14
0

Inflation incoming


 invite response                
2021 Apr 14, 6:13am   21,120 views  262 comments

by RC2006   ➕follow (2)   💰tip   ignore  

Who would have thought. With all the people collecting "free money" and non-stop printing.

https://www.whitehouse.gov/briefing-room/blog/2021/04/12/pandemic-prices-assessing-inflation-in-the-months-and-years-ahead/

« First        Comments 260 - 262 of 262        Search these comments

262   Patrick   2022 Apr 23, 9:35pm  

Interesting insight: Inflations is nothing other than the transfer of wealth from one person to another. OK, maybe from one group to another group.

https://www.unqualified-reservations.org/2008/06/olx-simple-sovereign-bankruptcy/?source=patrick.net


Thus, if there are one trillion dollars in the world, and we accept the (dubious) assumption that if you own all the dollars you own the Federal Reserve, each dollar is a right to one trillionth of the Federal Reserve. Perhaps this is obvious, but it implies some corollaries.

One, creating new dollars does not affect the value of the Federal Reserve, however we choose to measure that value. Nor does it affect the value of Elbonia, Yukos, or any other right. It is common or garden-variety stock dilution. Dilution is often more convenient than transferring shares from old owners to new owners, but the principle is the same. If there exist one trillion dollars and we print ten billion new ones and give them to X, the effect is just as if we replaced each dollars held by anyone but X with 99 cents, added up the spare cents and gave them to X.


So inflation is the transfer of wealth from people who already own dollars to the people who get the newly printed dollars.

« First        Comments 260 - 262 of 262        Search these comments

Please register to comment:

api   best comments   contact   latest images   memes   one year ago   random   suggestions   gaiste