Comments on: Inflation Nation http://usawatchdog.com/inflation-nation/ Connecting the Dots to Give You A Clear Picture of What’s Really Going On Wed, 16 May 2012 16:48:25 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Greg http://usawatchdog.com/inflation-nation/#comment-5124 Greg Fri, 23 Jul 2010 04:40:49 +0000 http://usawatchdog.com/?p=2008#comment-5124 Thom, Makes me want to scream too! Greg Thom,
Makes me want to scream too!
Greg

]]> By: Thom http://usawatchdog.com/inflation-nation/#comment-5102 Thom Thu, 22 Jul 2010 11:17:57 +0000 http://usawatchdog.com/?p=2008#comment-5102 I saw a news cast last night where the reporter dissected many unemployment,and new job created statistics with the inevitable outcome that things, indeed, were looking up. Unbelievable.. Thom I saw a news cast last night where the reporter dissected many unemployment,and new job created statistics with the inevitable outcome that things, indeed, were looking up. Unbelievable..

Thom

]]> By: Greg http://usawatchdog.com/inflation-nation/#comment-4990 Greg Mon, 19 Jul 2010 02:26:54 +0000 http://usawatchdog.com/?p=2008#comment-4990 Thank you JJ! Greg Thank you JJ!
Greg

]]> By: Greg http://usawatchdog.com/inflation-nation/#comment-4989 Greg Mon, 19 Jul 2010 02:25:44 +0000 http://usawatchdog.com/?p=2008#comment-4989 Ralph, As rates go up so will payments. That means prices will have to come down until people can afford the payments. Thanks for the question. Greg Ralph,
As rates go up so will payments. That means prices will have to come down until people can afford the payments. Thanks for the question.
Greg

]]> By: Greg http://usawatchdog.com/inflation-nation/#comment-4988 Greg Mon, 19 Jul 2010 02:24:09 +0000 http://usawatchdog.com/?p=2008#comment-4988 Bob, That might work but what will he use to buy the food? Thank you for the comment. Greg Bob,
That might work but what will he use to buy the food? Thank you for the comment.
Greg

]]> By: Greg http://usawatchdog.com/inflation-nation/#comment-4987 Greg Mon, 19 Jul 2010 02:23:04 +0000 http://usawatchdog.com/?p=2008#comment-4987 Yes James, very bumpy! Thank you. Greg Yes James, very bumpy! Thank you.
Greg

]]> By: JJ http://usawatchdog.com/inflation-nation/#comment-4967 JJ Sun, 18 Jul 2010 15:14:52 +0000 http://usawatchdog.com/?p=2008#comment-4967 Hi Greg, Stephen has many good points; especially about the public and our Congress. There is truly no difference of any substance between the current crop of Democrats and Republicans. I disagree with the deflation coming first before inflation because of the below. Billhopen on the other hand doesn’t understand where the inflation will come from. Fiat currencies are bought and sold on the open market. Only the demand for a currency sets its value. If you don’t understand this point then you don’t understand the coming storm. Billhopen, do you think the demand for Whale oil increased or declined with better alternatives? Most are treating Economics like it is real science and that economies can truly be controlled. The politicians are wrong on both accounts. Inflation in the Weimar Republic was not preceded by deflation; they had a debt to service that far exceeded their gold and foreign currency reserves. Look at our history. Nowhere in the 1970’s did the US experience deflation and we had recession and runaway inflation. We left the gold standard in 1971 because of gold and dollar arbitrage. Our ponzi scheme, the Bretton Wood system collapsed. Here is the definition of deflation: A decline in general price levels, often caused by a reduction in the supply of money or credit. Deflation can also be brought about by direct contractions in spending, either in the form of a reduction in government spending, personal spending or investment spending. Deflation has often had the side effect of increasing unemployment in an economy, since the process often leads to a lower level of demand in the economy. opposite of inflation. 1) Feds will pour more money into the economy like the speakeasy’s of Prohibition pour liquor. Instead of allowing a lot of pain to bring equilibrium to the system, they spent over a trillion dollars and got NOTHING! What we need is a reset. We can try to control the fall or we can push it to the point that the backward movement is totally uncontrollable. 2) Spending has contracted in the investment and consumer segments 3) Unemployment is off the chart [real unemployment, not the US Government numbers] 4) Fall in real earnings [ this has been happening for a while if you look at Real inflation and your check book] The last and only real deflation we experienced was during the great depression. The US dollar was pegged to Gold then. Don’t confuse the fluctuations in commodity prices as deflation; they rise and fall with the supply and demand. Our dollars WILL devalue, that is inflation. There is no Gold standard. All fiat currencies float and are basically a ponzi scheme. Keynesians say that inflation is the result of a growing economy. John Maynard Keynes did all his modeling and theorizing on the Gold backed currencies not fiat currencies. The “Great” economist of our day, that the main stream media trot out to cheerlead the so called recovery, are basing all of their comments on a flawed model. At the start of the Great Depression, in 1929, the US Government was running a budget SURPLUS and the US had a trade SURPLUS of $400 Billion (nominal). We produced most of what we consumed and we had countries willing to pay us Gold for our goods that they NEEDED. We had a dollar backed 100% by Gold that other countries would take for payment for anything at anytime. They couldn’t run the printing presses like we do now. Today, you have a fiat currency backed by the taxpayer [and a thousand nukes or so]. What are you going to deflate against? 2010 first quarter GDP is 14.592 Trillion dollars (nominal), our debt is nearly 100% GDP and our total obligations of 63 Trillion dollars are nearly 100% WORLD GDP. Our deficit this year alone is over a Trillion dollars and we have a trade deficit of half a trillion dollars. Most of what you buy is imported. The more our financial situation deteriorates, the more the dollar devalues and the higher prices go. What is going to cause deflation now? Even the impending collapse of the Euro only raised the value of the dollar of a few months. And none of the current economic models being used by Bush or Obama seem to take into account national debt. I think that you, Greg and I agree that we have only a few ways out and all of them are ugly: Hyper inflation, default on US Debt (my favorite) or revaluing the dollar downward by a factor of 1000. What do we have today that the world needs? Big Macs, Starbucks, our deceptive investment vehicles? And Don't disregard everything Glenn Beck says. He's right in a lot of areas. He's jsut a little theatrical. Hi Greg,
Stephen has many good points; especially about the public and our Congress. There is truly no difference of any substance between the current crop of Democrats and Republicans. I disagree with the deflation coming first before inflation because of the below. Billhopen on the other hand doesn’t understand where the inflation will come from. Fiat currencies are bought and sold on the open market. Only the demand for a currency sets its value. If you don’t understand this point then you don’t understand the coming storm. Billhopen, do you think the demand for Whale oil increased or declined with better alternatives?
Most are treating Economics like it is real science and that economies can truly be controlled. The politicians are wrong on both accounts. Inflation in the Weimar Republic was not preceded by deflation; they had a debt to service that far exceeded their gold and foreign currency reserves. Look at our history. Nowhere in the 1970’s did the US experience deflation and we had recession and runaway inflation. We left the gold standard in 1971 because of gold and dollar arbitrage. Our ponzi scheme, the Bretton Wood system collapsed.
Here is the definition of deflation:
A decline in general price levels, often caused by a reduction in the supply of money or credit. Deflation can also be brought about by direct contractions in spending, either in the form of a reduction in government spending, personal spending or investment spending. Deflation has often had the side effect of increasing unemployment in an economy, since the process often leads to a lower level of demand in the economy. opposite of inflation.

1) Feds will pour more money into the economy like the speakeasy’s of Prohibition pour liquor. Instead of allowing a lot of pain to bring equilibrium to the system, they spent over a trillion dollars and got NOTHING! What we need is a reset. We can try to control the fall or we can push it to the point that the backward movement is totally uncontrollable.
2) Spending has contracted in the investment and consumer segments
3) Unemployment is off the chart [real unemployment, not the US Government numbers]
4) Fall in real earnings [ this has been happening for a while if you look at Real inflation and your check book]
The last and only real deflation we experienced was during the great depression. The US dollar was pegged to Gold then. Don’t confuse the fluctuations in commodity prices as deflation; they rise and fall with the supply and demand. Our dollars WILL devalue, that is inflation. There is no Gold standard. All fiat currencies float and are basically a ponzi scheme. Keynesians say that inflation is the result of a growing economy. John Maynard Keynes did all his modeling and theorizing on the Gold backed currencies not fiat currencies. The “Great” economist of our day, that the main stream media trot out to cheerlead the so called recovery, are basing all of their comments on a flawed model.
At the start of the Great Depression, in 1929, the US Government was running a budget SURPLUS and the US had a trade SURPLUS of $400 Billion (nominal). We produced most of what we consumed and we had countries willing to pay us Gold for our goods that they NEEDED. We had a dollar backed 100% by Gold that other countries would take for payment for anything at anytime. They couldn’t run the printing presses like we do now.
Today, you have a fiat currency backed by the taxpayer [and a thousand nukes or so]. What are you going to deflate against? 2010 first quarter GDP is 14.592 Trillion dollars (nominal), our debt is nearly 100% GDP and our total obligations of 63 Trillion dollars are nearly 100% WORLD GDP. Our deficit this year alone is over a Trillion dollars and we have a trade deficit of half a trillion dollars. Most of what you buy is imported. The more our financial situation deteriorates, the more the dollar devalues and the higher prices go. What is going to cause deflation now? Even the impending collapse of the Euro only raised the value of the dollar of a few months.
And none of the current economic models being used by Bush or Obama seem to take into account national debt. I think that you, Greg and I agree that we have only a few ways out and all of them are ugly: Hyper inflation, default on US Debt (my favorite) or revaluing the dollar downward by a factor of 1000. What do we have today that the world needs? Big Macs, Starbucks, our deceptive investment vehicles?
And Don’t disregard everything Glenn Beck says. He’s right in a lot of areas. He’s jsut a little theatrical.

]]> By: Ralph http://usawatchdog.com/inflation-nation/#comment-4965 Ralph Sun, 18 Jul 2010 13:08:30 +0000 http://usawatchdog.com/?p=2008#comment-4965 Great article! My question: I am aware of how higher interest rates effect the Real Estate market however, the higher cost of labor and virtually every single component that goes into home construction will be higher....with this being the case, how can prices go down? Ralph Great article! My question: I am aware of how higher interest rates effect the Real Estate market however, the higher cost of labor and virtually every single component that goes into home construction will be higher….with this being the case, how can prices go down?

Ralph

]]> By: Bob http://usawatchdog.com/inflation-nation/#comment-4953 Bob Sun, 18 Jul 2010 04:34:56 +0000 http://usawatchdog.com/?p=2008#comment-4953 inflation for somethings, deflation for other things. Maybe it will be harder on some and not so bad for others. I was talking to this guy heading to LA , I ask him were he was going to stay. He said that was easy, just get a bag of food,an walk down the street, some gal will take you home.He grew up dirt poor and figures it's OK to be that way. I would say a big group of people could care less about money and what it's value going to be in the future. It's all about who the money is being give to, big government contracts nobody talks about inflation when that happens but food stamps watch out inflation around the corner. It's all to funny that capitalism ends with ism, which makes it one kind of a system and systems fail sooner are later. PEACE inflation for somethings, deflation for other things. Maybe it will be harder on some and not so bad for others. I was talking to this guy heading to LA , I ask him were he was going to stay. He said that was easy, just get a bag of food,an walk down the street, some gal will take you home.He grew up dirt poor and figures it’s OK to be that way. I would say a big group of people could care less about money and what it’s value going to be in the future. It’s all about who the money is being give to, big government contracts nobody talks about inflation when that happens but food stamps watch out inflation around the corner. It’s all to funny that capitalism ends with ism, which makes it one kind of a system and systems fail sooner are later. PEACE

]]> By: James Lanier http://usawatchdog.com/inflation-nation/#comment-4951 James Lanier Sun, 18 Jul 2010 02:53:52 +0000 http://usawatchdog.com/?p=2008#comment-4951 "Fasten your seatbelts, it's going to be a bumpy night!" Courtesy of Bette Davis in 'All About Eve' c1950 “Fasten your seatbelts, it’s going to be a bumpy night!”

Courtesy of Bette Davis in ‘All About Eve’ c1950

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