5 ms·

Can we bring this game show back, and can I talk to the casting associate? I'd prefer to be a millionaire so I could be independently wealthy and do what I want

Can we bring this game show back, and can I talk to the casting associate? I'd prefer to be a millionaire so I could be independently wealthy and do what I want instead of living just to pay bills, but if I could be a thousandaire, hey that is a nice start! I'm always amazed, despite being well aware of inflation, the cost of things/cash value of prizes in things of yesteryear. When you hear someone bought their house for something like 7,000 dollars or their brand new car for 2,400 dollars my monkey brain just refuses to stop for a second and go "yeah but inflation". Then there is the rabbit hole of goods that have gotten significantly cheaper over time, or even those that have been volatile at times (such as the spot price of silver and gold). Way too easy to get lost thinking about stuff like that.

jeofken 6y ago
Get ready for inflation to go absolutely nuts in the wake of last year. https://tradingeconomics.com/united-states/money-supply-m1 https://tradingeconomics.com/united-states/money-supply-m1 People who own (fiat) currency or have their salaries denoted in $ will face tough times - Weimar style.
- spuz 6y ago
  Could you explain how your link backs up your claim?
  - irjustin 6y ago
    Not the poster, but the M1 denotes how much money gets printed. Because of COVID, for better or worse, US has been printing money like crazy to hand out and prop up different areas of the country. Whether you agree/disagree with this, that's for another thread. Point is, we're printing money. If you're familiar with inflation, stop here. Obviously the country and the world are not producing nor consuming at the same level. Thusly at an extremely extremely simplistic level, we're not creating more "intrinsic" value, but adding more printed money to represent that "intrinsic" value. Each dollar now has less "intrinsic" value. (this is over simplified to the n-th degree). This is the basis for inflation. Any unstable country would have seen hyper inflation given these numbers. So, the parent comment is alluding to this... eventually production has to catch up or inflation will.
    - marcosdumay 6y ago
      > This is the basis for inflation. Hum... Sure, it's the basis of some kind of inflation. But you'll get no useful kind that only depends on the amount of paper money in existence. There is much more to inflation than the amount of paper money on the economy, and even than the amount of money the government creates.
      - alisonkisk 6y ago
        Do you mean literal "paper" (which is irrelevant) or M1, which is largely electronic?
        marcosdumay 6y ago
        The comment applies to both paper and M1. It also applies to M3, although M3 is already way too broad for any useful inflation number, it is also too restrictive in different ways. Inflation is a complicated concept.
    - ItsMonkk 6y ago
      Neutral money is the spherical cow of economics, and it isn't correct. You need to take into effect the Cantillion effect. The only way we would getting meaningful CPI inflation is if the new money was going to people who would increase their demand of CPI items if they got it. This year the FED has bought bonds, and so that is who that money was given to people with those bonds. Those people can then spend that money, but as we've seen with the stock market, that money was just pumped into the stock market. So all we will see is that the velocity of money will drop further, the prices of items tracked by the CPI won't move, and wealth inequality just got a little worse.
- OscarCunningham 6y ago
  The graph looked like that in 2009 too, and yet inflation stayed around the 2% target.
  - irjustin 6y ago
    https://fred.stlouisfed.org/series/M1 https://fred.stlouisfed.org/series/M1 I wouldn't say it looked similar... The time scales are different for the same _relative_ amount printed. 2009 took longer to play out. We're not even 1 year in.
    - OscarCunningham 6y ago
      Yeah, you're right. A good way to compare the relative increases is to go to 'Edit Graph' and set a log scale in the 'Format' tab. That makes it clear the relative change in 2020 was huge. I'm still not sure it will cause inflation though, since COVID has had a big deflationary impact and the Fed can always unwind if needed.
  - the-dude 6y ago
    Real estate and stock market.
    - unreal37 6y ago
      Yeah, we're seeing inflation in "financial assets". Just not yet in a basket of groceries.

jeofken 6y ago

Get ready for inflation to go absolutely nuts in the wake of last year. https://tradingeconomics.com/united-states/money-supply-m1 https://tradingeconomics.com/united-states/money-supply-m1 People who own (fiat) currency or have their salaries denoted in $ will face tough times - Weimar style.

spuz 6y ago
Could you explain how your link backs up your claim?
- irjustin 6y ago
  Not the poster, but the M1 denotes how much money gets printed. Because of COVID, for better or worse, US has been printing money like crazy to hand out and prop up different areas of the country. Whether you agree/disagree with this, that's for another thread. Point is, we're printing money. If you're familiar with inflation, stop here. Obviously the country and the world are not producing nor consuming at the same level. Thusly at an extremely extremely simplistic level, we're not creating more "intrinsic" value, but adding more printed money to represent that "intrinsic" value. Each dollar now has less "intrinsic" value. (this is over simplified to the n-th degree). This is the basis for inflation. Any unstable country would have seen hyper inflation given these numbers. So, the parent comment is alluding to this... eventually production has to catch up or inflation will.
  - marcosdumay 6y ago
    > This is the basis for inflation. Hum... Sure, it's the basis of some kind of inflation. But you'll get no useful kind that only depends on the amount of paper money in existence. There is much more to inflation than the amount of paper money on the economy, and even than the amount of money the government creates.
    - alisonkisk 6y ago
      Do you mean literal "paper" (which is irrelevant) or M1, which is largely electronic?
      - marcosdumay 6y ago
        The comment applies to both paper and M1. It also applies to M3, although M3 is already way too broad for any useful inflation number, it is also too restrictive in different ways. Inflation is a complicated concept.
  - ItsMonkk 6y ago
    Neutral money is the spherical cow of economics, and it isn't correct. You need to take into effect the Cantillion effect. The only way we would getting meaningful CPI inflation is if the new money was going to people who would increase their demand of CPI items if they got it. This year the FED has bought bonds, and so that is who that money was given to people with those bonds. Those people can then spend that money, but as we've seen with the stock market, that money was just pumped into the stock market. So all we will see is that the velocity of money will drop further, the prices of items tracked by the CPI won't move, and wealth inequality just got a little worse.
OscarCunningham 6y ago
The graph looked like that in 2009 too, and yet inflation stayed around the 2% target.
- irjustin 6y ago
  https://fred.stlouisfed.org/series/M1 https://fred.stlouisfed.org/series/M1 I wouldn't say it looked similar... The time scales are different for the same _relative_ amount printed. 2009 took longer to play out. We're not even 1 year in.
  - OscarCunningham 6y ago
    Yeah, you're right. A good way to compare the relative increases is to go to 'Edit Graph' and set a log scale in the 'Format' tab. That makes it clear the relative change in 2020 was huge. I'm still not sure it will cause inflation though, since COVID has had a big deflationary impact and the Fed can always unwind if needed.
- the-dude 6y ago
  Real estate and stock market.
  - unreal37 6y ago
    Yeah, we're seeing inflation in "financial assets". Just not yet in a basket of groceries.