24hourcampfire.com
24hourcampfire.com
Previous Thread
Next Thread
Print Thread
Hop To
Page 1 of 3 1 2 3
Joined: Nov 2004
Posts: 6,237
Campfire Tracker
OP Offline
Campfire Tracker
Joined: Nov 2004
Posts: 6,237
http://www.foxbusiness.com/economy/2012/06/08/ready-or-not-stagflation-is-here/

The solution is Austrian - free markets, sound currency, (extremely) limited government - if we can avoid the Nation States killing us all as they fall over and collapse, and we can preserve our technology, this is the best news you will ever hate.


Ignorance is not confined to uneducated people.


WHO IS
JOHN GALT?


LIBERTY!










BP-B2

Joined: Apr 2010
Posts: 20,683
Campfire Ranger
Offline
Campfire Ranger
Joined: Apr 2010
Posts: 20,683
That seems fairly accurate.


Good luck to us all.


I'm pretty certain when we sing our anthem and mention the land of the free, the original intent didn't mean cell phones, food stamps and birth control.
Joined: May 2004
Posts: 55,886
Campfire Kahuna
Offline
Campfire Kahuna
Joined: May 2004
Posts: 55,886
Naw, I'd call it a 10X.


I am..........disturbed.

Concerning the difference between man and the jackass: some observers hold that there isn't any. But this wrongs the jackass. -Twain


Joined: Jul 2001
Posts: 178
D
Campfire Member
Offline
Campfire Member
D
Joined: Jul 2001
Posts: 178
Stagflation is defined as a combination of high inflation and a stagnant economy. No question we currently have a stagnant economy, but high inflation too?? I dunno, but the current under 3% inflation rate is generally not considered a high at least by historical standards. Consequently, I personally find the article a bit of a stretch.

Joined: Dec 2004
Posts: 107
R
Campfire Member
Offline
Campfire Member
R
Joined: Dec 2004
Posts: 107
Low inflation rates and low interest rates are the product of govt. meddling with the economy. Remember the late 70's? High cost of money along with high inflation. Right now I think the problem is the folks with the money don't want to spend it because they're very nervous & holding onto cash.






















IC B2

Joined: Nov 2004
Posts: 6,237
Campfire Tracker
OP Offline
Campfire Tracker
Joined: Nov 2004
Posts: 6,237
The real inflation rate is far above 3% - the article points out the manipulation of statistics by Government.

True inflation is easily measured by the loss of value of the currency compared to hard assets, like gold. And that has risen at much more than 3%.

Every penny of the $5 Trillion "stimulus" is inflationary pressure.


Ignorance is not confined to uneducated people.


WHO IS
JOHN GALT?


LIBERTY!










Joined: Jul 2001
Posts: 178
D
Campfire Member
Offline
Campfire Member
D
Joined: Jul 2001
Posts: 178
Originally Posted by siskiyous6
The real inflation rate is far above 3% - the article points out the manipulation of statistics by Government.

True inflation is easily measured by the loss of value of the currency compared to hard assets, like gold. And that has risen at much more than 3%.

Every penny of the $5 Trillion "stimulus" is inflationary pressure.


If that's the case, then the article makes even less sense, since gold prices have dropped over $300 per ounce since September 2011.

Joined: Sep 2004
Posts: 29,383
O
Campfire Ranger
Offline
Campfire Ranger
O
Joined: Sep 2004
Posts: 29,383
Originally Posted by rockinkz
Low inflation rates and low interest rates are the product of govt. meddling with the economy. Remember the late 70's? High cost of money along with high inflation. Right now I think the problem is the folks with the money don't want to spend it because they're very nervous & holding onto cash.


+1

Yes, I remember the Jimmy Carter years as well. I tried to buy my first house and mortgage rates were in the high teens.






















Joined: Jun 2002
Posts: 130,941
T
Campfire Sage
Offline
Campfire Sage
T
Joined: Jun 2002
Posts: 130,941
Originally Posted by Dawgin'it
Originally Posted by siskiyous6
The real inflation rate is far above 3% - the article points out the manipulation of statistics by Government.

True inflation is easily measured by the loss of value of the currency compared to hard assets, like gold. And that has risen at much more than 3%.

Every penny of the $5 Trillion "stimulus" is inflationary pressure.


If that's the case, then the article makes even less sense, since gold prices have dropped over $300 per ounce since September 2011.
A three hundred dollars drop isn't what a $300.00 drop would have been when gold was five or six hundred dollars per ounce. In modern (post QE) pricing, it represents a mere sixteen percent dip, which is well within the norm for metals over the years.

Joined: Oct 2005
Posts: 79,321
B
Campfire Oracle
Offline
Campfire Oracle
B
Joined: Oct 2005
Posts: 79,321
Originally Posted by Dawgin'it
Originally Posted by siskiyous6
The real inflation rate is far above 3% - the article points out the manipulation of statistics by Government.

True inflation is easily measured by the loss of value of the currency compared to hard assets, like gold. And that has risen at much more than 3%.

Every penny of the $5 Trillion "stimulus" is inflationary pressure.


If that's the case, then the article makes even less sense, since gold prices have dropped over $300 per ounce since September 2011.


The value of a currency is determined by the quantity of currency in circulation.

Every dollar put into circulation makes an existing dollar worth a bit less.

Essentially, inflation is an invisible tax. When the government needs money, the Federal Reserve just adds it to the government's books. It creates money out of thin air.

That makes the money that's already out there worth less.

So,...when the Federal Reserve prints up a few hundred billion dollars and gives it to the government, you still have that $20 bill in your wallet, but it will only buy what $19.50 would before an additional huge lump of money was printed up by the Federal Reserve and given to the government.

The Federal Reserve extracts the value from your money by simply printing up more of it.

That's inflation.

IC B3

Joined: Jun 2002
Posts: 130,941
T
Campfire Sage
Offline
Campfire Sage
T
Joined: Jun 2002
Posts: 130,941
Originally Posted by Bristoe

The value of a currency is determined by the quantity of currency in circulation.

Every dollar put into circulation makes an existing dollar worth a bit less.

Essentially, inflation is an invisible tax. When the government needs money, the Federal Reserve just adds it to the government's books. It creates money out of thin air.

That makes the money that's already out there worth less.

So,...when the Federal Reserve prints up a few hundred billion dollars and gives it to the government, you still have that $20 bill in your wallet, but it will only buy what $19.50 would before an additional huge lump of money was printwed up by the Federal Reserve and given to the government.

The Federal Reserve extracts the value from your money by simply printing up more of it.

That's inflation.
If only more people understood this.

Joined: Mar 2011
Posts: 33,856
E
Campfire 'Bwana
Offline
Campfire 'Bwana
E
Joined: Mar 2011
Posts: 33,856
Strange that this article mentions that Reagan lowered interest rates in the 80's to stimulate the economy and stop stagflation while the Newsmax's Aftershock survival Summit guy said that Reagan had raised interest rates to defeat stagflation.


The tree of liberty must be refreshed from time to time by the blood of patriots and tyrants.

If being stupid allows me to believe in Him, I'd wish to be a retard. Eisenhower and G Washington should be good company.
Joined: Nov 2006
Posts: 34,261
Campfire 'Bwana
Offline
Campfire 'Bwana
Joined: Nov 2006
Posts: 34,261
Originally Posted by siskiyous6
http://www.foxbusiness.com/economy/2012/06/08/ready-or-not-stagflation-is-here/

The solution is Austrian - free markets, sound currency, (extremely) limited government - if we can avoid the Nation States killing us all as they fall over and collapse, and we can preserve our technology, this is the best news you will ever hate.


Welcome to the European satellite branch of America. For years we wanted to be like Europe and we have finally accomplished it at least economically. Of course, we have the International Banking Cartel to thank for this progressive effect.


Don't vote knothead, it only encourages them. Anonymous

"Never underestimate the power of stupid people in large groups." Anonymous

"Self-reliance, free thinking, and wealth is anathema to both the power of the State and the Church." Derby Dude


Joined: Jul 2007
Posts: 6,418
M
Campfire Tracker
Offline
Campfire Tracker
M
Joined: Jul 2007
Posts: 6,418
Originally Posted by eyeball
Strange that this article mentions that Reagan lowered interest rates in the 80's to stimulate the economy and stop stagflation while the Newsmax's Aftershock survival Summit guy said that Reagan had raised interest rates to defeat stagflation.


Reagan didn't raise interest rates, Paul Volcker did as Chairman of the Fed in 1980. Reagan had not been elected when Volcker started doing so. Here's a brief synopsis of what happened and who did what.

http://www.buyandhold.com/bh/en/education/history/2000/paul_volker2.html

BTW, we'll be lucky if stagflation is all that we get out of this.



If the American People allow private banks to control the issuance of their currency, first by inflation, then by deflation, the banks..., will deprive the People of all their Property,...Thomas Jefferson
Joined: Jul 2007
Posts: 6,418
M
Campfire Tracker
Offline
Campfire Tracker
M
Joined: Jul 2007
Posts: 6,418
Originally Posted by Dawgin'it
Stagflation is defined as a combination of high inflation and a stagnant economy. No question we currently have a stagnant economy, but high inflation too?? I dunno, but the current under 3% inflation rate is generally not considered a high at least by historical standards. Consequently, I personally find the article a bit of a stretch.


If I were you, I'd take .gov (BLS) economic statistics with a large block of salt. They are gamed to show the most positive outlook FBO the Executive, and the CPI has been statistically manipulated to reduce payments to Social Security, and .gov/.mil retirement COLA's. Here's a site that is run by an economist who follows the CPI and employment stats the way they were calculated in 1980, before all the revisions were done to make the ongoing debasement of our currency look better.


http://www.shadowstats.com/alternate_data/inflation-charts


If the American People allow private banks to control the issuance of their currency, first by inflation, then by deflation, the banks..., will deprive the People of all their Property,...Thomas Jefferson
Joined: Apr 2010
Posts: 20,683
Campfire Ranger
Offline
Campfire Ranger
Joined: Apr 2010
Posts: 20,683



filed under


figures don't lie, but liars figure

our gov't is so fing corrupt there's no humor in the subject for me any longer


I'm pretty certain when we sing our anthem and mention the land of the free, the original intent didn't mean cell phones, food stamps and birth control.
Joined: Jul 2006
Posts: 62,043
I
Campfire Kahuna
Offline
Campfire Kahuna
I
Joined: Jul 2006
Posts: 62,043
Good cover,Randy. I know you opened the thread because you thought "stagflation" had something to do with a sex party.


The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.
William Arthur Ward




Joined: Mar 2011
Posts: 33,856
E
Campfire 'Bwana
Offline
Campfire 'Bwana
E
Joined: Mar 2011
Posts: 33,856
I agree. The guy on the Newsmax program advertised free onfo on what to do until it was over then wanted to sell the recs.


The tree of liberty must be refreshed from time to time by the blood of patriots and tyrants.

If being stupid allows me to believe in Him, I'd wish to be a retard. Eisenhower and G Washington should be good company.
Joined: Apr 2010
Posts: 20,683
Campfire Ranger
Offline
Campfire Ranger
Joined: Apr 2010
Posts: 20,683
lmao blush laugh


hate it when they can see through you like clean plate glass!


I'm pretty certain when we sing our anthem and mention the land of the free, the original intent didn't mean cell phones, food stamps and birth control.
Joined: Jul 2001
Posts: 178
D
Campfire Member
Offline
Campfire Member
D
Joined: Jul 2001
Posts: 178
Originally Posted by Bristoe


The value of a currency is determined by the quantity of currency in circulation.

That's not really true. The value of currency is determined by how much people THINK it's worth. Think of it in terms of gold, is the price of gold only determined by the quantity out there?? Of course not.

Every dollar put into circulation makes an existing dollar worth a bit less.

Again, think in terms of gold, does every new ounce of gold mined make all the existing gold worth less??

Essentially, inflation is an invisible tax. When the government needs money, the Federal Reserve just adds it to the government's books. It creates money out of thin air.

That makes the money that's already out there worth less.

So,...when the Federal Reserve prints up a few hundred billion dollars and gives it to the government, you still have that $20 bill in your wallet, but it will only buy what $19.50 would before an additional huge lump of money was printed up by the Federal Reserve and given to the government.

The Federal Reserve extracts the value from your money by simply printing up more of it.

That's inflation.


You're correct, that is one way inflation is created, but it is not the only way and it is not absolute. That type of inflation is called demand push inflation......when you have too many dollars chasing too few goods. But what happens if the government "prints" a bunch of money but nobody spends it?? What is the effect on inflation then?? This seems to be why the latest surge of stimulus money hasn't created surge in inflation. Is it permanant?

The other type inflation is cost push that occurs on the supply side. This is the type of inflation that is generally associated with stagflation. This happens when an economy gets an external shock on the supply side that drives up costs. An example of this was the arab oil embargo of the 70's that drove oil prices up and sent shock waves through the U.S. economy. This was a case where we had low growth rates, high interest rates, AND high inflation rates (as measured by the consumer price index of course). That's why I say that the article posted at the top of the thread doesn't make much sense to me because we don't have the same type of conditions that we did when the term "stagflation" was coined.

Page 1 of 3 1 2 3

Moderated by  RickBin 

Link Copied to Clipboard
YB23

Who's Online Now
677 members (10ring1, 10gaugemag, 12308300, 007FJ, 10Glocks, 06hunter59, 70 invisible), 2,785 guests, and 1,308 robots.
Key: Admin, Global Mod, Mod
Forum Statistics
Forums81
Topics1,187,634
Posts18,398,904
Members73,817
Most Online11,491
Jul 7th, 2023


 







Fish & Game Departments | Solunar Tables | Mission Statement | Privacy Policy | Contact Us | DMCA
Hunting | Fishing | Camping | Backpacking | Reloading | Campfire Forums | Gear Shop
Copyright © 2000-2024 24hourcampfire.com, Inc. All Rights Reserved.
Powered by UBB.threads™ PHP Forum Software 7.7.5
(Release build 20201027)
Responsive Width:

PHP: 7.3.33 Page Time: 0.133s Queries: 15 (0.005s) Memory: 0.9041 MB (Peak: 1.0594 MB) Data Comp: Zlib Server Time: 2024-03-28 16:51:15 UTC
Valid HTML 5 and Valid CSS