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peterb.
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February 24, 2009 at 1:08 PM #354303February 24, 2009 at 1:19 PM #353728
Eugene
Participant[quote=threadkiller] It seems that in order to have recovery we must first have inflation. [/quote]
To have recovery, we must have lower unemployment. We can reduce unemployment levels by increasing aggregate demand. We increase aggregate demand directly, by creating jobs, or indirectly, by encouraging consumer spending. We can stimulate consumer spending by tax cuts or by increased benefits. Direct job creation is best, unemployment benefits are worse, tax cuts are worst.
In Econ 101, none of this translates into (price) inflation unless and until the economy is near full employment, which is not the case today.
In the real world, one has to worry about exchange rates and import/export issues, but Econ 101 approximation should work well enough.
February 24, 2009 at 1:19 PM #354040Participant[quote=threadkiller] It seems that in order to have recovery we must first have inflation. [/quote]
To have recovery, we must have lower unemployment. We can reduce unemployment levels by increasing aggregate demand. We increase aggregate demand directly, by creating jobs, or indirectly, by encouraging consumer spending. We can stimulate consumer spending by tax cuts or by increased benefits. Direct job creation is best, unemployment benefits are worse, tax cuts are worst.
In Econ 101, none of this translates into (price) inflation unless and until the economy is near full employment, which is not the case today.
In the real world, one has to worry about exchange rates and import/export issues, but Econ 101 approximation should work well enough.
February 24, 2009 at 1:19 PM #354173Participant[quote=threadkiller] It seems that in order to have recovery we must first have inflation. [/quote]
To have recovery, we must have lower unemployment. We can reduce unemployment levels by increasing aggregate demand. We increase aggregate demand directly, by creating jobs, or indirectly, by encouraging consumer spending. We can stimulate consumer spending by tax cuts or by increased benefits. Direct job creation is best, unemployment benefits are worse, tax cuts are worst.
In Econ 101, none of this translates into (price) inflation unless and until the economy is near full employment, which is not the case today.
In the real world, one has to worry about exchange rates and import/export issues, but Econ 101 approximation should work well enough.
February 24, 2009 at 1:19 PM #354201Participant[quote=threadkiller] It seems that in order to have recovery we must first have inflation. [/quote]
To have recovery, we must have lower unemployment. We can reduce unemployment levels by increasing aggregate demand. We increase aggregate demand directly, by creating jobs, or indirectly, by encouraging consumer spending. We can stimulate consumer spending by tax cuts or by increased benefits. Direct job creation is best, unemployment benefits are worse, tax cuts are worst.
In Econ 101, none of this translates into (price) inflation unless and until the economy is near full employment, which is not the case today.
In the real world, one has to worry about exchange rates and import/export issues, but Econ 101 approximation should work well enough.
February 24, 2009 at 1:19 PM #354308Participant[quote=threadkiller] It seems that in order to have recovery we must first have inflation. [/quote]
To have recovery, we must have lower unemployment. We can reduce unemployment levels by increasing aggregate demand. We increase aggregate demand directly, by creating jobs, or indirectly, by encouraging consumer spending. We can stimulate consumer spending by tax cuts or by increased benefits. Direct job creation is best, unemployment benefits are worse, tax cuts are worst.
In Econ 101, none of this translates into (price) inflation unless and until the economy is near full employment, which is not the case today.
In the real world, one has to worry about exchange rates and import/export issues, but Econ 101 approximation should work well enough.
February 24, 2009 at 1:26 PM #353738Nor-LA-SD-guy
ParticipantInflation.
Just my two cents on Gold in this environment,
Gold was relied on for the standard for currencies after the WWI and the German currency collapse that happen afterwards. There is no way Gold can become the standard to base currency on anymore as the world economy has far out grown (exceeds) the total amount of gold that is being held in the world.
Gold’s only value is industrial and for jewelry.
(when you have the only loaf of bread in the world, no amount of gold will buy it)
February 24, 2009 at 1:26 PM #354050ParticipantInflation.
Just my two cents on Gold in this environment,
Gold was relied on for the standard for currencies after the WWI and the German currency collapse that happen afterwards. There is no way Gold can become the standard to base currency on anymore as the world economy has far out grown (exceeds) the total amount of gold that is being held in the world.
Gold’s only value is industrial and for jewelry.
(when you have the only loaf of bread in the world, no amount of gold will buy it)
February 24, 2009 at 1:26 PM #354182ParticipantInflation.
Just my two cents on Gold in this environment,
Gold was relied on for the standard for currencies after the WWI and the German currency collapse that happen afterwards. There is no way Gold can become the standard to base currency on anymore as the world economy has far out grown (exceeds) the total amount of gold that is being held in the world.
Gold’s only value is industrial and for jewelry.
(when you have the only loaf of bread in the world, no amount of gold will buy it)
February 24, 2009 at 1:26 PM #354211ParticipantInflation.
Just my two cents on Gold in this environment,
Gold was relied on for the standard for currencies after the WWI and the German currency collapse that happen afterwards. There is no way Gold can become the standard to base currency on anymore as the world economy has far out grown (exceeds) the total amount of gold that is being held in the world.
Gold’s only value is industrial and for jewelry.
(when you have the only loaf of bread in the world, no amount of gold will buy it)
February 24, 2009 at 1:26 PM #354318ParticipantInflation.
Just my two cents on Gold in this environment,
Gold was relied on for the standard for currencies after the WWI and the German currency collapse that happen afterwards. There is no way Gold can become the standard to base currency on anymore as the world economy has far out grown (exceeds) the total amount of gold that is being held in the world.
Gold’s only value is industrial and for jewelry.
(when you have the only loaf of bread in the world, no amount of gold will buy it)
February 24, 2009 at 1:39 PM #353754scaredyclassic
Participant1 oz gold bought you 350 loaves of bread in ancient rome
and 35o loaves today.
gold is not some post war invention.
gold is where people go when tshtf.
when/if the djia is 1,500, gold will definitely be more than 1500 an oz.
just industrial and jewelry? you can go take 15 pounds of gold and start up again anywher ein the world, regardles of what the dollar’s worth. it’s called real money.
February 24, 2009 at 1:39 PM #354065Participant1 oz gold bought you 350 loaves of bread in ancient rome
and 35o loaves today.
gold is not some post war invention.
gold is where people go when tshtf.
when/if the djia is 1,500, gold will definitely be more than 1500 an oz.
just industrial and jewelry? you can go take 15 pounds of gold and start up again anywher ein the world, regardles of what the dollar’s worth. it’s called real money.
February 24, 2009 at 1:39 PM #354197Participant1 oz gold bought you 350 loaves of bread in ancient rome
and 35o loaves today.
gold is not some post war invention.
gold is where people go when tshtf.
when/if the djia is 1,500, gold will definitely be more than 1500 an oz.
just industrial and jewelry? you can go take 15 pounds of gold and start up again anywher ein the world, regardles of what the dollar’s worth. it’s called real money.
February 24, 2009 at 1:39 PM #354226Participant1 oz gold bought you 350 loaves of bread in ancient rome
and 35o loaves today.
gold is not some post war invention.
gold is where people go when tshtf.
when/if the djia is 1,500, gold will definitely be more than 1500 an oz.
just industrial and jewelry? you can go take 15 pounds of gold and start up again anywher ein the world, regardles of what the dollar’s worth. it’s called real money.
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