKS control of the money supply is what allowed it to metastasize to the destructive monster it currently is.
But the problem is that "what you know, just aint so."
I'm going to stop beating around the bush and state it plainly. Keynesian thinking is WRONG.
Please be honest here. Have you read ANY opposing viewpoints from Austrian or supply-side economists? People like Hayek, Mises, or Rothbard?
If you read a few books or essays from any of those guys and still think the same way, I'll have to believe you're trolling.
aTmAg said:
Remember, keynesians have no clue what they are talking about.
This thread is a good example.
