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Thread: Inflation on the rise? Market says not so much

  1. #11
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    Re: Inflation on the rise? Market says not so much

    Quote Originally Posted by cpwill View Post
    tell me more about the 1970s?
    Are you aware of how Paul Volcker finally broke the back of inflation? It was by raising interest rates, which led to an intentional-but-necessary recession from 1980-1982. Just because unemployment and inflation are sometimes both high or both low doesn't mean that they aren't inversely related; the late 70s is a perfect example of dialing up unemployment in order to dial down inflation. In our present situation, we have the opportunity to dial up inflation in order to dial down unemployment. Hopefully the Fed makes good on their promise to do so.
    Last edited by Kandahar; 10-01-12 at 07:45 PM.
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    Re: Inflation on the rise? Market says not so much

    Quote Originally Posted by hikari View Post
    Yes, and you used to be able to buy a soda for a nickel, but you certainly didn't make $7.25 an hour in minimum wages. Over time inflation becomes almost meaningless because everything adjusts upward, there is no relay problem.

    So 3% inflation is fine really, the issues is when inflation runs away in a short period of time, time that markets cannot adjust to. Proponents of free markets like to think they react perfectly with this invisible hand but the reality is that lots of contracts fix prices for set amounts of time, both on the labor and purchasing side of business. This means that a 30% inflation for even a month is very hard to deal with, since lots of people are buying things at fixed rates while everything else becomes more expensive.


    In fact if we knew inflation was going to rise 100% a year every year we could deal with that, businesses and financial transactions would reflect the massive inflation, credit would collapse but the world would continue to function, really the issue with inflation is the ambiguity we don't know exactly what it will be, we can make projections but when they are wrong consequences can be dire.

    The issue with what the fed has done is once the economy does pico up steam there will be lots more of a money floated around and when it enters the market even jacking up the intrest rate may not be enough to prevent inflationary pressure on the dollar and when that happens who knows how much pressure will be put on it and that ambiguity is scary to lots of people.
    Median wage levels are at the same level they were in the mid 1990s. Inflation hasn't stopped since then. The middle and lower classes are getting screwed over. Wages for most people aren't rising with the cost of living.

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    Re: Inflation on the rise? Market says not so much

    Quote Originally Posted by Voltaire X View Post
    Median wage levels are at the same level they were in the mid 1990s. Inflation hasn't stopped since then. The middle and lower classes are getting screwed over. Wages for most people aren't rising with the cost of living.
    Yes, they are getting screwed but it has a lot less to do with inflation than it does globalization. The ruling class has an easier time exploiting the American working class by exposing them more directly to competition from the third world, this has allowed wages to remain stagnant after all why pay people in Michigan a dime more if you could save money by sending that job elsewhere.

    If we go down a path of Keynesian economics again, which I think we will, we will probably live with a moderate amount of inflation, and the ruling class wanting to maximize profit will make no moves to do things like peg minimum wage to inflation (which is a very good idea imo) so it will continue that wages will sink till congress needs a boost.

    The thing that has changed really is that NAFTA and all the other pro globalization legislation were touted as things good for us, they were not.

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    Re: Inflation on the rise? Market says not so much

    Quote Originally Posted by Khayembii Communique View Post
    I have heard quite a few claims of near-future hyperinflation and economic collapse.

    Also, inflation isn't inherently bad.
    The fed can not hold it back forever, as they more and more devalue the dollar, odds are good things are going to get worse...
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    Re: Inflation on the rise? Market says not so much

    Quote Originally Posted by Arbo View Post
    The fed can not hold it back forever, as they more and more devalue the dollar, odds are good things are going to get worse...
    Right ... except they aren't devaluing the dollar. The dollar goes up and down, but if you look at the last five years, it's presently higher than average.
    "The necessaries of life occasion the great expense of the poor. They find it difficult to get food, and the greater part of their little revenue is spent in getting it. The luxuries and vanities of life occasion the principal expense of the rich, and a magnificent house embellishes and sets off to the best advantage all the other luxuries and vanities which they possess. ... It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion."

    -- Adam Smith

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    Re: Inflation on the rise? Market says not so much

    Quote Originally Posted by AdamT View Post
    Right ... except they aren't devaluing the dollar. The dollar goes up and down, but if you look at the last five years, it's presently higher than average.
    You need not reply to me, as I don't care to deal with your hackish junk...
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    Re: Inflation on the rise? Market says not so much

    Quote Originally Posted by Arbo View Post
    You need not reply to me, as I don't care to deal with your hackish junk...
    My reply was 100% factual. That seems to be what you have a problem with.

    Maybe you can point out the rampant dollar devaluation you mentioned?

    Last edited by AdamT; 10-01-12 at 09:23 PM.
    "The necessaries of life occasion the great expense of the poor. They find it difficult to get food, and the greater part of their little revenue is spent in getting it. The luxuries and vanities of life occasion the principal expense of the rich, and a magnificent house embellishes and sets off to the best advantage all the other luxuries and vanities which they possess. ... It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion."

    -- Adam Smith

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    Re: Inflation on the rise? Market says not so much

    Quote Originally Posted by AdamT View Post
    My reply was 100% factual.
    I'm sure by your definition of 'fact' it was. It's the continual redefinition of words, as well as selective data sets, that are the problem with your posts.
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    Re: Inflation on the rise? Market says not so much

    Quote Originally Posted by Arbo View Post
    I'm sure by your definition of 'fact' it was. It's the continual redefinition of words, as well as selective data sets, that are the problem with your posts.
    lol

    Selective data sets? Like the DXY Dollar Index? U.S. Dollar Index (DXY), DXY Index Quote - (NYE) DXY, U.S. Dollar Index (DXY) Index Price
    "The necessaries of life occasion the great expense of the poor. They find it difficult to get food, and the greater part of their little revenue is spent in getting it. The luxuries and vanities of life occasion the principal expense of the rich, and a magnificent house embellishes and sets off to the best advantage all the other luxuries and vanities which they possess. ... It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion."

    -- Adam Smith

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    Re: Inflation on the rise? Market says not so much

    Quote Originally Posted by Khayembii Communique View Post
    Of course you do, but I'm not here to argue with you.
    This is a debate forum.
    Quote Originally Posted by calamity View Post
    Reports indicate that everyone knew he was hauling a bunch of guns up there. But, since you brought it up, there's something which should be illegal: guns that breakdown.

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