Inflation 101
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.
Not semantics at all.
Let’s use Arizona ice tea for an example
Money supply went up astronomically this last five years
Price of Arizona ice tea stayed the same.
People changing the prices of goods causes the prices to go up. Nothing else causes the prices to change. They may drive behavior or incentivize behavior but money supply doesn’t change prices.
AZ iced tea is a great example
Pointless - Prices going up is a symptom of inflation, not the cause. I hope this helps.
Look at Zimbabwe or Weimar. One day bakers decided, hey we used to charge $1 for a loaf of bread. Let's jack it up it $10 million for fun
Not semantics at all. Let’s use Arizona ice tea for an exampleMoney supply went up astronomically this last five years Price of Arizona ice tea stayed the same. People changing the prices of goods causes the prices to go up. Nothing else causes the prices to change. They may drive behavior or incentivize behavior but money supply doesn’t change prices. AZ iced tea is a great ex
This is an incredibly dumb semantic argument. It's akin to arguing that firefighters frequently cause residential buildings to flood.
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?
If all else is equal except the increase in the money supply then 0%.
ITT we learn that roads getting wet causes it to rain. It might seem counterintuitive, but if you guys had a degree in hydrology, you'd understand.
I'm a big fan of the water cycle. In 3rd grade we simulated it via a ziplock bag taped to a brightly lit window.
He caused literally a hundred thousand people to be killed during the two wars he supports.
How do a hundred thousand people get killed if guns and bombs don't kill them? Your argument is that guns are the cause of death, not war.
can we have an inflation containment thread?
You guys keep blaming the wrong people for inflation. Blame the companies raising the prices. I mean blame the fed too obviously but blame the companies as well and more
Shouldn't the bitcoin guys be cheering for more inflation? Isn't that the whole point?
You guys keep blaming the wrong people for inflation. Blame the companies raising the prices. I mean blame the fed too obviously but blame the companies as well and more
Why blame the fed if u think money supply or interest rates as no effect on inflation ?
FWIW inflation is result not a cause .
Didace, housenut, gorg ,etc all got it right .
Do a revision of your notebook
So you agree that Costco changing the price is the inflation, not the 33% increase in money supply
It’s hard for people to afford higher prices if they do not have more currency (money supply moving up) in their hands available (in the economy) .
Ps: sorry king just saw your post.
Another containment thread about inflation should be imo .
Why blame the fed if u think money supply or interest rates as no effect on inflation ?
FWIW inflation is result not a cause .
Didace, housenut, gorg ,etc all got it right .
Do a revision of your notebook
the fed incentivizes companies to raise prices when they lower the cost of borrowing money/ increase supply
someone tell the greedy retailers to stop increasing prices!
What's the difference between 2 and 3? One is faded?
2 says silver certificate
