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Thread: Ever increasing Inflation: Companies paying more But stolen through inflation.

  1. #11

    Default They must be kidding, right?

    Farm prices rise 24% year over year. And the FFR in US is still 0 and the Fed is still inflating its balance sheet ( currently)



    Farm Prices: Month Over Month
    03:00 PM
    Dec, 2021
    3.5 (actual)
    ---
    1.9 ( prior)
    Farm Prices: Year Over Year
    03:00 PM
    Dec, 2021
    24.0 (actual)
    ---
    17.0 ( prior)

  2. #12

    Default

    Inflation is necessary in an expanding economy...not to keep an economy afloat.

    We are being destroyed by design.
    Politicians and diapers must be changed often, and for the same reason. -Mark Twain

    The purpose of life is to matter, to be productive, to have it make some difference that you lived at all. -Leo Rosten

  3. #13

    Default

    Quote Originally Posted by Miteysquirrel View Post
    Inflation is necessary in an expanding economy...not to keep an economy afloat.

    We are being destroyed by design.


    I disagree that inflation is necessary in an expanding economy.
    Inflation is simply the depreciation of your money.
    There was no net inflation from the beginning of the US until the creation of the Fed. ( lots of expansion)
    The nature of technological improvement is that things get more efficient ( less cost per unit)
    so that the consumer can buy more with their money, hence business can sell more, hence more profits.
    Wages can remain the same yet the wage earner can buy more and more with the same amount of money
    Everyone benefits that is contributing except the Vampires, the lazy and those that spend and borrow, beyond their means.

  4. #14

    Default

    Quote Originally Posted by brutus2 View Post
    I disagree that inflation is necessary in an expanding economy.
    Inflation is simply the depreciation of your money.
    There was no net inflation from the beginning of the US until the creation of the Fed. ( lots of expansion)
    The nature of technological improvement is that things get more efficient ( less cost per unit)
    so that the consumer can buy more with their money, hence business can sell more, hence more profits.
    Wages can remain the same yet the wage earner can buy more and more with the same amount of money
    Everyone benefits that is contributing except the Vampires, the lazy and those that spend and borrow, beyond their means.
    Please tell me how a nation can expand an economy and not the currency...can not be done.

    Lets pretend interest rates are zero. You have a nation of 1000 people and they have roughly $1000 each....a million dollars in circulation...expansion can only happen if you increase the amount of dollars, typically through bank loans.
    Politicians and diapers must be changed often, and for the same reason. -Mark Twain

    The purpose of life is to matter, to be productive, to have it make some difference that you lived at all. -Leo Rosten

  5. #15

    Default

    Quote Originally Posted by Miteysquirrel View Post
    Please tell me how a nation can expand an economy and not the currency...can not be done.

    Lets pretend interest rates are zero. You have a nation of 1000 people and they have roughly $1000 each....a million dollars in circulation...expansion can only happen if you increase the amount of dollars, typically through bank loans.
    I have to disagree. If the currency was fixed at a certain amount, the value of each dollar would increase as the economy increased, the same way BTC increases and the same way in opposite the dollar decreases. It would just be impossible for the government to magically create money they could spend from thin air.
    Now there's no more oak oppression
    They passed a noble law
    Now the trees are all kept equal
    By hatchet, axe and saw.

    I will not comply.

    The Tea Party... quietly plotting to take over the world,
    and leave you the hell alone!

  6. #16

    Default

    The original assertion was that inflation is necessary to an expanding economy.

    Inflation is just less purchasing power for each unit of currency.
    Deflaltion is just more purchasing power for each unit of currency

    The Vampires have conned people into thinking lower prices are a bad thing. ( they are certainly not bad if passed on due to labour productivity)

    Inflation is just the excess of currency 'printed' over and above the growth in productivity and population.
    It has nothing to do with the real growth in the economy.

    Interest rates are only linked to inflation due it being a very important consideration in the rate charged to borrow money ( after all your money is being depreciated so you need to charge for that )

    So even if prices dropped 2% a year due to productivity ( all gains passed on to consumer for gains in more sales) the rate would not be -2%
    There is a default risk component, fees, taxes, future is uncertain component (here and now most certain) , and very importantly supply and demand
    for the funds. If lots of demand for money, hopefully because of some great ideas, then the ones with the best projects can bid the highest. .
    Sp rates could be -1% or they could be 5%. The market would determine best allocation and price via pricing mechanism.

    The proof that this is true is that there was less than .06% inflation annually in US from 1635 to 1913 This despite phenomenal growth.

    https://www.officialdata.org/us/infl...913&amount=100

  7. #17

    Default

    Seems that at one time you buy things for a penny. Many people throw pennies away now and view them as burden to carry. If the currency hadn't been devalued you could in theory have "penny stores". Even your dollar trees are no longer dollar stores due to inflation. The Austrian economists like gold and silver but many of their followers like Crypto as well. We just need a currency that cannot be diluted by corrupt politicians. Personally, I don't see Bitcoin being the answer because if the corrupt politicians cannot manipulate it they won't want it in use, eventually.


    I got curious and looked. A little over 100 years ago the dollar was worth $33 of today's dollars. Imagine your $20 bill having the purchase power of $660. You would take better care of your pennies. Three pennies and you could go to what used to be the Dollar store.

    $1 in 1900 is equivalent in purchasing power to about $33.19 today, an increase of $32.19 over 122 years. The dollar had an average inflation rate of 2.91% per year between 1900 and today, producing a cumulative price increase of 3,219.07%. The inflation rate in 1900 was 1.20%.

    Interesting little tool. You can choose any time period to measure
    https://www.in2013dollars.com/us/inf.../1900?amount=1
    Last edited by jjmcwill; 02-02-2022 at 03:59 PM.

  8. #18

    Default

    When I was a kid there were 5 & 10, or $0.05 & dime, stores. Of course, they had already gone beyond their original prices, but still known as five and 10's. AKA - S. S. Kresge which became Kmart. Where were others - Woolworth's, Ben Franklin & W.T. Grants. We also had silver in our change back then.

    Inflation helps nobody except debtors and the largest debtor of all time is the US government.

    Don't forget the creeping government tax increases caused by inflation that treats higher prices for assets sold that only reflect the loss of value of the dollar since purchase. A house sold for $500,000 that cost $10,000 when your parents or grandparents purchased it, yet the "value" of the $500,000 only reflects inflated dollars necessary to equal the original purchase price. Ditto with income tax and other taxes that increase as your wages "increase", yet your standard of living decreases.

    I remember an early TV show, "Who wants to be a millionaire" where a rich person gave away a million bucks to someone picked out by the person's agent. Back in the '50's a million bucks was something, today the show would have to be called Who wants to be a billionaire".
    Do your own due diligence

    I stand united with my friends & family in Canada who seek freedom.

  9. #19

    Default

    Yea, I find the number of celebrity billionaires to be a very curious thing during the FED money printing decade. Meanwhile, I was at circle K yesterday and folks were complaining about the prices of items being higher than advertised. Even fountain drinks. The cashier was explaining to everyone during purchase that they hadnt had time to update all of the new prices. The wealth gap widens. When will people start to get pissed?

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    Tyler Perry.

  10. #20

    Default

    I am fairly sure you cannot fix the problem by getting "pissed". Not easy, but better to fix it from INSIDE the existing framework.
    So, want to change it? RUN for office and get people behind your platform and do it from that angle. The other method is likely
    to not end well IMO.
    Thomas Jefferson is credited with writing, “When injustice becomes law, resistance becomes duty.” The seceding states in the Civil War period issued a similar declaration using the word “tyranny” as opposed to “injustice.”

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