INFLATION is actually a tool utilised by the rich and powerful to enslave poor / ignorant people and

INFLATION is actually a tool utilised by the rich and powerful to enslave poor / ignorant people and to keep them enslaved ('employed') and busy producing the goods and services that rich people want.
Agree?

I.e. https://www.brookings.edu/blog/up-f...n-goals-and-monetary-strategy-statement-mean/

Designed to make poor people run ceaselessly on the threadmill/ rat race that the rich people watch in bemusement/ to pass time.

 

Yes ever heard the quote, "inflation is stealing from old people slowly" Russel Napier

 

Great Post... Chapwood Index is the best place to find real Inflation. I have been preparing for the upcoming debacle for 5 years now. I actually expected it to all hit in 2016 when I knew a Trump Presidency would destroy our finance. Little did I know that we would go into Hyper - Lying, Money Printing, Alternative Facts, Serious Racism labeled NOT Racism and so much more.

All we did is Print away 10 years of descent retirement for some and transfer that wealth to the rich, from the poor via the political class. So many up in Washington are either asleep at the wheel, or misinformed as to the real problems. AOC and others are busy playing small town identity politics. China along with others, Korea, Vietnam, Indonesia, are going to blow right past us and we will be busy bickering about Black, white, Gay..... This is just how the Central Bank Globalist want it

 

If you're referring to the US, the rate of Monetary Inflation has been less than 0.5% for several decades now.

I suspect you don't really know what you're talking about.

 

Where are you getting your numbers?

https://www.google.com/search?q=rat...0i22i30i457.8922j1j7&sourceid=chrome&ie=UTF-8

 

From your government.

When your government reports "Inflation" (snicker) it makes no attempt to differentiate between Monetary Inflation, Cost-push Inflation, Demand-pull Inflation, Wage Inflation or Interest Inflation. It simply lumps them altogether and reports it as "Inflation" (snicker).

Each form of inflation has a unique cause and therefore a unique solution(s).

Wage Inflation occurs when there is a shortage of qualified workers for a fairly large number of skill-sets about 20% or so. Those workers' wages rise rapidly, as do prices, but 80% or so of your workers aren't seeing rising wages and they are getting hammered by prices.

That happened twice in your history, once 1938-1943 and again 1968-1972. In both instances, FDR and Nixon erred by enacting a Wage & Price Freeze The proper action was a Price Freeze only, since the market will eventually meet the demands of employers seeking those workers, and that was true in both instances.

Nixon's error had no lasting effect, but FDR's did, because his stupidity is how employer's got control of your health plan coverage.

Demand-pull Inflation is caused by Demand exceeding both Supply and the Rate of Increase of Supply. There's nothing the Federal Reserve can do about that, but because they're idiots the Federal Reserve and your federal government caused the 1952-53 Recession.

Rationing had just ended in 1949 and now the Korean War starts Summer of 1950.

Americans -- households and businesses - are in a total panic, because they believe rationing will start again.

In spite of being questioned repeatedly by the press, Truwoman refused to say one way or another whether rationing will be implemented again.

Housewives and businesses started hoarding everything in anticipation of rationing. Housewives were buying 10, 15 20 pounds of flour and sugar at a time and many other things and businesses were buying and hoarding metals, rubber, oils, chemicals and everything else.

By the end of 1951, Demand-pull Inflation -- not Monetary Inflation -- was running 10%-12% annually and kept rising.

The Federal Reserve stupidly raised interest rates, which had no effect on Demand, but it did tighten credit and so businesses slowed down.

You can tell when you have Monetary Inflation, because the price of everything, as in every thing, as in every single thing, rises, and that includes wages.

Look around the room you're in. Everything increases in price. There isn't one thing in your room or house or anywhere else that will not increase in price and that includes, cable, electric, natural gas, phone, water, sewage and everything else.

That's because your currency is flawed, namely, there's too much of it. While you do get pay raises, you take a bloodbath first and lose your shirt and then you get your pay raise and that's how it works year after year until that very last year when Monetary Inflation ends and you take another bloodbath and lose your shirt, but you don't get that big hefty pay raise, so you get screwed.

 

For those of you who may not be aware, Bic_Cherry (the opening poster) lives in Singapore.
I think Singapore is in kind of a unique situation, because it is surrounded by countries with lower standards of living (Malaysia and Indonesia), yet Singapore itself is a big city with more "First World" type standards of living, so many of the poorer people from surrounding countries flock there, and as a result, housing prices are very high and wages are very low. So I'm sure it really is like a rat race.

 

Yes for those same several decades the government has been understating inflation by switching out goods in the measuring basket to keep the numbers down. But hey, not giving cost of living increases and overstating GDP makes us look better on paper at least.

 

Congratulations. You just proved there hasn't been any substantial Monetary Inflation.

 

No I just proved they are cooking the books

 

Economist Milton Friedman may have laid the foundation for one possible way around this?

http://www.politicalforum.com/index...-income-dramatically-reduce-abortions.556917/

 

I don't see how that link has anything to do with your statement... or the subject of this thread.

What are you saying Dennis? That the government should compensate for the effect of inflation hurting the poor by handing out free money to them?

Yeah, that won't cause more inflation.

 

If you claim there hasn't been "any substantial Monetary Inflation" then the only conclusion one can reach is that the price of many things (inflation adjusted) has been rapidly increasing. All the most expensive things that consume most of a consumer's budget: cars, homes, education, healthcare.

If you don't call that inflation, I'm not exactly sure what you'd call it.

 

2% inflation is the very goal of all central banking and planning. When it falls below that, steps are taken to raise it once more.

 

They should aim closer to around 0.4%.

Why 2%, what's so great about 2 ?


I'll just let everyone know, 2% inflation still works out to money losing half its value after 35 years.
In other words, a can of soda that cost $1 when you were born will cost $4 by the time you die.

 

If we were really smart, we would buy all these essential industries and reap the benefits ourselves.

 

For one, businesses can grant small raises without real cost. It also stimulates investments so that persons, 'real' and 'legal', don't sit on liquidity. Look the subject up on the 'net: I don't teach economics for free.

 

And also without real benefit.

Or they'll park their money into non-productive investments.

I totally disagree with this line of thinking that inflation is beneficial.

But I totally understand you don't want to go to the effort to argue about it here.

Anyway, I will additionally point out that the poor are less likely to have easy means of protecting their savings from inflation.

 

Nothing in my post indicates favoring this policy, it merely explained its presence. This is how banks and "economists" reason.

 

It's beneficial because it encourages people to spend their money rather than see it lose value.

The poor don't have any significant savings. What they do have is debt, so inflation helps them.

 

This is so incredibly wrong. The rich tend to save their money, while poorer people tend to spend most of their money. So having your entire wealth being devalued every year actually hurts the rich more.

 

Simply not so. The comment is OTT. (Over the top.)

Inflation is a "normal" economic phenomenon that takes place when the Demand for goods/services outstrips Supply. That's basic Economic Principles that one learns in EC101.

What does a country do to cure inflation? Tighten Fiscal and/or Monetary Policy. Which means what?

Tighten Fiscal policy means to increase taxation and/or reduce government spending. But also, a country can tighten Monetary Policy. Which means principally to heighten Interest Rates, which reduces Consumer Demand. This is the principle policy employed because it is so effective. With the cost of borrowing enhanced a population tends to reduce spending, which in turn reduces inflation.

The above are the principles of combating Inflation. How effectively they work is quite another matter. A country often uses bits-and-pieces of both means to control inflation. Why's that?

Because once any or all of the above measure take place, it is often difficult to stop them. To do so impacts their consequence on Supply&Demand and the reverse must happen in each of the polices cited above. Which can have disastrous implications if not done deftly.

The entire financial-mechanism to handle/control/affect inflation must be done effectively - neither too softly nor too strongly. Because one is dealing with a basic impulse of human beings. The willingness for individuals to buy, buy, buy and accumulate always more ...

 

How can demand outstrip supply when people obtain the purchasing power to demand goods and services by supplying goods and services?

No, increasing interest rates reduces private banks' money issuance through new lending, reducing the money supply as existing bank loan principal is repaid.

No. The effect is directly on the money supply. People simply have less money and thus can't spend as much.

No, it's because the debt money system is inherently unstable because of its positive feedback effects.

No, it's because one is dealing with a basic impulse of private banksters to lend, lend, lend money into existence in order to charge interest on it.

 

I totally disagree with the idea that trying to encourage everyone to spend more of their money is a good thing.
If you have inflation, yes, people will be trying more to spend their money, but they will also not be trying as hard to earn money. The two will balance each other out, so you won't get much benefit to the economy.

 

Then try not to have those debts be too large.