Is The Only Way Out Of This Mess Deflation/Depression?

Discussion in 'Political Opinions & Beliefs' started by independentthinker, May 22, 2022.

  1. Rampart

    Rampart Banned

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    yet, emp;oyees must earn enough to purchase necessities. if prices rise, wages must.

    complaining about the homeless in an economy that does not cover rent is, well, inflation exists unless the money supply is controlled, and controlling the money supply is what leads to unemplotment and recession. at some point even "conservatives" must step back and examine the purpose of an economy, which is to provide necessities to those who need them. .
     
  2. Noone

    Noone Well-Known Member

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    Inflation is built in to the Central Bank model. BEFORE, current high inflation levels our Dollar had gone from it's 1913 value (which, the dollar or what preceded it, had been "relatively" constant since the late 1600's) to .03 cents (or less) of it's value when the Fed was created.

    To keep from economic failure caused by the COVID Pandemic a lot of money was pumped into the world's economies. Not just the USA, but, primarily the USA because the dollar IS the world reserve currency. The pandemic caused the collapse of demand which caused the reining in of supply; simple economics. Now there are supply shortages because supply is still ramping up to meet post COVID demand. This is NOT President Biden's fault no matter how politically expedient it is to blame him, it's econ 101. Few resources being sought after by newly unbridled demand is what's cause inflation, President Biden hasn't been in office long enough to cause it even if he could, which no President can. Central Banks creating money from nothing has and will continue to cause inflation.
     
    Last edited: May 23, 2022
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  3. Rampart

    Rampart Banned

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    biden's worst economic mistake was reappointing jerome powell as fed chairman. everyone with the stench of trump should have been purged as soon as possible. their loyalty is not to the constitution, the country, or even to their personal integrity.
     
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  4. FreshAir

    FreshAir Well-Known Member Past Donor

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    the FED dumped so many trillions into the economy pre-covid, then covid hit and more money had to be injected into the economy... then we had global supply isues on top of that.... that is why we have the inflation we do today

    do we blame Biden\Trump?

    I think we just have to ride it out, gonna be a bumpy ride
     
    Last edited: May 23, 2022
  5. FreshAir

    FreshAir Well-Known Member Past Donor

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    the Trump FED, the one dumping trillions in the economy pre-Covid?
     
    Last edited: May 23, 2022
  6. FreshAir

    FreshAir Well-Known Member Past Donor

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    dumb law and does not go into effect until 2028, and prob will be pushed out even then - people will just cross state lines to buy them even then, so not really much they can do to stop their use - as you said, you already have one, everyone else has 6 years to buy one if they too want one
     
    Last edited: May 23, 2022
  7. Rampart

    Rampart Banned

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    bush appointee ben bernanke suggested, in 2008, that he should fly over wall st in a helicopter dumping money to bail out the "too big to fail" bankers. american style capitalists are great at blaming the government for their misdeeds republican are all free market until "brandon stole all the baby food. waaaaah!".
     
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  8. Aleksander Ulyanov

    Aleksander Ulyanov Well-Known Member

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    The first para is right. The second is nothing but stanard conservative bullshirt excuse number one. You're asking that we return to a gold standard but substituting labor for metal and it won't work because that's NOT why it's happening in the first place

    The reason for inflation is Vladimir Putin, nothing more or less
     
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  9. Alwayssa

    Alwayssa Well-Known Member

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    The key to your argument is "inflation going down to zero." I and others have pointed out that never happens. We could get negative inflation as we did after WW2 and before 1948. But the more realistic scenario is that inflation will always be here. Manageable inflation is anywhere from 2% to 3.5% per anum on all commodities and goods. But there are certain sectors within the economy that will be higher and grow faster than the average inflation index, say college tuition from the 1990s onward for instance.
     
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  10. FreshAir

    FreshAir Well-Known Member Past Donor

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    my Grandma made 50 cents an hour when little, dang inflation, we would still be making 50 cents an hour if not for Biden
     
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  11. Patricio Da Silva

    Patricio Da Silva Well-Known Member Donor

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    I doubt the Fed Reserve will allow that to happen. In order for there to be a deflation, they would have to raise interest rates sky high, and I doubt there is any mood to do something so radical, though they will raise them a bit.
     
  12. independentthinker

    independentthinker Banned

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    Gee, I wonder why Californians are leaving the state in droves?
     
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  13. independentthinker

    independentthinker Banned

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    Many people do NOT need to earn enough to cover necessities, such as high school and college students, and others such as seniors, and spouses who just need to supplement the income they already have. If you need to earn enough to pay for all of your necessities then you shouldn't be working part time at Walmart and McDonalds. People had a lot easier time paying for their necessities over the past few decades than they do now, when wages were somewhat stagnant. Now that circumstances have increases wages, inflation has outpaced wages and will continue to do so.
     
  14. independentthinker

    independentthinker Banned

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    How about this, let's let voters decide in November?
     
  15. independentthinker

    independentthinker Banned

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    Hey, this is a democracy, isn't it? How about letting voters decide in November?
     
  16. independentthinker

    independentthinker Banned

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    You just can't comprehend what I'm saying. Biden and the left have put the country into a position of only two possible outcomes:

    1. Your response (the most rosy scenario), meaning one year from now we will be paying 2% to 3.5% more for goods and services than we are paying now (yippie) and that even IF (as you said probably not going to happen) inflation were to go to zero, we would still be paying the higher prices we are paying now and yet Biden and the democrats would be telling us how great we have it that inflation is at zero (or even 2% to 3.5%). Meanwhile, Americans will continue having a hard time paying today's prices for everything. Then, when you raise wages, inflation will jump correspondingly.

    2. The only possible way to go back to paying the prices we paid one year ago, the country would have to go into a deflationary period, which would probably be labeled a depression instead of a recession.

    In other words, Democrats have put un into a lose/lose situation. There is no way we can win. But, as I said, when Americans can't make ends meet with these prices, they will be telling us how great a job they did to get inflation down to the 2% to 3.5% range while we continue paying higher prices than we are paying now and dealing with 12% interest rates.
     
    Last edited: May 23, 2022
  17. independentthinker

    independentthinker Banned

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    You are right, that isn't going to happen. Americans, who can't afford goods and services now, will continue paying higher and higher prices than the ones they can't afford to pay now. In order to tamp down the inflation, interest rates John and Jane Doe pay will eventually reach over 10%. A recession is headed our way. People will continue to struggle. The point of this thread is that democrats have put us into a lose/lose situation where we either have to expect to not be able to pay our bills and we will NEVER go back to last years prices because no one really wants what would happen with deflation/depression. And, the last year has already shown that the more wages rise, the more inflation rises, at an even higher rate that the wage rate.
     
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  18. Patricio Da Silva

    Patricio Da Silva Well-Known Member Donor

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    the pandemic is the culprit.

    Unless the gov acted as they did, with the stimulus packages, the nation was at risk for deflation and depression.

    The stimulus prevented it.

    But, here's the rub, there is no way to accurately measure what the right amount of medicine was needed. So, the gov opted for the logic that 'better to overdo it than to underdo it', which is what happened, and the price being paid by society for the prevention of deflation and depression, the gov deemed would have been far worse than any subsequent inflation. Unfortunately, the population will not be able to make that distinction.
     
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  19. ShadowX

    ShadowX Well-Known Member

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    There are only two ways out. Either we raise interest rate above the actual inflation rate (which is sitting at around 17 or 18%) or we go into hyperinflation.

    That’s pretty much it.
     
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  20. independentthinker

    independentthinker Banned

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    The left have done everything they could to throw gas on the fire. Yes, inflation was already happening and going to happen but the left threw gas on the fire with policies of helping people not work, doing what they could to raise wages, and, in the beginning, had anti-oil policies, all of which threw gas on the fire.
     
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  21. independentthinker

    independentthinker Banned

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    Yes, leftist policies have boxed us in. We are in a lose/lose situation.
     
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  22. Noone

    Noone Well-Known Member

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    That's the way it works, but reports indicate Republican States are doing their best to keep that to a minimum. :roll:
     
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  23. independentthinker

    independentthinker Banned

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    LOL. You guys are too funny, accusing Republicans of trying to suppress Republican votes. That's all a bunch of nonsense. Any eligible person who wants to vote can vote. That's the way it's always been and always will be.
     
  24. ShadowX

    ShadowX Well-Known Member

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    Really? How? Examples please.
     
    Last edited: May 23, 2022
  25. fmw

    fmw Well-Known Member

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    The only fiscal policy involved is government spending money it doesn't have into existence. Government can fix that if it wants to. It doesn't want to.

    Prices can decline somewhat as supply improves but they can't return to prior levels because the devaluation of the currency is permanent.
     

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