gibberish really since with money supply the same you can have only localized or sector demand pull but then you also get less demand elsewhere thanks to fixed money supply. Aggregate demand cant go up with fixed money supply.
In other words, you don't understand there are different types of Inflation with differing causes, and therefore different solutions. Monetary policy does not cause Wage Inflation. And the cure for Wage Inflation has nothing to do with the Federal Reserve. Wage Inflation is typically combated with Wage & Price Freezes... see FDR and Nixon and their policies for dealing with Wage Inflation.
you don't know what you're looking at, what do you think the green represents? The green represents a brief deflationary period, which is a correction for a brief inflationary period. The red represents a brief inflationary period, which is a correction for a brief deflationary period. that's not a fact, the federal reserve doesn't finance government, that's forbidden But loaning the government money at interest is not forbidden. The government is loaned more than it earns in taxes, hence the debt. When the debts are paid off, they draw more, (aka roll the loan). This is indeed a process by which the fed funds the government. the federal reserve system was created by congress and is controlled by the public, federal reserve board The Federal Reserve system was created by the executives and representatives of the largest banks in the world, which represented 1/4 of the world's wealth. These persons were called "The Money Trust", because they were seen to have a monopoly on money collected through several artificially-caused market crashes. After the brief depression, but pre great-depression, there was intense civil unrest and hatred for the largest banks, as it was proven they were artificially causing these depressions in an effort to acquire large ownership of stock and property (or rather the families that had chief interest in these banks). The call for the dispersion of "The Money Trust" was so loud, and so wide-spread, the bankers feared a distribution of wealth as had happened recently in Russia and other countries, and so quickly met to develop a plan that would secure their interests forever. From this, The Federal Reserve act was developed. It was sold to the people as a blow to "The Money Trust", but what it actually did was secure the wealthiest families in the world's wealth and prosperity. congress is the federal reserve's boss, here's where it tells the fed what it's job is: Federal Reserve Act Section 2A. Monetary policy objectives The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall maintain long run growth of the monetary and credit aggregates commensurate with the economy's long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates. This only requires that The Federal Reserve chairmen tell congress that they will meet their objectives, and weather they intend to raise or lower interest rates due to key market attributes. You'll notice it says "maximize employment", but says nothing about the stability of wages. "Sounds reeel nice," says the uneducated worker in 1915 (see literacy rates 1915). All the unemployed heard was "no more unemployment". What they didn't realize is that slaves were employed, technically... that's not necessarily a good thing without the security of wages. here's where congress makes the fed report its progress to them: Section 2B. Appearances Before and Reports to the Congress (a) Appearances Before The Congress. 1. In General. The Chairman of the Board shall appear before the Congress at semi-annual hearings, as specified in paragraph (2), regarding: A. the efforts, activities, objectives and plans of the Board and the Federal Open Market Committee with respect to the conduct of monetary policy; and B. economic developments and prospects for the future described in the report required in subsection (b). Again, which does not mandate the Fed report how much money they've printed, how much and how many loans have been created, where that printed money went, or where the loans went, nor the repayment terms, nor the means of securing the loans. These are all things that an audit of a bank should represent, but remain undefined in the act. Occasionally, these numbers are reported, but they are reported non-independently and voluntarily by the fed. 2. Schedule. The Chairman of the Board shall appear: A. before the Committee on Banking and Financial Services of the House of Representatives on or about February 20 of even numbered calendar years and on or about July 20 of odd numbered calendar years; B. before the Committee on Banking, Housing, and Urban Affairs of the Senate on or about July 20 of even numbered calendar years and on or about February 20 of odd numbered calendar years; and C. before either Committee referred to in subparagraph (A) or (B), upon request, following the scheduled appearance of the Chairman before the other Committee under subparagraph (A) or (B). (b) Congressional Report. The Board shall, concurrent with each semi-annual hearing required by this section, submit a written report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking and Financial Services of the House of Representatives, containing a discussion of the conduct of monetary policy and economic developments and prospects for the future, taking into account past and prospective developments in employment, unemployment, production,investment, real income, productivity, exchange rates, international trade and payments, and prices. (c) Public Access To Information. The Board shall place on its home Internet website, a link entitled 'Audit', which shall link to a webpage that shall serve as a repository of information made available to the public for a reasonable period of time, not less than 6 months following the date of release of the relevant information, including: 1. the reports prepared by the Comptroller General under section 714 of title 31, United States Code; Again, no data on printed money (digital, printed, or in the form of promissory notes), no data on loans created, no data on loan amounts, and only speculation on outcomes. 2. the annual financial statements prepared by an independent auditor for the Board in accordance with section 11B; 11B says the board shal order an independent audit, but makes no requirements of the data that should be included in that audit. 3.the reports to the Committee on Banking, Housing, and Urban Affairs of the Senate required under section 13(3) (relating to emergency lending authority); and 4. such other information as the Board reasonably believes is necessary or helpful to the public in understanding the accounting, financial reporting, and internal controls of the Board and the Federal reserve banks. https://www.federalreserve.gov/aboutthefed/fract.htm What this is is a lot of vague warm-and-fuzzy clauses that a casual reader will interpret as public accountability, however, as there are no useful specific requirements, nor repercussions for the falsification of data (which cannot be proven, as the Fed is not required to provide details about the transactions it makes), there is effectively no audit unless the Fed volunteers this data. I'm going to bet that you do not believe me. So I am going to provide proof of my claims. If the audits were conducted with factual data and factual statements, where'd the 9 trill go? https://www.youtube.com/watch?v=q9pnc7IXpC0 And here's why Bernie has the popular support of the democrats, but will never get elected: https://www.youtube.com/watch?v=1E-vp4DksBc There's no proof, it's all hear-say, but there's belief that this money went to the Rothschild's, Carnegie's, and the other Federal Reserve stockholders (although we can't even prove that, since they stockholders are kept private).
that's ridiculous, deflation is more dangerous than inflation it really is hard for me to believe people can be so easily fooled, as you have
what you said about the graph isn't constant value it's an average, it's like saying the average height of a roller coaster means something significant
if one coaster had an average height of 5' and another had an average height 500' that would mean something significant about difference in coasters-right?
inflation can only be caused by too much money so the solution is to reduce the money supply. Now do you understand? IF you have wage inflation, they you deflation somewhere else given a constant money supply so there is no net inflation. Now do you understand?.
I understand you don't understand there are different forms of Inflation. Monetary Inflation is causes by monetary policies of government and/or central bank. Wage Inflation is caused by a rapid rise in wages resulting in a rapid rise in prices. The rapid rise in wages is often limited to only sectors of the economy. Twice in the history of the US, Wage Inflation took place. Each time it did, FDR and Nixon levied Wage & Price Controls, freezing both wages and prices to keep the from rising. The reason your health care plans are through your employer is due to Wage Inflation and the Wage & Price Controls put in place by FDR. Cost-push Inflation is a rise in prices do to regulatory costs enacted by governments at all levels. Demand-pull Inflation is a rise in prices due to Demand outstripping Supply. Food prices are currently affected by both Demand-pull Inflation and Cost-push Inflation (because of government policies related to Ethanol production decreases the Supply of Corn available to Food Markets. The solution to Demand-pull Inflation is either increase Supply or decrease Demand. It has nothing to do with central banks and monetary policies. Interest Inflation is caused by government or central bank policies that make too much cash or credit available for items tied to Interest Rates such as housing and university tuition. Other policies can interfere such as government backed mortgages. That's why housing prices are inflated and tuition at university is also inflated. Eliminate the source of cash/credit This stuff is all covered in 4th year ECON classes.
it means you know little to nothing about monetary economics that's not true, inflation can happen while the money supply remains static if the demand for money drops, its value is lower and prices go up
You're literally making stuff up. Too much money is not the only way inflation can be caused. Wage inflation does not need to cause deflation somewhere else. Someone doesn't understand velocity and the quantity theory of money.
I understand you're hopelessly lost. Wage Inflation during FDR's tenure occurred during a period of Real Monetary Deflation. Ooops.
of course if true you would explain how you can wage inflation and no deflation somewhere else given a constant supply of money. Isn't thinking fun?
Another way of looking at what the graph presented in post #63 is showing: $1 in 1776 → $25.69 in 2013 - Between 1776 and 2013, the U.S. experienced inflation at an average rate of 1.38% per year. $1 in 1776 → $1.09 in 1913 - Between 1776 and 1913, the U.S. experienced inflation at an average rate of 0.06% per year. $1 in 1913 → $23.53 in 2013 - Between 1913 and 2013, the U.S. experienced inflation at an average rate of 3.21% per year. Had inflation remained at 0.06% per year $1 in 1776 → $1.15 in 2016 What is this thread trying to accomplish?
that prices are rising faster than wages and we are getting poorer. It is true that libsocialism makes all countries poorer and we are no exception. We will have to move toward capitalism to change things.
Of course, prior to the industrial revolution most needs and wants were possible to be produced by a single person or small number of persons whose labour was the primary source of the price.
If you want to live like someone prior to the industrial revolution right now it would be very easy, lol. Most needs are met now and the rest is just what people want. - - - Updated - - - There's more dollars. - - - Updated - - - Velocity. Isn't thinking fun? Lol.
It would. Most of all, people want to work less and live longer. Quite obvious considering it takes about 25 of them to purchase what 1 did in 1776 and about 24 to purchase what 1 did prior to 1913. Per the Fed there are about 4 times as many dollars as there was less than a decade ago.
The point of this thread is to debate about inflation, in many areas, and debate about the cause and effects. Change does not happen in Internet forums, but perception(s) are created that have a lasting impact on people's judgement and decisions, even if it's only a few, or just mine. Based on my own experiences abroad, about one in twenty people really understand inflation, the federal reserve system, and the role of government vs. private banks in financial processes and policies of the United States. Less than one in a hundred would vote for a politician based on their positions regarding these systems, or settle with a mere vague and generalized comment about the need for banking "reform". This is all despite the fact that when voting, or expressing political stance, 90% of a person's vote comes from their perception of how this candidate will affect their Security, Revenue, Quality of Life, and Values. Despite the U.S.'s advances in educational resources, the quality of educators, literacy rates of citizens, and the availability of information available to common citizens, (generally) people still fail to understand the workings, or fundamental mechanic of: Job Growth, Employment Rates, Wages, Prices, Business Growth, and all-inclusive Prosperity; which is money. 4 Facts Any American should Understand Fully 1. Security of employment without the security of Wages will lead to the detriment of the working classes. 2. Security of businesses without the security of investment will lead to the detriment of commerce. 3. The sacrifice of futurity as a means to subsidize the prosperity of today's generation through debt will lead to the detriment of security. 4. When the power of the government is derived from the financial interests of the few and not the people, it will lead to the detriment of liberty.
You don't seem to know what is about since you are talking about many economic subjects besides inflation. So, you should be talking about capitalism and its most basic characteristics. This is the best way to introduce the subject which is always capitalism versus socialism.
Yes but in the last decade we've all bought smart phones for example so we are doing very very despite 4 times as may dollars.
