Debt causes inflation, particularly if it’s used to finance payments to the folks who will spend them quickly. The only thing about the Drumpf tax cuts about which you can find a good thing to say: Zillionaires tend not to spend much of their tax breaks in ways that cause inflation.
Inflation is inevitable, given the recent upheavals in the human landscape. Having been held down by clever economists and their clever governmental regulations for so long, it was bound to burst forth due to extreme societal stress.
It makes me think of a volcanic lake that has suppressed the release of carbon dioxide in its cold depths, only to have it suddenly released when the volcano has pre-eruption tremors that cause the CO2 to be released and burst upward into the open air.
The concentrated CO2 spreads along the surrounding landscape, suffocating animals that live at levels low to the ground. Those who live on higher ground, survive and may later feast on the dead of those less fortunate.
Humans, for all their vain pretensions, are a part of the world of natural processes, and some of those processes have counterparts to the artificial ones so often thought as superior. (—
Just a few weeks ago I was told there is no inflation even though it had started and most indicators were pointing to it increasing significantly and soon. Now that that is happening and can’t be denied, the narrative is turning to inflation is normal and not necessarily bad. Oh, and it’s orange idiot’s fault. I called that response back when I noted inflation was looming, but that one is like predicting the sunrise. So, here we are, folks. We’ll have inflation happening in fits and starts and an up-and-down economy with slightly more downs than ups for the near future. It could get ugly if the federal government keeps spending and approving more massive spending bills. The rising debt, the massive debt service that goes with that and a weakening economy don’t work together well and never has.
WW2 cost the U.S. over $4 trillion in today’s dollars which amounted to a staggering 36% of gross national product. Many people back then predicted economic collapse but instead, the country experienced the greatest boom in its history. Our current debt is far greater than that but then, so is our GNP. Inflation will always be a wolf at our front door but we have safeguards built into our financial system that are overseen by the Fed which have done a decent job of controlling inflation for a very long time now and will likely continue to do so. It isn’t perfect just as our system of government isn’t. But as Churchill so eloquently summed up democracy: “No one pretends that democracy is perfect or all-wise. Indeed it has been said that democracy is the worst form of government… except for all those other forms that have been tried from time to time”
Typically a rising economy brings inflation with it. If you don’t want inflation, are you willing to accept a flat economy as well? Or do you prefer the worst of both worlds: stagflation?
Ok, I understand what Kev is saying, but honestly, it makes NO sense. How could the dragon fire fail to light the cannon in the illustration? The heat would cause ignition, fuse or not. As a metaphor for Biden’s failure to boost the economy due to inflation it is a weak squibble.
Hmmm what could stave out inflation? Taxing the rich to reduce the debt and eliminate corporate waste as in no more taxpayer bailouts for multi-million dollar businesses. Bad, corrupt, incompetent businesses should fail in a capitalist free market.
The levels of stupid in society jest keep getting worse. Despite all the efforts to ensure good, basic education. Particularly when it comes to paying off stuff as you use it, yet I’ll bet Kevvy put himself into debt to buy a house, car, refurbish the house………….and paid the debt off as he used the acquisitions.
The rise in CPI is due to supply constraints in some sectors more than consumer demand. Consumer demand did not collapse thanks to the Corona relief programs and allowed people to buy things despite some higher prices. That may not be that bad and it’s a little early to get upset about 4.5%
Concretionist almost 3 years ago
Debt causes inflation, particularly if it’s used to finance payments to the folks who will spend them quickly. The only thing about the Drumpf tax cuts about which you can find a good thing to say: Zillionaires tend not to spend much of their tax breaks in ways that cause inflation.
PraiseofFolly almost 3 years ago
Inflation is inevitable, given the recent upheavals in the human landscape. Having been held down by clever economists and their clever governmental regulations for so long, it was bound to burst forth due to extreme societal stress.
It makes me think of a volcanic lake that has suppressed the release of carbon dioxide in its cold depths, only to have it suddenly released when the volcano has pre-eruption tremors that cause the CO2 to be released and burst upward into the open air.
The concentrated CO2 spreads along the surrounding landscape, suffocating animals that live at levels low to the ground. Those who live on higher ground, survive and may later feast on the dead of those less fortunate.
Humans, for all their vain pretensions, are a part of the world of natural processes, and some of those processes have counterparts to the artificial ones so often thought as superior. (—
FrankErnesto almost 3 years ago
Trump tax cuts inflated the Stock Market, and made the rich richer.
Longplay Premium Member almost 3 years ago
“Humm… what am I doing here holding a match?”
guyjen2004 Premium Member almost 3 years ago
Just a few weeks ago I was told there is no inflation even though it had started and most indicators were pointing to it increasing significantly and soon. Now that that is happening and can’t be denied, the narrative is turning to inflation is normal and not necessarily bad. Oh, and it’s orange idiot’s fault. I called that response back when I noted inflation was looming, but that one is like predicting the sunrise. So, here we are, folks. We’ll have inflation happening in fits and starts and an up-and-down economy with slightly more downs than ups for the near future. It could get ugly if the federal government keeps spending and approving more massive spending bills. The rising debt, the massive debt service that goes with that and a weakening economy don’t work together well and never has.
PoodleGroomer almost 3 years ago
Everybody’s fast launch program looks like this.
Bill D. Kat Premium Member almost 3 years ago
WW2 cost the U.S. over $4 trillion in today’s dollars which amounted to a staggering 36% of gross national product. Many people back then predicted economic collapse but instead, the country experienced the greatest boom in its history. Our current debt is far greater than that but then, so is our GNP. Inflation will always be a wolf at our front door but we have safeguards built into our financial system that are overseen by the Fed which have done a decent job of controlling inflation for a very long time now and will likely continue to do so. It isn’t perfect just as our system of government isn’t. But as Churchill so eloquently summed up democracy: “No one pretends that democracy is perfect or all-wise. Indeed it has been said that democracy is the worst form of government… except for all those other forms that have been tried from time to time”
ferddo almost 3 years ago
Typically a rising economy brings inflation with it. If you don’t want inflation, are you willing to accept a flat economy as well? Or do you prefer the worst of both worlds: stagflation?
Durak Premium Member almost 3 years ago
Ok, I understand what Kev is saying, but honestly, it makes NO sense. How could the dragon fire fail to light the cannon in the illustration? The heat would cause ignition, fuse or not. As a metaphor for Biden’s failure to boost the economy due to inflation it is a weak squibble.
ndblackirish97 almost 3 years ago
Hmmm what could stave out inflation? Taxing the rich to reduce the debt and eliminate corporate waste as in no more taxpayer bailouts for multi-million dollar businesses. Bad, corrupt, incompetent businesses should fail in a capitalist free market.
grumpypophobart almost 3 years ago
The levels of stupid in society jest keep getting worse. Despite all the efforts to ensure good, basic education. Particularly when it comes to paying off stuff as you use it, yet I’ll bet Kevvy put himself into debt to buy a house, car, refurbish the house………….and paid the debt off as he used the acquisitions.
Yontrop almost 3 years ago
The rise in CPI is due to supply constraints in some sectors more than consumer demand. Consumer demand did not collapse thanks to the Corona relief programs and allowed people to buy things despite some higher prices. That may not be that bad and it’s a little early to get upset about 4.5%