General Discussion

cthulu2016

(10,960 posts)

79. Why is that?

Mon Apr 23, 2012, 11:33 AM

Apr 2012

It sounds bumber-stickery... why is an economy requiring a low level of inflation to not stall a problem? Is a body that has to stay above room tempertature to survive a problem?

And must we call metabolism a fever?

Edit history

Please sign in to view edit histories.

Recommendations

0 members have recommended this reply (displayed in chronological order):

105 replies

= new reply since forum marked as read

Highlight:

The progressive issue many progressives don't seem to like [View all] cthulu2016 Apr 2012 OP

I disagree with... Scuba Apr 2012 #1

Real world cthulu2016 Apr 2012 #3

It's time to raise rates. girl gone mad Apr 2012 #57

Keynesian policy is failing precisely because the US does not manufacture anymore. Selatius Apr 2012 #63

Keynesian policy is not failing cthulu2016 Apr 2012 #81

Keynesian policy would fail, were it implemented. girl gone mad Apr 2012 #94

That balance sheet recession wouldn't have happened if people didn't borrow excessively. Selatius Apr 2012 #95

People with impaired balance sheets cthulu2016 Apr 2012 #96

What happens when the stimulus is over? Are you going to cut food stamps? dkf Apr 2012 #45

Increased Economic Activity, Ma'am, Will Result From The Expenditures The Magistrate Apr 2012 #48

So you do think it is feasible to cut a person's food stamps benefits when the economy dkf Apr 2012 #65

No, you cut a person's food stamps when they, as an individual, no longer need them. Scuba Apr 2012 #66

I agree with you but the inflation must be natural, controlled inflation and not banned from Kos Apr 2012 #2

The helicopter drop would be fine cthulu2016 Apr 2012 #4

Well, no one knows what a helicopter drop is banned from Kos Apr 2012 #9

Increasing the "money supply" does not cthulu2016 Apr 2012 #17

It is a metaphor for QE Ruby the Liberal Apr 2012 #44

No it isn't. What you call QE is just bond buying. That bond sits on the Fed's balance banned from Kos Apr 2012 #68

No, it's a metaphor for government borrowing and spending cthulu2016 Apr 2012 #80

He claimed Bernanke was the greatest chairman in the history of the Fed?? KamaAina Apr 2012 #91

It was a well thought out and superbly Ruby the Liberal Apr 2012 #92

Post removed Post removed Apr 2012 #97

Time Man of the Year, eh? KamaAina Apr 2012 #98

Low inflation hurts retirees? Since when? badtoworse Apr 2012 #5

The bulk of income for non-wealthy elderly cthulu2016 Apr 2012 #6

Severely Reduces Interest Income, Sir The Magistrate Apr 2012 #8

Very few average elderly live off savings interest cthulu2016 Apr 2012 #11

You Would Be Surprised, Sir, At Least Among The Present Cohort The Magistrate Apr 2012 #16

High inflation erodes buying power faster than higher yields can compensate for it. badtoworse Apr 2012 #12

If The C.O.L.A. Is Calculated Honestly, Sir, That Is Not The Case The Magistrate Apr 2012 #19

If is a big word badtoworse Apr 2012 #20

The O.P.'s Second Point, Sir Should Not Be Overlooked The Magistrate Apr 2012 #23

Thank you for noting that cthulu2016 Apr 2012 #28

That is very true badtoworse Apr 2012 #34

Yeah. IF. Have you seen the hocus pocus games being played with COLAs lately? Zalatix Apr 2012 #38

Deflation is best for all RobertEarl Apr 2012 #13

deflation? cthulu2016 Apr 2012 #15

Oh? RobertEarl Apr 2012 #18

It Makes Debtors Pay In Currency Worth More Than That They Borrowed, Sir The Magistrate Apr 2012 #21

Debt RobertEarl Apr 2012 #26

Let Me Guess, Sir: Specie Currency? The Magistrate Apr 2012 #29

In deflation the only thing that increases in value cthulu2016 Apr 2012 #24

Most of us RobertEarl Apr 2012 #30

There are huge numbers of people of people struggling with debt badtoworse Apr 2012 #37

They asked for the debt RobertEarl Apr 2012 #41

Deflation has many facets Art_from_Ark Apr 2012 #50

re: reduced interest rates cthulu2016 Apr 2012 #56

I also experienced the high inflation of the '70s in the US Art_from_Ark Apr 2012 #59

Deflation = fewer dollars in your hands, more in the hands of the rich. Zalatix Apr 2012 #39

Funny thing about hyper-inflation... cthulu2016 Apr 2012 #58

Wheelbarrow full of marks Art_from_Ark Apr 2012 #60

That's when you switch to a barter economy. Zalatix Apr 2012 #62

I believe that's why America inflated its way out of its debt right after World War II. Zalatix Apr 2012 #61

here is a video that will help you understand Dokkie Apr 2012 #69

Nonesense, Sir: Debtors And The Poor Do Not Gain By Deflation The Magistrate Apr 2012 #72

I never said debtors gained from deflation Dokkie Apr 2012 #75

In Plain English, Sir The Magistrate Apr 2012 #76

So reading my last post Dokkie Apr 2012 #87

No Idea What You Mean, By Now, Sir, And No Reason Even To Think You Know, Either The Magistrate Apr 2012 #93

Let's do a little thought experiment to show just how wrong you are. jeff47 Apr 2012 #46

You have $40,000 in savings in an inflationary economy Art_from_Ark Apr 2012 #64

That $40k isn't sitting under your mattress jeff47 Apr 2012 #74

In a deflationary economy, people are still selling stuff Art_from_Ark Apr 2012 #77

Ok, apparently you're going to take everything I say extremely literally jeff47 Apr 2012 #78

Why is a 2% mortgage a good thing? cthulu2016 Apr 2012 #82

I mostly agree with you but also agree with badtoworse.Retirees would suffer horribly with inflation stevenleser Apr 2012 #7

If Social Security C.O.L. A. Were Adjusted Honestly, Sir, This Would Be Minimized The Magistrate Apr 2012 #10

Agreed. nt stevenleser Apr 2012 #47

Actually... cthulu2016 Apr 2012 #14

The idea that. sendero Apr 2012 #22

The willingness to reject facts cthulu2016 Apr 2012 #25

I really doubt the sanity of an economic system ... GeorgeGist Apr 2012 #70

Why is that? cthulu2016 Apr 2012 #79

Anyone who buys groceries.. sendero Apr 2012 #99

Your reliance on anecdote cthulu2016 Apr 2012 #102

Across the board sendero Apr 2012 #103

there has been no net inflation since the financial meltdown of 2008. banned from Kos Apr 2012 #27

People buy milk and gas every week cthulu2016 Apr 2012 #31

And Those Daily Prices, Sir, Are Excluded From C.O.L.A. Calculations The Magistrate Apr 2012 #33

Since Cola stands for Cost of Living Adjustment... cthulu2016 Apr 2012 #36

I track milk and gas and they were amazingly close 2008-now banned from Kos Apr 2012 #35

And I would expect.. sendero Apr 2012 #100

Whatever you think of the poster cthulu2016 Apr 2012 #101

Above my head, but it seems to make common sense. nt Honeycombe8 Apr 2012 #32

"With one exception... the issue that matters the most. The Macro-Economy..." unkachuck Apr 2012 #40

China is the realy reason we have no inflation to speak of johnd83 Apr 2012 #42

They don't anymore jeff47 Apr 2012 #49

Interesting economic lesson there. Zalatix Apr 2012 #53

A side issue... cthulu2016 Apr 2012 #55

A bad purchase actually helps them. jeff47 Apr 2012 #73

My point is that plenty of others are willing to make that purchase cthulu2016 Apr 2012 #83

Theoretically, China could have bid 'em up to the point where no one else was buying. (nt) jeff47 Apr 2012 #86

To sustain the Dollar, they needed to buy more and more and more treasuries jeff47 Apr 2012 #71

Yes... but cthulu2016 Apr 2012 #84

And a strong Yuan, converted into weak Dollars would buy even more oil. (nt) jeff47 Apr 2012 #85

Our greenbacks are no use to them johnd83 Apr 2012 #104

Treasuries aren't dollars. They're loans. jeff47 Apr 2012 #105

There's a big flaw with this idea MadHound Apr 2012 #43

Note that time frame cthulu2016 Apr 2012 #52

It would take a radical restructuring of society at this point to change that trend.. Fumesucker Apr 2012 #67

marking for later. nt Mojorabbit Apr 2012 #51

Rust spots on a rivet on a deck chair on the Titanic. saras Apr 2012 #54

Your causality between inflation and economic growth is backwards. JVS Apr 2012 #88

Your assumption that I suggest such a causality is erroneous cthulu2016 Apr 2012 #89

Congrats on the best thread on inflation/deflation and the Fed I have seen banned from Kos Apr 2012 #90