Inflation, Deflation, Stagflation...

[nickolelo]

I will go with 2% sustained inflation.

 

[longandshort]

I picked deflation. If the Fed has to print "unlimited money" for perpetuity, then it means the velocity of money and economic activity are anemic, and deflationary.

 

[kmiklas]

It's looking like Inflation. How difficult will it be to control?

 

[roraistar]

First of all, the Fed just can’t print unlimited money until and unless there is a strong reason to do that. And if I have to answer your question, the result of unlimited printing would be that they would easily buy everything. But as I said, this isn’t possible. There are some rules and regulations that needs to be followed.

 

[kmiklas]

First of all, the Fed just can’t print unlimited money until and unless there is a strong reason to do that. And if I have to answer your question, the result of unlimited printing would be that they would easily buy everything. But as I said, this isn’t possible. There are some rules and regulations that needs to be followed.

Yep... the Fed needs to be policed. Sounds like a plan.

 

[oxhimang]

Money will lose its value and I don't think any government would be ready for this. They know what must be done.

 

[easymon1]

Citizens are hurt the most.
In that the owners would have to pay more for labor if we were not bringing in millions of laborers.

Corporations and larger entities who wish to sell to the world benefit the most from bringing in cheap labor. The non citizens who get work also benefit.

Yes there is a better way.
Get all Americans working before you bring in cheap labor.

If you are worried about inflation...
Cease increasing the money supply by trillions of dollars.
We could handle a little inflation created by wage increases.

Americans won't work in the fields. I support some reasonable path to citizenship for those who work. By reasonable I mean not a 10-year process.

Does that not defy the idea of demand and supply?
Would not 50 bucks an hour not bring a ton of workers.
So between what they offer now and 50 bucks an hour would be the correct number.

Which might mean we get to export less..
But we would have more citizens working and maybe extend the usefulness of our water supply and land.

I don't see why a seasonal guest worker program would not be sufficient.
I don't really think we need to create more democrats at the moment.

I don't want to pay $7 for a carrot though.

Inflation in food caused by a true price for labor... is nothing compared to inflation we experience by allowing the FED to create trillions and trillions of dollars a year... like they are doing right now.

Have you seen their balance sheet... its at 8 trillion..

https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm

In addition think about all the trillions they get to create just to keep balance with world demand for the dollar.

Imagine how cheap imports would be if the world demand for our dollars was not slaked by letting our privately owned FED banks create trillions of dollars.
(congress does indeed borrow a trillion or so a year... but that is borrowed so it should not be that inflationary.)

This is nonsense but at least you’re in good company because everybody is wrong about how money acts in the economy anymore. It obviously doesn’t perform like we expect and we’re taught it would. And this is my point. We should have seen a lot of inflation for decades now but we haven’t and no one really understands why. It’s a big question. I pose it’s technology based automation and AI. I think both of those factors have stabilized prices.

Most money is "printed" by banks and such making loans and expanding credit.

How do you know that banks are printing more through fractional reserve banking than the Federal Reserve Banks themselves?

I am not arguing with you... I am just pointing out... how we can't even begin to fathom how much inflation can be created...

In short until we can track these things...
Politicians arguing over tax cuts or even increasing taxes... is just people control.
It has no basis in reality... because we don't even have accurate stats on how many trillions are being created a year.

I offer to you the idea... that we don't need individual taxes we could just control the money supply.. and not have the same levels of inflation we are suffering.

This is a good place for this discussion...