Gitt at man i Norge beholder regimet om inflasjonsmål, så er jeg enig i at staten vil benytte alle mulige verktøy i verktøykassen (og den er stor og rikholdig) på å nå målet på 2,5% pa. Øker inflasjonen utover målet setter de rentene opp. Vil dette si at dersom man ellers i verden har høy inflasjon (sogar hyperinflasjon), og Norge som liten, åpen økonomi importerer dette, så vil vi få kraftig renteøktning?
I agree the top banksters have lots of control and lots of tricks... however, based on what they've done to date I can't see how inflation can be avoided... but I'm not a bankster or economist, so my in depth knowledge of possibilities is quite limited.
Also, how do you think All out War in the middle east will effect the monies?
There are vast amounts of money that has been printed or put on the books of banks. It is not being released yet. But when it ever leaves the banks and the books of the banks into the public sector....the velocity of that money will be like a tidal wave. This inflation is like a dam holding back billions of gallons of water and once the flood gate is open then we will experience that inflation. In the meantime, the bill for those economic bailouts/stimulus is on the backs of taxpayers.
@rmcnnlly - Yes, but the FED can and will manage this release of banks money in an orderly fashion so that CPI-inflation stays pretty much constant. This is my point, there will not be a tidal wave of new money, it will be released in an orderly fashion. The FED has the instruments to do this at precicely the speed they want.
@farmanntv Hypothetically, I believe you are correct, however, I believe that the banks are now sitting on millions of foreclosed homes and this will continue to grow. If we enter a deflationary bump in the economy, that means there will be more unemployment, dropping business sales, more foreclosures, less government revenue coming in, and even if the Fed Gov raises taxes, that will starve off spending. Eventually the banks will be foreced to spend quickly to save themselves from disaster.
@farmanntv Have you by chance read Michael Panzner's book Financial Armaggedon. His book clearly sees the confusion on the part of the Federal Reserve and how they will react to the crisis. The book was written prior to the collapse in 2008 and it follows the potential policies the Federal Reserve will try in order to stave off disaster, but eventually the US government will be forced to accept hyperinflation as a last ditch attempt to stop the inevitable. Deflation today, then inflation later.
The reason the prices aren't spiking is because all of that stimulus money went to people that already buy and own anything that they want. They spend, invest, their money in gaining more control over us. If they would of given all of that money to poor people like me the price of everything would of gone up. Inflation is an increase in the fiat money supply. They have certainly done that in spades. What they have done is steal more power from the little people. I will bet on deflation..
@cchessmaster - Interesting perspective. You are right, this is how they do it. As Mises pointed out, the new money allways reaches someone first - and it is not you.
Yes, it is now a fiat currency world, yet the situation is extreme. Yes, it is amazing what they can do, yet where will it lead, what will be the unintended consequences? How will the form of our govenment be changed. How will the people respond? How would WW3 effect? Perception is reality for most. Ultimately it is a confidence game and markets can move quickly today. Remember the Flash Crash? I bet on deflation as well.
@InTheSticks1881 - Please note that I do not bet on cpi-deflation. I belive the central banks can and will create cpi-inflation in the 1-4% range for many years to come (10+).
What is your problem with the Nordic economic model ? It is outshining the neo liberal free mkt , free for all , anglo American economies. . The idea that markets will always correct themselves has imploded. The scandinavian 'high tax / high public spending' is flourishing.
@ANTIDALLARD - There is no free market anywhere in the world anymore. So we are not comparing anything to a true free market. We are comparing various forms of government controled economies. The Scandinavian model of government control might actually work better than the US model of government control - that is true. Good point, I will use this.
Inflation fights deflation. Yin fights yang. Black fights white. This is the ultimate economic art. Only select wise men of the central banks can understand this supreme idea, and the rest of us just slave in for them and shut up.
I explain the upcoming inflation/deflation crisis in my blog LibertyIsNow where depending on which measure of money supply you look at inflation and deflation are both occuring, although based on federal reserves action the lost of faith that causes hyperinflation is well on it's way even if prices continue to drop in certain sectors.
Also, CPI is a BS number, it mesures the price increases based on the average price of goods the average person buys, this basket of goods is very political in it's makeup... to measure loss of purchasing power at the end of the day you need to just look at the stuff you buy where you buy it.
Dude, all you gotta look at is the 1970's. That was THE RESULT of high inflation. What we're in line for is going to make the 70's look like child's play. What makes maters more confusing is that the entire globe is inflating so when you compare the currencies to each other it's like deciding which turd is the best out of 5... Who cares, their all turds..
Unemployment jumped up again. Last week it was 35,000 new unemployment applications. Company prices jumped up but they fail to mention it is for off shore companies and US banks. As you may know major US Banks have available a $23Trillion line of credit from the Fed Bank and can borrow at ZERO percent. So banks buy Treasury Bonds/Bills and make a few billions for free...."Ah US Banks are profitable." US companies on shore not as well so far. Lots of dollars winding about the world. Hmmm?
Nice to hear your perspective, I think you may be correct, I do not foresee an instant collapse either, if it happens they will lose power and by chased to the airport by angry citizens.
Why don't you address inflation outside of the CPI?
brewmanbrett 1 year ago
are you saying that the rush out of paper into commodities will NOT cause greater inflation? How can that be?
BTW-I am NOT highly educated in economics, my question is an honest one.
TadRapidly 1 year ago
Gitt at man i Norge beholder regimet om inflasjonsmål, så er jeg enig i at staten vil benytte alle mulige verktøy i verktøykassen (og den er stor og rikholdig) på å nå målet på 2,5% pa. Øker inflasjonen utover målet setter de rentene opp. Vil dette si at dersom man ellers i verden har høy inflasjon (sogar hyperinflasjon), og Norge som liten, åpen økonomi importerer dette, så vil vi få kraftig renteøktning?
IamMagPie 1 year ago
I agree the top banksters have lots of control and lots of tricks... however, based on what they've done to date I can't see how inflation can be avoided... but I'm not a bankster or economist, so my in depth knowledge of possibilities is quite limited.
Also, how do you think All out War in the middle east will effect the monies?
-TEW
theeastwatch 1 year ago
There are vast amounts of money that has been printed or put on the books of banks. It is not being released yet. But when it ever leaves the banks and the books of the banks into the public sector....the velocity of that money will be like a tidal wave. This inflation is like a dam holding back billions of gallons of water and once the flood gate is open then we will experience that inflation. In the meantime, the bill for those economic bailouts/stimulus is on the backs of taxpayers.
rmcnnlly 1 year ago
@rmcnnlly - Yes, but the FED can and will manage this release of banks money in an orderly fashion so that CPI-inflation stays pretty much constant. This is my point, there will not be a tidal wave of new money, it will be released in an orderly fashion. The FED has the instruments to do this at precicely the speed they want.
farmanntv 1 year ago
@farmanntv Hypothetically, I believe you are correct, however, I believe that the banks are now sitting on millions of foreclosed homes and this will continue to grow. If we enter a deflationary bump in the economy, that means there will be more unemployment, dropping business sales, more foreclosures, less government revenue coming in, and even if the Fed Gov raises taxes, that will starve off spending. Eventually the banks will be foreced to spend quickly to save themselves from disaster.
rmcnnlly 1 year ago
@farmanntv Have you by chance read Michael Panzner's book Financial Armaggedon. His book clearly sees the confusion on the part of the Federal Reserve and how they will react to the crisis. The book was written prior to the collapse in 2008 and it follows the potential policies the Federal Reserve will try in order to stave off disaster, but eventually the US government will be forced to accept hyperinflation as a last ditch attempt to stop the inevitable. Deflation today, then inflation later.
rmcnnlly 1 year ago
The reason the prices aren't spiking is because all of that stimulus money went to people that already buy and own anything that they want. They spend, invest, their money in gaining more control over us. If they would of given all of that money to poor people like me the price of everything would of gone up. Inflation is an increase in the fiat money supply. They have certainly done that in spades. What they have done is steal more power from the little people. I will bet on deflation..
cchessmaster 1 year ago
@cchessmaster - Interesting perspective. You are right, this is how they do it. As Mises pointed out, the new money allways reaches someone first - and it is not you.
farmanntv 1 year ago
how can japan print money to help lift its economy but in the time its done this, it experienced deflation instead?
cheomire 1 year ago
@cheomire - They did not print enough, or distributed it wrongly. Central banks can allways create inflation by just printing enough money.
farmanntv 1 year ago
Yes, it is now a fiat currency world, yet the situation is extreme. Yes, it is amazing what they can do, yet where will it lead, what will be the unintended consequences? How will the form of our govenment be changed. How will the people respond? How would WW3 effect? Perception is reality for most. Ultimately it is a confidence game and markets can move quickly today. Remember the Flash Crash? I bet on deflation as well.
InTheSticks1881 1 year ago
@InTheSticks1881 - Please note that I do not bet on cpi-deflation. I belive the central banks can and will create cpi-inflation in the 1-4% range for many years to come (10+).
farmanntv 1 year ago
@farmanntv
I wish I could be as optimistic. Rates must eventually go up, and the 11.8 trillion at the FED will enter M3. Western Banks are bankrupt and so on.
InTheSticks1881 1 year ago
What is your problem with the Nordic economic model ? It is outshining the neo liberal free mkt , free for all , anglo American economies. . The idea that markets will always correct themselves has imploded. The scandinavian 'high tax / high public spending' is flourishing.
ANTIDALLARD 1 year ago
@ANTIDALLARD - There is no free market anywhere in the world anymore. So we are not comparing anything to a true free market. We are comparing various forms of government controled economies. The Scandinavian model of government control might actually work better than the US model of government control - that is true. Good point, I will use this.
farmanntv 1 year ago
Inflation fights deflation. Yin fights yang. Black fights white. This is the ultimate economic art. Only select wise men of the central banks can understand this supreme idea, and the rest of us just slave in for them and shut up.
sinitskyd 1 year ago
@sinitskyd
oh god i hope you are trolling
XxFlairexX 1 year ago
Good information, pause for thought. Thanks
sinclair61 1 year ago
I've talked to very smart peope who barely even remember stagflation.
thetimman00 1 year ago
I explain the upcoming inflation/deflation crisis in my blog LibertyIsNow where depending on which measure of money supply you look at inflation and deflation are both occuring, although based on federal reserves action the lost of faith that causes hyperinflation is well on it's way even if prices continue to drop in certain sectors.
AlexMerced 1 year ago
Also, CPI is a BS number, it mesures the price increases based on the average price of goods the average person buys, this basket of goods is very political in it's makeup... to measure loss of purchasing power at the end of the day you need to just look at the stuff you buy where you buy it.
AlexMerced 1 year ago
@AlexMerced Very true.
farmanntv 1 year ago
@AlexMerced - Yes, it's both happening at the same time.
farmanntv 1 year ago
Dude, all you gotta look at is the 1970's. That was THE RESULT of high inflation. What we're in line for is going to make the 70's look like child's play. What makes maters more confusing is that the entire globe is inflating so when you compare the currencies to each other it's like deciding which turd is the best out of 5... Who cares, their all turds..
TeaParty2012 1 year ago 2
@TeaParty2012 - That is why they want one world currency, because that could be inflated much more without competition.
farmanntv 1 year ago
Unemployment jumped up again. Last week it was 35,000 new unemployment applications. Company prices jumped up but they fail to mention it is for off shore companies and US banks. As you may know major US Banks have available a $23Trillion line of credit from the Fed Bank and can borrow at ZERO percent. So banks buy Treasury Bonds/Bills and make a few billions for free...."Ah US Banks are profitable." US companies on shore not as well so far. Lots of dollars winding about the world. Hmmm?
xmenrus 1 year ago
@xmenrus I'm sorry, COMPANY PROFITS JUMPED...
xmenrus 1 year ago
Nice to hear your perspective, I think you may be correct, I do not foresee an instant collapse either, if it happens they will lose power and by chased to the airport by angry citizens.
SKUNKBALLScom 1 year ago
@SKUNKBALLScom - To remain in power is their #1 objective, your best bet is that they will keep the system going.
farmanntv 1 year ago