Quote:
Originally Posted by Luciom
lol Jesus tax hikes are deflationary only if you tax and use that money to pay down the debtz if you tax to spend more they are inflationary, because what you are taxing wasn't 100% bring consumed, especially if you increase taxes on the rich.
asset price changes aren't inflation/deflation, please read some economics 101.
example for housing: if rent stays the same and house prices double that's 0% inflationary. same if rent stays the same and house prices halve
The government isn’t the sole creator of inflation/deflation ….
If you get money out of my pocket it surely will be hard for me to create inflation unless I borrow.
Furthermore you know how much debt Japan for example created massive amount of debt and money and still it’s wasn’t inflationary for decades ?
Again , It’s ok if you think inflation /deflation is solely a cpi thing …
It’s wrong but it’s ok.
Inflation is far more complicated then looking at cpi .
Your housing example makes no sense.
Ps: there is a reason its called 101 economic , because its the base but there is higher level of understanding.
there is a reason most economic professor aren’t millionaire and billionaires but money managers are ….
But from a « libertarian » pov like you ( dubious libertarian but w.e), your stance isn’t surprising .
https://realinvestmentadvice.com/whe...-asset-prices/
Quote:
A very dangerous fallacy has taken the world of economics by storm over the last several years: the idea that there is very little inflation in the U.S. economy, therefore interest rates should remain at unusually low levels for an even longer period of time. As I will prove in this piece, the people who believe in the “low inflation” myth are being fooled by the fact that inflation in this unusual, central bank-driven economic cycle is concentrated in asset prices rather than in consumer prices.
FWIW when the cost of money go down , asset prices inflates because the currency goes down in value .
That’s Inflation and it doesn’t take rocket science to understand.
So it’s not because asset price isn’t represented in the cpi and gdp growth that they don’t exist and inflation isn’t represented by them .
It’s the same concept of believing gdp grows so the economy going well because we never include the government deficit in the gdp calculation ….