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MrRodgers -> RE: Why do Prices Keep Rising? (1/3/2012 7:29:56 AM)
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quote:
ORIGINAL: DomKen
The professor lies on his very first "negative effect." He claims there is no positive or social effects from inflation. If the the money supply never expands, 0% inflation, then no one could ever receive a raise and the number of jobs would be static. If he is that full of shit on his first point the rest is surely not worth listening to.
First of all the so-called 'money supply' is and has been more than enough for earnings and borrowing. When businesses and consumers borrow, that's in increase in their private money supply and is inflationary. That stops or slows tremendously when interest rates go up. Without borrowing we have few homes and cars etc. and the social effects are a middle class...yet $trillions in debt.
What you are saying is what many have said, that means either we print up money or go into debt or ye...both. In order to consume like we have and have all of these things, we needed to do both and we have done just that. $50+ trillion US public & private debt since WWII. This does not count unfunded liabilities. By some estimates since WWII, takes $3 dollars to now buy what $1 did then.
Now see how capitalism works ? Capitalism IS debt...IS made up of borrowers and lenders, a very, very small number of people are out of debt as as mature adults. Nobody from the 60 percentile down has been getting any richer for 30 years unless they got real lucky in the markets or did it the American way...inherited. (you saw it right ? for the 25 year period from 1984 to 2009 family NET worth -.7%, that's MINUS point 7%) IT HAS to be that way to pay expenses, inflation and of course...ever increasing profits. More then me believe that this monetary system will be the downfall of not only capitalism but also of western civilization.
This is the design of the monetary system and the fed. As I've written, 1500% inflation since 1913. Most of which is not built-in 'costs' but not only speculation but borrowing by so-called investors to speculate even more causing fast increases in prices and ever increasing debt.
Adams warned us, Lincoln warned us, but like I've also written, America ignored them, has bet on greed...and lost. Look, just as in defining M1 through M5, one economics prof. from Georgetown Univ. wrote that for M2 - M5, there are 4 categories created to support yet another wild theory about money supply and capitalism. The same could be said about inflation.
How about this cybersluts ? There are two forms of return in western economy. Return on labor and return on capital. Inflation is built-into an economy and the resulting price increases, is the protection and the maintaining of the return on capital at the expense of labor...nothing more.
...and look one chart says I am being way low, 1500% vs 2195% ? I rest my case.
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