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Why is deflation bad?
- Thread starter noob_trad3r
- Start date
Yet again, this actually doesn't demonstrate anything...Quote from zdreg:
actually not. u carefully chose 1895 as the base year.
Annualized Inflation Rate
US
1895 - 1913 Annualized Inflation Rate
0.92
compare to the 3.39 from 1913 to 1986
compared to 2.60 from1913 to 1931
the bottom line again is that in the 73 years before the creation of FED prices were stable and in the 73 years after they went up 10X
74 years between 1838 and 1912: 0.06
74 years between 1912 and 1986: 3.37
As it happens, Titanic sunk in 1912. Should I conclude that the sinking of the Titanic caused higher realized inflation? 'Cause, to paraphrase you, 74 years before the event prices were stable and in the 74 years after they went up 10X. How can you prove to me that it was the creation of the Fed in 1913 and not the sinking of the Titanic that actually caused higher realized inflation?
Quote from Martinghoul:
Yet again, this actually doesn't demonstrate anything...
74 years between 1838 and 1912: 0.06
74 years between 1912 and 1986: 3.37
As it happens, Titanic sunk in 1912. Should I conclude that the sinking of the Titanic caused higher realized inflation? 'Cause, to paraphrase you, 74 years before the event prices were stable and in the 74 years after they went up 10X. How can you prove to me that it was the creation of the Fed in 1913 and not the sinking of the Titanic that actually caused higher realized inflation?
why not ask me to prove that it was not your great great grand mother o landing on ellis island was not the cause? is that logical?
since the fed prints money it would be more reasonable to show the degree of correlation between growth of money supply since world war 2 and inflation.
Quote from zdreg:
why not ask me to prove that it was not your great great grand mother o landing on ellis island was not the cause? is that logical?
since the fed prints money it would be more reasonable to show the degree of correlation between growth of money supply since world war 2 and inflation.
The reason why supporters of the Fed want a full and thorough public audit is to finally stop the tin-foil hat theory.
The most logical course of action would be to open the books and prove there is no "there" there.
Napolitano on FOX News said that before the Fed, the value of the dollar rose 8%. After 1913, the value of the dollar dropped 92%. That's a big drop.
Quote from Tradestation1:
Hard money systems prevent the frivolous printing of money without which politicians cannot extend favor. That will reduce the power of DC and slowly put us back on the right path. Getting back to a system where spending must be accounted for is the key. Sure corruption will always be around, but hard money systems help minimize the institutionalization of that corruption which we see is replete around the world.
That is an interesting idea - that the Fed fulfills the wants of politicians to spend on whatever programs they want by providing money via inflation, which is really just a tax.