Why the modest inflation?
Why inflation is so modest with zero interest rates and after Q1 and Q2?
My own explanation (which might be bogus) is that government bonds are interchangeable with money, and when Bernanke printed money to buy bonds, he didn't in fact change the money supply, because bonds are part of the money supply. So banks now have one type of money (cash) instead of another type of money (bonds). So theoretically this shouldn't change much.
What do you think?
Because the official inflation numbers are a blatant lie with the primary purpose of keeping COLA and other inflation-indexed expenses from blowing up the government, and secondary purpose of masking the true state of the economy from rubes who might otherwise protest it.
“If ye love wealth greater than liberty, the tranquility of servitude greater than the animating contest for freedom, go home from us in peace. We seek not your counsel, nor your arms. Crouch down and lick the hand that feeds you; May your chains set lightly upon you, and may posterity forget that ye were our countrymen.”
- SAMUEL ADAMS
I'm not talking about CPI, but about the real inflation, which I think is quite modest, especially when compared with the huge amount of money printed.
What do you think about my explanation for this?
It's called "Cooking the Books".Originally Posted by eugenekop
a continuation of siphoning off the wealth in to a very few hands,
inflation is not "modest", It is ongoing.
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Is 100% inflation over the course of five years "modest"?
Greg Brannon for US Senate 2014 - North Carolina
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I'll rephrase.
Why does it matter whether banks hoard government bonds or money? In both cases they can use this instruments to bid for stuff on the market and to raise prices. Now the banks are hoarding huge amount of money. But before that they hoarded huge amount of government bonds. So what's the difference?
And "compounded daily".
Greg Brannon for US Senate 2014 - North Carolina
"Power tends to corrupt, and absolute power corrupts absolutely." - Lord Acton
"Foreign aid is taking money from the poor people of a rich country, and giving it to the rich people of a poor country." - Ron Paul
"Those who would give up essential Liberty, to purchase a little temporary Safety, deserve neither Liberty nor Safety." - Benjamin Franklin
"Beware the Military-Industrial-Financial-Corporate-Media-Government Complex." - B4L update of General Dwight D. Eisenhower
"Government is not the solution to our problem; government is the problem." - Ronald Reagan
"The only thing we have to fear is fear itself, and we must reject those who spread fear." - B4L update of FDR
"The Ministry of Truth can turn on a dime, and the fury of the ignorant masses can be redirected at will." - B4L
"Marxists become Fascists the minute they become rich, yet they retain the Marxist rhetoric." - B4L
"Debt is the drug, Wall St. Banksters are the dealers, and politicians are the addicts." - B4L
"Totally free immigration? I've never taken that position. I believe in national sovereignty." - Ron Paul
Twitter: B4Liberty@USAB4L
I'd say not. First time I've seen it this bad since the 1970s.
Of course, if you think the World's Dying Reserve Currency can turn into Zimbabwe money overnight, it might seem like modest inflation to you. But for those on Social Security, which no longer recognizes changes in food prices as 'inflation', this is plenty bad enough.
I didn't know inflation was modest given where stocks prices are relative to the economy and given the all time record high prices of US gov bonds we had just 1 month ago or so. Just because you don't see it in the grocery story doesn't mean it isn't there. But it will get there, just wait till the bond bubble pops.
My personality type: INTJ - please forgive my weaknesses (Not naturally in tune with others feelings; may be insensitive at times, tend to respond to conflict with logic and reason, tend to believe I'm always right, tend to be unwilling or unable to accept blame )
Why do bubbles matter?
My personality type: INTJ - please forgive my weaknesses (Not naturally in tune with others feelings; may be insensitive at times, tend to respond to conflict with logic and reason, tend to believe I'm always right, tend to be unwilling or unable to accept blame )
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