Inflation 101

[rebelq1]

Keynes was retarded mathematician not an economist!

[SadegoGG]

the wars were so damn inflationary since the US funded both sides.

[aweiss]

Ultimately, do you want a governemnt that can defend capitalism abroad or one that can't maintain a stable world economy? The slight cost is worth the positive effects of occasional unrestrained governemnt spending to boost domestic economy and the maintenance of an empire that protects free trade, proterty rights, freedom and stability around the world

[aweiss]

3:37

if you can't invest at better rates than inflation you are mentally retarded and deserve to lose all of your savings.

Wages inflate with prices of goods and services, faster in fact such that you dont need to work mroe to buy the same amount of things, you get to work less and get the same amount of things or work the same and get more.

5:12

slow inflation does not mean destroying the value of currency lol

Sure inflation takes wealth but very slowly

[SadegoGG]

@aweiss

Your argument about slow inflation is not related to today's economy. Go study the bailout of Greece. Some economic experts are predicting it will cause the end of the Euro, then the Pound, then the US dollar. Economists are also predicting a crash of the Chinese economy with a Conservative estimate of within a year.

Trillion++ Dollar bailouts cause a lot of inflation.

[aweiss]

@SadegoGG my responce is to the video and I certainly agree that bailouts are horrible distortions in proper markets and dangerous exercises in government power

[aweiss]

if something inflates will future inflation at a lower rate seem higher on already inflated prices?

Also, it might not be continued mobilization but abandonment of the gold standard in favor of currency supplies that can increase and float at market rates

1:40

incorrect, it can open foreign markets which will export goods here for cheap prices or buy our goods, that is long term though

2:10 well the cost of the Iraq war was is historically low compared to average costs

3:13 savings, not earning

[informationauth]

We were fucked with Bush

an we are going to be fucked even worse with socialist Obama.

[louis12346]

I like Obamas new plan,global carbon Tax & Spend like Bush 800 billion on war

[Keirnoth]

So the war on Iraq was part of the reason why we got into this mess, and now we have no choice but to spend ourselves out of this mess and hope that the stimulus kicks in sooner rather than later.

Kinda scary.

[ThuggLyfe]

debt is not the solution to debt

[jadam914]

Keirnoth, I'm sure our problems had nothing to do with 30 years of inflation masive, removel of the Glass Steagall act, government pushing for people to get loans who can't afford them, or poor enforcement by the SEC.

Sure the Iraq war was a bad idea but it was great to raid the Social Security coffers to pay for Vietnam. Why don't you spend your self out of debt in your personal life!!!

[SadegoGG]

@jadam914

If you are in debt, you should not alter your standard of living to your income that party you are correct about. However, if Kerinoth was aware of how to make more money, he would be. Also, the biggest problem in the United States is the federal government's inability to abide by the Constitution because of a small group of criminals who work with the private banks and bribe other politicians along with the Republican/Democrat paradigm.

[stevemcgee99]

Unlike Gore's BS graph, this one is historical.

Another thing not mentioned in this analysis - inflation necessarily means lower interest rates. When business managers don't realize the REAL cost of borrowing money, their calculations of the profitability of a project will be inaccurate.

A popular calculation in NPV - comparing the expected rate of return of the project to the 'risk free rate'.

When it's artificially low, businesses invest in the wrong projects. Then we have a recession.

[enderwiggin42]

3:16 We have been seeing a lot of graphs shaped like this in the last ten years, and none were telling us anything good :(

[Growby10]

so true. thanks my friend!

[Sheogorath64]

Keynes was right. They do have a plan in place.

[chiruzbg]

i`m not done with the video , but wasn`t there smth about not economist not being able to measure some things ?! I don`t want to say that war is good , on the contrary , but weaponery is supposed to help providing security and security as a feeling cannot be measured :p .

[stevieRay3211]

Why is the revelation that the government is lying to the people such a surprise?

[UncleRico13]

It's not really surprising. It's acutally accepted. It makes me laugh that they would put Martha Stewart in jail for lying, yet we invade a sovereign nation under false pretenses and no one is held accountable. Same thing with the economy. Government manipulates the numbers and lies, yet no one is held accountable. The truth is, our government sucks at it's job.

[mjmoto72]

because we are to busy enjoying "bread and circuses . no? we do nothing as americans to change anything. i have felt apathetic to this world since i reached the age of 15. i lived through the cold war as probably have you. i just dont care anymore. sorry for the depressing comments lol peace.

[Ryukikon]

I like this video, I would like to see the rest. I do agree with the video, and we agree that this really started with the divergance from the gold standard. THe problem is more complicated but clearly expressed by use through the implied emergence of the military industrial complex as you imply here. However there exist other complexes and forces that devalue the money and cause inflation. THe industrial Complex just happens to be a major force. social issues have to be addressed for change.

[herculov]

BRAVO.....AWESOME VIDEO....

[UncleRico13]

Are you saying that the government is lying to us?

They have been telling us that inflation has been flat or near flat, especially when using it to calculate GDP.

[bigbigjohnlee]

the gov has always , is and always will lye to us!

[FinsterFlummoxing]

I think he was being facetious.

Gas doesn't shoot from 1.87 to over $4.00 without inflation.

[pobaldy66]

what big-john says. shadowstats is a good source for viewing the govt's skewering of data, including but not limited to inflation, which informs gdp, in order to sell policy.

also, check out martenson's course on fuzzy numbers. he breaks economics down better than anyone i've ever heard. most tend not to be able to speak in any other language than the one they've learned in.

[UncleRico13]

Good find, I'll check out those sources.

[Iconoclast421]

google "CYCLEPRO" and "market ticker" as well. Two great sources of real information. Also, Calculated Risk.

[cocashortcake]

GOOD VIDEO EXPLAINING INFLATION

[REVOLUTIONstart]

You got the point in this video!

[frzngds]

I think I just puked in my mouth a little.

This video is reason #45672 why I'm voting for Ron Paul!

Why did we give away our country in 1913? And why do so few Americans care?.......scary!

[SadegoGG]

@frzngds

Also, advocate for not voting for anyone who voted against his original audit the fed bill. Go to his website for a complete list of who voted for, and who voted for against the non watered down version that didn't pass.