Comments on: There is no such thing as inflation

By: TENOFWANDS

TENOFWANDS — Tue, 19 Oct 2010 16:24:07 +0000

In purely mathematical terms, inflation is relativistic, and thus dependent upon reference frame. When conventional pundits characterize an economy as “inflationary”, they are also making the simultaneous implicit statement that the value of currency is being deflated. Hence, inflating prices is, in relativistic terms, the same as deflating cash. What conventional pundits call “inflation” is, in absolute terms, a perturbation of the commodity value / cash value ratio in the positive direction. What is now needed is a new function which recognizes the sector-related variance in the commodity value/cash value ratio. Then, intelligent stimulus policies which are sector-specific could be designed.

By: pjdxxxwa

pjdxxxwa — Tue, 19 Oct 2010 14:49:45 +0000

Finally someone with half a brain that knows what is going on. In the “old” days they said prices rise and fall by supply and demand. Want prices to go down? Demand LESS of the item.

Greed has taken over much of the world and the economy is plummeting because more of the blue collar workers cannot afford corporate pricing for shoddy products. When all the corporation run countries understand THIS, the economy will improve.

By: DunaDad

DunaDad — Tue, 19 Oct 2010 13:02:08 +0000

Last year my union took a wage freeze; this year I have to take a seven day furlough. My home has lost considerable equity. Fortunately, we are not underwater.
Economists fret about inflation, yet in my economic sphere I am in a deflationary period. The worst thing is that i feel helpless to my lot. I am being asked to do more and being paid less. A CBA precludes me negotiating a raise. What is to be done?

By: DeerHunter

DeerHunter — Tue, 19 Oct 2010 12:03:55 +0000

We are causing inflation to increase returns and increase stocks and comodities prices, hence returns. Inflation will not generate jobs, but actually slow things furher as the average household buys less. If we devalue the dollar so much that we are now more competitive overseas, will that actually create more jobs in America, or will that mean that more jobs are created offshore and sold as American goods?

By: pHenry

pHenry — Mon, 18 Oct 2010 15:57:44 +0000

Surely the mathmagicians can formulate a composite of the individual factors and components to arrive at a more accurate estimate of how much life cost. Until then if stimulus fails repeatedly, when do you change meds? Placebo feel goods rarely cure anything that couldn’t be fixed by thinking in real terms. How many Ft.Knox bars will pay our bills?