Biden's Biggest Blunder

Quote: Gandler

A 3.5 billion dollar bill will do nothing for our inflation, that is the drop in a bucket.

My mistake it should have said trillion not billion. I narrate now and I don't catch all the mistakes

Quote: Evenbob

My mistake it should have said trillion not billion. I narrate now and I don't catch all the mistakes

Mistakes are fine, I just don't know what bill you are referring to so I can't comment, 3.5 trillion immigration bill? If so I find this very hard to believe that it will pass because it will be opposed by both parties as you said above. But, I don't know enough about it.

Quote: Gandler

Mistakes are fine, I just don't know what bill you are referring to so I can't comment, 3.5 trillion immigration bill? If so I find this very hard to believe that it will pass because it will be opposed by both parties as you said above. But, I don't know enough about it.

If you are following the news at all you would see the typo of "billion" not "trillion." If you follow congress you would see the typo because congress will not waste their time with a standalone 3.5 billion dollar bill.

Quote: AZDuffman

If you are following the news at all you would see the typo of "billion" not "trillion." If you follow congress you would see the typo because congress will not waste their time with a standalone 3.5 billion dollar bill.

I have to admit I have not been following the news recently other than some very specific items (Afghanistan, military, COVID, some local issues).

I don't watch news TV or anything like that. I prefer just to read articles about things that interest me, I have never been one for just watching news channels.

So, I still have no clue what bill you guys are talking about or how it is predicted to impact inflation.

Quote: Gandler

So, I still have no clue what bill you guys are talking about or how it is predicted to impact inflation.

Study history. Printing money creates inflation. Pumping too much government spending into an economy creates inflation.

Quote: AZDuffman

Study history. Printing money creates inflation. Pumping too much government spending into an economy creates inflation.

It's how Germany got the worst inflation in modern history after World War 1. They printed boatloads of money, pumped into the economy and almost overnight their products were worthless with inflation. Thankfully they need all 50 Democrat Senators to pass this terrible bill and some of them are going forget it. Even they can see how awful this would be for the economy.

Quote: AZDuffman

Study history. Printing money creates inflation. Pumping too much government spending into an economy creates inflation.

I don't disagree, but inflation is not inherently bad (some of the accounts on here can rebut me if they feel I am wrong), and if its being used to promote a program that helps increase the quality of life (again I still don't know the bill being discussed, and nobody has posted an official link so....) that can make it even less bad....

We are nowhere near post-WWI levels where Germany (rightly or wrongly) had insane sanctions placed on it and insane debt obligations placed on it (again rightly or wrongly can be debated), on top of many restrictions as to how it could operate as a country, pretty much forcing it into economic freefall. This is not (nor will ever be) the case for America as we are the richest and most powerful country in history. And, there would have to be a massive shift of power for this to even be possible (not in my lifetime anyway...) The price of gas and food slightly rising is nothing compared to what post WWI Germany had to deal with.

Quote: Gandler

I don't disagree, but inflation is not inherently bad (some of the accounts on here can rebut me if they feel I am wrong), and if its being used to promote a program that helps increase the quality of life (again I still don't know the bill being discussed, and nobody has posted an official link so....) that can make it even less bad....

Inflation is inherently bad. It destroys the value of your money. You want to know why so many people cannot afford a home compared to the 1950s? Inflation. Inflation is only good for people who have borrowed money. Know how the USA got ahead of the national debt from Vietnam and the War on Poverty? That is right, inflated it away! By 1981 half of the 1967 debt had been inflated away.

Quit thinking "programs" are the way to increase the "quality of life." The War on Poverty has made a serf class. The bottom 20-30% are serfs to the government. If they try to save money or do better they lose their benefits. So they try to do just enough to keep their benefits. Seen it happen. Worked as a tax preparer. These people knew the EIC better than most CPAs.

Quote:

We are nowhere near post-WWI levels where Germany (rightly or wrongly) had insane sanctions placed on it and insane debt obligations placed on it (again rightly or wrongly can be debated), on top of many restrictions as to how it could operate as a country, pretty much forcing it into economic freefall. This is not (nor will ever be) the case for America as we are the richest and most powerful country in history. And, there would have to be a massive shift of power for this to even be possible (not in my lifetime anyway...) The price of gas and food slightly rising is nothing compared to what post WWI Germany had to deal with.

Know who also was not at post WW-I German levels? Germany, right until it happened. What is keeping the USA safe for the moment is the USD is the world reserve currency so the world keeps taking it. At some point that is going to stop, then it is all over. When we have to sell something to China to trade for all the junk they make for us one of two things will happen. They will buy up real property and stocks here, making us their figurative slaves. Or they will stop selling, leading to rampant inflation.

It goes back to why UBI cannot work. You cannot create wealth out of thin air.

Funny things about inflation:

- economists can't predict which way it will go all that well *

- in fact a lot of experts have predicted massive inflation since the 2008/9 'great recession' and the massive Fed fix that took place; that hasn't much happened till now, and it may fizzle, but, again, who knows?

- there has instead been constant danger of deflation, said to be worse

- there is some evidence the composition of the population has more effect than has been realized before. Possibly: A big proportion of old people and you get little inflation; a big proportion of young people, and you can't stop it. Not quite that well understood though.

- govt. spending is finally so wild that bad inflation is finally happening. Or, it's just the problems with supply kinks that we are having? Illustrates again that we don't seem to know

- 3.5 trillion dollars in spending on top of what we have already newly spent will put us in a predictable inflationary cycle like cited below? Or not? why don't we know for sure?


* The German situation in the 1920s, quite predictable, was an exception, as have been some others like Zimbabwe

I'm Still Standing, Yeah, Yeah, Yeah [it's an old guy chant for me]

Quote: AZDuffman

Inflation is inherently bad. It destroys the value of your money. You want to know why so many people cannot afford a home compared to the 1950s? Inflation. Inflation is only good for people who have borrowed money. Know how the USA got ahead of the national debt from Vietnam and the War on Poverty? That is right, inflated it away! By 1981 half of the 1967 debt had been inflated away.

Quit thinking "programs" are the way to increase the "quality of life." The War on Poverty has made a serf class. The bottom 20-30% are serfs to the government. If they try to save money or do better they lose their benefits. So they try to do just enough to keep their benefits. Seen it happen. Worked as a tax preparer. These people knew the EIC better than most CPAs.




Know who also was not at post WW-I German levels? Germany, right until it happened. What is keeping the USA safe for the moment is the USD is the world reserve currency so the world keeps taking it. At some point that is going to stop, then it is all over. When we have to sell something to China to trade for all the junk they make for us one of two things will happen. They will buy up real property and stocks here, making us their figurative slaves. Or they will stop selling, leading to rampant inflation.

It goes back to why UBI cannot work. You cannot create wealth out of thin air.

Yes, but for German it was due to a treaty and external sanctions. They had no control over. It did not come out of the ether.

If America enters WWIII and it starts to look like we may lose, we can worry about it then....