Sandbox – 8dec18

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Sandbox – 8dec18

08 December 2018

[The commenting problem has been fixed. Apologies for the inconvenience. gjr]

Posted in Comment Sandbox

311 responses to “Sandbox – 8dec18”

Gregory

10 December 2018

Punchy 1258pm
“Sure, if it makes you feel good yes. Now answer this question. Will Global warming affect the cost of goods causing them to rise therefore causing inflation. Yes or no.”
Paul, the price of certain goods being forced up doesn’t ’cause inflation’. People with a certain amount of money to spend will pick and choose what they can afford to buy.
Inflation is ALWAYS due to monetary policy. The Union Army isn’t here to protect the purchasing power of your Confederate dollars.
Try again to formulate a rational question. I’m here to help you.

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Paul Emery

10 December 2018

Huh Gregory? You were the one who wrote “”If a punitive tax is imposed on carbon fuels, everything that is moved or made by those fuels will be made more expensive, and therefore we will have less of them.”
Are you now saying that is not inflation?

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Gregory

10 December 2018

Punchy 153pm
“Are you now saying that is not inflation?”
Ding! Ding! Ding! Ding! Ding! Ding! Ding! Ding! Ding! Ding! Ding! Ding!
Give that man a kewpie doll!
I wasn’t saying it was inflation then, either, Punch.

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Paul Emery

10 December 2018

Pretty obvious dodge Gregory, you can do better than that. The discussion was all about inflation.

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scenes

10 December 2018

“Are you now saying that is not inflation?”
That’s right, it isn’t.

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Gregory

10 December 2018

Not a dodge at all, Punch.
No, the discussion wasn’t “all about inflation”. You kept confusing “inflation”, a generalized decrease in the value of a currency, with what happens when punitive taxes get placed on something like fuels.
Is Paris burning?

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George Rebane

10 December 2018

For the interested – prices that go up because too many dollars are chasing the same amount of goods/services is inflation. Prices that go up in an economy with no change in the amount of dollars, but due only to the, say, the taxes, fees, assessments placed on something by a market mangling government is NOT inflation.

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Paul Emery

10 December 2018

Thanks George for the clarification. Gregory got off to a bad start on that one and never recovered.

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Gregory

10 December 2018

Punchy 335pm
Nice try. Your wild swing missed again.

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Scott O

10 December 2018

George 3:09 – I would agree about the first part of that statement.
Not so much the second part. It seems that we have to look at the causes and results as a combination.
https://www.merriam-webster.com/dictionary/inflation
“a continuing rise in the general price level usually attributed to an increase in the volume of money and credit relative to available goods and services”
That definition matches how I view the word as it applies to money.
If I have 100 dollars (or whatever amount) and it no longer will buy the same exact goods and services that it did a year ago, then there has been inflation. That would describe the effect of what has happened. Then there is the reason that same amount will no longer buy the same goods. It could be because of too much money printing or it could be because an artificial (non-free market) force is driving up the cost. IE, the gubmit. In the end, it’s the same effect. My dollars have less purchasing power.

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Gregory

10 December 2018

Where Paul went astray:
George wrote
When you raise the cost of anything you get less of it – less produced, less consumed, and less available to support things in the economy that depend on it. Totally unknown to the Left.
Posted by: George Rebane | 09 December 2018 at 04:44 PM
And Paul then stated
So George (4:44) that’s the great fear about inflation.
Posted by: Paul Emery | 09 December 2018 at 04:56 PM
No, that isn’t the great fear about inflation, which is a tax on anyone holding (in our case) dollars, or dollar denominated debts.
In essence, the peasants in France are rioting because the government is putting punitive taxes on the fuels they need to move themselves and the stuff they make and heat their homes, and their income isn’t rising. Eventually, either food or heat or medicine or lodging has to give.

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Scott O

10 December 2018

“Eventually, either food or heat or medicine or lodging has to give.”
Or Macron!

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George Rebane

10 December 2018

ScottO 408pm – I think we’ll have stay apart on this one. There is no “or” for calling all price increases simply as inflation. That error was corrected long ago by both Hayek and Friedman – inflation describes price increases ONLY due to monetary policy that affects the general price levels across an economy (increasing money supply without the concomitant increase in goods/services pursued by such increased supply). Mangled markets due to a monopoly’s pricing power or government tax increases only affect prices in the causal basin (a subset of the economy) that is fed by the now more expensive good/service. Prices outside that causal basin are not affected – i.e. there is no increase in ‘general price levels across an economy’.

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Scott O

10 December 2018

George – we’re obviously going to disagree, but I’m not ‘calling all price increases simply as inflation’. If a product is improved and has more value to a willing buyer, then a price increase is certainly not inflationary.
“Prices outside that causal basin are not affected – i.e. there is no increase in ‘general price levels across an economy’.”
I would agree whole heartedly.
But once the govt artificially raises the cost of energy with no increase in value to the benefit of the general public, you will be very hard pressed to find any good or service ‘outside’ of that causal basin. And once the price of energy has gone up, as well as everything else – we find a notice in our SS yearly statement as to how we will receive a higher amount every month due to the ‘higher cost of living’. There isn’t any where near enough more money coming in so the govt has to borrow or print more money.
Nature and civilization run on energy – there is nothing ‘outside’ of it. If the cost of energy goes up for no good reason and no added benefit to the consumer then there is/will be inflation. My wallet doesn’t care why the money inside won’t buy anything in the world it used to buy at the same price. The money, itself, does not have the same buying power it used to have. My wallet doesn’t care if that’s because the govt has lowered the prime rate to minus numbers or if the same stuff everywhere costs more, it feels inflationary.

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Gregory

10 December 2018

Scott O
But… but… but Social Security is just the old farts (like me!) getting back their own money with interest. You know, money earned while being kept in the lockbox that kept the money from actually being invested in mortgage securities, or equity markets, or cocaine importation and distribution.

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George Rebane

10 December 2018

ScottO 544pm – Let me try and present the inflation definition another way. When the government causes inflation by increasing money supply by, say, more rapidly than GDP growth, then the price of EVERYTHING will ultimately increase. But such uniform price increases don’t cause less product to be produced or consumed. There may be some time delays as inflation ripples through the economy, but commerce in all things continues unabated. However, that is not the case when a govt tax increase on a certain good/service (or a monopolist’s pricing power) causes a very specific price increase with a very specific follow-on causal basin. Then consumption is diminished and ultimately so is production. You know that is true because government’s have forever attempted to control certain behaviors by such means, as witnessed by the burning streets of Paris. And for a longer term example look at smoking and cigarette taxes.
But yes, you can pick a specific good – e.g. fuel – that has a causal basin which covers most of economy, and all kinds of prices will go up – always with the proviso that both consumption and production are diminished with a large shift in public behavior – sometimes as planned, but almost always with unintended consequences (which expands the discussion). But we lose a more refined sight of public policy impacts if we just bundle all price increases under the term inflation.
So it is the overall impact on consumption and production that is the discriminant separating inflation from selected market mangling.

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Scott O

10 December 2018

Greg – ha ha – funny guy! But don’t spill the beans! There ain’t nuttin’ in that ‘lock box’ but IOUs. Remember the scene from ‘Lawrence Of Arabia’ when they raided Aqaba and the arabs found out the ‘treasure’ they had been promised was a trunk full of paper money? Americans in general still haven’t tumbled to the fact that the ‘treasure’ of SS is in the left pocket and the debt will be paid out of the right pocket.
BTW – by weird coincidence I’m currently reading the ‘The Road To Serfdom’ by Hayek. As prescient as he was (boy, was he ever!) I’m thinking he could never have thought of a global socialist scheme as astounding and audacious as AGW. A central planning plot that would encompass all humans on earth.

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Gregory

10 December 2018

I wonder if there’s a secret cache of Whip Inflation Now! buttons left over from Gerald Ford’s presidency…
A problem is, of course, that there’s no definitive proof that any particular general price increase is from a money supply overabundance. I wonder if there are Venezuelans who are still in the dark.
Ford’s view, like Carter’s, seemed to be that people were being greedy … just say no to a salary increase. Break the back of inflation!

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Paul Emery

10 December 2018

Here’s a good one heading our way The NRA contributed 30 million to the Trump campaign and there is speculation some of it might have come from Russia via Butina. I’ll keep RR readers informed as to new developments.
Accused Russian agent Maria Butina who infiltrated NRA set to plead guilty:
The firearms enthusiast ran a group in Russia called the Right to Bear Arms. It was funded in part my Alexander Torshin, deputy governor of the Central Bank of Russia and a close ally of Russian President Vladimir Putin. Torshin was present a May 2016 NRA event that was also attended by the US president’s son, Donald Trump Jr.
https://www.dw.com/en/accused-russian-agent-maria-butina-who-infiltrated-nra-set-to-plead-guilty-reports/a-46671082

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Scott O

10 December 2018

George – I think we largely agree, but I have to point out a flaw in your last post. And I witnessed this personally with older family members.
You state: “But such uniform price increases don’t cause less product to be produced or consumed.”
Let me politely say – Bull and Shit.
There were folks I knew in the late 60’s who were retired on fixed incomes and living comfortably until the massive inflation took hold going into the 70’s. They had to sell assets and cut back on their living expenses big time. To say that they ‘consumed’ just as much is nonsense. Gasoline went from 23 cents a gallon in ’68 to around 70 cents ten years later. Sure – their house went up in value, but they got nothing but a massive tax increase from that. Their income did not go up to match. Not even close. The reasons for the inflation were all acronyms – OPEC, OSHA, EPA, CARB, and on and on. Of course, the govt at all levels bungled policy at every turn of the corner.
And of course we had Tricky Dick taking us off the gold standard. A perfect trifecta of financial disaster.
Every financial opinion piece I read laid the blame at the feet of the increased cost of energy and the massive new regulatory industry sweeping the nation. Inflated money just chased the costs.
People on fixed incomes and those in the lower income brackets certainly did not consume just as much. They couldn’t afford it.

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Scott O

10 December 2018

“there is speculation some of it might have come from Russia via Butina”
Oh goody – hope springs eternal!
God only knows how many die hard Dems voted for Trump because Butina gave the NRA some cash.
Actually – Obama was the biggest donor to the NRA by far.
But do keep us ‘posted’ Paul.
We’re all ears.

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Paul Emery

10 December 2018

Rest assured Scott, I’ll keep you informed as to the latest developments since you are interested. Thanks for reading my post.

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Scott O

10 December 2018

Paul – Too bad you didn’t read the article you posted the link to.
You actually believe that crap?

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fish

10 December 2018

Posted by: Paul Emery | 10 December 2018 at 07:21 PM
I’ll keep RR readers informed as to new developments.
I can only speak for myself but your efforts aren’t really required Punch. I’d feel more comfortable with a less biased source!
But hey….thanks for the offer.

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Don Bessee

10 December 2018

Yup –
https://www.usatoday.com/story/news/world/2018/12/10/mexico-pump-30-billion-into-central-america-halt-migrant-caravan-donald-trump-lopez-obrador/2272077002/
😉

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George Rebane

10 December 2018

ScottO 730pm – Are you really going to argue for the diminished consumption with inflation position using the example of fixed income retirees? Of course, inflation will diminish the consumption of everyone who cannot grow their income in step with inflation. And yes, that happened in the 1970s when stagflation took off with a vengeance, an economic phenomenon seldom seen. But if you insist, then I’ll accept your exception that there can indeed be instances when certain fixed-income population segments will be forced to consume less during inflationary times. But even during such epochs production will continue apace, and things will still be available at the similar/same real (i.e. inflation adjusted) prices to everyone else. It is hard to argue against that since we have had constant inflation at variable rates for decades, and the availability of goods and services has exploded.

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Bill Tozer

10 December 2018

Wonder why we were all not kept informed on Friday’s Comey testimony? Big news. The Dems and the Media got on a highway with no exits. They got boxed in and no way out.
Comey verified the Russian Dossier by Steele has never been verified and Steele’s source has never been verified. Steele wrote the Dossier, but he was not the source. Yet Sally Yates and Comey and Rosenstein signed off on the FISA warrant, a big Department regulation no-no.
Repeat: The source was never verified. Steel was not the source of the Dossier. He wrote the Dossier, but his source has never been verified or vetted or onfirmed. The whole thing was based on phoney baloney. Rumors, hearsay, and such. The collaborating evidence was a fakenews story planted by Steele, who was fired from the FBI and not to be used as a “source” again because he was deemed “untrustworthy”. Yet, more FISA warrants were signed off on after that. And on and on it goes.
So, there is no disagreement that the Dossier was funded by Hillary Clinton.
-There is no disagreement that Hillary used a foreign agent to write the Dossier about Russia-Trump Collusion.
-There is no disagreement that Steel testified the source of the information was never verified nor was “information” ever intended to be used as evidence.
-There is no disagreement that Bruce Ohr’s (#4 at DOJ) wife was working for the company that paid her and Steele to produce the Dossier.
-There is no disagreement Andy McCabe (#2 at FBI) was talking to Steele and using -Steele as his source, even after Steele was fired by the FBI for lying and deemed not a trustworthy source or to be used as a source.
-There is no disagreement that Steele said he hated Trump per McCabes written memos.
-The is no disagreement that the Russian intel guy’s lawyer at the Trump Tower worked for Fusion GPS, which paid Steele and Nellie Ohr. The lawyer was in the Clinton circle.
So, we have the biggest scandal of our lifetimes and the Media simply does not care. The political weaponizing of the highest levels of government to illegally spy on a political campaign.
The media has bombarded us for darn near two years with Trump Treason, Russian Collusion with Trump, then on to obstruction of justice at the Tower, now racing off to campaign finance law violations and I probably forgot a couple breaking news along the way.
There is no doubt that historians and real journalists will someday write about this scandal of epic proportions and be gob smacked at the saga.
-There is no disagreement that the media will ever apologize to the American people.
-There is no disagreement that the fakenews media will never say they were wrong.

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Bill Tozer

10 December 2018

Fish and Scott
Oh, that story is old news. We all know our above the law Justice Department investigators have looked at every single donation given to the NRA. Story maybe six months ago, maybe longer. It was all over the sites that we are not supposed to read per Robert Cross and the Control Freak Crowd. Another hot Russian babe standing at our Capital sending selfies of herself to her “good teachers.”back home” before the Inauguration. Living dangerously.
Yawn. Thanks for keeping us in the loop. Thanks for the update on the story.
—————————————————
Don. Mexico will pay for the Wall, oh boy will they ever. 30 billion, eh? Noticed the major of Tijuana said the US shutting down the San Yisdro crossing for a mere 6 hours cost Mexico 126 million pesos. Let’s do it once a week for 10 hours. Motorists really get pissed and blame the caravan, lol. They will pay alright. :).

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scenes

10 December 2018

The guy who misreads news articles, Paul Emery sez:
“Here’s a good one heading our way The NRA contributed 30 million to the Trump campaign and there is speculation some of it might have come from Russia via Butina. ”
opensecrets.org says that the NRA contributed $1,091,659 to all campaigns put together in 2016.

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Scott O

10 December 2018

“Are you really going to argue for the diminished consumption with inflation position using the example of fixed income retirees? Of course, inflation will diminish the consumption of everyone who cannot grow their income in step with inflation.”
Of course I will – they’re just the worst off. Lots of other people whose income couldn’t keep up suffered as well. It was called ‘stagflation’ because there was a decrease in economic activity. It wasn’t just some little blip. As I pointed out, we went off the gold standard and bailed out the govt and the financial biggies that were over their heads with money printing after the costs of everything started to go way up. And what happened to stop it? Very high interest rates. I was getting 18% monthly in the early ’80s because they stopped handing out/printing money. Inflation is cruel to those who save and rewards the folks who get into debt over their heads. In other words, inflation rewards bad financial behavior. How else will the govt manage its debt with out simply going under. The only difference between Venezuela and the US is that we can probably keep the balls in the air longer than countries like Venezuela. Eventually we’re no better off. This country has no hope of paying off what it owes without deliberate inflation of money by whatever means.
And one of the best slight of hands financial tricks right now is ‘global warming’. The lemmings are quite sure we’re all going to die if we don’t start handing over a lot more money to the govt for energy. That raises the price of fuel and then everything and then it’s a repeat of 1972. The govt will then start handing out/printing money to chase the rising prices just as they did in the ’70s. Best to get as much as you can into appreciable assets that aren’t open to higher taxes. (yes, I know – neat trick.)

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Bill Tozer

10 December 2018

Quotes from our time and space:
The Gipper: “We don’t have a trillion-dollar debt because we haven’t taxed enough; we have a trillion-dollar debt because we spend too much.”
Upright: “Young Democrats who line up behind the likes of Bernie Sanders and Alexandria Ocasio-Cortez are in for everything and anything so long as it’s free. The only item they seem ready, even eager, to forego is freedom.” —Burt Prelutsky
Braying Jackass: “I’m so conflicted on this issue because on the one hand [devastating disasters are] good news in a sense that we can feel [climate change] in our lives now — that we’re beginning to see floods and wildfires and all sorts of things that are directly being produced by the forces at work here in our changing climate. And yet, at the same time, scientists have always said to us that by the time we actually tangibly feel it in our own lives, it’s kind of too late. And so, there’s a real sort of real mixed blessing here in the fact that we’re actually experiencing it day-to-day now.” —NBC’s Jacob Ward
Hyper-drooling: “There’s a very real prospect that on the day Donald Trump leaves office, the Justice Department may indict him.” —Rep. Adam Schiff (D-CA)
Friendly fire I: “Part of being an elected official is not only taking strong political positions and executing them fairly, it’s also being able to manage the people you entrust with responsibility. In this case, [Sen. Kamala] Harris has fallen short. Harris owes the voters more than just a four word denial on the steps of the U.S. Senate. She should fully explain her relationship with [Larry] Wallace, and, by extension, her staff and why it insulated her from an issue upon which she has taken a leading national role.” —Sacramento Bee editorial board showing vexation with Harris’s supposed cluelessness regarding harassment by a now-fired aide
Friendly fire II: “[Sen. Elizabeth] Warren missed her moment in 2016, and there’s reason to be skeptical of her prospective candidacy in 2020. … While Warren is an effective and impactful senator with an important voice nationally, she has become a divisive figure. A unifying voice is what the country needs now after the polarizing politics of Donald Trump.” —Boston Globe editorial
And last… “People keep saying you shouldn’t be penalized for old opinions. You shouldn’t be penalized for your opinions now! You have a perfect right to disapprove of homosexuality or heterosexuality or anything else. Censorship won’t create a world of tolerance, just a world of lies.” —Andrew Klavan

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Scott O

10 December 2018

fish at 8:04 – you will want to follow this.
Look how they describe her – “Maria Butina, the Russian gun rights activist who is alleged to have infiltrated the US National Rifle Association (NRA)…”
She’s a ‘gun rights activist!’
Yeah – that’s who Russia sends over here to act as an agent – they scour all of mother Russia looking for ‘gun rights activists’!
Then they send them here.
Bias?
More like stupidity if you ask me.
And comedy.
“…but the US Justice Department said that she was a “covert Russian agent” who was trying “to penetrate the US national decision-making apparatus to advance the agenda of the Russian Federation.”
The justice dept is actually claiming that helping the NRA with its work trying to arm as many citizens as it can is going to ‘advance the agenda of the Russian Federation’????
What rabbit hole have we fallen into?
Strengthening the 2nd Amendment advances Russia’s agenda???

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scenes

10 December 2018

re: Inflation and the punishment of savers.
It seems to me that inflation, as used in this case, is more a tool than it is a prime mover. I’m more referring to the inability to find safe investment vehicles that outstrip inflation when everything is factored in. The truly rich are immune to this of course.
There’s just so much money sitting out there tied up in a minority of US household accounts and it’s so tempting. I think there’s a kind of hivemind that wants to get more of it. Between the never-satisfied maw of .gov and the needs of those without savings, some way will be found to grab some of the filthy lucre.
If inflation wasn’t utilized to lower it’s value you’d see taxes based on assets instead. A more insidious version is taxes on profits that are based only on inflation.
When you’re the Little Red Hen, everyone wants to help eat your bread.

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Bill Tozer

10 December 2018

Right of freedom of association. I love it when a right is deemed by someone in power as more equal to some than to others.
“That suit also challenges Harvard’s virtually certain assertion that a private college can do whatever it wants. “Harvard has a special role within the Commonwealth of Massachusetts: Founded by the General Court of the Massachusetts Bay Colony in 1636, Harvard has its rights and status enshrined in chapter 5 of the Massachusetts Constitution,” the suit states. “However, by its recent actions, Harvard has breached the very Constitution under which it purports to operate.”
“Harvard has really shown a disregard for the rights of its students to associate with people they want to associate with,” stated attorney David A. Russcol. “What they do off campus shouldn’t be any of Harvard’s business. It’s disappointing that the plaintiffs have had to take this action.”
https://patriotpost.us/articles/59930-the-harvard-crimsons-crumbling-pc-agenda?fbclid=IwAR3TwrBbzXbz4NdqbwJt5ioyqtK5JRZLmy4vZbZUdhR2_f3mNfgPYWvUJHI

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Paul Emery

11 December 2018

Tea Party where are yu?
The Treasury Department estimated in October that the federal government would issue $1.34 trillion in new debt during 2018 — a 146% jump from 2017 and the highest amount of new debt issued since 2010.
During a 2017 briefing with senior officials, Trump responded to a presentation of charts and graphics by saying, “Yeah, but I won’t be here,” according to a source The Daily Beast said witnessed the comment.
https://www.businessinsider.com/trump-debt-crisis-fine-wont-be-here-report-2018-12

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fish

11 December 2018

Posted by: Paul Emery | 11 December 2018 at 06:50 AM
Tea Party where are yu?
You joyfully presided over their funeral Paul! No sense whining about their absence now.

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Paul Emery

11 December 2018

Not true fish. I was saddened by their absorption into the Republican Party which resulted in the soiling of a noble effort of populism the end result what we have today.

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fish

11 December 2018

Posted by: Paul Emery | 11 December 2018 at 07:37 AM
Well now you are just a big old fibber Paul.

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Paul Emery

11 December 2018

Ask George about the support I gave to the Tea Party Patriots in Nevada County. A noble effort to be an independent voice. Sucked up by the Orange Liar in Chief and his fake Conservatives.

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Scott O

11 December 2018

As I have said before, Paul – you have no standing to decry the national debt. Your pleading for ‘single payer’ free health care would, alone, swell the debt far faster than anything yet devised. You throw rocks at Trump because the debt goes up yet you would blow a fuse if he actually did anything meaningful about it.
Our national, state and local debt has been growing for decades. The trajectory was established long before Trump, Obama, Bush, Clinton or Reagan. It started with FDR and was finalized with Johnson. The fed govt decided it would promise all sorts of everything to everybody. Because it looked good on paper at first, the public liked it and got used to it. Plenty of people pointed out where we were headed and why. Now we’re getting there and the state and local govts decided stupidly to join in. Don’t start blaming Trump – there’s really very little at this point he can do about the debt.

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Paul Emery

11 December 2018

Well Scott Trump said the debt would decrease with his tax cuts stimulating the economy and increasing tax revenue. In your view what happened?

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George Rebane

11 December 2018

re ScottO 922am – “… there’s really very little at this point he can do about the debt.” Yes, but there is a lot that the progressives can do and say to blame the whole thing on Trump (including the debt’s doubling under Obama through futile and expensive exercises like ‘quantitative easing’).

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George Rebane

11 December 2018

ScottO 922pm – Well, you come back with good points on the various mechanisms by which price increases are initiated and ripple through parts of the economy. As you know, my fetish about language continues to be semantics and the expansion of our lexicon to account for all kinds of new things, ideas, and thoughts. I am of the school that would keep the definition of inflation as narrowly defined viz the money supply, and wish that we could adopt another label for price increases due to other causes such as market mangling. Thanks for the exchange and pushback.

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Scott O

11 December 2018

from Paul – “In your view what happened?”
Actually, I just told you what happened.
And the tax revenues are up, as promised.
But the die was cast decades ago and the debt will continue to rise until we get serious about bringing it down. But that would involve this country’s population being willing to go into a completely different mind set. They would all have to agree that the fed govt is not to act in any way outside of it’s original Constitutional duties. But that would end vote buying and the pols wouldn’t stand for it and the proles have been brain washed into believing the govt is supposed to be responsible for everyones’ personal material needs. So that isn’t going to change either.
In other words – we’re going to continue into the socialist brave new world.
You ‘green libertarians’ or whatever joke you call yourself have won.
And now you’re scared to death.
Be happy you have Trump to throw rocks at. Just what are you going to when Beto or some other lefty is POTUS?
At least you have your legalized dope. I thought that was going to fix everything.

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Scott O

11 December 2018

George – “I am of the school that would keep the definition of inflation as narrowly defined viz the money supply, and wish that we could adopt another label for price increases due to other causes such as market mangling. Thanks for the exchange and pushback.”
Yep – that pretty much nails it. You’re keeping it pure with the traditional view of ‘inflation’ while I go for a broader view that any reason for my dollar’s buying power going down is ‘inflation’ no matter what the exact cause. Although I’ll bet that skimpy last dollar that the gubmit is involved every time.
‘Market mangling’ – that works. I’ll tuck that into my mental dictionary.

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Gregory

11 December 2018

“Sucked up by the Orange Liar in Chief and his fake Conservatives.”
Punch
While I was happy enough for the fake Tea Party to fade away (fake because it never was a political Party), that happened at least an election cycle before Trump won the 2016 election.
Paul, as a fake Green Libertarian, you’re the last person who should be casting such aspersions in the direction of Trump supporters.

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***M***

11 December 2018

,,,too many dollars are chasing the same amount of goods/services is inflation,,,
Here they identify different types of inflation,,,
Demand-pull inflation occurs when the overall demand for goods and services in an economy increases more rapidly than the economy’s production capacity. It creates a demand-supply gap which higher demand and lower supply, which results in higher prices. For instance, when the oil producing nations decide to cut down on oil production, the supply diminishes. It leads to higher demand, which results in price rises and contributes to inflation. Additionally, increase in money supply in an economy also leads to inflation. With more money available to the individuals, the positive consumer sentiment leads to higher spending. This increases the demand, and leads to price rise. Money supply can be increased by the monetary authorities either by printing and giving away more money to the individuals, or by devaluing (reducing the value of) the currency. In all such cases of demand increase, the money loses its purchasing power.
Cost-push inflation is a result of increase in the prices of production process inputs. Examples include increase in labor costs to manufacture a good or offer a service, or increase in the cost of raw material. These developments lead to higher cost for the finished product or service, and contribute to inflation.
Built-in inflation is the third cause that links to adaptive expectations. As the price of goods and services rises, labor expects and demands more costs/wages to maintain their cost of living. Their increased wages result in higher cost of goods and services, and the spiral continues as one factor induces the other and vice-versa.
https://www.investopedia.com/terms/i/inflation.asp

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Paul Emery

11 December 2018

George
So Trump was wrong when he enthusiastically predicted his economy would diminish the national debt. He even said that he would have a balanced budget in two years. Are those outright lies or ignorant enthusiasms on Trumps part.

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George Rebane

11 December 2018

M 1105am – Thanks for the expansion of definitions. I’m not sure they are all totally independent (orthogonal) since several of their causal chains may converge at some point in the past – e.g. what causes a rise in “the price of goods and services” referenced in ‘built-in inflation’. The definition implies that such a rise is spontaneous and primal, which it most likely is not.

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Paul Emery

11 December 2018

Trump quote
“It can be done. … It will take place and it will go relatively quickly. … If you have the right people, like, in the agencies and the various people that do the balancing … you can cut the numbers by two pennies and three pennies and balance a budget quickly and have a stronger and better country.”
Sources:
Interview with Sean Hannity Feb. 22 and April 4, 2016

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