Inflation is a real danger

[jagg1951]

FEAR MONGERING.. to contimue the control of the populance.

The world will not run out of oil. There is more oil under the North Iraq desert than has been traken out of the earth sins they drilled the first oil well. They just play with oil supply and demand to gain power through manipulation of the world economy

[tenorplayer09]

mild recession and possibility to get deeper. ding ding ding WINNER!

[jblive1985]

for once glenn doesnt speak nonsense

[givemethebest]

I hope they print more money. This bailout was a good thing. We need the inflation to pay off our house and credit cards. And before you go name calling just know that most people are in the same boat. The banks gave the money away so people took it. If Inlfation goes up the jobs will have to pay more then my house value will go back up to where it was 3 years ago.

[atl2maryland]

jobs wont have dont have to pay shit more just because of inflation. Your imaginary house value will go back up temporarily before it crashes further then what it is now.

[givemethebest]

Yea they will. The only way to save my house and free up extra money is for the price of everything else to go up then my boss will have no choice but to raise my pay. If Milk costs $5.00 gallon and you make 30 per year then it goes to $10.00 gallon they gave to pay you 60. Thats how it works boy.

[gizmosells]

Bet inflation will exceed 10% in 2009. Bernake needs to jam interest rates up, and local state goverments needs to cut spending dramsically. The politcans need to allow to drill,drill ,drill, drill.

[jeffedinboro09]

inflation is only 5%,!!!!! not even bad

[LocoYoFla]

It's much lower than that now. It's been near zero almost into negative (deflation) territory. We would need some economic growth for inflation to occur.

[InTheSticks1881]

Ron Paul

[rgaskey]

Just as soon as "Ron Paul" was mentioned, this video was over. WOW. Ron Paul IS the only conservative in this election. Money is supposed to be backed by gold and/or silver according to the Constitution of the United States. Glen talked with Ron Paul, he knows the truth about inflation, and yet ignores him. When Glen Beck is in the soup line with me and everybody else, I hope he gets a fork!

Write in Ron Paul!!

[chaserehn]

Glen is the only one who talks about Ron Paul. Why would you "fork" him for that?

[rgaskey]

Glen Beck totally avoids Ron Paul. Dr. Paul had an interview with Glen, and he totally crushed Glen. Afterwards, Glen has nothing to do with him. Glen talks the conservative stuff, but distances himself from the real answer because he (the dog) is reluctant to bite the hand that feeds him. Beck is a fraud.

[Hollander909]

POLITICIANS are the crib of the economic engine and are responsible for all rises in inflation all reforms and vetos and revolts and societal poverty! presidents are the ones responsible negating property rights through legalised extortion such as rising taxes rising home costs (when wallstreet can) all forms of cost inflation and rising costs is politicaly engineered! dont be swayed by lies

and bullshit that renders innocent politics from the societal collapsing effects it creates!

[Hollander909]

easy for rich politicians and celebrites to support far left political ideologies and power economies while the rest of the wolrd goes homeless and starves to death because of inflation, its ok though rich politicians and celebs, will be ok, you know, (the fuck you, im alright syndrome) inflation is more than a danger its a catastrophy & a strong economy is what causes it.

[stefanboro]

This guy puts far too much faith in the role of business and companies, something not too suprising considering his own backround.

He also doesn't seem to grasp the concept of inflation. Whilst it does create problems, it is merely a reflection of the economy. In a properly managed economy or free-market economies inflation should be a self-correcting mechanism.

[siggyboss]

Inflation comes from government fiat currency losing value.

[stefanboro]

Well not entierly.

There are generally two basic reasons for inflation. Cost push in which rising production costs are passed on to the consumer. Demand pull in which the relative demand to supply ratio increases for a commodity thus changing the equalibrium price that businesses can charge.

I've read a lot of comments on youtube. People seem obsessed with forming conspiracy theories with inflation and use very ill-informed arguments to back up their claims.

[siggyboss]

I don't have any faith in the cost theory. People with more dollars 'pull' prices upward, but not equally in all industries. Another method is bank credit, which also 'pulls' price upward. Lastly, the demand to hold that money versus other competing forms of money (currency exchange). I don't care if there is one or more conspiracies. Governments like having the option of turning paper into gold.

[stefanboro]

I can't see how you can argue agaisnt the cost push theory as it is self-evident and indeed self-fullfilling. When general prices raise, workers tend to demand higher wages which raises costs for business which are thus passed on to the consumer ad infinitum.

I think the problem in America is that, to my knowladge, the Fed is privately owned and thus represents its own interests. However, currently there are global economic problems for most western economies which have linked problems.

[siggyboss]

Using your own example, why would general prices rise before workers demand higher wages? There's nothing self-evident about the cost theory, other than it being wrong. By the way, the Fed is quasi-government - the chairman and vice chairman are appointed by the US President and confirmed by the US Congress. Regional bank heads (e.g New York, Chicago, etc) are elected by the banks in that district.

[stefanboro]

You make a good point.

However I would argue that it intially is started by the workers demanding higher wages, not just because of general price rises, although in a situation where supply for commodities was running low this would be the natural case, but because relative production, particularly post-industrial era, has consecutively risen, and therefore workers would demand a higher share.

However this is genuinely too basic. There are many other factors involved.

[alanhowitzer]

I think you're making this too complicated. In my opinion inflation is the result of the Fed printing money. My theory is that the Fed is printing money to pay for all our banking cronies' and homebebtor's mistakes. This is the 'tax' Beck is speaking of.

Remember the fed was basically 'giving money away' with 1% interest rates. We should be rioting on the steps of the Fed every time they loot the public.

[stefanboro]

I understand your argument however you must pick up any economics textbook and consider the bigger picture of open market economics.

We have a simular system here in the UK with regards to money supply. Fractional reserve banking as an example.

However, inflation itself is not just about the money supply but about the demand, supply and competition of particular commodities.

Example is oil. It has a finite supply. Yet every business is effected by its cost.

[hatchls1]

Money supply leads to credit and there is no need to differentiate supply and demand with money. It will be taken as long as it is there. The demand for credit is infinite thus the demand for money supply is infinite. I agree with your point on workers demanding raises and its cyclic affect on inflation. However this argument is somewhat null because there is no person that will not ask for more even beyond what they need. Runaway inflation causes poverty. bottom line.

[stefanboro]

Therefore as it runs out it's cost rises accordingly.

This cost raises the running costs, directly or indirectly, of all operating companies and of course motorists. These costs are passed on to the consumer causing inflation. Workers, feeling their wage is worth less, demand pay rises. Again, if the workforce get this pay rise it will ultimately be a cause of inflation for the second time.

I do however take your point that there are special interests within the fed. This needs reforming!

[givemethebest]

Good I hope they keep it up! We are barley making the mortgage and our credit cards are almost maxed out. We want to keep our house. These Banks and Realtors are the ones that told us to get in now then gave loans away for next to nothing. I hope the government prints even more. They have to in order to save the economy. How else is anyone gonna be able to buy stuff?

[gsuitter]

The solution is apparent, Vote Ron Paul.

[InTheSticks1881]

Thank you Beck. I sold everything in Dec. The bond market is going to burst and it will get very ugly. They may close the markets for a day or so, who knows for sure.