scose-no-doubt
Veteren member
- Messages
- 4,630
- Likes
- 954
I have met some naive, imbecilic old coots
So you've met Atilla then?
I have met some naive, imbecilic old coots
So you've met Atilla then?
So you've met Atilla then?
Although I would not dispute that Martin is indeed knowledgeable and probably quite wise with regards to his field of expertise
Linking wisdom with age is quite erroneous as I have met some naive, imbecilic old coots. Nothing wrong with childishness so I'll leave that out of the equation
I do agree with Splitlink and hope I end up like him really.
The socialists just can't 'fess up it was largely their fault the world is in economic meltdown. They ( Clinton/Blair/Brown ) unleashed the reins on bankers and those so-called top people cr*pped all over us, the ordinary Joes, who have to pay for their mistakes. Huge borrowing to cover loans that had little chance of being repaid and weren't checked properly. Huge Govt spending to try and re-susitate the senile economies of the West by Keynesian largesse. There is little point in giving a sick man more viagra or a sick economy more money.
The Western economies have been living well beyond their resources now for decades. Overpaying the upper elite and overtaxing the rest. Politicians just couldn't say no to more hand-outs for political reasons and now "the crunch" has come.
The idiotic socialists will go on spending/wasting ( Keynes )
The Tories are strangling the patient with their stupid remedies. ( Hayek )
For anyone who has the ability to comprehend:
1) Inflation is an expansion of the money supply. Zero to do with taxes.
2) Low interest rates are more likely to stimulate consumption, that was the purpose of Q.E.
3) Production is stimulated by lowering barriers for people to produce (supply) goods and services, such as lowering income tax and capital gains tax rates, and by allowing greater flexibility by reducing regulation.
Inflation is a general and sustained rise in prices. In simplistic terms it is caused by an imbalance between supply and demand, but can also be imported if eg oil is prices are raised significantly. Inflation is not an increase in the money supply, although that MIGHT help fuel inflation. Taxes can fuel inflation under some circumstances - eg VAT is raised when prices are already rising, and may trigger off higher pay demands or higher prices from companies trying to increase margins during falling sales. Anything that increases costs ca be a factor in the rise of inflation.
Lowering interest rates can have many effects. For me personally at the moment it has made my mortgage payments lower, so I am putting more money into debt repayment, not increased spending. I am not sure QE was about stimulating demand so much as a belief that the problems in 2007/8 were ones relating to lack of general liquidity in the banking system; QE was meant to resolve that, to get Banks functioning again.
Production is stimulated by all sorts of things, but nothing you have mentioned would make a blind bit of difference unless demand is stimulated somewhere.
Excuse me, but all these years of "rebranding" inflation have took a toll on some of us.
1. Inflation represents the expansion of the money supply (which influences the supply side of the money equation) Money Supply * Velocity of Money = Quantity of Goods and Services * Prices. Even taking into account the sticky prices and the instability of the money velocity, the inflation of the money supply generates increased prices.
It is a completely different thing that we measure the increase in money supply by retorting to measuring the increase in consumer prices.
2. Low interest rates besides stimulating consumption, also stimulate overcrowding investments and bubbles.
1. Agree 100%
2. It is not low interest rates that crowd out investment but Government borrowing as they compete to finance PSBR with private sector for available funds. Low interest rates make investment decisions more attractive by increasing ROI and reducing payback time. Hence, encouraging R&D and Investment to take place.
What absolute rubbish Atilla. The only reason you go along with the idiotic inflationist policy is because you want your Government to protect the value of your precious property portfolio... Nothing more, nothing less.
Do you know the difference between real and nominal value?
People think others think like they do? You speak for your self Mr selfish that you are... I've heard nothing but I and MINE from your rants...
In the absence of raising taxes or price adjustments which are sticky downwards inflation is the only tool.
What you and I think or do is immaterial and of no consequence.
+1Inflation is a general and sustained rise in prices. In simplistic terms it is caused by an imbalance between supply and demand, but can also be imported if eg oil is prices are raised significantly. Inflation is not an increase in the money supply, although that MIGHT help fuel inflation. Taxes can fuel inflation under some circumstances - eg VAT is raised when prices are already rising, and may trigger off higher pay demands or higher prices from companies trying to increase margins during falling sales. Anything that increases costs ca be a factor in the rise of inflation.
Lowering interest rates can have many effects. For me personally at the moment it has made my mortgage payments lower, so I am putting more money into debt repayment, not increased spending. I am not sure QE was about stimulating demand so much as a belief that the problems in 2007/8 were ones relating to lack of general liquidity in the banking system; QE was meant to resolve that, to get Banks functioning again.
Production is stimulated by all sorts of things, but nothing you have mentioned would make a blind bit of difference unless demand is stimulated somewhere.
Is that always the case, though? Even when most of the "money" in the system is "credit", rather than "narrow money"?Inflation is an expansion of the money supply.
Is that always the case, though? Even when most of the "money" in the system is "credit", rather than "narrow money"?
The idea that demand needs to be stimulated is too stupid for words.
Inflation is an expansion of the money supply.