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Thread: Inflation and the move to the left.

  1. #1

    Inflation and the move to the left.

    I have a theory that the lack of consequences of all the inflation created is the main reason driving the move to the left by both parties. Since there appears to be no downside to borrowing and printing money anyone trying to act responsible is seen as "cruel" and "heartless". Why not spend a couple trillion on covid relief? Why not raise the minimum wage to $15 an hour? How about reparations for slavery? Why not raise taxes on the rich? we can just print our way out of stupid decisions.

    The best thing bout Biden winning the election is there is a good chance the dollar is going to go down under his watch. If that happens the complaints against Trump are going to look silly. When the dollar collapses we're going to get skyrocketing prices, then price controls, then shortages and not the wimpy little shortages we had during the covid lockdown. I'm talking about serious food shortages where you have to get in line at 5am on bread delivery day to get anything to eat. Throw in a war for good measure and let's see how appealing all that left wing crap becomes.

    For the record a dollar collapse would've happened under Trump's watch, it would just take longer.



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  3. #2
    Agreed. The reason Reagan and Thatcher got elected was a backlash against left-wing policies and the pain of inflation.

    Probably the only advantage of a gold standard is it links spending and the consequences of spending more directly.

    People love free stuff. If there is no immediate consequence to these stimulus bills, people will push and push until there is a tidal wave.

  4. #3
    I agree. Only, now the FED has learned from 2008 which is why housing prices are up during a pandemic where people lose jobs? I think to gobble up extra dollars the FED raises treasury yields which sucks dollars back into the system.

  5. #4
    I doubt the Democrats will even care. They will still blame Trump and use him as a scapegoat for all the problems they are going to cause.
    "Perhaps one of the most important accomplishments of my administration is minding my own business."

    Calvin Coolidge

  6. #5
    Quote Originally Posted by Anti Globalist View Post
    I doubt the Democrats will even care. They will still blame Trump and use him as a scapegoat for all the problems they are going to cause.
    That is true to the extent that 1) 99 percent of dems dont even understand how an economy works and 2) They always blame failures on something else 3) They have nothing positive to offer .
    Do something Danke

  7. #6
    Quote Originally Posted by oyarde View Post
    That is true to the extent that 1) 99 percent of dems dont even understand how an economy works and 2) They always blame failures on something else 3) They have nothing positive to offer .
    It'll be interesting to see what happens when stopping inflation is by far the number one issue that voters care about.

  8. #7
    that is assuming half of voters are that bright , so , not sure .
    Do something Danke

  9. #8
    Quote Originally Posted by Madison320 View Post
    It'll be interesting to see what happens when stopping inflation is by far the number one issue that voters care about.
    circa: 1970's



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  11. #9
    Quote Originally Posted by oyarde View Post
    that is assuming half of voters are that bright , so , not sure .
    Last time, it got us Ronald Reagan. This time it might get us Rand Paul. But that is a big "might". He'd have to make it through the party and that seems unlikely.

    It also got us incredible increases in spending. So, BCWYWF.
    "And now that the legislators and do-gooders have so futilely inflicted so many systems upon society, may they finally end where they should have begun: May they reject all systems, and try liberty; for liberty is an acknowledgment of faith in God and His works." - Bastiat

    "It is difficult to free fools from the chains they revere." - Voltaire

  12. #10
    I would posit that inflation is actually quite high, it just doesn't seem that way because of extreme wealth inequality.

    Assets that rich people buy, e.g. real estate, stocks, are indeed soaring in price.

    That inflation hasn't yet trickled down to the rest of the economy, because most Americans are in debt and don't own even a single stock.
    It's all about taking action and not being lazy. So you do the work, whether it's fitness or whatever. It's about getting up, motivating yourself and just doing it.
    - Kim Kardashian

    Donald Trump / Rand Paul (Vice Pres) 2016!!!!

  13. #11
    Quote Originally Posted by TheTexan View Post
    I would posit that inflation is actually quite high, it just doesn't seem that way because of extreme wealth inequality.

    Assets that rich people buy, e.g. real estate, stocks, are indeed soaring in price.

    That inflation hasn't yet trickled down to the rest of the economy, because most Americans are in debt and don't own even a single stock.
    Here's a good chart that helps explain why it's hidden: https://fred.stlouisfed.org/series/M2V

    In order for price inflation to match currency inflation, you need a stable money velocity. If the velocity drops, then the monetary inflation will be obscured. When all this new money goes into stocks as opposed to goods and services, you are sort of redirecting the inflation. It's debatable how long you can artificially depress velocity, but a pandemic with artificial shutdowns certainly help.
    "And now that the legislators and do-gooders have so futilely inflicted so many systems upon society, may they finally end where they should have begun: May they reject all systems, and try liberty; for liberty is an acknowledgment of faith in God and His works." - Bastiat

    "It is difficult to free fools from the chains they revere." - Voltaire

  14. #12
    Quote Originally Posted by TheTexan View Post
    I would posit that inflation is actually quite high, it just doesn't seem that way because of extreme wealth inequality.

    Assets that rich people buy, e.g. real estate, stocks, are indeed soaring in price.

    That inflation hasn't yet trickled down to the rest of the economy, because most Americans are in debt and don't own even a single stock.
    this is why i dont even think all the money printed in the past twelve years has even begun to come into play.
    Do something Danke

  15. #13
    Quote Originally Posted by oyarde View Post
    this is why i dont even think all the money printed in the past twelve years has even begun to come into play.
    Here's a decent explanation of what we're seeing.



    They're actually PRAYING for inflation. In fact, one of the things they're hopeful will help is a higher minimum wage. (They don't give two $#@!s about the little people)

    Velocity of money is an interesting concept and I'm not sure the Fed has come up with a good strategy to manipulate it, yet. But know this... Once it starts, it's going to go FAST! If the velocity starts to pick up, the value of the dollar will decrease - and why would you sit on a dollar that is decreasing? We'll all have the incentive to spend them.

    I'm not even sure which hedges will work this time. I suppose land and metals, but Bitcoin may work, too. Or it could get caught up in the wash. In any case, we are in uncharted territory, so lead is always a safe bet.
    "And now that the legislators and do-gooders have so futilely inflicted so many systems upon society, may they finally end where they should have begun: May they reject all systems, and try liberty; for liberty is an acknowledgment of faith in God and His works." - Bastiat

    "It is difficult to free fools from the chains they revere." - Voltaire

  16. #14
    Quote Originally Posted by CaptUSA View Post
    Here's a good chart that helps explain why it's hidden: https://fred.stlouisfed.org/series/M2V

    In order for price inflation to match currency inflation, you need a stable money velocity. If the velocity drops, then the monetary inflation will be obscured. When all this new money goes into stocks as opposed to goods and services, you are sort of redirecting the inflation. It's debatable how long you can artificially depress velocity, but a pandemic with artificial shutdowns certainly help.
    Another theory is that much of the money is held by foreigners, which is why we have such big trade deficits. We print money and exchange it for real products.

    So if we have hyper-inflation my guess is we'll have one big, gargantuan trade surplus as all that money held by foreigners is used by them to try to buy anything from us that's not nailed down.

    I always go back to simple examples when trying to understand economics. Suppose you have an isolated island where shells are used as currency. Now suppose there's a hurricane and a whole bunch of those shells wash ashore, doubling the number of shells used as currency, so they pass them out to everyone. Is everyone now twice as well off? No, prices are going to double. I think the ultimate driver of long term inflation is the monetary base which is basically the amount of shells. The base has gone from a little under a trillion to over 7 trillion in the last 12 years, so lets say 7 times. That means that all things being equal prices should rise by 7 times. Now I know someone is going to tell me that "all things are not equal" so before you say that, tell me what variable would REDUCE inflation permanently by 7 times, in the long run. Productivity? Ha! Ha! Demand? I would think demand for dollars can only go down since we're already the world's reserve currency. Pretty much everyone already accepts dollars and the fact that we're printing them like maniacs is only going to make countries abandon the dollar.

  17. #15
    Sudan devalues currency .
    Do something Danke

  18. #16
    Quote Originally Posted by CaptUSA View Post
    Here's a good chart that helps explain why it's hidden: https://fred.stlouisfed.org/series/M2V

    In order for price inflation to match currency inflation, you need a stable money velocity. If the velocity drops, then the monetary inflation will be obscured. When all this new money goes into stocks as opposed to goods and services, you are sort of redirecting the inflation. It's debatable how long you can artificially depress velocity, but a pandemic with artificial shutdowns certainly help.
    Exactly. When the Fed’s helicopter hovers over Wall St., the money goes into the stock market and high end items. It must have been a bit of a surprise when they dropped money on the peons, and they went ahead and put it into the stock market and crypto (Robinhood, bitcoin, etc.) too.
    Last edited by Brian4Liberty; 02-23-2021 at 11:06 AM.
    "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
    "Beware the Military-Industrial-Financial-Corporate-Internet-Media-Government Complex." - B4L update of General Dwight D. Eisenhower
    "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
    They are what they hate. - B4L


    The views and opinions expressed here are solely my own, and do not represent this forum or any other entities or persons.



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  20. #17
    Quote Originally Posted by Madison320 View Post
    Another theory is that much of the money is held by foreigners, which is why we have such big trade deficits. We print money and exchange it for real products.

    So if we have hyper-inflation my guess is we'll have one big, gargantuan trade surplus as all that money held by foreigners is used by them to try to buy anything from us that's not nailed down.
    ...
    The preferred product is US real estate, and they have been buying as much as possible.
    "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
    "Beware the Military-Industrial-Financial-Corporate-Internet-Media-Government Complex." - B4L update of General Dwight D. Eisenhower
    "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
    They are what they hate. - B4L


    The views and opinions expressed here are solely my own, and do not represent this forum or any other entities or persons.

  21. #18
    Quote Originally Posted by CaptUSA View Post
    Here's a good chart that helps explain why it's hidden: https://fred.stlouisfed.org/series/M2V

    In order for price inflation to match currency inflation, you need a stable money velocity. If the velocity drops, then the monetary inflation will be obscured. When all this new money goes into stocks as opposed to goods and services, you are sort of redirecting the inflation. It's debatable how long you can artificially depress velocity, but a pandemic with artificial shutdowns certainly help.
    They obscured price inflation for decades via ever cheaper labor (outsourcing and immigration). Greenspan said at one point he feared the time when there was no longer any cheaper labor. We may be reaching that point. What’s their plan now?
    "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
    "Beware the Military-Industrial-Financial-Corporate-Internet-Media-Government Complex." - B4L update of General Dwight D. Eisenhower
    "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
    They are what they hate. - B4L


    The views and opinions expressed here are solely my own, and do not represent this forum or any other entities or persons.

  22. #19
    Quote Originally Posted by Anti Globalist View Post
    I doubt the Democrats will even care. They will still blame Trump and use him as a scapegoat for all the problems they are going to cause.
    I'd take a guess most people around here probably don't listen to Jason Stapleton anymore (if they ever did), but last year he did a few episodes in which inflation and spending were brought up and he always hammered the same point: it's not going to matter in the end who did it or when it finally happens. The politicians will essentially stick their thumbs in their butts and point the other fingers everywhere but themselves and they'll insist it's "unprecedented." The latter being an excuse to do even more radical things that screw the common people over in the end.

    Despite warnings from the Austrian Economists, some investors/traders, hedge funds, etc. the politicians and Fed will say "we didn't know" or "we didn't see this coming."

    -

    Also - look around you, the topic of inflation has broken mainstream. I'm reading more and more articles on it just about everywhere. You all know what it means when something breaks mainstream, especially on a topic like this: a) it's already been happening and the veil is now being lifted or b) they're allowing the narrative to slip out on purpose to play the "we tried warning you" card.

    Start taking precautions where able, folks.
    Welcome to the R3VOLUTION!

  23. #20
    Quote Originally Posted by Okie RP fan View Post
    I'd take a guess most people around here probably don't listen to Jason Stapleton anymore (if they ever did), but last year he did a few episodes in which inflation and spending were brought up and he always hammered the same point: it's not going to matter in the end who did it or when it finally happens. The politicians will essentially stick their thumbs in their butts and point the other fingers everywhere but themselves and they'll insist it's "unprecedented." The latter being an excuse to do even more radical things that screw the common people over in the end.

    Despite warnings from the Austrian Economists, some investors/traders, hedge funds, etc. the politicians and Fed will say "we didn't know" or "we didn't see this coming."

    -

    Also - look around you, the topic of inflation has broken mainstream. I'm reading more and more articles on it just about everywhere. You all know what it means when something breaks mainstream, especially on a topic like this: a) it's already been happening and the veil is now being lifted or b) they're allowing the narrative to slip out on purpose to play the "we tried warning you" card.

    Start taking precautions where able, folks.
    They'll try to blame it everyone else but I don't know if it'll work. It'll be whole different ballgame when you can't print and borrow.

  24. #21
    M2 grew at 5.8% from 2009 to 2020. Has grown 26% in the last year. This time is different. Inflation is now a real concern.


  25. #22
    Quote Originally Posted by Krugminator2 View Post
    M2 grew at 5.8% from 2009 to 2020. Has grown 26% in the last year. This time is different. Inflation is now a real concern.
    Only if you're a peon. Those at the top have been dying for inflation. They've been kinda mystified as to why it hasn't happened yet. The best thing for debt is to have future dollars worth less. If they can get the velocity to pick up, it'll be like winning the lottery for them. The latest wealth transfer will be completed.

    If you haven't done so, yet, now is the time to capture your wealth while you still have it. Land, metals, ammo, and home improvements. That last one hasn't skyrocketed in price like the others.
    "And now that the legislators and do-gooders have so futilely inflicted so many systems upon society, may they finally end where they should have begun: May they reject all systems, and try liberty; for liberty is an acknowledgment of faith in God and His works." - Bastiat

    "It is difficult to free fools from the chains they revere." - Voltaire

  26. #23
    Quote Originally Posted by CaptUSA View Post
    Only if you're a peon. Those at the top have been dying for inflation. They've been kinda mystified as to why it hasn't happened yet. The best thing for debt is to have future dollars worth less. If they can get the velocity to pick up, it'll be like winning the lottery for them. The latest wealth transfer will be completed.

    If you haven't done so, yet, now is the time to capture your wealth while you still have it. Land, metals, ammo, and home improvements. That last one hasn't skyrocketed in price like the others.
    Not sure , I bet lumber prices have doubled in the past yr.
    Do something Danke

  27. #24
    Quote Originally Posted by oyarde View Post
    Not sure , I bet lumber prices have doubled in the past yr.
    Oh yeah! Lumber has skyrocketed! But there are still other home improvement items... Concrete, Landscaping, Flooring, Roofing, Appliances, etc... They're going up, but not as fast as the others.
    "And now that the legislators and do-gooders have so futilely inflicted so many systems upon society, may they finally end where they should have begun: May they reject all systems, and try liberty; for liberty is an acknowledgment of faith in God and His works." - Bastiat

    "It is difficult to free fools from the chains they revere." - Voltaire



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  29. #25
    Fed chair says no changes in fed policy regardless of inflation or increasing bond yields .
    Do something Danke

  30. #26
    Home prices increased ten percent in Dec
    Do something Danke

  31. #27
    Quote Originally Posted by oyarde View Post
    Fed chair says no changes in fed policy regardless of inflation or increasing bond yields .
    The spice must flow .
    It's all about taking action and not being lazy. So you do the work, whether it's fitness or whatever. It's about getting up, motivating yourself and just doing it.
    - Kim Kardashian

    Donald Trump / Rand Paul (Vice Pres) 2016!!!!

  32. #28
    Quote Originally Posted by TheTexan View Post
    The spice must flow .
    yep
    Do something Danke



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