Nixon Shock: 50 Years Ago Today

Discussion in 'Wall St. News' started by kmiklas, Aug 15, 2021.

  1. Overnight

    Overnight

    What do those countries actually produce, aside from Venezuelan oil?
     
    #31     Aug 22, 2021
    piezoe likes this.
  2. SunTrader

    SunTrader

    Z and V gold, Arg is one of the biggest wheat and beef producers. Many others products, minerals etc especially V.

    They all have been mismanaged and or corrupted.

    We have as well, just not (so far) to the same extent.
     
    #32     Aug 22, 2021
    countryBoy641 likes this.
  3. piezoe

    piezoe

    Modern western Economies run on fractional reserve banking; thus credit is the biggest component of the circulating money supply. Deflation results in real interest rates rising. Therefore inflation is intolerable in any economy that runs on credit.
     
    #33     Aug 22, 2021
  4. piezoe

    piezoe

    Productivity in "Z" collapsed after its farms were nationalized. Neither "Z" nor "Arg" could print their way out of trouble. They both had insufficient productivity to match the money they printed. "Arg" had to issue debt denominated in dollars. Don't know about "V". My suspicion is it has to do with gross mismanagement and corruption and perhaps collapse of crude oil price, i.e., insufficiently diverse economy.. None of these Countries you mention have what we would call deep sovereignty over their money.
     
    #34     Aug 22, 2021
  5. SunTrader

    SunTrader

    aka biggest, strongest military industrial complex.
     
    #35     Aug 23, 2021
  6. I think you meant Deflation is intolerable.
    The FED clearly has stated they want inflation right now, they say 2%, we have more like 10%.
    So, it seems inflation is very tolerable, for the FED and U.S. Treasury.
    Maybe you just don't follow the news.
     
    #36     Aug 23, 2021
  7. piezoe

    piezoe

    Yes, THANK YOU!
     
    #37     Aug 23, 2021
  8. Replacements for U.S. and Western Europe are being groomed as we speak.
    Gustavo Dudamel and the Simon Bolivar Symphony (Venezuela)
    Beethoven: Symphony No. 7 - 4th Movement
     
    Last edited: Aug 23, 2021
    #38     Aug 23, 2021
    cobco likes this.
  9. UsualName

    UsualName

    This is exactly was a taught in college Macro Econ but it doesn’t explain this:

    A7554734-57C8-4016-9D8D-B4664E68A47C.png

    There’s always been a lot of talk about our money and it’s connection to inflation but we rarely talk about it’s connection to employment. You can can notice that inflation starts to stabilize about the same time the Fed is given the dual mandate. The best explanation for this I’ve seen has come form MMT theories.
     
    #39     Aug 23, 2021

  10. But I disagree that a credit-based banking system is such a great idea, or at least for a "one size fits all" banking system. There have been times in U.S. History when it may have been a good idea. I remember one or two quarters in the Reagan Administration GDP hit 8%. All the Krugman types were freaking out "It's gonna explode (or something)".

    There are no doubt pockets of exception now (high growth areas), but the U.S. economy is mostly moribund. After decades of fractional reserve banking (and its corollaries, e.g. Stock buybacks), the leverage is approaching the point of not being able to be maintained.
    Debt service is a cruel taskmaster.

    And the wild card is the FED now promising to reign in inflation.
    Do they mean they will raise interest rates?
    If they ever did that, we would see explosions all over the economic landscape, like never seen before.
     
    #40     Aug 23, 2021
    cobco likes this.