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Rich ToscanoKeymaster[quote=Fearful][quote=DomoArigato]So we’d get some inflation which would cause the value of any remaining debt to go down, further alleviating any ‘debt crisis’. Additionally, the value of the dollar would likely go down, no? This would increase the competitiveness of American exports and likely lead to higher employment.
What are the bad things that would happen, if any? Would we just be trading fear of invisible bond vigilantes with fear of the inflation boogeyman? Maybe the only thing we have to fear is fear itself?[/quote]
It is strange to hear someone being blase about rising prices. If the value of the dollar falls, imports become more expensive. Imports include food. When food prices rise, people complain loudly.Rising prices act like a consumption tax. Therefore they are regressive: The poorest people spend the largest portion of their incomes on consumption, so they feel the effect the most. The other group affected by inflation is conservative investors. Equity (that is, risk tolerant) investors are more able to survive a bout of inflation. So inflation hits poor people and old people. Not exactly where you want the effects to be felt.
The other, large problem with inflation and deflation is they are subject to positive feedback. If inflation is expected, people are more inclined to spend money sooner – before prices go up. Spending money sooner rather than later is itself inflationary. The opposite but also positive feedback mechanism works for deflation. Thus the central bank has to maintain an unstable equilibrium, with positive feedback mechanisms in both directions.[/quote]
Yes, this is a good description, Fearful. I’d also add that high inflation reduces economic growth and productivity, because prices (which usually function as a signal for how to allocate resources) become distorted.
High inflation (and most notably the move from lower inflation to higher inflation) is highly disruptive and very negative for general economic well being, as one can verify by studying past episodes of inflation in our country and elsewhere.
This thread (the OP anyway) is a good example of the extreme complacency about inflation that seems to be the norm these days.
Rich ToscanoKeymasterThis would tremendously expand the money supply, because you’d be exchanging bonds (which aren’t money) for money (which is). All things equal this would lead to much higher inflation.
FWIW I don’t think there’s any such thing as bond vigilantes.
Rich ToscanoKeymaster[quote=FormerSanDiegan]
While I can’t say anything for NAR, I don’t think it is a good time to sell a home. 2005-2006 was a good time to sell. If you still own something and have survived the past 6 years, it might be the worst time to sell since 1997.[/quote]He didn’t mean it; that was just a callback to this hilariously inept piece of NAR propaganda from late 2006:
http://themessthatgreenspanmade.blogspot.com/2006/11/nar-has-much-more-work-to-do.html
Rich ToscanoKeymaster[quote=threadkiller][quote=Rich Toscano]Houses went from 10 to 15, while condos stayed the same, so if houses are significantly more expensive than condos the overall median could be up.[/quote]
I agree Rich, however houses went down as well.[/quote]
It doesn’t matter, as long as the proportion of houses sold went up, it’s still possible that the overall median could have gone up. Just do the math on a theoretical example, you will see it’s possible.
Rich ToscanoKeymasterHouses went from 10 to 15, while condos stayed the same, so if houses are significantly more expensive than condos the overall median could be up.
Rich ToscanoKeymasterThat could happen based on a shift in the mix of what sold. Both condos and houses could be down, but if way more houses sold than condos compared to last year, the aggregate could be up.
Rich ToscanoKeymaster[quote=urbanrealtor]
The one-sided political dude gets banned but nothing about the jews-control-the-media-and-banking-and-hate-Ron-Paul?
[/quote]I came within a millimeter of banning him for exactly that whole obnoxious line of thought. Perhaps I was wrong not to. But in the end, I decided, it’s a guy expressing his opinion and trying to debate it (though I will grant that the opinion is nonsensical and he is terrible at debating it).
That is distinct from NewToSD, who is clearly posting garbage with the absolutely no purpose other than to try to incite political flamewars. So, it’s not about him being a “one-sided political dude,” as you characterize it — we have several of them, in fact, who are still with us. It’s about him being a flamewar-starting troll.
Rich ToscanoKeymasterFHA raised back up to $697,500. No change to Fannie/Freddie loans.
Rich ToscanoKeymasterThat was actually a pretty typical NewToSanDiego post. It’s pretty clear that he (or whatever) purposely goes over the top for his own amusement. But the end result — lame contentless political flamewars that ruin otherwise harmless threads — are the same regardless of whether he finds himself amusing or not.
Rich ToscanoKeymasterNo need to add NewToSanDiego to your ignore lists, folks. His or her purposefully inflammatory, totally irrelevant political threadjacks will no longer be appearing here.
Rich ToscanoKeymasterShark
Rich ToscanoKeymaster[quote=DataAgent]In a few months it would be fun to see a Top 10 list of most ignored users.[/quote]
There is no reporting of any kind on who is ignored… only an individual user knows who he/she is ignoring. Divining the Top 10 list will have to be left as an exercise for the reader.
Rich ToscanoKeymaster[quote=svelte]There once was a pigg, a real loser
Who was known as a bore and a boozer
He drunk posted about
A zombie with gout
Now everyone hits ‘Ignore User'[/quote]Ha! Well done…
Rich ToscanoKeymaster[quote=sdduuuude]
I wouldn’t ignore somebody w/ a different opinion, just the same one over and over and over.[/quote]Exactly… that’s a very good way of describing it.
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