Patrick.net

How easy is it to cause inflation?

By LAO   Follow   Tue, 2 Aug 2011, 11:47pm   872 views   8 comments
Watch (1)   Share   Quote   Permalink   Like   Dislike  

If this debt ceiling deal plunges into a deflationary environment... Can the govt reverse course in 2012 and inflate us out of the mess by turning on the "printing presses" so to speak?

Viewing Comments 1-8 of 8     Last »     See most liked comments

1. Michinaga Follow Befriend (2) 3 threads 283 comments

   1   1:44am Wed 3 Aug 2011   Share   Quote   Permalink   Like   Dislike (1)   Inflate "us" out of this mess... and into a much, much bigger one. As a diligent saver who has many dollars in the bank, I resent any attempts on the part of the government to steal that value from me. Give me the minus-0.5%-CPI deflationary "mess" any time.

2. bubblesitter Follow Befriend (5) 10 threads 2,329 comments

   2   6:41am Wed 3 Aug 2011   Share   Quote   Permalink   Like   Dislike   Los Angeles Renter says turning on the "printing presses" so to speak? That's a bullying tactic by our own government,keep spending but hey give some raise to back it up. No thank you I am holding on to my $$ while home values keep plummeting as they should.

3. vain Follow Befriend (2) 68 threads 876 comments

   3   7:01am Wed 3 Aug 2011   Share   Quote   Permalink   Like   Dislike   Michinaga says As a diligent saver who has many dollars in the bank, I resent any attempts on the part of the government to steal that value from me. Give me the minus-0.5%-CPI deflationary "mess" any time. My grandfather told me that he had $3000 for a large downpayment to purchase a home back in the 70's. He thought prices were too high and saved diligently. He did not purchase a property, and the $3000 is still in the bank he says.

4. tatupu70 Follow Befriend (3) 15 threads 5,643 comments

   4   7:09am Wed 3 Aug 2011   Share   Quote   Permalink   Like   Dislike (1)   Michinaga says Inflate "us" out of this mess... and into a much, much bigger one. As a diligent saver who has many dollars in the bank, I resent any attempts on the part of the government to steal that value from me. Give me the minus-0.5%-CPI deflationary "mess" any time. Sure. As long as you have a job, deflation is fine. The problem is when the deflation hits your employer...

5. uomo_senza_nome Follow Befriend (13) 787 threads 1,542 comments

   5   7:10am Wed 3 Aug 2011   Share   Quote   Permalink   Like   Dislike   Los Angeles Renter says Can the govt reverse course in 2012 and inflate us out of the mess by turning on the "printing presses" so to speak? Only if they can achieve wage inflation somehow. QE has ensured that the banks are capitalized and they either deposit these reserves back at the Fed for 0.25% interest (ha!) or invest in stocks/bonds/commodity futures etc. The Bernank and company exactly want this kind of inflation so that they can reduce the debt burden (Uncle Sam can pay back creditors with devalued dollars). How long can that charade go on is the question. What if there is runaway inflation and if and when that comes to play, is raising interest rates to curb inflation really an option?

6. bubblesitter Follow Befriend (5) 10 threads 2,329 comments

   6   7:47am Wed 3 Aug 2011   Share   Quote   Permalink   Like   Dislike (1)   vain says and the $3000 is still in the bank he says. Haha. Fear mongering. Who wants to keep $3000 in the bank forever? I am trying time the bottom and which is still a long way.

7. corntrollio Follow Befriend (5) 27 threads 2,073 comments

   7   11:51am Wed 3 Aug 2011   Share   Quote   Permalink   Like   Dislike   vain says My grandfather told me that he had $3000 for a large downpayment to purchase a home back in the 70's. He thought prices were too high and saved diligently. He did not purchase a property, and the $3000 is still in the bank he says. Along with tons of interest or investment return as well as other savings? Also, where was he looking to buy? 3000 sounds like a very low downpayment in the 1970s -- not sure if these figures are accurate, but according to this source, the average (not median) sale price for a used home in 1972 was $30K, it was $39K by 1975, $55,500 by 1978, and $64,200 by 1979: http://dailyreckoning.com/buy-a-house-then-buy-another/

8. AdamCarollaFan Follow Befriend 40 comments Sacramento, CA

   8   10:35am Thu 19 Jan 2012   Share   Quote   Permalink   Like (1)   Dislike   bubblesitter says Los Angeles Renter says turning on the "printing presses" so to speak? That's a bullying tactic by our own government,keep spending i refuse to be bullied into spending my cold hard cash! i'm adopting bubble sitter's strategy.