false inflation myths that are false

Quote from billyjoerob:

Oldtime are you going to kick me off my own thread again? That was funny. Sort of like you charging me with irritability. Shouldn't you be trading the latest pips in the USD/EUR?
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yes, I am, I have 4 positions on.

Now I'm charging you with mental instability.

Didn't realize this was your own thread. Usually threads are public forums.
 
would you wanna be short bonds here? really... my prediction... rates will not stay negative for ever.. invest in them... set your mortagage to fixed.. etc.. etc..
 
Quote from cdcaveman:

would you wanna be short bonds here? really... my prediction... rates will not stay negative for ever.. invest in them... set your mortagage to fixed.. etc.. etc..
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I think you mean "would you wanna be long bonds here." No there's obviously a floor to the bond rally. Probably not bad advice on the mortgage either.
 
Oops. I meant short interest rates
Long bonds
I don't wanna be either of those..
I'm an end user of interest rates I'm naturally short... but this is exactly the time you wanna be the biggest buyer of rates...lock um in.. borrow borrow borrow...rates this low don't last forever
 
Quote from billyjoerob:

Glad to hear it, Oldtime. Because nothing says "secure financial future" than trading multiple forex positions at once.
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I always have 4 on at the same time
 
the real myth about inflation is what it actually is

drought in midwest, corn goes up, that's inflation

war in middle east, oil goes up, that's inflation

everybody gets scared and buys gold, gold goes up, that's inflation

for some reason, when stocks go up, that's NOT inflation
 
Your post below is one of those nonsense posts that is so far off base and so disjointed that one simply can't offer any constructive criticism at all other than to suggest that you go back to school and start over.


Quote from billyjoerob:

There are some things that everybody seems to think are so that just bother me, such as:

Myths:
a) inflation is inevitable. False. Weimar and the 1970s were a vast exception. You only go off the gold standard once. The British consol hovered around 2-4% from the death of Napoleon to WWI. Low interest rates and inflation are the norm. Would not be a surprise if inflation did not return during our lifetimes.

http://www.newworldeconomics.com/archives/2011/041711_files/consols.jpg

b) gold goes up with inflation. Again, there is no evidence for this. Gold has been up for 11 straight years, not a trace of inflation. That's data. Myth, busted.

c) inflation is caused by the printing of money aka inflation is everywhere and always a monetary phenomenon. Hmmm, Japanese have been printing money forever. True it's mostly sterilized, but they've still spent a ton of money and lowered rates to virtually zero. Lot of good it's done them. If inflation were a monetary phenomenon, Japan and the Bernank would have solved the deflation a long time ago. They haven't, needless to say. Look at what's right in front of your own face. Don't listen to the old myths.

Truth:

Deflation/inflation is a demographic and real phenomenon, not a monetary phenomenon. Inflation is caused by too many young people forming households, not saving, and chasing too few goods. That was the 1970s in the US and the 1960s in Japan. Old people don't cause inflation because the aged and infirm never spend money. Again, see Japan. See the US. See the global deflation all around us as the world greys.

This paper shows that in Japan and the US, "inflation is firstly a demographic phenomneon." p 13 has the goods.

http://www.insead.edu/facultyresearch/research/doc.cfm?did=47411

Remember that ontology always precedes logic, no matter what the idealists would have you believe.
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Quote from piezoe:

Your post below is one of those nonsense posts that is so far off base and so disjointed that one simply can't offer any constructive criticism at all other than to suggest that you go back to school and start over.
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Another critic totally disarmed, his mouth open, pointing and spluttering.
 
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