You want to correct me on low interest rates not causing inflation? I was the one who said low interest by themselves don’t create inflation.

“If the fed pumps money into the economy then companies know that price increases won’t affect demand that much so they raise the prices of their products”

It sounds like you are agreeing with me that one of the main root causes of why we saw inflation was because the govt gave way too many handouts.

He wasn’t critical just because you were oversimplifying something, but I’ll let him explain.

lol. It is tye measure of how much demand for a particular product changes based off of a change in the price.

For example if you are selling flotation devices in the middle of the ocean right after a cruise ship sinks demand would stay strong no matter the price. However, if you were selling watches to the same crowd demand would go down much more if you raised the price.

I don’t think demand for watches is affected by price when asking people who are in the middle of the ocean right after their cruise ship sunk


I think demand would be zero and the price is almost irrelevant. Maybe if you sold them for a penny demand would increase but I think most people would try to kill you for selling stuff during a deadly accident

I learned in school that cigarettes are price inelastic since the demand doesn't change much with price movement. In fact the demand curve looks like a vertical line if price is on the y-axis and quantity demanded is the x.

Do I get to be mod now?

If we agree MAGA admin caused inflation by giving out so much money, why do we want them back? So we can steal more and kick the can down the road further?

They were forced to do it because... well, reasons. Trump would have stopped if he could. But, alas, he was powerless.

You have my vote. A mod for the people by the people of the people, Eagle!

The value of an apple do not change , it’s the value of the currency that is moving .
Price of apple can move up in one country and move down in another in the same day .
It’s the same damn apple .

Yes obviously 1$ as no value by itself if u don’t compare it to anything …..
It’s a piece of paper .

Btw a currency loses value by creating more currencies even by not being compared to other currencies .
Ban tomorrow all forex exchanges and print 1 trillions dollar inside your country , guess what , prices will go up , meaning the value of your currency will go down .

https://www.cnbc.com/amp/2020/07/01/...americans.html

Well, at least there is a funny conversation trying to argue what inflation means.

Inflation is pretty complicated and wouldn't be accurately represented with a single sentence. There are different kinds of inflation for different reasons, but the main driver of inflation is monetary policy. Most forms of inflation that are driven by external sources are limited to a single or few industries and would vary from year to year. The macro inflation that everyone is scared of is the measurable erosion of your buying power, at an aggregate scale, over time. "My dollar gets me .75 of relative life today that it did 4 years ago". That means its across rent, food, gas, general maintenance, healthcare, entertainment, etc. Sectors that drive livable life.

As for the free money, thats why Trump made sure his signature was stamped on every check that went out and oversaw the single largest fraud in the countries history through PPP while interest rates where near zero and money supply expansion was at historic highs, and, and, and....

Forcing religion into education, healthcare, and government isn't freedom of religion. Thats actually quite the opposite!

I like this post .

Montreal - I assumed the "/sarcasm" was implied.

I know
But it was sincerely about others who might of miss it and believe baham narrative and so thinking you wernt sarcastic .

I’ll be more precise next time instead of just showing an article

I’m sure many are deluding themselves into thinking that this near-death experience is going to have the same effect on Trump that the ghosts had on EbenezerScrooge. I can’t blame them, as they’re projecting their own values into the situation. “Whoa. I almost died. I need to reevaluate things and prioritize what’s truly important.” That’s what a normal person would think. But Trump ain’t normal. He’s a severely damaged human being; an absolute monster. He’s only going to become more loathsome. Stay tuned.

Uh oh, TDS alert.

TDS is the condition in which one deludes themselves into thinking that a spoiled brat who grew up with a silver spoon up his ass views the drooling boobs who vote for him as anything other than stupid, dipshit marks from whom to grift. Lotsa folks have it. But then again, the world needs ditch diggers, too!

All you have to do is follow his lead and don't bother to pay your bills.

True. The "something else" is goods and services. Sometimes of a market basket of commonly purchased items, as in the CPI.

In forex the something else is another currency but you can use CPI relative to a currency to check inflation

But I just reiterate inflation is only caused by prices changes. There are drives behind inflation but drivers are not the same as things that cause prices to changes. The only thing that can change the price is the seller of the goods minus govt intervention

fyp

That’s not true.


Are you arguing that everytime we print money it causes inflation? Or that only printing money can cause inflation?

Here’s a better example for you


Let’s say there is $15 trillion dollars in the money supply in our economy


Hotdogs cost $1 a piece


The fed enacts quantitative easing policies and pumps $5T into the economy


How much inflation does the hotdog price experience?

Still $1.50. Costco doesn't change their price.

So you agree that Costco changing the price is the inflation, not the 33% increase in money supply

this is semantics.

increasing the money supply causes prices to go up.

if your argument is that there is no inflation until prices go up, sure.