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The Great Inflation
#41
Palladin Wrote:Most of us probably won't see it,John. We'll have an inflationary spiral and successfully blame it on the "evil Chinese" or maybe easier on some "evil Arabic/Muslim oil producers".

At the rate of cynicism we're conducting business with,I can imagine the entire globe revolting against us in this generation.

Not necessarily war,but,there is going to be a concensus across the globe to find a better avenue of global economy than the US dollar with it's advantages to us and all.

Simply put,the Americans clearly do not deserve the respect of the globe and it seems reasonable to assume we'll be relieved of our advantages at some point because of it.

I am gonna say capatalism will be blamed. It will be used to gain more government control to save us from the greedy capatalist pigs. That's my guess anyways.
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#42
You're probably right Bill.
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"Falsehood flies, and truth comes limping after it" - Jonathan Swift, 1710
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#43
You're probably right Bill.
___________________________________________________________________________________________________
"Falsehood flies, and truth comes limping after it" - Jonathan Swift, 1710
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#44
Krugman, the next fed chief, will kill inflation in its womb.

However, this could be a problem even larger than Dr. Krugman's abilities:

Some experts say $5 per gallon gas is possible by Memorial Day-or sometime in summer.
Jefferson: I place economy among the first and important virtues, and public debt as the greatest of dangers. To preserve our independence, we must not let our rulers load us with perpetual debt. We must make our choice between economy and liberty, or profusion and servitude. If we can prevent the government from wasting the labors of the people under the pretense of caring for them, they will be happy.
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#45
Krugman, the next fed chief, will kill inflation in its womb.

However, this could be a problem even larger than Dr. Krugman's abilities:

Some experts say $5 per gallon gas is possible by Memorial Day-or sometime in summer.
Jefferson: I place economy among the first and important virtues, and public debt as the greatest of dangers. To preserve our independence, we must not let our rulers load us with perpetual debt. We must make our choice between economy and liberty, or profusion and servitude. If we can prevent the government from wasting the labors of the people under the pretense of caring for them, they will be happy.
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#46
jt Wrote:Krugman, the next fed chief, will kill inflation in its womb.

However, this could be a problem even larger than Dr. Krugman's abilities:

Some experts say $5 per gallon gas is possible by Memorial Day-or sometime in summer.

The problem is Keynesian economics, which enables Collectivists to force their Utopian thinking on everyone else.
___________________________________________________________________________________________________
"Falsehood flies, and truth comes limping after it" - Jonathan Swift, 1710
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#47
jt Wrote:Krugman, the next fed chief, will kill inflation in its womb.

However, this could be a problem even larger than Dr. Krugman's abilities:

Some experts say $5 per gallon gas is possible by Memorial Day-or sometime in summer.

The problem is Keynesian economics, which enables Collectivists to force their Utopian thinking on everyone else.
___________________________________________________________________________________________________
"Falsehood flies, and truth comes limping after it" - Jonathan Swift, 1710
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#48
... closer to 10% ...

Seems a bit short of Peanut's record, but if it stays headed in this direction who knows?
"Democracy is the theory that the common people know what they want and deserve to get it good and hard."
-- Henry Mencken
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#49
... closer to 10% ...

Seems a bit short of Peanut's record, but if it stays headed in this direction who knows?
"Democracy is the theory that the common people know what they want and deserve to get it good and hard."
-- Henry Mencken
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#50
Fred: Our debt was half that till Bush TARPed us and then Obama got into power and really pumped up the spending.

John: Gas is well over $4 here. I've seen premium for 4.69 in places. (I don't buy premium. I don't fall for marketing to the stupid.)
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#51
Fred: Our debt was half that till Bush TARPed us and then Obama got into power and really pumped up the spending.

John: Gas is well over $4 here. I've seen premium for 4.69 in places. (I don't buy premium. I don't fall for marketing to the stupid.)
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#52
you are certainly familiar with the term wage-price spiral? probably the most gang-raped one by conservatives. not at work here, but it's the profit-price spiral. a term you never hear, but very real.
"You know, Paul, Reagan proved that deficits don't matter." Dick Cheney
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#53
you are certainly familiar with the term wage-price spiral? probably the most gang-raped one by conservatives. not at work here, but it's the profit-price spiral. a term you never hear, but very real.
"You know, Paul, Reagan proved that deficits don't matter." Dick Cheney
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#54
BillPrestonEsq Wrote:
Palladin Wrote:Most of us probably won't see it,John. We'll have an inflationary spiral and successfully blame it on the "evil Chinese" or maybe easier on some "evil Arabic/Muslim oil producers".

At the rate of cynicism we're conducting business with,I can imagine the entire globe revolting against us in this generation.

Not necessarily war,but,there is going to be a consensus across the globe to find a better avenue of global economy than the US dollar with it's advantages to us and all.

Simply put,the Americans clearly do not deserve the respect of the globe and it seems reasonable to assume we'll be relieved of our advantages at some point because of it.

I am gonna say capitalism will be blamed. It will be used to gain more government control to save us from the greedy capitalist pigs. That's my guess anyways.
No. The rest of the world is getting wealthier by using the capitalist template. Never in the history of the world have so many nations improved themselves - and in every instance of improvement - the improving nations have moved toward the U.S. model - not away from it.

The many improving nations are not all THERE yet, but are getting closer. The fear of stumbling when they are so very close to stability and comfort will allow them to use the US as a scapegoat - but not too much - because they all want to become what the US is.

In his book, The Post American World (which Obama was seen reading), Fareed Zacarius documented the huge advances everywhere, and how the US has slipped in many categories from number one - but draws the wrong conclusion. He thinks the US is doomed to become a second-class nation - thereby aping the zero-sum theory. Because many countries are getting better doesn't mean anyone is going in the wrong direction - just that there is more competition.

Obama and his Progressives may believe the zero-sum argument means the West is doomed - but it really means they, who preach such a provably wrong idea, will be seen for what they are in the full light of history.
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#55
BillPrestonEsq Wrote:
Palladin Wrote:Most of us probably won't see it,John. We'll have an inflationary spiral and successfully blame it on the "evil Chinese" or maybe easier on some "evil Arabic/Muslim oil producers".

At the rate of cynicism we're conducting business with,I can imagine the entire globe revolting against us in this generation.

Not necessarily war,but,there is going to be a consensus across the globe to find a better avenue of global economy than the US dollar with it's advantages to us and all.

Simply put,the Americans clearly do not deserve the respect of the globe and it seems reasonable to assume we'll be relieved of our advantages at some point because of it.

I am gonna say capitalism will be blamed. It will be used to gain more government control to save us from the greedy capitalist pigs. That's my guess anyways.
No. The rest of the world is getting wealthier by using the capitalist template. Never in the history of the world have so many nations improved themselves - and in every instance of improvement - the improving nations have moved toward the U.S. model - not away from it.

The many improving nations are not all THERE yet, but are getting closer. The fear of stumbling when they are so very close to stability and comfort will allow them to use the US as a scapegoat - but not too much - because they all want to become what the US is.

In his book, The Post American World (which Obama was seen reading), Fareed Zacarius documented the huge advances everywhere, and how the US has slipped in many categories from number one - but draws the wrong conclusion. He thinks the US is doomed to become a second-class nation - thereby aping the zero-sum theory. Because many countries are getting better doesn't mean anyone is going in the wrong direction - just that there is more competition.

Obama and his Progressives may believe the zero-sum argument means the West is doomed - but it really means they, who preach such a provably wrong idea, will be seen for what they are in the full light of history.
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#56
[Image: holb110422_cmyk20110420093914.jpg]
___________________________________________________________________________________________________
"Falsehood flies, and truth comes limping after it" - Jonathan Swift, 1710
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#57
Wml,
The capitalist template yes, the US template no. Because the US system is where everything grew overpriced and continue to grow exponentialy more prohibitively expensive in many sectors, I'd call uncontrolable: Healthcare, education, defense, to name only three.

I was reading about an economist a few days ago who said that taking an college loan is not even profitable anymore.
That sounds crazy but yes: Numbers tells that you'd better have a lower income out of a lower qualified job than paying back your loan half of your life.

When you reach the point when poeple notice that and chose not to go to school because it's not worth it, you enter a phase of net decadence.
So far poeple are still attracted by the idea to have a more prestigeous job, or the job that they like but soon it will come because poeple understand economics very quickely.

In Lithunia, a country that improved in the last two decades thanks to capitalism and low taxes, faced this reaction immediately after they align college and university fees to real costs: The number of students dropped by half.
In Lithuania like in east euro countries, the situation is more obvious because of the more contrasted difference between the absurdly low salaries that poeple currently get for a certain job and the cost of education to get this job. A cost that is nowhere near what poeple could afford to borrow. Even if it's still 1/10th of average US college costs.

In the US, the contrast is not so high because everything is swamped in overpricing but the realy huge cost of education is a significant drag on the economy and a push on inflation.

Why is education so expensive is a question to be asked in the context of spending cuts, just like it's asked for healthcare and timidly for defense.

The difference is that education is largely private, but it remains a national issue, an issue for the future of the nation.
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#58
fredle... Wrote:When you reach the point when poeple notice that and chose not to go to school because it's not worth it, you enter a phase of net decadence.
I am not sure how you construe decadence. I know many people in the trades who make quite a good living without a college degree. Is it that they do not appreciate the importance of Clytemnestra?

Lots of high school kids drop out "because it's not worth it" I think. They can do better pushing drugs or getting knocked up and on the dole. Now there is the decadence.
Quote:The difference is that education is largely private, but it remains a national issue, an issue for the future of the nation.
I don't think college education in the US is largely private. Certainly K-12 is a 98+% gummint monopoly. However, even the state run colleges seem to be overpriced for what they deliver. K-12 probably costs 2x as much per student as it should.

Education has been a "national issue" in the US for at least 20 years. During this time, vast (even massive) amounts of money has been spent on studies and "innovation" of all sorts. "Scholars" in education have looked for the "magic method" by which to turn indifferent adolescents into avid pubescent scholars. None have been found. None of this deters the politicians who want further studies, higher salaries and smaller class sizes. Moreover, the expense does not seem to deter the proletariat who seem endlessly willing to pay more taxes in the search for the holy grail of education.

I wot that the resolution of the education issue will not be resolved in our lifetimes.
Jefferson: I place economy among the first and important virtues, and public debt as the greatest of dangers. To preserve our independence, we must not let our rulers load us with perpetual debt. We must make our choice between economy and liberty, or profusion and servitude. If we can prevent the government from wasting the labors of the people under the pretense of caring for them, they will be happy.
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#59
[Image: lb0429cd20110429121410.jpg]
___________________________________________________________________________________________________
"Falsehood flies, and truth comes limping after it" - Jonathan Swift, 1710
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#60
A couple of basic economic points from this thread. First, logically speaking, the price of money (i.e. if the price of a hamburger is $1, then the price of $1 is one hamburger) is determined by both supply and demand. Demand can be a somewhat trickier thing to get your head around than supply, which is just a single number, but it's there.

Commodity prices likewise come from supply (of the commodities) and demand. It's not entirely clear which force is more important here - I've heard conflicting things. Inventories change depending on which is more important - inventories in some things are going up, and other things are going down, and I'd love to get a straight answer on this.

The US is not responsible for China. If we print more dollars, and we know China's going to print more Yuan in response, and China prints more Yuan, then their inflation is still their problem. Prices in China are lower than in the US, and they will become equal either through revaluation or inflation - that's the invisible hand.
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