Paul Krugman poo poos inflation

[Rich Toscano]

Typing this on the road from my crackberry – let’s see how this goes (haven’t tried it before).

I remember krugman criticizing greenspan in 04 for starting to raise rates TOO SOON. By that time the fed’s prolonged period of super low rates had already caused massive inflation in home prices but krugman was begging for more. The point being that his track record for predicting (or even identifying) the inflationary effects of loose fed policy is poor.

As for his article, its the usual inflation risk-denier stuff and there’s nothing in there that isn’t addressed in my “us govt will not choose deflation” article linked to at the upper right, with the “us not going down japans road” article going deeper into why his japan comparison is erroneous (using data, as opposed to krugman’s generalizations which imply, wrongly, that japan’s policy response was similar to ours).

Rich

[BGinRB]

[quote=patientrenter]
It goes deeper than this. Inflation brings with it a transfer of wealth from savers to borrowers. [/quote]
Only if your savings are dollar-denominated. The working and the middle class will be crashed by inflation. The higher up you are the more access to alternative vehicles you have.
The working class in particular will suffer. Your only capital is your labor in an environment where labor is in high supply and the manner of compensation is devalued significantly between the moment you negotiate the compensation and the moment you get compensated.

Imagine getting paid net 30 or net 60 with annual inflation of 100%.

[BGinRB]

[quote=patientrenter]
It goes deeper than this. Inflation brings with it a transfer of wealth from savers to borrowers. [/quote]
Only if your savings are dollar-denominated. The working and the middle class will be crashed by inflation. The higher up you are the more access to alternative vehicles you have.
The working class in particular will suffer. Your only capital is your labor in an environment where labor is in high supply and the manner of compensation is devalued significantly between the moment you negotiate the compensation and the moment you get compensated.

Imagine getting paid net 30 or net 60 with annual inflation of 100%.

[BGinRB]

[quote=patientrenter]
It goes deeper than this. Inflation brings with it a transfer of wealth from savers to borrowers. [/quote]
Only if your savings are dollar-denominated. The working and the middle class will be crashed by inflation. The higher up you are the more access to alternative vehicles you have.
The working class in particular will suffer. Your only capital is your labor in an environment where labor is in high supply and the manner of compensation is devalued significantly between the moment you negotiate the compensation and the moment you get compensated.

Imagine getting paid net 30 or net 60 with annual inflation of 100%.

[BGinRB]

[quote=patientrenter]
It goes deeper than this. Inflation brings with it a transfer of wealth from savers to borrowers. [/quote]
Only if your savings are dollar-denominated. The working and the middle class will be crashed by inflation. The higher up you are the more access to alternative vehicles you have.
The working class in particular will suffer. Your only capital is your labor in an environment where labor is in high supply and the manner of compensation is devalued significantly between the moment you negotiate the compensation and the moment you get compensated.

Imagine getting paid net 30 or net 60 with annual inflation of 100%.

[BGinRB]

[quote=patientrenter]
It goes deeper than this. Inflation brings with it a transfer of wealth from savers to borrowers. [/quote]
Only if your savings are dollar-denominated. The working and the middle class will be crashed by inflation. The higher up you are the more access to alternative vehicles you have.
The working class in particular will suffer. Your only capital is your labor in an environment where labor is in high supply and the manner of compensation is devalued significantly between the moment you negotiate the compensation and the moment you get compensated.

Imagine getting paid net 30 or net 60 with annual inflation of 100%.

[patientrenter]

If you were to analyze the ownership of fixed income savings instruments, I think you would find that the rich own disproportionately more. In other words, bonds make up a higher percentage of wealthy people’s portfolios than they do for middle class (or poor) people. Include indirect ownership through pension funds etc.

I admit I have no source for this, but I recall seeing it several times over the last 20 years from a variety of decent sources, so I think there is real data to support it. If I look, I will post any sources either way.

[patientrenter]

If you were to analyze the ownership of fixed income savings instruments, I think you would find that the rich own disproportionately more. In other words, bonds make up a higher percentage of wealthy people’s portfolios than they do for middle class (or poor) people. Include indirect ownership through pension funds etc.

I admit I have no source for this, but I recall seeing it several times over the last 20 years from a variety of decent sources, so I think there is real data to support it. If I look, I will post any sources either way.

[patientrenter]

If you were to analyze the ownership of fixed income savings instruments, I think you would find that the rich own disproportionately more. In other words, bonds make up a higher percentage of wealthy people’s portfolios than they do for middle class (or poor) people. Include indirect ownership through pension funds etc.

I admit I have no source for this, but I recall seeing it several times over the last 20 years from a variety of decent sources, so I think there is real data to support it. If I look, I will post any sources either way.

[patientrenter]

If you were to analyze the ownership of fixed income savings instruments, I think you would find that the rich own disproportionately more. In other words, bonds make up a higher percentage of wealthy people’s portfolios than they do for middle class (or poor) people. Include indirect ownership through pension funds etc.

I admit I have no source for this, but I recall seeing it several times over the last 20 years from a variety of decent sources, so I think there is real data to support it. If I look, I will post any sources either way.

[patientrenter]

If you were to analyze the ownership of fixed income savings instruments, I think you would find that the rich own disproportionately more. In other words, bonds make up a higher percentage of wealthy people’s portfolios than they do for middle class (or poor) people. Include indirect ownership through pension funds etc.

I admit I have no source for this, but I recall seeing it several times over the last 20 years from a variety of decent sources, so I think there is real data to support it. If I look, I will post any sources either way.

[sd_matt]

So my savings will get transferred to the entitled. Oh well…Who is John Galt?

[sd_matt]

So my savings will get transferred to the entitled. Oh well…Who is John Galt?

[sd_matt]

So my savings will get transferred to the entitled. Oh well…Who is John Galt?

[sd_matt]

So my savings will get transferred to the entitled. Oh well…Who is John Galt?

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