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Originally posted by Krypton

You realize that inflation in the US is like nothing, right?

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Originally posted by Lilith Speak for yourself white face. There's dumb people with money and dumb people without money, sooner or later they all end up just dumb and broke because they don't know what they're doing with it. They don't plan for worst case scenarios, they don't know what to spend it on to keep it as an asset, fritter it away on crap that ends up costing them more in both interest rates and it's own liabilities. After awhile, they end up in this frustrated mire of their own stupidity and get down to the 'throat cutting' because they're just not good enough to do it any other way. Besides, it's much nicer to just walk away from a deal after absolutely wrecking someone into the dirt and they're still smiling, thinking they got the best deal ever. Chances are, they'll probably even let you do it too them twice!

Sure, if you want massive multi-billion dollar writeoffs of unpaid loans at the largest of banking institutions WORLDWIDE. The economy would fall flat on its face if this horrible lending standard were continued. Jobs, gone. Recession take-over. Houses? Foreclosured to the highest bidder.

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Originally posted by Lebezniatnikov You realize that inflation in the US is like nothing, right?

precisely. krypton just likes to bang on and on about the federal reserve. he thinks theyre part of an evil dictatorial economic elite.

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Originally posted by Krypton Sure, if you want massive multi-billion dollar writeoffs of unpaid loans at the largest of banking institutions WORLDWIDE. The economy would fall flat on its face if this horrible lending standard were continued. Jobs, gone. Recession take-over. Houses? Foreclosured to the highest bidder.

I've survived worse.

lol white face! Best worst insult , ever.

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Originally posted by pkcRAISTLIN precisely. krypton just likes to bang on and on about the federal reserve. he thinks theyre part of an evil dictatorial economic elite.

In August inflation was 1.97% in the US - that was like a ten year low. In France it is about 1.50% and in Britain about 1.9%. So pretty comparable. By contrast, official reports in Zimbabwe show inflation nearing 15,000% this month... and most observers believe it is higher. Now if you lived in Zimbabwe and made the argument that the government prints too much money, you'd have a pretty decent point.


EDIT: And anyway, who is to say that a little inflation is a bad thing? Inflation is just the rise in prices over time... that comes pretty naturally with growth. As long as GNP growth outpaces inflation, the purchasing power of the average citizen is growing. And in the US, we're well above the rate of inflation in growth. So again, nothing to really worry about there. I still don't understand Krypton's crusade against the Fed.

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Originally posted by Lebezniatnikov You realize that inflation in the US is like nothing, right?

It's enough to make crude oil almost $100. It's enough to make gold skyhigh in the $800/oz. range. It's enough to pinch consumer spending by burdening them with higher fuel prices (especially come winter).

Everything denominated in dollars becomes more expensive to us. And for foreign dollar holders, it cheapens their holdings. That is why the news has become filled with reports of countries diversifying their dollar holdings toward the euro, or yen, etc. That is BIG.

And if the Fed is smart, they won't lower interest rates for the rest of 2007.

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Originally posted by pkcRAISTLIN precisely. krypton just likes to bang on and on about the federal reserve. he thinks theyre part of an evil dictatorial economic elite.

Uh huh...

Nice way to put it...

The Fed just needs to reorganization. Talk to 911 truthers if you want conspiracy talk... I only talk about real stuff that is actually happening or has happened.

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Originally posted by Krypton It's enough to make crude oil almost $100. It's enough to make gold skyhigh in the $800/oz. range. It's enough to pinch consumer spending by burdening them with higher fuel prices (especially come winter). Everything denominated in dollars becomes more expensive to us. And for foreign dollar holders, it cheapens their holdings. That is why the news has become filled with reports of countries diversifying their dollar holdings toward the euro, or yen, etc. That is BIG. And if the Fed is smart, they won't lower interest rates for the rest of 2007.

Whoa whoa whoa, you're talking about a lot of different economic principles in one fell swoop here.

First of all, rising prices in oil are not linked to inflation, or anything else the Fed controls, for that matter. Look to OPEC for that. An added tax on oil revenue would actually lower the cost of a barrel of oil and stick it to OPEC, as I posted in PDD awhile back (and I'm sure nobody took the time to read).

And currency exchanges and inflation, if I understand correctly, are not necessarily a direct correlation. That's why you saw inflation drop considerably over most of 2007 and the dollar still lose relative worth compared to the Euro and the Canadian dollar. I'm not an economist, but from what I do understand of International Finance Theory, I'm pretty sure the correlation there is false.

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My "crusade" is simply I think the Fed benefits international banks more than it benefits the average consumer. Sure, it serves a function for the economy as a whole, I just think that the banks take precedent over EVERYTHING and I think that's wrong.

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Originally posted by Krypton It's enough to make crude oil almost $100.

the price of crude oil has nothing to do with natural inflation; its just how commodities work. the (global) price of oil has nothing to do with the (moderate) level of inflation in the US.

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I still don't understand Krypton's crusade against the Fed.

yeah, i still havent seen one concrete piece of evidence against the use of a centralised bank, but plenty of reasons to support one.

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