Home › Forums › Financial Markets/Economics › Average SD family 2000 vs 2010
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February 8, 2011 at 12:46 PM #664903February 8, 2011 at 2:46 PM #663784
jstoesz
Participantyou can not answer that question for yourself? I am curious what you are looking for here.
If you have 3 times the monetary base chasing the same number of goods. You have a currency worth a third as much.
Obviously, it gets way more complicated than that on the ground especially when you consider all the deflationary pressures, but that is the basic logical barebones…
It seems to me that increasing the monetary base by 3X, can be hidden for only a short time…
February 8, 2011 at 2:46 PM #663846Participantyou can not answer that question for yourself? I am curious what you are looking for here.
If you have 3 times the monetary base chasing the same number of goods. You have a currency worth a third as much.
Obviously, it gets way more complicated than that on the ground especially when you consider all the deflationary pressures, but that is the basic logical barebones…
It seems to me that increasing the monetary base by 3X, can be hidden for only a short time…
February 8, 2011 at 2:46 PM #664452Participantyou can not answer that question for yourself? I am curious what you are looking for here.
If you have 3 times the monetary base chasing the same number of goods. You have a currency worth a third as much.
Obviously, it gets way more complicated than that on the ground especially when you consider all the deflationary pressures, but that is the basic logical barebones…
It seems to me that increasing the monetary base by 3X, can be hidden for only a short time…
February 8, 2011 at 2:46 PM #664590Participantyou can not answer that question for yourself? I am curious what you are looking for here.
If you have 3 times the monetary base chasing the same number of goods. You have a currency worth a third as much.
Obviously, it gets way more complicated than that on the ground especially when you consider all the deflationary pressures, but that is the basic logical barebones…
It seems to me that increasing the monetary base by 3X, can be hidden for only a short time…
February 8, 2011 at 2:46 PM #664928Participantyou can not answer that question for yourself? I am curious what you are looking for here.
If you have 3 times the monetary base chasing the same number of goods. You have a currency worth a third as much.
Obviously, it gets way more complicated than that on the ground especially when you consider all the deflationary pressures, but that is the basic logical barebones…
It seems to me that increasing the monetary base by 3X, can be hidden for only a short time…
February 8, 2011 at 2:58 PM #663804Eugene
Participant[quote=jstoesz]you can not answer that question for yourself? I am curious what you are looking for here.
If you have 3 times the monetary base chasing the same number of goods. You have a currency worth a third as much.
Obviously, it gets way more complicated than that on the ground especially when you consider all the deflationary pressures, but that is the basic logical barebones…
It seems to me that increasing the monetary base by 3X, can be hidden for only a short time…[/quote]
My point is that the monetary base is not chasing anything at the present time. The monetary base is an abstract number. You don’t have any milk-drinkers whose disposable income has gone up 3x as a result of changes in that abstract number.
If you were to talk about M2 per capita instead of the monetary base, I might agree with you (conditionally) … but M2 per capita has not tripled, it has only gone up 4% in two years.
Hence, the claim that the Fed has destroyed anyone’s purchasing power, or even caused inflation in the price of milk, remains unproven.
February 8, 2011 at 2:58 PM #663866Participant[quote=jstoesz]you can not answer that question for yourself? I am curious what you are looking for here.
If you have 3 times the monetary base chasing the same number of goods. You have a currency worth a third as much.
Obviously, it gets way more complicated than that on the ground especially when you consider all the deflationary pressures, but that is the basic logical barebones…
It seems to me that increasing the monetary base by 3X, can be hidden for only a short time…[/quote]
My point is that the monetary base is not chasing anything at the present time. The monetary base is an abstract number. You don’t have any milk-drinkers whose disposable income has gone up 3x as a result of changes in that abstract number.
If you were to talk about M2 per capita instead of the monetary base, I might agree with you (conditionally) … but M2 per capita has not tripled, it has only gone up 4% in two years.
Hence, the claim that the Fed has destroyed anyone’s purchasing power, or even caused inflation in the price of milk, remains unproven.
February 8, 2011 at 2:58 PM #664472Participant[quote=jstoesz]you can not answer that question for yourself? I am curious what you are looking for here.
If you have 3 times the monetary base chasing the same number of goods. You have a currency worth a third as much.
Obviously, it gets way more complicated than that on the ground especially when you consider all the deflationary pressures, but that is the basic logical barebones…
It seems to me that increasing the monetary base by 3X, can be hidden for only a short time…[/quote]
My point is that the monetary base is not chasing anything at the present time. The monetary base is an abstract number. You don’t have any milk-drinkers whose disposable income has gone up 3x as a result of changes in that abstract number.
If you were to talk about M2 per capita instead of the monetary base, I might agree with you (conditionally) … but M2 per capita has not tripled, it has only gone up 4% in two years.
Hence, the claim that the Fed has destroyed anyone’s purchasing power, or even caused inflation in the price of milk, remains unproven.
February 8, 2011 at 2:58 PM #664610Participant[quote=jstoesz]you can not answer that question for yourself? I am curious what you are looking for here.
If you have 3 times the monetary base chasing the same number of goods. You have a currency worth a third as much.
Obviously, it gets way more complicated than that on the ground especially when you consider all the deflationary pressures, but that is the basic logical barebones…
It seems to me that increasing the monetary base by 3X, can be hidden for only a short time…[/quote]
My point is that the monetary base is not chasing anything at the present time. The monetary base is an abstract number. You don’t have any milk-drinkers whose disposable income has gone up 3x as a result of changes in that abstract number.
If you were to talk about M2 per capita instead of the monetary base, I might agree with you (conditionally) … but M2 per capita has not tripled, it has only gone up 4% in two years.
Hence, the claim that the Fed has destroyed anyone’s purchasing power, or even caused inflation in the price of milk, remains unproven.
February 8, 2011 at 2:58 PM #664948Participant[quote=jstoesz]you can not answer that question for yourself? I am curious what you are looking for here.
If you have 3 times the monetary base chasing the same number of goods. You have a currency worth a third as much.
Obviously, it gets way more complicated than that on the ground especially when you consider all the deflationary pressures, but that is the basic logical barebones…
It seems to me that increasing the monetary base by 3X, can be hidden for only a short time…[/quote]
My point is that the monetary base is not chasing anything at the present time. The monetary base is an abstract number. You don’t have any milk-drinkers whose disposable income has gone up 3x as a result of changes in that abstract number.
If you were to talk about M2 per capita instead of the monetary base, I might agree with you (conditionally) … but M2 per capita has not tripled, it has only gone up 4% in two years.
Hence, the claim that the Fed has destroyed anyone’s purchasing power, or even caused inflation in the price of milk, remains unproven.
February 8, 2011 at 3:09 PM #663809ParticipantTotally agree…Let us hope logic/simplistic thinking is proven wrong. Let us hope that the FED can stimulate and not just redistribute.
February 8, 2011 at 3:09 PM #663871ParticipantTotally agree…Let us hope logic/simplistic thinking is proven wrong. Let us hope that the FED can stimulate and not just redistribute.
February 8, 2011 at 3:09 PM #664477ParticipantTotally agree…Let us hope logic/simplistic thinking is proven wrong. Let us hope that the FED can stimulate and not just redistribute.
February 8, 2011 at 3:09 PM #664615ParticipantTotally agree…Let us hope logic/simplistic thinking is proven wrong. Let us hope that the FED can stimulate and not just redistribute.
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