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The question I have is that even with the 1st derivative at 0 (ie no inflation), the prices will still be too high. I believe prices won’t drop.

Am4TIfIsER0ppos 4y ago
That's because the government wants to steal your money through inflation.
- rileymat2 4y ago
  This is an interesting statement, obviously, cash assets suffer inflation, but is this where money is to be stole? If prices are going up, and I have goods or stock in companies that sell goods benefiting increased price, has anything really been stolen? I would think that intentional inflation is a signal to spend faster, holding money is bad. Nothing to do with theft.
  - yucky 4y ago
    The issue isn't that those well enough off to hold significant stock in those companies are suffering. It's the people who don't have shares and 2nd homes to liquidate.
    - rileymat2 4y ago
      But the poor typically are not cash rich either and have debt, debt that is better serviced with increased wages that inflation can bring. Of course it is all predicated on wages/inflation in step which does not seem to be true.
  - thunky 4y ago
    > where money is to be stole I think the big one is at the large scale: government reducing it's debt burden by devaluing the currency that is used to repay their creditors. But even on the small scale it seems like they win: Let's say you have 100k in a HYSA that yields 5%. And the inflation rate is 10%. Not too far from current numbers. After 1 year, your real (inflation-adjusted) return is -5%, so you've lost 5k of spending power. But then, at tax time, you have to write a check to the govt to pay taxes on your 5k "gain".
    - rileymat2 4y ago
      Not to be too theoretical, but aren't we the government? It is not some other entity, it is reducing our own debt burden that we owe collectively (presuming you are American). If anything the most angry should be foreign holders of American currency.
      - Am4TIfIsER0ppos 4y ago
        Hah. Aren't americans always complaining about how monied interests control the outcome of their elections? As for europe there's different electoral shenanigans like holding a referendum then ignoring the result or taking more than 500 days to form a government after a national election because the stupid system doesn't deliver a clear winner.
      - thunky 4y ago
        Foreign debt is only a piece of it: https://www.thebalancemoney.com/who-owns-the-u-s-national-debt-3306124#:~:text=1%20Foreign%20governments%20hold%20a,and%20holders%20of%20savings%20bonds https://www.thebalancemoney.com/who-owns-the-u-s-national-de.... For example: think of the retiree who holds most of their nest egg in (nominal) treasury bonds.
  - Am4TIfIsER0ppos 4y ago
    If cash loses value due to inflation, where does it go? Now for old fashioned inflation that would be obvious: to the people who charge more for goods and services. But with current monetary shenanigans it isn't. You might be tempted to say the printers. Who are they? The central bank? Who controls that? The government? How does the government enforce anything? The threat of violence. Therefore stealing: government taking something of value by force or threat of force.
oneoff786 4y ago
That is correct. Your beliefs are also irrelevant here. If prices were dropping, inflation would be default be negative. That is, deflation.

Am4TIfIsER0ppos 4y ago

That's because the government wants to steal your money through inflation.

rileymat2 4y ago
This is an interesting statement, obviously, cash assets suffer inflation, but is this where money is to be stole? If prices are going up, and I have goods or stock in companies that sell goods benefiting increased price, has anything really been stolen? I would think that intentional inflation is a signal to spend faster, holding money is bad. Nothing to do with theft.
- yucky 4y ago
  The issue isn't that those well enough off to hold significant stock in those companies are suffering. It's the people who don't have shares and 2nd homes to liquidate.
  - rileymat2 4y ago
    But the poor typically are not cash rich either and have debt, debt that is better serviced with increased wages that inflation can bring. Of course it is all predicated on wages/inflation in step which does not seem to be true.
- thunky 4y ago
  > where money is to be stole I think the big one is at the large scale: government reducing it's debt burden by devaluing the currency that is used to repay their creditors. But even on the small scale it seems like they win: Let's say you have 100k in a HYSA that yields 5%. And the inflation rate is 10%. Not too far from current numbers. After 1 year, your real (inflation-adjusted) return is -5%, so you've lost 5k of spending power. But then, at tax time, you have to write a check to the govt to pay taxes on your 5k "gain".
  - rileymat2 4y ago
    Not to be too theoretical, but aren't we the government? It is not some other entity, it is reducing our own debt burden that we owe collectively (presuming you are American). If anything the most angry should be foreign holders of American currency.
    - Am4TIfIsER0ppos 4y ago
      Hah. Aren't americans always complaining about how monied interests control the outcome of their elections? As for europe there's different electoral shenanigans like holding a referendum then ignoring the result or taking more than 500 days to form a government after a national election because the stupid system doesn't deliver a clear winner.
    - thunky 4y ago
      Foreign debt is only a piece of it: https://www.thebalancemoney.com/who-owns-the-u-s-national-debt-3306124#:~:text=1%20Foreign%20governments%20hold%20a,and%20holders%20of%20savings%20bonds https://www.thebalancemoney.com/who-owns-the-u-s-national-de.... For example: think of the retiree who holds most of their nest egg in (nominal) treasury bonds.
- Am4TIfIsER0ppos 4y ago
  If cash loses value due to inflation, where does it go? Now for old fashioned inflation that would be obvious: to the people who charge more for goods and services. But with current monetary shenanigans it isn't. You might be tempted to say the printers. Who are they? The central bank? Who controls that? The government? How does the government enforce anything? The threat of violence. Therefore stealing: government taking something of value by force or threat of force.

oneoff786 4y ago

That is correct. Your beliefs are also irrelevant here. If prices were dropping, inflation would be default be negative. That is, deflation.