Inflation picking up again

[CDDP]

 

[RHT 3]

I went to the grocery store yesterday and while deciding on which meat to buy saw two people walk up to the display, look at the prices, and walk off.

I have no doubt a lot of people are in bad shape. God help you if you have to feed 3 GD kids.

 

[CDDP]

 

[MalO]

Let them eat printer ink.

 

[STMF2X]

Remember Pelosi & Schumer both told us that inflation was not only good but a sign of a strong economy. Because if prices were rising it meant that Americans were earning enough to be able to spend more than before.

 

[Jake Broe Stan]

Remember Pelosi & Schumer both told us that inflation was not only good but a sign of a strong economy. Because if prices were rising it meant that Americans were earning enough to be able to spend more than before.

Technically they are correct it’s just when inflation gets to the levels we saw recently then it becomes untenable.

Inflation is one of those things that hurts poor people significantly more than those of us in the middle class who have assets which can inflate.

I’m curious to see the latest figures from The Fed.

 

[Pete_Cawthon]

relax, it's just transitory

 

[MalO]

Did you know that if you keep inflation over 5% for an entire year that businesses have to grow more than 5% that year or they are in reality shrinking compared to last year?



But don't worry. The Federal Reserve will just print even more money and solve all our economic problems.

Wait, what?

I'm not sure it was here or at a different forum but I was branded as a lunatic back in 2022 when I said that the president should order a military strike on the Federal Reserve and destroy the money printers in order to save the economy. People legit thought I was insane.

They're probably right. But I was right too.

 

[Jake Broe Stan]

Did you know that if you keep inflation over 5% for an entire year that businesses have to grow more than 5% that year or they are in reality shrinking compared to last year?



But don't worry. The Federal Reserve will just print even more money and solve all our economic problems.

Wait, what?

I'm not sure it was here or at a different forum but I was branded as a lunatic back in 2022 when I said that the president should order a military strike on the Federal Reserve and destroy the money printers in order to save the economy. People legit thought I was insane.

They're probably right. But I was right too.

This is such a potato assessment of inflation and The Fed that it has to be a troll.

 

[hmt5000]

Best economy and stock market in 50 years folks. You guys are just looking at it wrong.

 

[Fansong1977]

I don't really keep close track of it but I'm pretty sure food is my biggest household expense.

 

[Rusty Student]

Best economy and stock market in 50 years folks. You guys are just looking at it wrong.

Is that you BucnNole?

 

[Jake Broe Stan]

I don't really keep close track of it but I'm pretty sure food is my biggest household expense.

It’s definitely my biggest expense.

 

[Joe King]

Remember Pelosi & Schumer both told us that inflation was not only good but a sign of a strong economy.

She's full of shit, too. What we need is deflation. About 100 years worth at around 1.5% to 2% per year.

 

[Jake Broe Stan]

She's full of shit, too. What we need is deflation. About 100 years worth at around 1.5% to 2% per year.

Congratulations on posting the dumbest thing I’ve ever read in my life.

Saying men can have babies is almost normal compared to that dumb shit you wrote.

What Is Deflation? Why Is It Bad For The Economy?

When prices go down, it’s generally considered a good thing—at least when it comes to your favorite shopping destinations. When prices go down across the entire economy, however, it’s called deflation, and that’s a whole other ballgame. Deflation is bad news for the economy and your money. Defla

www.forbes.com

 

[Joe King]

Congratulations on posting the dumbest thing I’ve ever read in my life.

You're the dumb one.
....but that's ok, as inflation is the all you've ever known, and you think it is normal.

Gradual deflation over an extended time period is what is best for the people, economically speaking.

Inflation is good for banks and allows government to debase our currency more easily.

With deflation, people would be able to save for their own retirement over the course of their working lives without having to rely upon hopes promises and prayers that the money will be there when it it owed to them.

Having money that gets more valuable over time, is a good thing. Inflation robs people of their moneys purchasing power.

 

[Jake Broe Stan]

You're the dumb one.
....but that's ok, as inflation is the all you've ever known, and you think it is normal.

Gradual deflation over an extended time period is what is best for the people, economically speaking.

Inflation is good for banks and allows government to debase our currency more easily.

With deflation, people would be able to save for their own retirement over the course of their working lives without having to rely upon hopes promises and prayers that the money will be there when it it owed to them.

Having money that gets more valuable over time, is a good thing. Inflation robs people of their moneys purchasing power.

Clearly you don’t know history or read because deflation causes depressions. You think a 100 year depression would be good for people?

Also explain how you think people’s homes and retirement accounts going down in value annually would be good for them since that is another result of deflation.

Finally, explain how the loss of value of someone labor, and therefore their ability to earn, is good for them overtime since that is yet another hallmark of deflation. I’m sure people will love getting pay cuts as opposed to pay raises for the rest of their lives lol

 

[Joe King]

Clearly you don’t know history or read because deflation causes depressions. You think a 100 year depression would be good for people?

Also explain how you think people’s homes and retirement accounts going down in value annually would be good for them as well since that is another result of deflation.

A lot of deflation all at once is bad. On that I agree, but so is lots of inflation all at once.

I was talking about how a small amount of deflation each year for many years can be a very good thing for the People.

As for home prices, if your purchasing power goes up as your home value falls, it's a wash.


Inflation is why we can't be on a gold standard, and a gold standard is what keeps the gov and its spending in check.

What do we have today? A gov that thinks it has no limits. We need a gov with hard limits.

 

[Jake Broe Stan]

A lot of deflation all at once is bad. On that I agree, but so is lots of inflation all at once.

I was talking about how a small amount of deflation each year for many years can be a very good thing for the People.

As for home prices, if your purchasing power goes up as your home value falls, it's a wash.


Inflation is why we can't be on a gold standard, and a gold standard is what keeps the gov and its spending in check.

What do we have today? A gov that thinks it has no limits. We need a gov with hard limits.

No we aren’t on a gold standard because is causes depressions. Furthermore, We the people keep government in check not some failed economic experiment.

Also deflation by any amount across a whole economy also causes depressions. We know this from The Great Depression, The Great Recession, and every other major economic depression in world history.

Thanks for proving once again you have absolutely no clue what you’re talking about on any subject. I don’t even care that I’m feeding your trolling because some stuff is so flagrantly retarded it can’t be said enough.

 

[hmt5000]

No we aren’t on a gold standard because is causes depressions. Furthermore, We the people keep government in check not some failed economic experiment.

Also deflation by any amount across a whole economy also causes depressions. We know this from The Great Depression, The Great Recession, and every other major economic depression in world history.

Thanks for proving once again you have absolutely no clue what you’re talking about on any subject. I don’t even care that I’m feeding your trolling because some stuff is so flagrantly retarded it can’t be said enough.

You mean like the Weimar?

 

[Joe King]

No we aren’t on a gold standard because is causes depressions.

You must be too stupid to understand the difference between lots of deflation all at once, and a little bit over many years.

Furthermore, We the people keep government in check not some failed economic experiment.

Yea right, how's that been working out? Once the gov went off the gold standard, there was nothing keeping it in check.

The gold standard was the anchor keeping the gov grounded.

Also deflation by any amount across a whole economy also causes depressions. We know this from The Great Depression, The Great Recession, and every other major economic depression in world history.

So why you only give examples when lots of deflation happened all at once?

I already said that lots of it all at once is bad. Same with inflation.

Thanks for proving once again you have absolutely no clue what you’re talking about on any subject. I don’t even care that I’m feeding your trolling because some stuff is so flagrantly retarded it can’t be said enough.

Retarded would be what you post. You troll and spam the board constantly. There are threads you post in so much, you've basically commandeered them. You cross post, too.

 

[hmt5000]

 

[Jake Broe Stan]

You must be too stupid to understand the difference between lots of deflation all at once, and a little bit over many years.


Yea right, how's that been working out? Once the gov went off the gold standard, there was nothing keeping it in check.

The gold standard was the anchor keeping the gov grounded.



So why you only give examples when lots of deflation happened all at once?

I already said that lots of it all at once is bad. Same with inflation.


Retarded would be what you post. You troll and spam the board constantly. There are threads you post in so much, you've basically commandeered them. You cross post, too.

Yeah a little over any time is awful. A little over a long period of time would be catastrophic. It would make The Great Depression seem like a cake walk.

Our government and country is great. We live in a modern day Eden so I’m not sure what you are getting at with all that nonsense about the government being out of control when nothing could be further from the truth. Our economic prosperity and freedoms are the proof in the pudding.

 

[Joe King]

Yeah a little over any time is awful.

You only think that due to your brainwashing.

A little over a long period of time would be catastrophic. It would make The Great Depression seem like a cake walk.

The Great Depression was a lot of deflation all at once. You clearly do not understand the difference betwixt a little of it and a lot of it.

Our government and country is great. We live in a modern day Eden so I’m not sure what you are getting out with all that nonsense about the government being out of control when nothing could be further from the truth.

You honestly believe that gov finances and spending are not out of control? WTF are you smoking? Have you seen the levels of debt the gov is in? The $32T is just the visible part. There's trillions owed for unfunded liabilities over coming years too.
....and that run-up in debt only started after Nixon ended the gold standard.


Take a look at this website https://wtfhappenedin1971.com/ and notice how everything changed (mostly for the worse) after 1971.

It's clearly obvious that going off the gold standard was bad for the American people.
....but the bankers and the gov love it.

Our economic prosperity and freedoms are the proof in the pudding.

Inflation has got us to the point where homes are more unaffordable than ever before, and it's causing more people than ever before to become life long renters.
....but you obviously think that's a good thing. lol

The "American Dream" is becoming a nightmare for more and more people all the time.

 

[Joe King]

The gold standard would have prevented that.

Only stupid people think there isn't enough gold to make a gold standard work. They're too stupid to realize that it's a matter of valuation, not quantity. Make gold $50k/ounce and suddenly there's more than enough gold to back every dollar in circulation.
....but if the gov valued gold to accurately reflect the quantity of money that's been created, it would become obvious to all, the degree to which our currency has been debased.

Heck, the gov still values its gold holdings at $42.2222/ounce for accounting purposes.

 

[hmt5000]

The gold standard would have prevented that.

Only stupid people think there isn't enough gold to make a gold standard work. They're too stupid to realize that it's a matter of valuation, not quantity. Make gold $50k/ounce and suddenly there's more than enough gold to back every dollar in circulation.
....but if the gov valued gold to accurately reflect the quantity of money that's been created, it would become obvious to all, the degree to which our currency has been debased.

Heck, the gov still values its gold holdings at $42.2222/ounce for accounting purposes.

Agreed. I don't get how these people think you can infinitely print money with no negative effects. 2% inflation is the target and if you look at the history since introducing the fed... Its a huge fucking failure.

Value of $1 from 1913 to 2023​

$1 in 1913 is equivalent in purchasing power to about $30.82 today, an increase of $29.82 over 110 years. The dollar had an average inflation rate of 3.17% per year between 1913 and today, producing a cumulative price increase of 2,981.91%.

This means that today's prices are 30.82 times as high as average prices since 1913, according to the Bureau of Labor Statistics consumer price index. A dollar today only buys 3.245% of what it could buy back then.

 

[Jake Broe Stan]

The gold standard would have prevented that.

Only stupid people think there isn't enough gold to make a gold standard work. They're too stupid to realize that it's a matter of valuation, not quantity. Make gold $50k/ounce and suddenly there's more than enough gold to back every dollar in circulation.
....but if the gov valued gold to accurately reflect the quantity of money that's been created, it would become obvious to all, the degree to which our currency has been debased.

Heck, the gov still values its gold holdings at $42.2222/ounce for accounting purposes.

So your solution to the inflation problem, that you claim exists, is to inflate the value of gold?



That’s kind of like trying to sell people that America is only great because they have been brainwashed into believing it. All the miraculous things they own and freedoms they enjoy are actually really bad too.

Let me guess, you think men can have babies? Russia and China are actually great because of their communist systems?

Asking for a friend where your gaslighting ends?

 

[Jake Broe Stan]

Agreed. I don't get how these people think you can infinitely print money with no negative effects. 2% inflation is the target and if you look at the history since introducing the fed... Its a huge fucking failure.

Value of $1 from 1913 to 2023​

$1 in 1913 is equivalent in purchasing power to about $30.82 today, an increase of $29.82 over 110 years. The dollar had an average inflation rate of 3.17% per year between 1913 and today, producing a cumulative price increase of 2,981.91%.

This means that today's prices are 30.82 times as high as average prices since 1913, according to the Bureau of Labor Statistics consumer price index. A dollar today only buys 3.245% of what it could buy back then.

The goal of any currency is to facilitate economic activity by being a short term store of value (gives stability to execute contracts across a year or two). It is not meant to be a long term store of value.

If a currency doesn’t inflate properly, or even worse causes deflation, economic activity stops because people are then incentivized to save money which goes without saying would collapse any economy.

Big businesses and banks would hoard all the currency and have no reason to circulate it, loan money, hire workers, or invest because their currency would be worth more the next year than at the current time.

It’s why deflation, even just a little bit, is always awful and should be avoided at any cost because otherwise deflationary spirals start. Deflationary spirals are known as country killers because the government doesn’t have the tools to fix them / stimulate the economy and it’s even worse if that country’s currency is pegged to an artificial limiting factor like gold or silver.

So your graph shows a currency working properly.

 

[hmt5000]

So your solution to the inflation problem, that you claim exists, is to inflate the value of gold?



That’s kind of like trying to sell people that America is only great because they have been brainwashed into believing it. All the miraculous things they own and freedoms they enjoy are actually really bad too.

Let me guess, you think men can have babies? Russia and China are actually great because of their communist systems?

Asking for a friend where your gaslighting ends?

People can't afford a home after graduating college let alone with just a HS diploma. People used to be able to get out of HS and go to work and buy a new car and home and could comfortable afford it. Inflation has priced 1/3 of the population out of the market for the American dream... They can't even imagine owning a home unless they hit the lottery.

Take a lap fat boy.

 

[Jake Broe Stan]

People can't afford a home after graduating college let alone with just a HS diploma. People used to be able to get out of HS and go to work and buy a new car and home and could comfortable afford it. Inflation has priced 1/3 of the population out of the market for the American dream... They can't even imagine owning a home unless they hit the lottery.

Take a lap fat boy.

That’s just your opinion.

People can afford anything they want with enough hard work and responsible life choices. It was true then and it’s true now.

 

[hmt5000]

That’s just your opinion.

People can afford anything they want with enough hard work and responsible life choices. It was true then and it’s true now.

No. 100% of people knew they could back then. half of college graduates don't believe they can afford a home now. A lot of it is choice and hard work but to ignore the insane cost and interest rates is like pretending diet and excercise don't affect your health if you are vaccinated and in the right gender.

 

[Jake Broe Stan]

No. 100% of people knew they could back then. half of college graduates don't believe they can afford a home now. A lot of it is choice and hard work but to ignore the insane cost and interest rates is like pretending diet and excercise don't affect your health if you are vaccinated and in the right gender.

Interests rates aren’t insane. They are pretty normal right now historically speaking. Insane would be akin to the rates seen under Reagan.

100% of people today can buy whatever they want just the same as back then. Life is about choices and responsibility. Some people accept responsibility for the consequences of their choices and others blame the government for the consequences of their choices.

 

[Joe King]

So your solution to the inflation problem, that you claim exists, is to inflate the value of gold?

The price of gold would only need to be increased due to the gov and fed's monetary and fiscal mismanagement. Avoid the mismanagement and gold could still be $20/oz.

The goal of any currency is to facilitate economic activity by being a short term store of value (gives stability to execute contracts across a year or two). It is not meant to be a long term store of value.

Yes, but only in an inflationary monetary system.

In a deflationary monetary system, your savings will increase in purchasing power over time.

If a currency doesn’t inflate properly, or even worse causes deflation, economic activity stops because people are then incentivized to save money which goes without saying would collapse any economy.

No one is going to avoid purchasing things just because it'll be 1.5% cheaper next year.

To think people would, is just plain stupid.

Big businesses and banks would hoard all the currency and have no reason to circulate it, loan money, hire workers, or invest because their currency would be worth more the next year than at the current time.

Banks will still lend, because they'll still earn interest and big business isn't going to forgo needed purchases just to save 1.5%. Are you stupid, or what? Would knowing you could save $7.50 on a new TV cause you to go without one for a whole year? I'm thinking it wouldn't.

 

[Jake Broe Stan]

The price of gold would only need to be increased due to the gov and fed's monetary and fiscal mismanagement. Avoid the mismanagement and gold could still be $20/oz.


Yes, but only in an inflationary monetary system.

In a deflationary monetary system, your savings will increase in purchasing power over time.



No one is going to avoid purchasing things just because it'll be 1.5% cheaper next year.

To think people would, is just plain stupid.




Banks will still lend, because they'll still earn interest and big business isn't going to forgo needed purchases just to save 1.5%. Are you stupid, or what? Would knowing you could save $7.50 on a new TV cause you to go without one for a whole year? I'm thinking it wouldn't.

No because you wouldn’t have a savings, job, or any money at all. In a deflationary environment banks and big corporations would control all of the money.

Furthermore, putting an artificial price on an asset so that the asset can then be used to peg a currency is the definition of currency manipulation. Asset prices should be determined by supply and demand, at least, when it comes to intra country trading.

 

[Jake Broe Stan]

Inflationary environments are everyone fighting for a bigger piece of a pie that is constantly growing itself.

Deflationary environments are everyone fighting for a bigger piece of pie that is constantly shrinking itself.

Inflationary environments are sustainable and designed to benefit the low man on the totem pole. Deflationary environment are unsustainable and benefit those on top of the totem pole by further leveraging their disproportionate control of the available resources.

 

[hmt5000]

The price of gold would only need to be increased due to the gov and fed's monetary and fiscal mismanagement. Avoid the mismanagement and gold could still be $20/oz.


Yes, but only in an inflationary monetary system.

In a deflationary monetary system, your savings will increase in purchasing power over time.



No one is going to avoid purchasing things just because it'll be 1.5% cheaper next year.

To think people would, is just plain stupid.




Banks will still lend, because they'll still earn interest and big business isn't going to forgo needed purchases just to save 1.5%. Are you stupid, or what? Would knowing you could save $7.50 on a new TV cause you to go without one for a whole year? I'm thinking it wouldn't.

He also doesn't understand that as the price of gold increased that people would spend more energy to find more.... as the price of gold fell people would spend less energy. Its a very natural way to control the rise and fall of "money".

 

[Joe King]

No because you wouldn’t have a savings, job, or any money at all. In a deflationary environment banks and big corporations would control all of the money.

Much ado about nothing.

First, they wouldn't control ALL the money, and secondly you act as though those banks and corporations wouldn't need any employees.

If there are employees, the people will have money.
....and people would also go into business for themselves.

Furthermore, putting an artificial price on an asset so that the asset can then be used to peg a currency is the definition of currency manipulation.

The point is to have something to help keep the gov on the straight and narrow. It was set up that way by the Founders. Constitution says that States may only make gold and silver coin as a tender of payment of debt.
....and you said you love the Constitution, right? You just don't like that part, right?

The Constitution says what it say, not what any of us might wish it said.


The proper way to have gone off the gold standard would have been via a Constitutional Amendment altering what States could use as payment of debt.

Instead, they played games using a fabricated emergency. Why? Because they knew that the People would have never went for an Amendment changing that. So used subterfuge to do it.

Asset prices should be determined by supply and demand, at least, when it comes to intra country trading.

The gold standard worked fine for intra country trade until the gov and fed debased our currency.

 

[Joe King]

He also doesn't understand that as the price of gold increased that people would spend more energy to find more.... as the price of gold fell people would spend less energy. Its a very natural way to control the rise and fall of "money".

Exactly.


What he understands and loves is Keynesian economics.

 

[Jake Broe Stan]

He also doesn't understand that as the price of gold increased that people would spend more energy to find more.... as the price of gold fell people would spend less energy. Its a very natural way to control the rise and fall of "money".

This is false.

As the price of gold went up people would hoard more of it and money and therefore decrease economic activity.

As the price of gold fell, and therefore currencies, people would also spend less and create less economic activity because they would have decreased purchasing power.

Deflationary pressures, like pegging a currency to gold or silver, always results in less economic activity which always creates a deflationary spiral.

It wouldn’t control any currency because that nation, and indeed all nations, would collapse under the lack of economic activity.

 

[Joe King]

The point is to have something to help keep the gov on the straight and narrow.

@Jake Broe Stan , have you looked at the web site I linked to above? If not, open it and scroll through. It's a bunch of charts showing the negative (for the People) of having gone off the gold standard. How do you explain all the negative shifts in long term trends after leaving the gold standard?