Hilarious

[JACK-2]

Inflation is good now?

[The Big Daddy C-Master]

Jan 18, 2015 22:21:34 GMT -5 JACK-2 said:

Inflation is good now?

They've been saying it's "good" for quite a while now. I need to post those vids. I save them and put them on my PC but I have to put them here. It's good material, lol.

[JACK-2]

So, who's gonna pay for Europe once the swiss pull out and more importantly. If the Chinese and to a lesser extent the Japanese dump our treasury bonds. who's gonna finance us?

[The Big Daddy C-Master]

Jan 19, 2015 14:10:09 GMT -5 JACK-2 said:

So, who's gonna pay for Europe once the swiss pull out and more importantly. If the Chinese and to a lesser extent the Japanese dump our treasury bonds. who's gonna finance us?

The Federal Reserve. Not sure why the Swiss is bothering with the loser countries in Europe. But yea, we finance our own debt anyways. By stealing from the American people.

[JACK-2]

Jan 19, 2015 14:49:13 GMT -5 The Big Daddy C-Master said:

The Federal Reserve. Not sure why the Swiss is bothering with the loser countries in Europe. But yea, we finance our own debt anyways. By stealing from the American people.

Once China and Japan dumps the dollar, Get ready for hyper-inflation.

[The Big Daddy C-Master]

They'll keep telling us it's a good thing until it's too late.

[zerosd]

China and Japan dumping the dollar would *destroy* them. That's something that a lot of people miss- in as much as we're partially reliant on them, they're even more reliant on us, especially China. Also Japan needs us to counterbalance China in the region, and China needs us because there's not a lot of options for trade goods for a country their size.

Especially with Austerity having hamstrung the EU, the health countries need us and our healthy economy more than we need them- though frankly, any sufficient big country going down would drag down almost anyone, because even if another country doesn't have hooks in you, they do with someone you trade with and yadda yadda. It's all a web.

Jan 18, 2015 22:21:34 GMT -5 JACK-2 said:

Inflation is good now?

Situationally, and depending on the amount? Yes. Actually the idea is a *small* amount of inflation, but in some cases you want more.

Deflation is, of course, almost always bad. A situation where someone actually makes more money by not spending money than they do in investments? Economic poison, you want to avoid that like it's on *fire*.


Now, where it gets tricky is values in comparison to other currencies. If your currency is very strong, that sounds good, right? You can buy more from others for less, comparatively, of yours. But conversely, it means that they are *less* able to buy stuff from you. Which means they stop giving you money. So if everyone is inflating past you... oops, you could be in trouble! But if you have inflation and your currency goes along with theirs, then you can continue trade as normaland be happy. Thus, inflation.

And there is situationally cases where deflation can be good too... but those are rarer.


I'm leaving stuff out, but in short, "inflation = bad" is a bit of an obsolete economic thought. It's more "inflation = ... well, pay attention to your specific situation and try and adjust it gradually to suit the situation."

[JACK-2]

Can you explain how China and Japan would be gone without us?

[The Big Daddy C-Master]

I don't believe lowering the standard of living by stealing people's purchasing power away is by any means good. Governments just like doing it so they can promise the ignorant masses free stuff. The United States in its prime had constant downward pressure on prices and the poor and middle class were able to afford more than ever before (and more than anybody in the world) because they were more productive.

Simply making money out of thin air doesn't make people's lives better. Otherwise why would anybody need to work, we would just print all the money we needed. Wealth comes from productivity not magical currency. I didn't hear anybody complaining about our recent drop in gas prices.