Isnt one of the reasons the soviet union went bankrupt that they just kept printing rubles? Isnt that what we are doing now with the dollar just printing more money with nothing to back it ? If this is the case wouldnt it be expected that we too will have a large scale economic downfall?
I'm really new at this economic stuff so, take it easy on me if i sound retarded. I do appreciate any helpful feed back though, the simpler the better. I just learned what fiat meant if that gives you any idea where im at
Topic: Currency War Imminent - page 2. (Read 3217 times)
+1 for that post stochastic!
That chart is a great example of why inflation is USELESS for the majority of people (poor and 'working class') when all it does is deplete the value of their savings (in cash), while maintaining the wealth of the rich, who just hoard the new inflationary money into speculative investments for 'further' gains.
Thank you for the competition, Bitcoin
That chart is a great example of why inflation is USELESS for the majority of people (poor and 'working class') when all it does is deplete the value of their savings (in cash), while maintaining the wealth of the rich, who just hoard the new inflationary money into speculative investments for 'further' gains.
Thank you for the competition, Bitcoin
That is the most fantastic quote about inflation I've ever read 
I agree. The best statements are true and funny at the same time. This one qualifies.
Here's another one from the wall thread:
Bears are fighting with limited ammunition, bulls have factorys making more and more ammunition everyday 
That is the most fantastic quote about inflation I've ever read
I don't really understand how inflation is going to happen if people already have too many loans?
Central banks printing money is one thing, but for that money to go into circulation it's quite another,
since there are not that many people able to take new loans and hence, help the newly printed money
go into circulation and ultimately cause inflation. I'd say that for the time being, it is only banks
that are being helped to remain afloat.
But then, I'm no expert and I am always willing to learn from more knowledgeable people.
Central banks printing money is one thing, but for that money to go into circulation it's quite another,
since there are not that many people able to take new loans and hence, help the newly printed money
go into circulation and ultimately cause inflation. I'd say that for the time being, it is only banks
that are being helped to remain afloat.
But then, I'm no expert and I am always willing to learn from more knowledgeable people.
It is not just inflation that is the worrying thing, it inflation along with a stagnant economy, stagflation. Stagflation is the phenomenon of high unemployment, low economic growth, and increasing prices of goods and services, these are things that should not happen according to Keynesian economics. In that economic model high unemployment should mean less people have money which would lower prices, and when the economy is booming it should make more people employed and thus increase inflation.
What most people fail to realize is that there are 2 economies of the world. There is the traditional lending business that banks do and the other business of speculating in financial markets, such as FOREX. If you compare the FOREX market with the traditional lending market you will see it is several times larger than the traditional economy.
source
What is happening is that the central banks of the world are lending money to banks at low rates and instead of banks lending the money out for traditional loans, the banks are using it on speculative investing. This flow of capital into commodity and other markets increase the price of commodities and stocks, which causes inflation.
I don't really understand how inflation is going to happen if people already have too many loans?
Central banks printing money is one thing, but for that money to go into circulation it's quite another,
since there are not that many people able to take new loans and hence, help the newly printed money
go into circulation and ultimately cause inflation. I'd say that for the time being, it is only banks
that are being helped to remain afloat.
But then, I'm no expert and I am always willing to learn from more knowledgeable people.
Central banks printing money is one thing, but for that money to go into circulation it's quite another,
since there are not that many people able to take new loans and hence, help the newly printed money
go into circulation and ultimately cause inflation. I'd say that for the time being, it is only banks
that are being helped to remain afloat.
But then, I'm no expert and I am always willing to learn from more knowledgeable people.
You're on the right track. To properly calculate or predict inflation, you need to factor not just the money supply but also the velocity of money. If you Google "velocity of money" it should give you more than enough information.
I think the idea is to reflate the bubble so people can borrow again against their equity.
Bernanke even said that this is his goal, to reinflate the housing bubble so people can borrow out their new equity and spend it and he is trying to achieve this by purchasing 40bil/month of mortgage securities.
Bernanke even said that this is his goal, to reinflate the housing bubble so people can borrow out their new equity and spend it and he is trying to achieve this by purchasing 40bil/month of mortgage securities.
I don't really understand how inflation is going to happen if people already have too many loans?
Central banks printing money is one thing, but for that money to go into circulation it's quite another,
since there are not that many people able to take new loans and hence, help the newly printed money
go into circulation and ultimately cause inflation. I'd say that for the time being, it is only banks
that are being helped to remain afloat.
But then, I'm no expert and I am always willing to learn from more knowledgeable people.
Central banks printing money is one thing, but for that money to go into circulation it's quite another,
since there are not that many people able to take new loans and hence, help the newly printed money
go into circulation and ultimately cause inflation. I'd say that for the time being, it is only banks
that are being helped to remain afloat.
But then, I'm no expert and I am always willing to learn from more knowledgeable people.
Great quote from this article:
Quote
“Devaluing a currency is like peeing in bed,” a Federal Reserve official told The Journal. “It feels good at first, but pretty soon it becomes a real mess.”
Too bad people are oblivious to what's about to happen.
Great quote from this article:
Quote
“Devaluing a currency is like peeing in bed,” a Federal Reserve official told The Journal. “It feels good at first, but pretty soon it becomes a real mess.”
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