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Are We in Danger of Hyperinflation??

I was going to say something along the same lines. It's like 2 things always happens when a new Democrat President is in office:

1. Some world event happens that he has to get involved with, i.e., recent airstrikes in Iraq/Syria.

2. Republicans start crying about inflation, the debt and deficits.

Republicans never complain about those things until a Democrat is in office. Then suddenly it's priority #1. :rolleyes:
In my opinion, now is the best time to goad Capitalists to automate for the bottom line. We can simply compensate Labor for any unemployment through unemployment compensation in our at-will employment States.
 
And, Keystone could concentrate capital resources with Colonial to improve supply and minimize any adverse impact to the environment.
 
You almost had me until you started the partisan diatribe. Apparently the "Objective Voice" isn't quite so objective. No surprise there. Look. this isn't about "party," it's about how much we are willing to convince ourselves that math doesn't matter, just our insistence that our perceived reality can continually defy fundamental economic laws. Two plus two is going to equal four, no matter what we say, what our former president said or what the current president says. And continued borrowing to buy stuff with money that isn't ours so that we become so satiated that we don't want for anything more will put the US and globe in a difficult economic situation. Not to mention, on the way there, we're paying more and more for it. Thanks!!
1. I was commenting on someone else's commentary who himself complained about how Republicans only tend to complain about the economy when certain things happen (in his case, when the poor [or rather the working-class] has disposable income).

2. Was anything I said untrue?

I can be objective about Democrats (presidents) in the modern era and the economy, too. For example: Except for Carter, the U.S. economy seems to always do better under a Democrat president than a Republican. Was I being untruthful there?

Now, before I go further, there are a few resources I think you may want to read to educate yourself:

*Wealth of Nations, by Adam Smith (old writing...still very relevant to how national spending works in many respects)
*Money, by Felix Martin (very good read if you truly want to understand how a nation's sovereign currency works)
*How the Money Machine Works (YouTube video), by Ray Dalio (excellent video that explains how our economy truly works)

When Republicans say "deficits don't matter", you understand why when you watch the Ray Dalio video. Whenever I hear folks like you who complain that our government "borrows money to buy stuff", it tells me you really don't understand how our economy works. Moreover, if you really don't want the Treasury borrowing money, you really should get behind Democrat's push to have the rich pay more in taxes so the country can be self-sufficient economically and not put so much of the tax burden - that "multiplier affect" - on the backs of working/middle-class Americans.

Do some research...get back to me when you know better.
 
In my opinion, now is the best time to goad Capitalists to automate for the bottom line. We can simply compensate Labor for any unemployment through unemployment compensation in our at-will employment States.
Are you essentially saying the government can pay people to stay home and let the robots to all the work?
 
Are you essentially saying the government can pay people to stay home and let the robots to all the work?
Sure. It will also help with the pandemic. Most jobs that will be lost will be low-wage jobs anyway. With unemployment compensation for simply being unemployed, Labor could be going to school or otherwise learning current and market based skills that are in demand.
 
The 10 year is back down to 1.3% today.
 
1. I was commenting on someone else's commentary who himself complained about how Republicans only tend to complain about the economy when certain things happen (in his case, when the poor [or rather the working-class] has disposable income).

2. Was anything I said untrue?

I can be objective about Democrats (presidents) in the modern era and the economy, too. For example: Except for Carter, the U.S. economy seems to always do better under a Democrat president than a Republican. Was I being untruthful there?

Now, before I go further, there are a few resources I think you may want to read to educate yourself:

*Wealth of Nations, by Adam Smith (old writing...still very relevant to how national spending works in many respects)
*Money, by Felix Martin (very good read if you truly want to understand how a nation's sovereign currency works)
*How the Money Machine Works (YouTube video), by Ray Dalio (excellent video that explains how our economy truly works)

When Republicans say "deficits don't matter", you understand why when you watch the Ray Dalio video. Whenever I hear folks like you who complain that our government "borrows money to buy stuff", it tells me you really don't understand how our economy works. Moreover, if you really don't want the Treasury borrowing money, you really should get behind Democrat's push to have the rich pay more in taxes so the country can be self-sufficient economically and not put so much of the tax burden - that "multiplier affect" - on the backs of working/middle-class Americans.

Do some research...get back to me when you know better.
"Get back to you??" Lol!! I think you've mistaken yourself for something that doesn't exist, like maybe Zeus. It's really funny, especially coming from an ultra-liberal aka an elitist ducking under a name like Objective Voice. It's hilarious. I have a reading list for you, too. It starts with Animal Farm. The author's name is George Orwell. I hope I don't need to sound it out phonetically. Maybe somebody else will. Thanks!!
 
"Get back to you??" Lol!! I think you've mistaken yourself for something that doesn't exist, like maybe Zeus. It's really funny, especially coming from an ultra-liberal aka an elitist ducking under a name like Objective Voice. It's hilarious. I have a reading list for you, too. It starts with Animal Farm. The author's name is George Orwell. I hope I don't need to sound it out phonetically. Maybe somebody else will. Thanks!!
I've read the book and watched the movie...doesn't apply here.

NEXT!
 
The 10 year is back down to 1.3% today.

I'm not sure that has a whole lot of meaning right now. You have the FRB buying over a hundred billion dollars of government bonds a month right now, that is absolutely artificially raising the price.
 
I'm not sure that has a whole lot of meaning right now. You have the FRB buying over a hundred billion dollars of government bonds a month right now, that is absolutely artificially raising the price.
Yeah yeah. I’ve heard this for 12 years now. Next you’ll tell me the inflation rate is a lie and the REAL inflation rate is some higher percentage.
 
Yeah yeah. I’ve heard this for 12 years now. Next you’ll tell me the inflation rate is a lie and the REAL inflation rate is some higher percentage.

It is basic economics, at some point this will become an issue and inflation will rise faster than baseline. Right now we are tracking a ~5.8%, just CPI, for 2021.
 
Well, the price of lumber at retail is just starting to drop.

A few weeks ago, Home Depot charged $8.30 or so for a 2x4x96 stud. That same item is now down to $7.62.

And of course, the selective nature of price increases makes it very clear that this is a result of issues with supply and demand, not monetary policy. E.g. used car prices soared over the past year, but new cars only increased 3.3% in price during the same time. Meaning that the increase in prices isn't due to the Fed buying up bonds, or keeping interest rates low. It's because a global shortage of computer chips means new car production has fallen, so people who want or need a different vehicle have to buy used.

I'm still wondering if any of the people currently freaking out over inflation will start shrieking about deflation later in the year....
 
I'm not sure that has a whole lot of meaning right now. You have the FRB buying over a hundred billion dollars of government bonds a month right now, that is absolutely artificially raising the price.
Let's try for some accuracy.
 
It is basic economics, at some point this will become an issue and inflation will rise faster than baseline. Right now we are tracking a ~5.8%, just CPI, for 2021.
You know I looked up that 5.8% and I couldn’t find anything about 5.8% inflation. I did find something about 5.8% growth in GDP. Are you sure you weren’t confusing GDP with CPI?
 
Might want to include their other bond buying numbers into that.
Why? You made a claim:
You have the FRB buying over a hundred billion dollars of government bonds a month right now, that is absolutely artificially raising the price.
By all means, provide your source for these other government bond buying programs.
 
Why? You made a claim:

By all means, provide your source for these other government bond buying programs.


Three seconds on google too much? That's just including the agencies and you are at 120B/month.
 
Three seconds on google too much? That's just including the agencies and you are at 120B/month.
You made a claim regarding Treasury purchases and now have the audacity to expect others to provide your citations.

Just humble up and admit your error? Doubtful.
 
I'm not sure that has a whole lot of meaning right now. You have the FRB buying over a hundred billion dollars of government bonds a month right now, that is absolutely artificially raising the price.

You made a claim regarding Treasury purchases and now have the audacity to expect others to provide your citations.

Just humble up and admit your error? Doubtful.

I quoted my original statement since you seem to be struggling with what I said.

Where did I mention the word "treasuries"? I said, government bonds. Anyone who understands any sort of fixed income will tell you that a federal agency bond is a US government bond.

I'm sorry these words are so difficult for you, perhaps the kids table would be more suitable for you?
 
Where did I mention the word "treasuries"? I said, government bonds. Anyone who understands any sort of fixed income will tell you that a federal agency bond is a US government bond.
As far as I know, the two terms are interchangeable
 
Where did I mention the word "treasuries"? I said, government bonds. Anyone who understands any sort of fixed income will tell you that a federal agency bond is a US government bond.
As expected.

You were referring to mortgage backed securities when responding to a post about Treasury yields.

Nobody would buy that line of reasoning even if you tried to pay them to.
I'm sorry these words are so difficult for you, perhaps the kids table would be more suitable for you?
Backpedaling on the basis of semantics won't work.
 
Came across a disturbing article from last May:

US is `printing' money to help save the economy from the COVID-19 crisis, but some wonder how far it can go
The Federal Reserve is creating dollars from scratch at an unprecedented rate, one of many tools to rescue the economy amid the coronavirus pandemic.

What is Hyperinflation?

In economics, hyperinflation is used to describe situations where the prices of goods and services rise uncontrollably over a defined time period. In other words, hyperinflation is extremely rapid inflation.
Generally, inflation is termed hyperinflation when the rate of inflation grows at more than 50% a month. American economics professor Phillip Cagan first studied the economic concept in his book, “The Monetary Dynamics of Hyperinflation.”

Causes of Hyperinflation
Hyperinflation commonly occurs when there is a significant rise in money supply that is not supported by economic growth. Simply put, it is caused by dramatically increasing the amount of money in an economy.

The increase in money supply is often caused by the government printing and infusing more money into the domestic economy. rise.https://corporatefinanceinstitute.com/resources/knowledge/economics/hyperinflation/


I don't know why it never occurred to me that the US was printing money at a record rate to stem the impact of Covid. This is a situation that may haunt us. I'm curious if anybody has any thoughts, as I'm not savvy on the subject. Thanks!!


No.
 
As far as I know, the two terms are interchangeable

Doesn't seem like you know too much on the topic then I suppose.

As expected.

You were referring to mortgage backed securities when responding to a post about Treasury yields.

Nobody would buy that line of reasoning even if you tried to pay them to.

Backpedaling on the basis of semantics won't work.

No. I was referring to government bonds, which is precisely what I am still talking about. I'm sorry you are struggling to understand that government bonds are not just treasury bills, notes, and bonds, but a wider range of securities.

What you call semantics, I call english. Words have meaning and your interpretation of that meaning isn't relevant compared to the actual definition.

Thanks for playing junior, back to the kids table.
 
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