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Are We in Danger of Hyperinflation??

Vadinho said:
Well, if for some reason the pandemic gets so bad supply chains fail then yes, we will have shortages across the board. Whether it creates inflation is a stretch IMHO.
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Now should be a good time to goad capitalists to automate and upgrade for their bottom line and to mitigate the effects of any pandemics.
 
Logophile said:
To combat inflation, the feds raise interest rates. I've never quite understood why, but it seems to me, during the Carter Administration, interest rates soared to near twenty percent. This is all off the cuff, but my point is, with all the borrowing and printing - and the Biden Administration's interest in more economic help - would inflation become a serious problem for Biden's presidency?? Thanks!!
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When the Federal Reserve raises the repo rate, household consumption decreases, their savings increase and companies' investments decrease. A higher repo rate also results in higher consumption rates and mortgage rates, which reduces the demand for credit. The step that follows is when other countries do not raise their interest rates in the same way as the US, thedollar exchange rate can be strengthened and the US economy reduced. In the end, the stimulus in the US economy and thus also inflation decreases.

But I don not believe your federal reserve will do that at the moment. And I don't think that you are in any danger of Hyperinflation. Maybe some inflation but that is no big deal and will work as a stimulus for your economy. The dollar has one extra protection that other currencies don't have since it accounts for 87 percent of all currency trading and just over 60 percent of the world's reserves. For the financial system, dollars are what oxygen is to people, an addiction that is difficult to get rid of overnight.
 
Logophile said:
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!!
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This is the same crap people screamed about back in 2009 when President Obama was trying to pull us out of the last major economic downturn. When you're in a crisis like this you have to end the crisis. There's little or no real threat of hyper-inflation. It never came about last time,
and even if it were to become a problem we can always destroy money on the back end once the economy recovers to make up for it.

The treasury basically printed money from 2007-2012 almost non-stop. Not only was their no hyperinflation they still couldn't get us up to the good level of normal inflation that they were trying to reach for most of a decade.

In short, it's all garbage. They will simply be to make sure that this time once the economy does recover we raise taxes on the wealthy and start paying down our deficits. That is something that is far far far more likely to happen under a Democratic President than a Republican.
 
vegas giants said:
Unlikely. Interest rates are so low the fed has lots of power to raise rates and reduce inflation
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Raising rates is actually bad. It
danielpalos said:
Now should be a good time to goad capitalists to automate and upgrade for their bottom line and to mitigate the effects of any pandemics.
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That requires paying customers. Robots dont buy things.
 
Logophile said:
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!!
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The definition is faulty, Monetary Inflation is classified as "hyper-Inflation" when it exceeds 10% annually.

Some years ago, I calculated that the global economy could handle somewhere between $9 TRILLION to $13 TRILLION, and that the most likely inflationary period would begin around 2025 and last for approximately 9 years.

The rate of Monetary Inflation should be worse than the 1970s, but not as bad as the 1920s, so figure somewhere between 15% to 25% annually.

Note that your government has never attempted to distinguish between Monetary Inflation, Wage Inflation, Demand-pull Inflation, Cost-push Inflation or Interest Inflation when reporting "inflation" through the CPI.

For example, it might be 3.2% for a given month which is 0.5% Monetary Inflation + 2.2% Demand-pull Inflation + 0.2% Cost-push Inflation + 0.0% Wage Inflation + 0.1% Interest Inflation = 3.2% "Inflation."
 
Logophile said:
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!!
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In short... no.

fredgraph.png


Spending is a necessary component of inflation with respect to it's relation to money supply growth. New money that has been created hasn't been spent.

fredgraph.png
 
Mircea said:
The definition is faulty, Monetary Inflation is classified as "hyper-Inflation" when it exceeds 10% annually.

Some years ago, I calculated that the global economy could handle somewhere between $9 TRILLION to $13 TRILLION, and that the most likely inflationary period would begin around 2025 and last for approximately 9 years.

The rate of Monetary Inflation should be worse than the 1970s, but not as bad as the 1920s, so figure somewhere between 15% to 25% annually.

Note that your government has never attempted to distinguish between Monetary Inflation, Wage Inflation, Demand-pull Inflation, Cost-push Inflation or Interest Inflation when reporting "inflation" through the CPI.

For example, it might be 3.2% for a given month which is 0.5% Monetary Inflation + 2.2% Demand-pull Inflation + 0.2% Cost-push Inflation + 0.0% Wage Inflation + 0.1% Interest Inflation = 3.2% "Inflation."
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This entire post is delusionary nonsense.
 
danielpalos said:
It didn't happen with QE, why should it happen now? There is not enough demand now to keep some businesses going. Raising the minimum wage could generate more tax revenue and create more demand for local businesses.
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Raising the minimum wage won’t do anything when the government is keeping low wage workers from working. All the threats from the “pandemic” are political and not scientific. All the emergency orders can be ended tommorow
 
Ask again after our currency has been devalued a few times.
 
danielpalos said:
Right wingers only claim inflation happens when the Poor have too much money to spend not the Richest.
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I have no idea where you came up with that. No conservative / right winger has ever expressed that view. Yiur comment is just acwaybtonaviod the true issue at hand
 
At some point the debt will create a situation where the dollar is severely devalued and inflation will eat away at everything people have worked for.

Of course those responsible for this accumulation of debt will blame those who continually opposed this.
 
You think a $27 trillion dollar national debt with over $200 trillion in unfunded entitlements might cause inflation?

Prior to the great depression, the stock market was booming vastly beyond it's wealth and the super rich were becoming fabulously wealthy.

Let's hear more about the growth of the stock market and how wonderful it is - largely due to the obliteration of the #1 employer - small business - shifting income to Big Tech and Big Box stores - that offshore everything as much as possible and increasingly their stock values.

Joe Biden promising "dark days ahead' will be one campaign promise he will deliver on - whether he really wants that or not.
 
Tahuyaman said:
I have no idea where you came up with that. No conservative / right winger has ever expressed that view. Yiur comment is just acwaybtonaviod the true issue at hand
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Not from my perspective. Right wingers want to abolish statutory minimum wages and have claimed that wage inflation is what they object to.
 
danielpalos said:
We don't need low wage jobs that are easily automated in our first world economy.
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Some people need those low wage jobs. We need jobs in all catagories. Low wage jobs are generall entry level positions held by people just entering the job market or those who are supplementing a primary income
 
danielpalos said:
Not from my perspective. Right wingers want to abolish statutory minimum wages and have claimed that wage inflation is what they object to.
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Conservatives generall support free markets, not government micromanagement. A national minimum wage makes no sense as what is appropriate for NYC is not appropriate for Giltner Nebraska.
 
Tahuyaman said:
Some people need those low wage jobs. We need jobs in all categories. Low wage jobs are generally entry level positions held by people just entering the job market or those who are supplementing a primary income
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Raise the minimum wage to fifteen dollars an hour.
 
Tahuyaman said:
Conservatives generall support free markets, not government micromanagement. A national minimum wage makes no sense as what is appropriate for NYC is not appropriate for Giltner Nebraska.
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There is a capital based reason why less expensive States are less expensive. A national minimum wage makes macroeconomic sense.
 
danielpalos said:
Raise the minimum wage to fifteen dollars an hour.
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That kills jobs at the entry level. Still why not $20.00 an hour? What’s so magical about $15.00? That’s not a living wage in any big city run by liberals.
 
danielpalos said:
There is a capital based reason why less expensive States are less expensive. A national minimum wage makes macroeconomic sense.
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It makes no sense at all. If states want to create their own minimum wage, fine. Generally federal government micromanagement makes things worse.
 
danielpalos said:
What concept is that?
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People buy things, robots dont. If nobody working, then nobody is buying. More jobs more economic activity, because people buy stuff and use services. Robots dont.
 
PirateMk1 said:
People buy things, robots dont. If nobody working, then nobody is buying. More jobs more economic activity, because people buy stuff and use services. Robots dont.
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More people working also means more people spending their income.
 
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