I award you no points, OP, and may God have mercy on your soul
Helicopter Ben said: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.
As I said in a previous post, my MIL is an economics professor and she teaches almost exactly what the OP is saying. I even tried to get her to read just one book by an Austrian economist and she wouldn't finish the first chapter. I guess it really is like religious fanaticism. As soon as she read something she didn't like, she was done. Never mind how logical or well reasoned his arguments were.
Oldag2020 said:BuddysBud said:Oldag2020 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!
Since perpetual motion machines are impossible, your post was sarcasm.
You fooled many of us. Good job.
They are in fact, not impossible.
Imagine if you drilled to the earths core, shot water into that hole, and used the steam generated by the earth as a source of power. That is limitless power that theoretically can never run out. The power created by the steam could be used to perpetually power itself, making a perpetual power machine.
This in fact is currently being developed by a team of billionaire investors through one of their family offices.
I am not sarcastic. I fully believe my OP
If you believe the federal reserve is independent of gov't, I've got a bridge to sell you. Janet Yellen is now the secretary of the treasury. I mean they're not even trying to hide it anymore. I forget exactly what he said, but Bernanke inadvertently admitted it in an interview a few years back while he was still chairman.MuchosPollos said: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.
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.
Win At Life said:
You keeo saying inflation is transitory. If so, why does a 3B/2B house PERMANENTLY cost more than the $24 000 it did in the 70's. If inflation is only transitory, when will things ever return to what they cost in the 70's?
Fore Left! said:
"CPA material"? I AM a CPA and this is crap.
Oldag2020 said:Fore Left! said:
"CPA material"? I AM a CPA and this is crap.
Take a look at the 2020 - 2021 business section
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.
Until they aren't.Oldag2020 said:Win At Life said:
You keeo saying inflation is transitory. If so, why does a 3B/2B house PERMANENTLY cost more than the $24 000 it did in the 70's. If inflation is only transitory, when will things ever return to what they cost in the 70's?
Inflation is real. Current inflation levels are transitory.
Oldag2020 said:Win At Life said:
You keeo saying inflation is transitory. If so, why does a 3B/2B house PERMANENTLY cost more than the $24 000 it did in the 70's. If inflation is only transitory, when will things ever return to what they cost in the 70's?
Inflation is real. Current inflation levels are transitory.
Win At Life said:Oldag2020 said:Win At Life said:
You keeo saying inflation is transitory. If so, why does a 3B/2B house PERMANENTLY cost more than the $24 000 it did in the 70's. If inflation is only transitory, when will things ever return to what they cost in the 70's?
Inflation is real. Current inflation levels are transitory.
Yeah, well the +10% inflation levels of the 70's were transitory in that they came down a decade later. But by then everything cost twice as much. All economic numbers are trasitory. What's the point? The long term trend has been to devalue the currency through either higher inflation, or lower inflation by increasing the quantity of the money supply. So how does current increasing the money supply NOT lead to devaluating the currency through inflation?
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.
Oldag2020 said: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'm about half way through Mises book theory of money and credit. I have debated in the margin about 300+ statements that I completely disagree with.
Fore Left! said:
Still waiting for the OP to tell us his major....
Oldag2020 said:
They are in fact, not impossible.
Imagine if you drilled to the earths core, shot water into that hole, and used the steam generated by the earth as a source of power. That is limitless power that theoretically can never run out. The power created by the steam could be used to perpetually power itself, making a perpetual power machine.
This in fact is currently being developed by a team of billionaire investors through one of their family offices.
I am not sarcastic. I fully believe my OP
Oldag2020 said:BuddysBud said:Oldag2020 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!
Since perpetual motion machines are impossible, your post was sarcasm.
You fooled many of us. Good job.
They are in fact, not impossible.
Imagine if you drilled to the earths core, shot water into that hole, and used the steam generated by the earth as a source of power. That is limitless power that theoretically can never run out. The power created by the steam could be used to perpetually power itself, making a perpetual power machine.
This in fact is currently being developed by a team of billionaire investors through one of their family offices.
I am not sarcastic. I fully believe my OP
Oldag2020 said:Win At Life said:Oldag2020 said:Win At Life said:
You keeo saying inflation is transitory. If so, why does a 3B/2B house PERMANENTLY cost more than the $24 000 it did in the 70's. If inflation is only transitory, when will things ever return to what they cost in the 70's?
Inflation is real. Current inflation levels are transitory.
Yeah, well the +10% inflation levels of the 70's were transitory in that they came down a decade later. But by then everything cost twice as much. All economic numbers are trasitory. What's the point? The long term trend has been to devalue the currency through either higher inflation, or lower inflation by increasing the quantity of the money supply. So how does current increasing the money supply NOT lead to devaluating the currency through inflation?
The economic backdrop of the 1970s inflation and the transitory inflation we are experiencing now is vastly different. It's like comparing apples to oranges.
So true spread the word !!!aTmAg said:
Remember, keynesians have no clue what they are talking about.
This thread is a good example.
I was thinking Art HistoryTom Kazansky 2012 said:
OP sounds like the product of an undergrad lib arts Econ major.
Worthless degree.
Oldag2020 said:Win At Life said:Oldag2020 said:Win At Life said:
You keeo saying inflation is transitory. If so, why does a 3B/2B house PERMANENTLY cost more than the $24 000 it did in the 70's. If inflation is only transitory, when will things ever return to what they cost in the 70's?
Inflation is real. Current inflation levels are transitory.
Yeah, well the +10% inflation levels of the 70's were transitory in that they came down a decade later. But by then everything cost twice as much. All economic numbers are trasitory. What's the point? The long term trend has been to devalue the currency through either higher inflation, or lower inflation by increasing the quantity of the money supply. So how does current increasing the money supply NOT lead to devaluating the currency through inflation?
The economic backdrop of the 1970s inflation and the transitory inflation we are experiencing now is vastly different. It's like comparing apples to oranges.
UTExan said:Oldag2020 said:Win At Life said:Oldag2020 said:Win At Life said:
You keeo saying inflation is transitory. If so, why does a 3B/2B house PERMANENTLY cost more than the $24 000 it did in the 70's. If inflation is only transitory, when will things ever return to what they cost in the 70's?
Inflation is real. Current inflation levels are transitory.
Yeah, well the +10% inflation levels of the 70's were transitory in that they came down a decade later. But by then everything cost twice as much. All economic numbers are trasitory. What's the point? The long term trend has been to devalue the currency through either higher inflation, or lower inflation by increasing the quantity of the money supply. So how does current increasing the money supply NOT lead to devaluating the currency through inflation?
The economic backdrop of the 1970s inflation and the transitory inflation we are experiencing now is vastly different. It's like comparing apples to oranges.
Only one thing really defeats inflation and that is an increase in the supply of goods and services. The problem is that many goods do not have elasticity of production: water, good soil availability, labor supply and transportation network all figure in to the supply chain of food products from field to market. In case you hadn't noticed, the western US, including parts of the Midwest, are being hit with drought, reducing available land for production of vegetables, grain and livestock . That's one factor.
The second factor is the transportation network, which will be hit with higher fuel prices for diesel and gasoline thanks to some stupid and ideological moves on the part of the Biden administration.
That's just the agriculture/food supply sector. I am certain people here who work in oil and gas and the energy production can probably give you a much more nuanced and informed view about how higher energy prices affect the economy from their perspectives.
Fore Left! said:
Still waiting for the OP to tell us his major....
Oldag2020 said:Fore Left! said:
Still waiting for the OP to tell us his major....
Finance class of 2020. I did not learn Keynesian style only at TAMU. I learned both views. There was a very balanced view by a majority of my professors.
mazag08 said:Oldag2020 said:Fore Left! said:
Still waiting for the OP to tell us his major....
Finance class of 2020. I did not learn Keynesian style only at TAMU. I learned both views. There was a very balanced view by a majority of my professors.
That's interesting.. you don't espouse any combination of both views. You are fanatically supporting only one.
Even Milton Friedman, who was one of the biggest supporters of leaving the gold standard and the creation of FIAT, eventually came to the conclusion that he was likely wrong because governments can't be trusted to honestly manage the money supply.
And your #1 belief is that the FED is honest, all knowing, and well intentioned, despite history and current events proving its is none of those things.
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.
Q-Tip 94 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.
Can some one please tell me where these corrected lumber prices and steel prices are available. I would like to give the info to my subs that have not been honoring their quotes for the last year due to price increases they are still receiving.