Author Topic: Inflation  (Read 1245 times)

Re: Inflation
« Reply #30 on: April 15, 2017, 01:39:29 PM »
What's funny is that inflation isn't a natural condition.  We've just lived in an unnatural state for so long that we've begun to think of it as if it were natural.
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Offline Baruch

Re: Inflation
« Reply #31 on: April 15, 2017, 03:43:26 PM »
What's funny is that inflation isn't a natural condition.  We've just lived in an unnatural state for so long that we've begun to think of it as if it were natural.

It is a statistical average ... just like the fact that people on average are taller now (presumably due to better nutrition) ... than people 100 years ago.  Trying to determine cause/effect from averages ... is stretching credulity, but then economics is for suckers.
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Re: Inflation
« Reply #32 on: April 16, 2017, 01:10:40 PM »
Not really.  Prices are determined by four variables; quantity of goods and services, demand for goods and services, quantity of currency, demand for currency.  When you get fiat currency, which historically is an aberration and not the norm, those controlling the currency get to radically change "quantity of currency" far more than market conditions would naturally allow.

As such the result is that inflation as we know it has a symptomatic definition of "rising prices" but a causal definition of "increase in money supply."  Given that "increase in money supply" is historically not the norm but is the norm the last century, we have gotten to the point where we think of an unusual condition as normal.
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Online Sorginak

Re: Inflation
« Reply #33 on: April 16, 2017, 01:38:51 PM »

Offline Baruch

Re: Inflation
« Reply #34 on: April 16, 2017, 02:12:51 PM »
Not really.  Prices are determined by four variables; quantity of goods and services, demand for goods and services, quantity of currency, demand for currency.  When you get fiat currency, which historically is an aberration and not the norm, those controlling the currency get to radically change "quantity of currency" far more than market conditions would naturally allow.

As such the result is that inflation as we know it has a symptomatic definition of "rising prices" but a causal definition of "increase in money supply."  Given that "increase in money supply" is historically not the norm but is the norm the last century, we have gotten to the point where we think of an unusual condition as normal.

Wrong .. there is no free market, particularly these days.  Prices are determined by government intervention, in collusion with international corporations and foreign powers.  See Libor scandal.  Please keep your nose in 18th century Adam Smith fantasy.  Fiat currency (particularly since 1971) and kabuki finance (particularly since 2001) make it easier for white collar criminals (in the name of national security) to destroy their countries.
« Last Edit: April 16, 2017, 02:18:30 PM by Baruch »
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Offline Baruch

Re: Inflation
« Reply #35 on: April 16, 2017, 02:13:55 PM »
http://www.citylab.com/housing/2015/05/mapping-the-hourly-wage-needed-to-rent-a-2-bedroom-apartment-in-every-us-state/394142/

Not a problem for the very wealthy ... therefore not a problem for anyone in charge of society (see elitism).  The first map: get the hell out of the W coast, and the NE coast of the US.  The second map: the US is toast for most working people.
« Last Edit: April 16, 2017, 02:17:18 PM by Baruch »
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Re: Inflation
« Reply #36 on: April 16, 2017, 03:26:19 PM »
 Odd that it's called inflation when the value of a single dollar is contracting.

 Smells like perception management.

Re: Inflation
« Reply #37 on: April 16, 2017, 07:38:39 PM »
Wrong .. there is no free market, particularly these days.

I think that when I wrote that our current system is a historic aberration allowing manipulation beyond what the free market would enact, I'm also saying that we aren't in that free market situation.
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Offline Baruch

Re: Inflation
« Reply #38 on: April 16, 2017, 09:39:05 PM »
Odd that it's called inflation when the value of a single dollar is contracting.

 Smells like perception management.

Contracting to its true value, as the full faith and credit of the US, which is zero ;-(  Perception management is to manage this contraction, not to prevent its inevitability.
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Offline Baruch

Re: Inflation
« Reply #39 on: April 16, 2017, 09:42:08 PM »
I think that when I wrote that our current system is a historic aberration allowing manipulation beyond what the free market would enact, I'm also saying that we aren't in that free market situation.

OK ... we haven't been in a constitutional situation for a very long time.  Originally the government wouldn't make any paper money (it was all private bank notes), would coin silver and gold on demand (when owners brought it in for that purpose) ... but would coin coppers like the half cent and the cent.  That ended with the US Civil War .. we have been under a state of Federal emergency and tyranny since then.  From 1861 until 1914 .. the Bank of England and the British Empire unceasingly drew the US into its tender embrace ... and we have been an undeclared member of the British Commonwealth since 1914.  We are as free as the Queen allows us to be.
« Last Edit: April 18, 2017, 06:42:37 PM by Baruch »
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Offline Cavebear

Re: Inflation
« Reply #40 on: April 17, 2017, 02:25:49 AM »
What's funny is that inflation isn't a natural condition.  We've just lived in an unnatural state for so long that we've begun to think of it as if it were natural.

Inflation is caused by competing merchants valuing their their wares more valuable over time and the suckers who buy the wares not seeing the gradual increases.
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Re: Inflation
« Reply #41 on: April 18, 2017, 05:12:16 PM »
Hell, I thought this thread was going to be about Alan Guth's old theory...I guess that's what I get for thinking when I'm not used to it!
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Re: Inflation
« Reply #42 on: April 18, 2017, 05:14:58 PM »
Hell, I thought this thread was going to be about Alan Guth's old theory...I guess that's what I get for thinking when I'm not used to it!
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Offline Baruch

Re: Inflation
« Reply #43 on: April 18, 2017, 06:43:48 PM »
Hell, I thought this thread was going to be about Alan Guth's old theory...I guess that's what I get for thinking when I'm not used to it!

Cosmic inflation is pretty well proven ... provided you extrapolate before the 3.5K radiation ;-)  But I don't have a PhD ... and can't pull unicorns out of my ass.  Cosmology is almost as dismal a science as economics.  Both are based on fraud ... grant fraud in one case, financial fraud in the other.
« Last Edit: April 18, 2017, 06:45:37 PM by Baruch »
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Re: Inflation
« Reply #44 on: April 18, 2017, 06:50:32 PM »
Sorry - didn't mean to derail the thread...
God Not Found
"The word God is for me nothing more than the expression and product of human weakness, the Bible a collection of honorable, but still purely primitive, legends which are nevertheless pretty childish."
Albert Einstein