WHOAH EVERYBODY! Better look out for that inflation!

Watermark said:
We're headed into an unsustainable hole if we just keep on printing all this money! Look at how high our inflation has gone!

http://www.inflationdata.com/inflation/Inflation_Rate/CurrentInflation.asp


Jan 2009 0.03%

Dec 2008 0.09 %

Nov. 2008 1.07%

Oct. 2008 3.66%

Sep. 2008 4.94%



Pretty clear inflationary pattern there if you ask me!
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Inflation only matters for people who actually work for money. Bankers and politicians control the printing press, so they don't really care about it.
 
Watermark said:
We're headed into an unsustainable hole if we just keep on printing all this money! Look at how high our inflation has gone!

http://www.inflationdata.com/inflation/Inflation_Rate/CurrentInflation.asp


Jan 2009 0.03%

Dec 2008 0.09 %

Nov. 2008 1.07%

Oct. 2008 3.66%

Sep. 2008 4.94%



Pretty clear inflationary pattern there if you ask me!
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It's indicative of the beginning of a deflationary spiral. You know, that thing we were trying to stave off with the government giveaways?
 
Dungheap said:
The ones that were enacted way too fast in February of 2009, a month for which we have no data yet?
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Yup. And it wasn't "too fast" it was hurried unnecessarily. Promising days before it was passed that it would be up for constituent reading 2 days before a vote, etc.

It is disingenuous to suggest you cannot be both fast and prudent at the same time, or that I said that we should have slowed it down by months or some other inanity that you suggest here and just because you are in the beginnings of a deflationary spiral doesn't mean that overspending on research is necessarily the cure.

Also, it ignores the 700 Billion dollar package that was voted on during Bush's term also hurriedly and without a chance for prudence.
 
Damocles said:
It's indicative of the beginning of a deflationary spiral. You know, that thing we were trying to stave off with the government giveaways?
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First thing for any recovery is to recognize why you are in that situation.
To try and beat some more miles from the now dead horse you rode in on is useless.

Feed it money, beat it. The result is the same.
 
Damocles said:
Yup. And it wasn't "too fast" it was hurried unnecessarily. Promising days before it was passed that it would be up for constituent reading 2 days before a vote, etc.

It is disingenuous to suggest you cannot be both fast and prudent at the same time, or that I said that we should have slowed it down by months.

Also, it ignores the 700 Billion dollar package that was voted on during Bush's term also hurriedly and without a chance for prudence.
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It's not rocket science here damo. Inflation is at 0%. Interest rates are at 0%. Probably the only way to rectify the situation is through economic stimulus. If we do head into a massive deflationary trap it wouldn't be good for our debt in the long run anyway, would it?

This was mostly posted in response to the right wingers promising Zimbabwe like inflation (that sentence is linked, for those who use a scheme that colors links the same color as normal text) because of the stimulus package. The package shouldn't be called "inflationary" but anti-deflationary. It's a stabilizer, not a catalyst.
 
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uscitizen said:
First thing for any recovery is to recognize why you are in that situation.
To try and beat some more miles from the now dead horse you rode in on is useless.

Feed it money, beat it. The result is the same.
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I agree. Stupid spending. Then to post this inanity. See? It's going down, our spending will never catch up with us! (he says)...

Pointing out that there is trillions on the sideline and that it is when it is brought back into the market that inflation will begin... *sigh*
 
Watermark said:
It's not rocket science here damo. Inflation is at 0%. Interest rates are at 0%. Probably the only way to rectify the situation is through economic stimulus. If we do head into a massive deflationary trap it wouldn't be good for our debt in the long run anyway, would it?
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No, it wouldn't. The money would be worth less than it is now, yet the debt would remain the same. If the debt "deflated" at the same rate as the currency I'd say it would all be good. More debt isn't the answer either, Japan proved that with 15 years of stagnant and under performing economy buttressed by increased government spending 10 total "stimulus packages" later and they still under perform.

So, imagine if you made half what you do, yet still owed 100% of your car payments...
 
Damocles said:
No, it wouldn't. The money would be worth less than it is now, yet the debt would remain the same.

So, imagine if you made half what you do, yet still owed 100% of your car payments...
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Damo, if the value of money goes down, the value of your debt would go down. Inflation counters debt rates. Use a little common sense.

The deflationary spiral would cause a great depression. It's the choice between making half of what you do now in 10 years and owing 100% of your car payments, or making what you make now in 10 years and owing 100% of your car payments. Your call.
 
Watermark said:
Damo, if the value of money goes down, the value of your debt would go down. Inflation counters debt rates. Use a little common sense.

The deflationary spiral would cause a great depression. It's the choice between making half of what you do now in 10 years and owing 100% of your car payments, or making what you make now in 10 years and owing 100% of your car payments. Your call.
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No, it wouldn't.

If you owe 250K on your house, and because of deflation you made less in each paycheck (your pay was cut), you would still owe 250K, yet would make less. Stop being emotive and think it through, debt accrued before the deflation would maintain its level and be worth more to the people holding the debt. At some point it becomes better to take the hit in your credit and walk away.
 
Damocles said:
No, it wouldn't.

If you owe 250K on your house, and because of deflation you made less in each paycheck (your pay was cut), you would still owe 250K, yet would make less. Stop being emotive and think it through, debt accrued before the deflation would maintain its level and be worth more to the people holding the debt. At some point it becomes better to take the hit in your credit and walk away.
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Yeah Damo. Deflation is bad for debt holders.
 
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