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barnaby33ParticipantI believe that economics exists as a modern field of study, to make astrology look respectable.
Josh
barnaby33ParticipantI believe that economics exists as a modern field of study, to make astrology look respectable.
Josh
barnaby33ParticipantInflation as a monetary phenomenon has already occurred. It has now worked itself into almost every kind of assets price. Question is will it keep occurring. There are good arguments on both sides.
If we have inflation that means that the supply of dollars keeps increasing, but so to does demand. If we have deflation that means that regardless of supply there is less demand.
All those returning foreign dollars have to go somewhere, the question is where? If they end up in the bank accounts of the public at large, that would be highly immediately inflationary. If they stay locked up in the financial markets ergo they go into bonds, that will just keep the musical chairs game going a bit longer, we’ll have to postpone this discussion for a bit.
If that returning money goes into the equity markets, it will get lost as the economy is slowing, and prices for equities almost certainly have to come down as they are based on high growth rates which aren’t sustainable. In this case we are still right back at deflation.
Josh
barnaby33ParticipantInflation as a monetary phenomenon has already occurred. It has now worked itself into almost every kind of assets price. Question is will it keep occurring. There are good arguments on both sides.
If we have inflation that means that the supply of dollars keeps increasing, but so to does demand. If we have deflation that means that regardless of supply there is less demand.
All those returning foreign dollars have to go somewhere, the question is where? If they end up in the bank accounts of the public at large, that would be highly immediately inflationary. If they stay locked up in the financial markets ergo they go into bonds, that will just keep the musical chairs game going a bit longer, we’ll have to postpone this discussion for a bit.
If that returning money goes into the equity markets, it will get lost as the economy is slowing, and prices for equities almost certainly have to come down as they are based on high growth rates which aren’t sustainable. In this case we are still right back at deflation.
Josh
barnaby33ParticipantInflation as a monetary phenomenon has already occurred. It has now worked itself into almost every kind of assets price. Question is will it keep occurring. There are good arguments on both sides.
If we have inflation that means that the supply of dollars keeps increasing, but so to does demand. If we have deflation that means that regardless of supply there is less demand.
All those returning foreign dollars have to go somewhere, the question is where? If they end up in the bank accounts of the public at large, that would be highly immediately inflationary. If they stay locked up in the financial markets ergo they go into bonds, that will just keep the musical chairs game going a bit longer, we’ll have to postpone this discussion for a bit.
If that returning money goes into the equity markets, it will get lost as the economy is slowing, and prices for equities almost certainly have to come down as they are based on high growth rates which aren’t sustainable. In this case we are still right back at deflation.
Josh
barnaby33ParticipantInflation as a monetary phenomenon has already occurred. It has now worked itself into almost every kind of assets price. Question is will it keep occurring. There are good arguments on both sides.
If we have inflation that means that the supply of dollars keeps increasing, but so to does demand. If we have deflation that means that regardless of supply there is less demand.
All those returning foreign dollars have to go somewhere, the question is where? If they end up in the bank accounts of the public at large, that would be highly immediately inflationary. If they stay locked up in the financial markets ergo they go into bonds, that will just keep the musical chairs game going a bit longer, we’ll have to postpone this discussion for a bit.
If that returning money goes into the equity markets, it will get lost as the economy is slowing, and prices for equities almost certainly have to come down as they are based on high growth rates which aren’t sustainable. In this case we are still right back at deflation.
Josh
barnaby33ParticipantInflation as a monetary phenomenon has already occurred. It has now worked itself into almost every kind of assets price. Question is will it keep occurring. There are good arguments on both sides.
If we have inflation that means that the supply of dollars keeps increasing, but so to does demand. If we have deflation that means that regardless of supply there is less demand.
All those returning foreign dollars have to go somewhere, the question is where? If they end up in the bank accounts of the public at large, that would be highly immediately inflationary. If they stay locked up in the financial markets ergo they go into bonds, that will just keep the musical chairs game going a bit longer, we’ll have to postpone this discussion for a bit.
If that returning money goes into the equity markets, it will get lost as the economy is slowing, and prices for equities almost certainly have to come down as they are based on high growth rates which aren’t sustainable. In this case we are still right back at deflation.
Josh
barnaby33ParticipantMrwrong, you are partially correct. We have a fiat money system. We also have the beginnings of the same problem that we had in the great depression. The FED turned the liquidity spigot wide open, but the banks still wouldn’t lend, hence symptoms like the TED spread widening. Deflation only requires a lack of confidence on the part of banks to lend, or consumers to borrow. Either one will do the trick.
Josh
barnaby33ParticipantMrwrong, you are partially correct. We have a fiat money system. We also have the beginnings of the same problem that we had in the great depression. The FED turned the liquidity spigot wide open, but the banks still wouldn’t lend, hence symptoms like the TED spread widening. Deflation only requires a lack of confidence on the part of banks to lend, or consumers to borrow. Either one will do the trick.
Josh
barnaby33ParticipantMrwrong, you are partially correct. We have a fiat money system. We also have the beginnings of the same problem that we had in the great depression. The FED turned the liquidity spigot wide open, but the banks still wouldn’t lend, hence symptoms like the TED spread widening. Deflation only requires a lack of confidence on the part of banks to lend, or consumers to borrow. Either one will do the trick.
Josh
barnaby33ParticipantMrwrong, you are partially correct. We have a fiat money system. We also have the beginnings of the same problem that we had in the great depression. The FED turned the liquidity spigot wide open, but the banks still wouldn’t lend, hence symptoms like the TED spread widening. Deflation only requires a lack of confidence on the part of banks to lend, or consumers to borrow. Either one will do the trick.
Josh
barnaby33ParticipantMrwrong, you are partially correct. We have a fiat money system. We also have the beginnings of the same problem that we had in the great depression. The FED turned the liquidity spigot wide open, but the banks still wouldn’t lend, hence symptoms like the TED spread widening. Deflation only requires a lack of confidence on the part of banks to lend, or consumers to borrow. Either one will do the trick.
Josh
barnaby33ParticipantUm Arty, I don’t agree with a fair amount of Ron Paul’s statements or positions, but by no means is he a Nazi. That was just stupid. He has a narrow view of the world, but he is NOT a Nazi, a fascist or anything of that ilk.
Josh
barnaby33ParticipantUm Arty, I don’t agree with a fair amount of Ron Paul’s statements or positions, but by no means is he a Nazi. That was just stupid. He has a narrow view of the world, but he is NOT a Nazi, a fascist or anything of that ilk.
Josh
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