Are We in Danger of Hyperinflation??

[OrphanSlug]

This is important because it's a barometer of a kind, and internationally as well as domestically, people's faith in their system is eroding. And when it becomes acute, people start living defensively, meaning hoarding essentials and limiting nonessential purchases. There is no single reason for anything. There are a multitude of reasons for a financial wobble, but this article outlines yet another serious issue to consider when weighing whether hyperinflation as a possibility. Thanks!!

Trust in any government (or governments) is one issue of many to consider when it comes that government's economic response actions, but you are talking about a slightly different subject.

Arguably, mishandling coronavirus response (be it vaccines, or lockdowns, or whatever else) does not mean mishandling fiscal policy response (as in stimulus, or paying for the distribution of vaccines, or whatever else.)

What I am talking about is basic economics.

When there is any aggregate demand fault in a nation's economy the GDP math influencers obviously change.

GDP = C + I + G + NX

When something goes wrong in a nation's economy it ends up that C (or Consumer Spending,) I (or Private Investment,) and NX (or net exports meaning exports minus imports) all changes and tends to depress in some way. In the case of the US, NX is usually a negative number. The only entity left in the math that can influence output is G (Government Spending.) In a very oversimplified explanation way it ends up this area, Government, through fiscal policy and monetary policy that deals with the aggregate demand fault.

Why the fault occurred is another matter and subject to all kinds of other debates, but what I am talking about is Econ 101.

 

[Paradoxical]

Another cultist punch well above his weight.



Very little from China....

If public is $27 trillion and China holds $1.1 trillion of gross public debt, why are you claim most of it from China? You cultists are simply not very knowledgeable when it comes to economics and finance.



They don't.



Such nonsense has been addressed in this very thread. Why do you folks try to argue about things you know little (if anything) about?

What an elitist post coming from someone who studied Paul Krugman, who like Obama git a Nobel prize fro no reason other that he is a far leftist. You know nothing.

 

[Kushinator]

What an elitist post

Notice you were incapable of not only supporting your own statements, but refuting those in my response.

Why do you folks feel compelled to parrot something you do not have any knowledge about?

 

[Paradoxical]

Notice you were incapable of not only supporting your own statements, but refuting those in my response.

Why do you folks feel compelled to parrot something you do not have any knowledge about?

Projection is a sickness among far left wingers.

Your responses to mt post were short, cryptic with zero backup or facts. Once you have clearly demonstrated why my points are wrong, get back to me. One sentence responses don't cut it, nor do arrogant elitists. You have zero logic or common snse.

 

[Paradoxical]

I doubt it.

We've been printing money from before Covid to prop up the stock market, fund the military, and give wealthy people tax cuts.

Printing more to address a pandemic and help people who lost jobs survive won't cause harm.
We have plenty of supply and capacity to expand into more supply for most of the key things people need, like Food, Water, Shelter.

If we give people who've lost jobs money to help them through the pandemic, it'll go to those key needs mainly.
And for the people like me who don't really need it to survive, we'll spend it on extra stuff we want, which feeds into the consumer economy.

Where do you get the money from to pay it back when there are no more "rich" people?

 

[Kushinator]

Projection is a sickness among far left wingers.

Again, you took the time to respond without a single iota of content. You made false claims and got called out. The (rhetorical) question is why do you desire to operate from such a severe knowledge deficiency?

 

[Kushinator]

Where do you get the money from to pay it back when there are no more "rich" people?

Another display of knowledge deficiency.

Public debt never gets repaid. We still pay interest on Civil War, WWI, and WWII debts.

 

[Paradoxical]

Another display of knowledge deficiency.

Public debt never gets repaid. We still pay interest on Civil War, WWI, and WWII debts.

You're effing crazy. We had zero debt when Clinton was in office. Where do you get this nonsense from? Paul Krugman?

 

[danielpalos]

WTF are you talking about? I don't a clue as to what black 'codes' mean and I doubt 99.9% of blacks do.

But, where did I mention anything about BLACKS? This is just way ridiculous daniel.

Only if you ignore economics and history. You must not be very old.

 

[danielpalos]

I speak from experience, my friend.

Experience about what? How old are you?

 

[danielpalos]

How does a country pay off just the interest on this sort of debt? It already is doing that by simply printing more money. What happens when there is more money in circulation? That makes the money you have in your wallet or bank less valuable. that, of course, means that because that money in your wallet is less valuable than last month, it will buy fewer goods.

Most of it is going to the Richest who simply can't spend enough or consume enough to create hyper inflation. Our increasing homeless population should be getting more stimulus money to keep local businesses going.

 

[danielpalos]

You're effing crazy. We had zero debt when Clinton was in office. Where do you get this nonsense from? Paul Krugman?

Clinton balanced the budget not the debt.

 

[danielpalos]

Where do you get the money from to pay it back when there are no more "rich" people?

More right wing fantasy? The Richest are getting Richer not poorer.

 

[Kushinator]

You're effing crazy.

No. I am simply informed with respect to the subject matter.

We had zero debt when Clinton was in office.

It didn't take long. Here is an example of someone confusing debt with deficit. The next time you're thinking of punching well above your weight, remember this exchange.

The difference between deficit and debt.

Where do you get this nonsense from? Paul Krugman?

Thank you for once again exemplifying Trumpism! If you don't know something, pretend you do and get nasty when people call you out for it....

 

[danielpalos]

Ducking the political barb, do you we will experience hyperinflation in the next few years?? Thanks!!

We use fiat money not commodity money and the rest of the world is in the same boat; unlike pre-WWII Germany.

 

[Paradoxical]

Experience about what? How old are you?

I am going to give you a long response that will be for both posts. FWIW, I am very old but not yet senile or a crook like the guy your party just elected. I am retired. I am rather well off. I have had upwards of 50 different jobs during my life, never fired from one of them, never late to any of them, with maybe a total of 10 sick days taken off in my entire life. When a job got boring or the management wanting me to do things that I thought were wrong, I quit and traded up and was easily hired because I knew that employers weren't hiring me for what THEY could do for me, but for what I could do for them. I knew that I had to provide value to them and not the other way around. Towards the end of my career, I started my own business(es) and in between I bought land and houses and fixed them up without ever hiring out a single thing. I do that to save money and forced exercise and to make sure it is done right. While lay people are paying to have their 100 square feet lawn mowed, i am weed whacking 5 acres.

I do and did all that BECAUSE I was dirt poor and from a family of eleven with an alcoholic father who probably spent all of about an hour with me and lost job after job because of his alcoholism and not showing up for work. The nuns in the Catholic school gave me some rubber boots left behind because they knew I walked to school in the snow with holes in my hand me down loafers that I put cardboard in because of holes in the soles. How is it one could react to being very poor and no real father? There are only tow ways, right? One is to blame it on my father/society and throw in the towel and be like that and the other is to be the opposite. It is all in your mental attitude and whether you are black, white, orange or rich or poor, the only thing you have control over is your attitude and thinking. You ca think that because you are b;lack, you won't be hired, or you can think that because you are black, hispanic or indian you have to study and work harder than the next guy.

The problem in the inner cities is the teaching by folks like yourself that they are victims and that they are poor because others are rich. This gives them the excuse and right to stay where they are, with a chip on their shoulders and anger in their hearts. No one has to stay in poverty but many are taught by their alleged leaders to have a poverty of the mind.

Instead of being angry and depressed that they grew up poor, they can reframe things and say "I learn a lot from being poor. I learn how to fix things. I learn how to create things. I learn that I can do things myself and save money. I learn that I need to work a little harder than someone who comes from a wealthy family. I learn the value of me."

 

[Paradoxical]

No. I am simply informed with respect to the subject matter.





It didn't take long. Here is an example of someone confusing debt with deficit. The next time you're thinking of punching well above your weight, remember this exchange.

The difference between deficit and debt.



Thank you for once again exemplifying Trumpism! If you don't know something, pretend you do and get nasty when people call you out for it....

Did your teacher tell you to us the demeaning phrase "punching above your weight"? I debate with many people but I refuse to carry on conversations with those who attempt to demean others when they don't have the chops to do it.

 

[Paradoxical]

More right wing fantasy? The Richest are getting Richer not poorer.

If y=we took right now all of the money from the rich people and gave it to the poor people, where would any more money come from?

 

[Tahuyaman]

You're repeating something you know very little about.



In the sentence above, you resort to both fear mongering and ignorance. Here, you try to equivocate devaluation with inflation, but are clearly unaware of the data.

Over the span of the past 15 years, the pubic debt has increased by more than 300%. However, the value of the dollar has actually grown by 11%. If you don't follow the data, why are you in this thread making declaratory statements?

**Edited to include core-CPI**

So then you think there's no connection between rising debt and the possibility of hyper inflation and a declining dollar. That's funny.

 

[Kushinator]

We use fiat money not commodity money and the rest of the world is in the same boat; unlike pre-WWII Germany.

Pre-WWII Germany was in a very different situation. Their economy was in direct control of the state, which mistakenly over-invested in military technology at the expense of the public. No doubt there was severe crowding out of private innovation leading up to WWI. The aftermath was a country both reduced in size, industry, and forced to repair the modern day equivalent of $950 billion to the allies. So while they did use their own currency to repay these debts, this currency didn't buy much in terms of German production.

That's the cause of hyperinflation... when a country increases the money supply while production is severely reduced. Theoretically, hyperinflation can occur with a stable money supply if production falls to the degree in which occurred in post WWI Germany.

 

[Kushinator]

So then you think there's no connection between rising debt and the possibility of hyper inflation and a declining dollar. That's funny.

I was tasked to provide the data necessary to support your position. What we found was no correlation between debt growth and comparative value / consumer price volatility.

Notice that the best you respond with is a two sentence version of "nuh uh!"

 

[danielpalos]

The problem in the inner cities is the teaching by folks like yourself that they are victims and that they are poor because others are rich. This gives them the excuse and right to stay where they are, with a chip on their shoulders and anger in their hearts. No one has to stay in poverty but many are taught by their alleged leaders to have a poverty of the mind.

I don't teach or advocate that at all. I understand inequality is a problem in our economy and that equal protection of the laws can help solve that social dilemma. You claim to be exceptional. One anecdote does not make it true for anyone else much less everyone else due to that very exception. Demographics proves it.

 

[danielpalos]

If y=we took right now all of the money from the rich people and gave it to the poor people, where would any more money come from?

Only unExcpetional right wingers claim that. No one else is making that leap in extra-logical reason but right wingers who prefer to appeal to ignorance of economics.

 

[Kushinator]

Did your teacher tell you to us the demeaning phrase "punching above your weight"? I debate with many people but I refuse to carry on conversations with those who attempt to demean others when they don't have the chops to do it.

Another response with absolutely zero content. Why respond if you are incapable of discussing the topic? The question was in regards to the risk of hyperinflation, and not about your desire to show us how little you care to contribute to the topic.

 

[Paradoxical]

I don't teach or advocate that all. I understand inequality is a problem in our economy and that equal protection of the laws can help solve that social dilemma. You claim to be exceptional. One anecdote does not make it true for anyone else much less everyone else due to that very exception. Demographics proves it.

Anyone who teaches that there is not equal protection for blacks today is doing a great disservice to humanity. We will NEVER have equality. that is not a worthwhile goal. Some people will always be at a disadvantage. that is the way of the world. It is what makes men out of boys. Government wants to keep us as boys.