What has troubled me of late is that the American pseudo-government seems to think that after 9% inflation a 0% increase leaves you where you were. Actually it leaves you 9% behind [9+0=9%].
Getting back to zero inflation doesn’t start you at scratch.
I thought it was taken for granted that Biden was an idiot.
What they (the regime and their handmaidens, the media) are trying to do is makes us accept that we are idiots. As for Biden, he is not even a figurehead any more, he is just a laughingstock.
Yet we have economic fools who think perpetual 2% inflation is a good thing.
Eyrie, I agree. I’ve often asked on various forums why continued low inflation is a good thing. Most don’t answer but some say that without it there would be price drops when productivity is improved and this is a bad thing. Something to do with borrowers ending up underwater and that continued inflation stops this. I don’t get it. It looks to me that there will soon be more than a few aussie borrowers underwater on the their homes, how could continued low inflation have stopped this?
Can anyone point me to an explanation for the simple minded on exactly how and why continued low inflation is a good thing.
Good to see you back, Steve.
As if anyone trusts any statistic released by government any more!
So, how about a very brief summary of how classical economists would suggest dealing with the potential runaway inflation (or even stagflation) we seem to have.
I’ve explained this to you before and you both ignore it while at times make scoffing remarks.
Targeting a zero inflation rate makes it very difficult for central banks to manage monetary policy using conventional tools even in a stable environment.
If the rate turns negative you then could have serious issues with sticky prices in the economy. Ever seen a wage rate cuts because inflation is below zero and workers accept a reduction on these grounds? Neither have I.
Stop listening to imbeciles like Hallward Hughes and his ilk.
I’ll tell you what, explain to the readership how you would eliminate price stickiness in a western economic system . I’m happy to wait for your economic model.
Money is not considered a store of value. It’s a medium of exchange.
My other advice is to stop reading these crappy sites as invariably you’ll end up where Bird did, which is blaming the Rothschilds and Jewish Bankers.
Wrong Fred I think
The Swamp – Not Worried about Inflation
Records: Liz Cheney’s Net Worth Ballooned as Much as 600 Percent During Her Time in Office
Rep. Liz Cheney’s (R-WY) net worth ballooned from an estimated $7 million when she first took office in 2017 to possibly more than $44 million in 2020, according to analysis from the Center for Responsive Politics and her most recent financial disclosure forms.
Depending on where she falls in the ranges in her latest financial disclosure forms, that could represent as much as a 600 percent increase in her net worth in just a few short years in Congress–a massive boom for an already-independently wealthy political scion of the powerful Cheney family which counts among its most powerful her father, former Vice President of the United States Dick Cheney.
Inflation is a fact of life – it pops up all the time.
Leaving aside nutcase economies like Zimbabwe and Venezuela, where it is obvious why it is happening, the disagreement seems to be about what happens in developed economies where decisions are somewhat anchored in reality.
It may be that periodic bouts of inflation are an organic part of market economies.
PS – as someone whose assets are currently in cash, any suggestions about what to do?
…is a simple statement of fact that becomes a headline only because the people who run the joint are trying to pretend it isn’t — because they’re bullshit artists whose only weapons are lies and propaganda.
Steve I wish we could hear from more.
disculpe. hear from you more.
Most of the figures bandied about for inflation don’t make sense, because it’s not clear whether it’s annualised or monthly, or for a specific period and type of good. And adding up inflation figures does not make sense, since it should be calculated for a specific period.
And here I was thinking that Steve understood Marxist math, get with the program Steve. It’s arguable that 9%+0% can in fact equal 8.5% if one was to put it into a scientific computer pre-programed to homogenize the data. We all know that 🙂
Welcome back Steve, feel better soon – Rob
Two and a half years of inexplicable idiocy that has throttled global economic activity – yet these wonderful, far sighted measures “seem” to have come to an end and guess what?
Production of goods (as opposed to services) is still spluttering to life.
The bizarre arbitrary remaining restrictions continue to impede labour mobility (as we are seeing, yet again, in this country) and there just so happens to be a convenient “conflict” on which most of everything (real or imagined) can be “blamed”.
Global supply chains are suffering due to some bizarre chinese hollow chest beating even more annoying than a container ship “accidentally or unintentionally” triying to conduct a u-turn in the Suez Canal
Meanwhile, in this country, massive arbitrary price increases are evident (again), “possibly” due to arrogant quisling imbeciles forcing up the cost of previously cheap electrickery in western economies which subsequently renders the conduct of economic activity in those shitholes pointless.
Perfect storm time.
We are witnessing (or have been for at least the last twenty years) the rise of a new and sinister animist belief system.
If it’s any consolation, Cats, I’ve been resisting it since mid ’89.
And here we are. On some sort of cusp and not in a good way. 😕
I understand Japan had quite a period of deflation, didn’t end their lives or destroy their country.
Goal should be zero (plus and minus 2% range).
This inflation was 100% caused by govts and 100% paid for by middle class workers – and their children and grandchildren. So classic transfer of wealth.
PS: Welcome back Steve! Bless you and keep well.
(11 x 9%+0%)/12=8.25%