Financial Reform

boggsman1 · Joined: 24 Jun 2002 Posts: 9120 Location: at a computer

Not me, if inflation exists, Im terrified, but it does not exist to the extent that we are worried about it today. I demean anyone who compares the USA with Zimbabwe. There is a reason why the dollar is the worlds reserve currency. Mr G . if you are in the fear camp, thats fine, a lot of people are, but I guess you must have missed the best place to be in the last two years, USA stocks. With regards to CPI, shelter is 3X food and energy, and shelter is in a MASSIVE DEFLATIONARY trend.

boggsman1 · Joined: 24 Jun 2002 Posts: 9120 Location: at a computer

mrgybe · Joined: 01 Jul 2008 Posts: 5180

My comment was directed at those who disgorge pejoratives like "ignorant fool" and "idiot". I agree that the correlation with Zimbabwe, a country I know very well, is a stretch.......presumably chosen for effect.

mrgybe · Joined: 01 Jul 2008 Posts: 5180

boggsman1 · Joined: 24 Jun 2002 Posts: 9120 Location: at a computer

I agree with most. But, there are a lot of people who are renting, and a lot of people who are buying cheap clothing, cheap autos, cheap TVs and other electronic goods. A lot of big ticket items are less than they were 11 years ago, that is important. Inflation will come at some point, and it will be ugly, but NOT unitl we see meaningful gains in income, personal income. As long as we have slack in the labor markets, and imports flowing in from China, inflation will be a non event. Bard's main argument that Berspankys printing press guarantees runaway inflation is bunk....he's been helicoptering bags of money into the economy for almost 4 years now, and prices are flat at most at the consumer level.

boggsman1 · Joined: 24 Jun 2002 Posts: 9120 Location: at a computer

mac · Posted: Fri Jan 07, 2011 12:28 pm Post subject:

There you go again mrgybe. Putting words into my mouth to spout about liberals and pejoratives. On the latter, I will not be bullied and I will respond to insults at least as strongly. You may have figure that out already.

I despair of you righties ever getting logic lessons right. I did not argue that the CPI is the only economic indicator that might be consulted, I said it is the "bible", because it is the commonly accepted indicator used for most contract negotiations. I also did not say that it covers all price issues, nor did I say that I have no worry about debt load causing inflation. What I said is that a little research into the commonly used tools is better than anecdotal evidence. For crying out loud, bard cited food riots--which this morning's newspapers tells us where in Morocco. What that has to do with fiscal policy or Nancy Pelosi--or maybe even fuel prices I don't know. I do know it bears no resemblance to a logical argument. Nor of course, did stevenbard's ad hominem attack on me, or his renewed attack, after asking us all to be nice, on us San Francisco girlies. I think it is his panties that are all in a twist.

Economic contractions cause reduced demand, which affects prices in a deflationary way. It may well be that there are inflationary pressures that will re-emerge with economic recovery--that is certain to happen with some limited resources like rare metals and energy. It may also be that the overall deflation of housing prices from the housing bubble obscures other trends in the CPI. Of course that would require an argument, a little research, and an adult conversation. Something a little more sophisticated than attacking Nancy Pelosi or San Francisco girly men--from a safe distance.