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Ed Breen

Registered: Jan 2010
Posts: 484

11-04-12 01:32 PM

So you see that the process is converting a financial asset, investment abroad, into a tangible domestic 'repair.' You end up with less financial assets and the same tangible assets...so you are poorer.

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McFadden5252

Registered: Jun 2012
Posts: 32

11-04-12 03:32 PM

No piezone unfortunately most of what I said was true. There were few instances of mild inflation however mild deflation spanned a nice 150.

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McFadden5252

Registered: Jun 2012
Posts: 32

11-04-12 03:44 PM

Yes deflation is bad for the credit market. However the credit market has been screwing us over for years now. People need to quit falling into debt. It's a nation wide problem and people can't pay it back. Keynesians mainly revolve GDP on consumption. Fuck exports imports savings and investment. People need to be rewarded for investing in banks. Instead inflation is higher than my savings thus me having my college money in the bank hoping I don't lose as much... Its all rhetoric to them but to me it's shitty economics. Consumption is not the end all be all. Especially when we are all broke! Let the people become responsible savers and spenders again.

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piezoe

Registered: Jan 2006
Posts: 4915

11-04-12 06:30 PM

Quote from McFadden5252:

No piezone unfortunately most of what I said was true. There were few instances of mild inflation however mild deflation spanned a nice 150.

Actually, I realize now that I understated the absurdity of your post.

http://www.rpmex.com/value-of-the-dollar.html

Also, should you care to look at the data pre 1900 you will see that while the dollar was backed by a hard asset its purchasing power changed relatively little with alternating periods of mild inflation and mild deflation (as I stated earlier) except during war time when inflation predominated (Civil War for example.).

Below are the absurd statements you posted that I am specifically referring to:

"History supports deflation actually. For 150 years the United States was thriving off of deflation up until 1913."

and,

"Also for the last century Inflation is all our economy has seen since 1913 so economists fear it."

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morganist
Moderator

Registered: Sep 2008
Posts: 3404

11-04-12 07:40 PM

Quote from Ed Breen:

So you see that the process is converting a financial asset, investment abroad, into a tangible domestic 'repair.' You end up with less financial assets and the same tangible assets...so you are poorer.

No the funds are repatriated instead of being invested abroad. If the funds are held abroad then they are no use to the active economy. The asset has not been lost as you claim it has become used in the domestic economy rather than abroad.

If you own a tractor that is used in China to farm Chinese farms then although you own the tractor you are not the recipient of all the wealth the farm creates. If the funds are a means of production, in this case repair, then you have shifted the production to the native country the funds originated.

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piezoe

Registered: Jan 2006
Posts: 4915

11-05-12 03:41 PM

Breen. Have you read The George Soros Lectures at the Central European University (Amazon, a few bucks.)

If you haven't, I'm guessing you, of all people, will find it extremely interesting, and also I suspect you will find much to criticize. (I should tell you that I think Soros is not only brilliant, but correct!)

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