We went thought this same shit in the 80's with the collapse of the S&L's. We came out of that. We will come out of this.
Give us you solution to inflation
- Thread starter evince
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We went thought this same shit in the 80's with the collapse of the S&L's. We came out of that. We will come out of this.
T. A. Gardner
Serial Thread Killer
Actually, several people, including myself, have. The Greentard agenda is a massive fail. There isn't one country where it has been implemented that energy costs didn't skyrocket, and the economy do worse. Germany, Spain, Australia, Italy, etc., all show that the Left's solutions are failures in this respect.
The working solution is one the Left won't accept: N2N+H
That is, natural gas to nuclear plus hydrogen. That means abandoning wind and solar, going nuclear with natural gas bridging the implementation, and then using hydrogen--either liquid hydrogen or anhydrous ammonia as the portable fuel in fuel cell vehicles for energy. The Left's energy solutions are proven expensive and unworkable.
That fixes the energy sector.
We then dump ethanol entirely and revert that farmland to growing crops for food rather than expensive, polluting alternate fuel that the Left wants and doesn't work.
If anything, it is YOU that hasn't presented a solution that works.
ExpressLane
Verified User
Yes we are facing a worldwide food shortage and Biden wants to burn more corn. It makes ZERO sense. But little that Biden does makes sense.
no, recession is assured. just how deep/long and if Powell drives it into depression. that $9t of his balance sheet is the wild card as there is really no history to help plot a way out of that.
ExpressLane
Verified User
The 50-50-90 rule is Biden's rule.
ExpressLane
Verified User
Are you kidding? This is much better. So many people lost so much with that collapse. Believe me.. we are much better of just waiting out this cycle.
no, I am not kidding. We didnt have $9trillion on Fed balance sheet to sell off on top of shockingly high inflation and food shortages.
No, it does not. Rates higher than inflation still had double digit inflation in the 1970's.
Raising the rates reduces loans, and slows down the economy. In turn that decreases private money creation, and the overall velocity of money. That goes on to [usually] reduce inflation. It is not a one to one thing. One percentage point of rates does not translate into one percentage point of reduction.
This all goes back to Greenspan, he's responsible for breaking the fed.
We have been on the edge of deflation for so long, we have grown used to it. I am almost happy to see us overshooting inflation targets. I would actually be happy if it were a little more reasonable at 4%.
Whatever else has happened recently, the threat of deflation has been defeated for the time being.
Real quick Just estimate: As of 1/1/1990 what is the NPV of $9 trillion.
Don't forget to take into account the NVP of future cash flows of interest payments. Asssume baseline of 1.5% and look at t-bill rates online from that period to now.. you can then use time series analysis. If you can't find the forumuals online I can provide them for you.
If you know what you're talking about you should have the answer in about 10 min.
T. A. Gardner
Serial Thread Killer
Well, what do you want from the class idiot?
I can do 4%.. that means 30 year mortgage rates will be a few points higher which does not put home ownership out of reach.
ExpressLane
Verified User
Maybe he should plagiarize
Trump's work.
Lightbringer
Loves Me Some Souls
Flood the market with cheap diesel fuel.
cancel2 2022
Canceled
I have the loony on ignore, has she mentioned Austrian economics yet? The real worry now is stagflation and I worry much doubt that she even knows what that is.
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2% is the target inflation. It allows some cost to just holding money, without too much cost. It allows some decrease to overly high salaries, without having to increase most salaries by too much. Most importantly, it is a nice safe distance from deflation, without being a lot of inflation. In the end, it is an arbitrary target, but does seem to work well.
We have been missing that target for over a decade. It would make sense that we were one percent below target for a decade, so we should be two percent above target for 5 years... I said makes sense, but not necessarily correct.
All in all, 4% would be fine with me. My guess is if you strip out supply chain issues, trump's oil shock, and Putin's invasion of Ukraine, you would be close to 4%. Can I prove that? No, but it would have to be a lower number, and 4% is a reasonable guess.
PostmodernProphet
fully immersed in faith..
just hint you might and the future's market tumbles.......for verification you just have to look at what happened when Bush issued his executive order in 2008.....
https://www.cnbc.com/2008/07/15/bush-says-drill-drill-drill-and-oil-drops-9.html
that decline continued until Obama reversed that order in January, 2009......prices immediately started climbing......