I'm finding that being essentially ignorant about economics is causing my opinions to stagger from side to side like a drunk. I worried about hyperinflation until I saw a post recently that pointed out that we can't have hyperinflation without wage increases.. that makes sense to me, anybody else? We've been having jobless recoveries since 1970 so I'm thinking that wage inflation is fading into the mists of time due to productivity increases. We can't have a real recovery without Real Estate heating up because so many workers are in the building trades. The Boomers drove the housing boom and bust cycle for fifty years but they are downsizing currently. Martin Armstrong is saying that housing might recover a little but after 2015 it's all downhill until past 2030. He bases that on his confidence models [which aren't based on anything much at all oddly enough] and his findings seem to line up with the demographics. Money has been pumped into the banks but it's not causing inflationary pressure because they are not lending it out. A bank causes inflation every time it loans money because of the nature of fractional reserve banking. A loan is money largely created out of thin air in a sense, so it dilutes the supply and causes a loss of value of the currency or inflation, depending on how you want to look at it. I'm thinking that the only inflation we might experience might be caused more by shortages as in the current gasoline price rise or fluctuations in currency exchange rates.
Sovereign debt your all on the hook no matter how responsible you are.
M
morganist
Most of the goods you will buy will be foreign so if the price rises or the purchasing power of your currency falls then you will have hyper inflation.
You are saying that our realities about inflation/deflation are way more about currency exchange rates than anything else?
LCFXTRADER-try to tell this story to any public servant or a public servant who is a member of union(what a nonsense that is to me,cause i still don't understand,who public sector employees are uniting against? sound like us,the tax payers?) tell them this story. they will disagree. just try it. Scott Walker tried that..it's just didn't worked. cause they don't give a f**. teachers want's their bonus no matter what. they don't give a f** that private sector salary is flat for last decade. they want their 4-6% annual increase regardless to our income or inflation(of deflation).i've posted numbers from our school here long time ago. average salary-110K a year. school administrator? 120-140K! what the f** that they do? is it some kind unique job that require 20 years of education or some sort of extraordinary skills?
add this rate 4-6% every year. add when they get retired and start receiving their benefits and pension. add their average life expectancy. each of those leaches retire as a multimillionaires! working 2/3 of the year and often double dip after retirement. and this just ONE example of how gvt handling our money. i'm pretty sure that the picture is even more dark,when it comes to military contractors\manufactures\suppliers.
add this rate 4-6% every year. add when they get retired and start receiving their benefits and pension. add their average life expectancy. each of those leaches retire as a multimillionaires! working 2/3 of the year and often double dip after retirement. and this just ONE example of how gvt handling our money. i'm pretty sure that the picture is even more dark,when it comes to military contractors\manufactures\suppliers.
Unions are going to fight like crazy for their enlarged piece of the pie whether the economy is building or collapsing. It's all they do, that and reward members for loyalty. Workers are not rewarded for competence. They bring a complete distortion to reality and they will destroy people that don't like it.
Unions are immoral, greedy POS... public employee unions being the worst and most greedy/egregious offenders.
M
morganist
I hear ya, I don't like it anymore than you do. Even FDR said there should never be public unions.
On the other hand, what does a school teacher do? They can just quit because the pay is too low, and I suppose if enough quit, the market will increase their pay.
or they can band together and say, "Raise our pay or we will all quit."