• Quick note - the problem with Youtube videos not embedding on the forum appears to have been fixed, thanks to ZiprHead. If you do still see problems let me know.

Inflation

lomiller said:
This is 100% pure CT. Government spending has NOTHING to do with the monetary policy set by the fed, anyone who says the Fed is "printing money to finance enlivenment debt"is a flat out crackpot.
Click to expand...
Inability to show that government borrowing doesn't put pressure on interest rates and that rising interest rates have no effect on inflation is noted.
 
psionl0 said:
Inability to show that government borrowing doesn't put pressure on interest rates and that rising interest rates have no effect on inflation is noted.
Click to expand...

Your claim, you need to provide proof for your conspiracy theory.

Allow me to remind everyone of what I wrote and how you responded as you attempt to move goalposts:

lomiller said:
Some good, some bad.

He keeps saying central banks print money in order to support government deficits, which is completely false. Central banks in developed countries print money in order to maintain target inflation rates, government don't play a role in this decision making.
Click to expand...
government profligacy is the primary driver of the Fed's QE activities.
Click to expand...
 
Last edited:
The Atheist said:
The sooner we dump the Friedman Doctrine, the better.

Not likely, however.
Click to expand...

I mean this has nothing to do with the Friedman doctrine. Executives are hired to get financial results by shareholders. In cases where shareholders don't want this we usually just call the structure something else (like a non-profit).

Regardless no business can survive with zero or negative margins for too long. So even if profit wasn't a thing the uncertainty that inflation adds to the bottom line means pricing will be aggressive. Uncertainty, inflation, rising input and labor costs all put error bars on pricing. No company wants to be the one holding the bag and charging too low a price in a screwy economy.

BTW in my opinion holding interest rates at close to zero for almost 20 years is a historic experiment. I don't think we even realize how large the bubble is here because everyone got used to insane prices a long time ago.

Remember when a P/E of 10 was considered normal?

Remember when a normal house might cost 200k? That was 20+ years ago when interest rates were still sort of realistic. Stuff has inflated so much we've gotten used to insanity.
 
lomiller said:
Your claim, you need to provide proof for your conspiracy theory.
Click to expand...
I know your pet theory is that the Fed and the government are two separate entities that exist in isolation to one another and that the actions of one will have no impact on the actions of the other.

But the real world doesn't work that way.
 
psionl0 said:
I know your pet theory is that the Fed and the government are two separate entities that exist in isolation to one another and that the actions of one will have no impact on the actions of the other.

But the real world doesn't work that way.
Click to expand...

Do you know what an arms length organization is in government? Short of a change to legislation the US government cannot legally dictate what the Fed should do. Furthermore the Fed has a legal mandate to limit inflation while maximizing economic growth. It cannot legally do what you are suggesting and buy government securities with the intention of financing the US government.

This isn't some "pet theory" it's basic facts about the Fed. Your claims that the Fed operates in some other way are and have always been nothing but a crackpot conspiracy theory.
 
NewtonTrino said:
I mean this has nothing to do with the Friedman doctrine. Executives are hired to get financial results by shareholders.
Click to expand...

That's exactly what the Friedman Doctrine is.

NewtonTrino said:
In cases where shareholders don't want this we usually just call the structure something else (like a non-profit).

Regardless no business can survive with zero or negative margins for too long.
Click to expand...

It may surprise you to know there's an enormous gulf between corporate greed and zero profit.

It's entirely possible to preserve reasonable profits with social responsibility, living wages, and stronger employee benefits.
________________________

Meanwhile, the stubbornness of inflation in NZ has led to the Reserve Bank increasing the cash rate to 4.75%, with a top expected next year of 5.5 or 5.75%.
 
The Atheist said:
It may surprise you to know there's an enormous gulf between corporate greed and zero profit.
Click to expand...

Corporate greed isn't the issue, the issue is competitive and efficient markets. If markets are competitive and efficient greed is irrelevant. WRT social and environmental issues it's incumbent on governments to establish an effective regulatory regime and ensure everyone follows the same rules.

The latter is often prone to sabotage by politicians beholden to special interest and voters who have been fundamental mislead as to what free markets do and how they work, but this is more of a issue with our democracy than it is an issue with corporate governance. Not that corporate governance isn't an issue as well, the Principle-Agent problem is very real.
 
psionl0 said:
Let me know when you want to deal with my actual argument. :rolleyes:
Click to expand...

What argument? You haven't made any just a Gish gallop of incorrect assertions.

The question at hand, however, is from your post below where you admit you have said the Fed prints money to cover government deficits, something that is patently illegal given the Feds mandates.

psionl0 said:
"The root cause (of inflation) is the printing of money to cover government deficits".

That can't be right. Everybody else is saying that I am wrong when I say that.
Click to expand...

BTW people said you were wrong because you are. ;)
 
psionl0 said:
Since you didn't read the arguments the first time, I am not going to repeat them.
Click to expand...
I read them, they were crap. Nothing but hand waving and attempts to move the goalposts and muddy the waters.
 
lomiller said:
Don't try and "fix" my posts.
Click to expand...
I will fix them every time they contain falsehoods. You have never responded to the actual content of my posts. You have just assumed that they are "crap" (anybody can say that without reading a single word) and posted accordingly.
 
psionl0 said:
I will fix them every time they contain falsehoods. You have never responded to the actual content of my posts. You have just assumed that they are "crap" (anybody can say that without reading a single word) and posted accordingly.
Click to expand...

By "falsehoods" you mean facts you want to lie about. Your argument was crap, it remains crap and you "fixing" peoples comments on it and lying about about won't change things.
 
How about the pair of you get a room somewhere else?

We get it, you disagree. 'Nuff said.
 
The Atheist said:
How about the pair of you get a room somewhere else?

We get it, you disagree. 'Nuff said.
Click to expand...

I don't think you can call addressing blatant falsehoods like "the Fed prints money in order to cover federal deficits" as mere disagreement. A major function of these boards is still to debunk this type of misinformation when it occurs.
 
psionl0 said:
As usual, you are reacting rather than thinking. The government doesn't print money so the effect of borrowing to fund its deficit is higher interest rates. The Central bank has to buy back some of this government debt to counteract this and that is inflationary.
Click to expand...
This is what I posted about deficit spending. The misinformation is yours.
 
You must log in or register to reply here.

Back
Top Bottom