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A little econ 101 for President Brandon...

Raoul_Luke

I feel a bit lightheaded. Maybe you should drive.
“I just want to say a number: zero. Today, we received news that our economy had 0 percent inflation in the month of July – 0 percent. Here’s what that means: while the price of some things go up – went up last month, the price of other things went down by the same amount. The result?: Zero inflation last month.
With Biden, you’re never certain if he believes his own lies. Thus, we’ll make it real clear for the big guy just how the numbers work.

Price is the numerical value. Inflation is the first derivative. The monthly increase/decrease in inflation is the second derivative. The second derivative was reported as zero. But inflation itself is still off the charts.

In this respect, should you be happy that your money is only eroding at an annual rate of 8.5 percent instead of 9.1 percent?


...New production may be stimulated by artificial increases to the money supply. But it is only to address false demand created by the resulting price distortions. These price distortions lead to excess production to meet the false demand. This excess production ultimately leads to supply gluts and economic pain.

Similarly, new, freshly created money does not increase people’s claims to goods and services. It does not increase how much they can consume. Rather, it dilutes each individual monetary unit, which is then expressed in rising prices.

The genesis of consumer price inflation can be found in money supply inflation. Money supply inflation is the direct act of central planners. The inflation of the money supply comes first. Consumer prices then follow.

Most academic economists naively believe that lack of money is the source of economic stagnation. They advocate credit creation and money printing as a means to increase consumption. These policies generally lead to higher debt levels and higher asset and consumer prices.

Why price is important…

Why Price is Important
The primary regulator for how money is spent is price. The price of goods and services is what attracts or repels money. Generally, if two goods have equivalent utility and quality, money will be attracted to the lower cost item and repelled by the higher cost item.

Price also conveys information. Rising prices signal to business owners to increase production. Falling prices signal to reduce production.

When central planners monkey with the quantity of money in circulation they monkey with the price of goods and services. Moreover, when they monkey with the price of credit – the rate of interest – they disfigure the entire economy.

Artificially low interest rates stimulate false demand up and down the supply chain. In addition, pumping fabricated credit into financial markets for decades on end pushes the economy to a perilous and unstable state.

Wealth disparities become ever more extreme, as financial assets, which are largely owned by the wealthy, become inflated. Governments – federal, state, and local – use the cheap credit to become bigger, and more interventionist. Consumer price inflation then takes hold.

The Fed’s attempts to smooth out the peaks and valleys of the business cycle have actually magnified them. The consequences to workers, savers, and retirees alike are remarkably harmful.

Eventually the damage is too great for even the Fed to ignore and they must reverse course. After letting credit run wild for over a decade, and making everyone dependent upon it, the Fed then reels it back. This tightening of credit markets has the effect of pulling the rug out from under financial markets and the economy.

Right now, for example, the Fed is operating within the rug yank phase of its monetary policy. As the Fed simultaneously raises the federal funds rate and reduces its balance sheet, credit markets are slipping and tripping all over themselves.

Yet all these money games are based on a flawed understanding of how the world and the economy works

The prerequisite for more consumption is not more money. It’s more production. The faster and more goods and services the economy produces, the faster and more each individual can consume. Production determines consumption.

This is a critical point. And it’s one the President failed to mention this week. Just one day prior to this week’s CPI report, the Bureau of Labor Statistics released its second quarter labor productivity report. The results were about as bad as they could possibly be.

In short, labor productivity decreased 4.6 percent in the second quarter of 2022. Output decreased 2.1 percent while hours worked increased 2.6 percent. This marked the sharpest decline in labor productivity since 1948 – roughly 74 years ago.

What this means is that people are working more and producing less. They are, in essence, working in reverse. Hence, there will be less goods and services to consume, which will further drive consumer price inflation.

Why has labor productivity collapsed?

This, no doubt, is an important question. It is especially important if you care about wealth and prosperity.

The push for productive activity is provided by the mental and physical ability of workers to produce new goods and services with the least expenditure of energy and material possible. That is to say, to produce more at a lower cost. The ability to cheapen production leads to economic growth.

Alas, labor productivity has collapsed. The reasons range far and wide. But they all come back to a few critical things. Over regulation, over taxation, money printing, credit market manipulation, and, in summary, a near total intervention of economic and business life by a grossly out of control state.

Remember, production determines consumption. Production has collapsed. An extended period of economic decline will follow.



Is Brandon lying about the economy, or is he too stupid to understand it? Same goes for his economic "experts." And, of course, the lefty economic "experts" here who keep telling us the economy is doing fantastic.
 
Do you remember the 1988 POTUS race when Biden and Trump polled about where Kanye West did in 2020? Neither corporate hack will ever consider how the profit-driven concerns of big business fuel the silence about alternative anti-inflation policies:

https://www.rdwolff.com/there_are_better_ways_for_societies_to_address_inflation_than_by_hiking_interest_rates

"Yet, policy alternatives always exist, no matter how desperately partisans promoting one policy seek to obliterate debate and discussion of others... I will present three other anti-inflation policies that do not entail interest rate increases—there are many more—that could and should be part of today’s policy discussions. All have precedents in U.S. history.'"
 

EatTheRich

President
With Biden, you’re never certain if he believes his own lies. Thus, we’ll make it real clear for the big guy just how the numbers work.

Price is the numerical value. Inflation is the first derivative. The monthly increase/decrease in inflation is the second derivative. The second derivative was reported as zero. But inflation itself is still off the charts.

In this respect, should you be happy that your money is only eroding at an annual rate of 8.5 percent instead of 9.1 percent?


...New production may be stimulated by artificial increases to the money supply. But it is only to address false demand created by the resulting price distortions. These price distortions lead to excess production to meet the false demand. This excess production ultimately leads to supply gluts and economic pain.

Similarly, new, freshly created money does not increase people’s claims to goods and services. It does not increase how much they can consume. Rather, it dilutes each individual monetary unit, which is then expressed in rising prices.

The genesis of consumer price inflation can be found in money supply inflation. Money supply inflation is the direct act of central planners. The inflation of the money supply comes first. Consumer prices then follow.

Most academic economists naively believe that lack of money is the source of economic stagnation. They advocate credit creation and money printing as a means to increase consumption. These policies generally lead to higher debt levels and higher asset and consumer prices.

Why price is important…

Why Price is Important
The primary regulator for how money is spent is price. The price of goods and services is what attracts or repels money. Generally, if two goods have equivalent utility and quality, money will be attracted to the lower cost item and repelled by the higher cost item.

Price also conveys information. Rising prices signal to business owners to increase production. Falling prices signal to reduce production.

When central planners monkey with the quantity of money in circulation they monkey with the price of goods and services. Moreover, when they monkey with the price of credit – the rate of interest – they disfigure the entire economy.

Artificially low interest rates stimulate false demand up and down the supply chain. In addition, pumping fabricated credit into financial markets for decades on end pushes the economy to a perilous and unstable state.

Wealth disparities become ever more extreme, as financial assets, which are largely owned by the wealthy, become inflated. Governments – federal, state, and local – use the cheap credit to become bigger, and more interventionist. Consumer price inflation then takes hold.

The Fed’s attempts to smooth out the peaks and valleys of the business cycle have actually magnified them. The consequences to workers, savers, and retirees alike are remarkably harmful.

Eventually the damage is too great for even the Fed to ignore and they must reverse course. After letting credit run wild for over a decade, and making everyone dependent upon it, the Fed then reels it back. This tightening of credit markets has the effect of pulling the rug out from under financial markets and the economy.

Right now, for example, the Fed is operating within the rug yank phase of its monetary policy. As the Fed simultaneously raises the federal funds rate and reduces its balance sheet, credit markets are slipping and tripping all over themselves.

Yet all these money games are based on a flawed understanding of how the world and the economy works

The prerequisite for more consumption is not more money. It’s more production. The faster and more goods and services the economy produces, the faster and more each individual can consume. Production determines consumption.

This is a critical point. And it’s one the President failed to mention this week. Just one day prior to this week’s CPI report, the Bureau of Labor Statistics released its second quarter labor productivity report. The results were about as bad as they could possibly be.

In short, labor productivity decreased 4.6 percent in the second quarter of 2022. Output decreased 2.1 percent while hours worked increased 2.6 percent. This marked the sharpest decline in labor productivity since 1948 – roughly 74 years ago.

What this means is that people are working more and producing less. They are, in essence, working in reverse. Hence, there will be less goods and services to consume, which will further drive consumer price inflation.

Why has labor productivity collapsed?

This, no doubt, is an important question. It is especially important if you care about wealth and prosperity.

The push for productive activity is provided by the mental and physical ability of workers to produce new goods and services with the least expenditure of energy and material possible. That is to say, to produce more at a lower cost. The ability to cheapen production leads to economic growth.

Alas, labor productivity has collapsed. The reasons range far and wide. But they all come back to a few critical things. Over regulation, over taxation, money printing, credit market manipulation, and, in summary, a near total intervention of economic and business life by a grossly out of control state.

Remember, production determines consumption. Production has collapsed. An extended period of economic decline will follow.



Is Brandon lying about the economy, or is he too stupid to understand it? Same goes for his economic "experts." And, of course, the lefty economic "experts" here who keep telling us the economy is doing fantastic.
It’s prices that are constant, not the rate of inflation which has dropped to zero. The second derivative with respect to price is not zero but decidedly negative. EDIT: I made a stupid assumption before verifying, I recognize now that these claims are categorically false and inflation in fact remains quite high just as the top post said.

Without “false demand” stimulated by inflationary monetary policy, capitalism would no longer be sustainable. There is simply not enough demand to cover the costs of production and guarantee a profit on its own, since the mass consumer market has been stripped of its wealth through the market-driven concentration of wealth in the hands of an ever-smaller minority. Austerity means years of deadly depression conditions while the markets clear, followed by socialist revolution as the working class regains leverage and confidence.
 
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Raoul_Luke

I feel a bit lightheaded. Maybe you should drive.
It’s prices that are constant, not the rate of inflation which has dropped to zero. The second derivative with respect to price is not zero but decidedly negative.

Without “false demand” stimulated by inflationary monetary policy, capitalism would no longer be sustainable. There is simply not enough demand to cover the costs of production and guarantee a profit on its own, since the mass consumer market has been stripped of its wealth through the market-driven concentration of wealth in the hands of an ever-smaller minority. Austerity means years of deadly depression conditions while the markets clear, followed by socialist revolution as the working class regains leverage and confidence.
No offense, but if there's ANYBODY we should NOT be taking economics lessons from, it's the commies...
 

Raoul_Luke

I feel a bit lightheaded. Maybe you should drive.
Do you remember the 1988 POTUS race when Biden and Trump polled about where Kanye West did in 2020? Neither corporate hack will ever consider how the profit-driven concerns of big business fuel the silence about alternative anti-inflation policies:

https://www.rdwolff.com/there_are_better_ways_for_societies_to_address_inflation_than_by_hiking_interest_rates

"Yet, policy alternatives always exist, no matter how desperately partisans promoting one policy seek to obliterate debate and discussion of others... I will present three other anti-inflation policies that do not entail interest rate increases—there are many more—that could and should be part of today’s policy discussions. All have precedents in U.S. history.'"
Yes, because socialist countries have never had a problem with inflation:

Venezuela Breaks One of World’s Longest Hyperinflation Bouts


Oops!
 

God of War

Lets go Brandon!
It’s prices that are constant, not the rate of inflation which has dropped to zero. The second derivative with respect to price is not zero but decidedly negative.

Without “false demand” stimulated by inflationary monetary policy, capitalism would no longer be sustainable. There is simply not enough demand to cover the costs of production and guarantee a profit on its own, since the mass consumer market has been stripped of its wealth through the market-driven concentration of wealth in the hands of an ever-smaller minority. Austerity means years of deadly depression conditions while the markets clear, followed by socialist revolution as the working class regains leverage and confidence.
Wealth overwhelmingly in the form of stocks has concentrated in the hands of entrepreneurs because consumers use their products. Stop using Amazon. See what happens to Bezo's wealth. Wanna change the concentration of wealth stop using the products and services of the concentrated wealthy. That wealth is representative of your addiction to an IPhone. Save your money and watch the wealth transfer drastically flow in the opposite direction.

Stock wealth imparts controlling ownership of an ongoing enterprise. Divest yourself of that controlling ownership and the business is no longer yours to manage. That stock wealth forces you to hold onto it or lose your control over the business you created. To claim all wealth is the same kind of liquid wealth is just stupid.
 

Raoul_Luke

I feel a bit lightheaded. Maybe you should drive.
Wealth overwhelmingly in the form of stocks has concentrated in the hands of entrepreneurs because consumers use their products. Stop using Amazon. See what happens to Bezo's wealth. Wanna change the concentration of wealth stop using the products and services of the concentrated wealthy. That wealth is representative of your addiction to an IPhone. Save your money and watch the wealth transfer drastically flow in the opposite direction.

Stock wealth imparts controlling ownership of an ongoing enterprise. Divest yourself of that controlling ownership and the business is no longer yours to manage. That stock wealth forces you to hold onto it or lose your control over the business you created. To claim all wealth is the same kind of liquid wealth is just stupid.
I buy local whenever possible, including for my farm supply shop. Support local business if you don't like the "evil capitalists." Us local business owners are struggling middle class folks just like our neighbors.
 

EatTheRich

President
Yes, because socialist countries have never had a problem with inflation:

Venezuela Breaks One of World’s Longest Hyperinflation Bouts


Oops!
Venezuela is a capitalist country.
 

EatTheRich

President
Wealth overwhelmingly in the form of stocks has concentrated in the hands of entrepreneurs because consumers use their products. Stop using Amazon. See what happens to Bezo's wealth. Wanna change the concentration of wealth stop using the products and services of the concentrated wealthy. That wealth is representative of your addiction to an IPhone. Save your money and watch the wealth transfer drastically flow in the opposite direction.

Stock wealth imparts controlling ownership of an ongoing enterprise. Divest yourself of that controlling ownership and the business is no longer yours to manage. That stock wealth forces you to hold onto it or lose your control over the business you created. To claim all wealth is the same kind of liquid wealth is just stupid.
Good idea. I suppose consumers should stop eating too, also stop wearing clothes and driving. Then when all the corporations collapse and everyone is thrown out of work the wealth will become more widely dispersed … right?
 

EatTheRich

President
No offense, but if there's ANYBODY we should NOT be taking economics lessons from, it's the commies...
While the entire capitalist world was gripped by depression, the Soviet Union was setting record growth rates. They went in little more than a generation from a backward peasant nation with electricity only in the richest neighborhood of Petrograd to the industrialized powerhouse that pioneered space exploration and peaceful use of nuclear fission after almost singlehandedly defeating the Nazi war machine with weapons and supplies produced under siege conditions at an unmatched pace.

The German Democratic Republic became the first country in the world to eradicate homelessness, which no capitalist country has been able to do.

Socialist Albania became the first modern country to eliminate taxation, which no capitalist country has been able to do.

N. Korea, the 4th-most bombed country in history, with almost no assistance from outside powers, outpaced heavily subsidized S. Korea in industrial growth and productivity for decades.

The People’s Republic of China put an end to centuries of uninterrupted famine (still found in neighboring India) and became the only country in the 20th century to go from third-world to first-world status.
 

Raoul_Luke

I feel a bit lightheaded. Maybe you should drive.
While the entire capitalist world was gripped by depression, the Soviet Union was setting record growth rates. They went in little more than a generation from a backward peasant nation with electricity only in the richest neighborhood of Petrograd to the industrialized powerhouse that pioneered space exploration and peaceful use of nuclear fission after almost singlehandedly defeating the Nazi war machine with weapons and supplies produced under siege conditions at an unmatched pace.

The German Democratic Republic became the first country in the world to eradicate homelessness, which no capitalist country has been able to do.

Socialist Albania became the first modern country to eliminate taxation, which no capitalist country has been able to do.

N. Korea, the 4th-most bombed country in history, with almost no assistance from outside powers, outpaced heavily subsidized S. Korea in industrial growth and productivity for decades.

The People’s Republic of China put an end to centuries of uninterrupted famine (still found in neighboring India) and became the only country in the 20th century to go from third-world to first-world status.
What part of "we pretend to work and they pretend to pay us" is so hard for you to understand?
 

God of War

Lets go Brandon!
Good idea. I suppose consumers should stop eating too, also stop wearing clothes and driving. Then when all the corporations collapse and everyone is thrown out of work the wealth will become more widely dispersed … right?
I've told you before. Stop being a dead beat and buy stocks in the company you work at and complain while having an ever increasing ownership stake. Otherwise go away and starve if you must.
 
Yes, because socialist countries have never had a problem with inflation:

Venezuela Breaks One of World’s Longest Hyperinflation Bouts


Oops!
Was Dick a socialist?

"On the afternoon of Friday, August 13, 1971, these officials along with twelve other high-ranking White House and Treasury advisors met secretly with Nixon at Camp David.

https://en.wikipedia.org/wiki/Nixon_shock#:~:text=Nixon issued Executive Order 11615,controls since World War II.

"There was great debate about what Nixon should do, but ultimately Nixon, relying heavily on the advice of the self-confident Connally, decided to break up Bretton Woods by announcing the following actions on August 15:[13][14][15]

  1. "Nixon directed Treasury Secretary Connally to suspend, with certain exceptions, the convertibility of the dollar into gold or other reserve assets, ordering the gold window to be closed such that foreign governments could no longer exchange their dollars for gold.
  2. "Nixon issued Executive Order 11615 (pursuant to the Economic Stabilization Act of 1970), imposing a 90-day freeze on wages and prices in order to counter inflation. This was the first time the U.S. government had enacted wage and price controls since World War II.
  3. "An import surcharge of 10 percent was set to ensure that American products would not be at a disadvantage because of the expected fluctuation in exchange rates"
In case you've forgotten, Venezuela has never had a global reserve currency or a military capable of killing, maiming, and displacing millions of people on the opposite side of the planet from Caracaso_O
 

Tom Facts

Council Member
No offense, but if there's ANYBODY we should NOT be taking economics lessons from, it's the commies...
They disagree with me therefore they’re a commie, end discussion, mic drop. Booom blasted!

I for one would love a true capitalistic society. Bring back sweatshops with long hours and zero communist safety policies. Build them on cheap rural land. If you can hunt and fish, you can work the assembly line. Bringing back manufacturing to America. So Billy can chase the American dream stamping one MAGA mug at a time at a whole $8 an hour. No true American wants that made in China BS. Better than the government checks mawmaw gets in the mail.
 

Dawg

President
Supporting Member
They disagree with me therefore they’re a commie, end discussion, mic drop. Booom blasted!

I for one would love a true capitalistic society. Bring back sweatshops with long hours and zero communist safety policies. Build them on cheap rural land. If you can hunt and fish, you can work the assembly line. Bringing back manufacturing to America. So Billy can chase the American dream stamping one MAGA mug at a time at a whole $8 an hour. No true American wants that made in China BS. Better than the government checks mawmaw gets in the mail.
It's evident you haven't bought or priced any rural land if you think it's Cheap and you will not have to worry about getting a government check in the mail when you get "mawmaw" age. (surely you know she paid into the government each paycheck for 50/60 years) and the checks don't come in the mail!

What cave do you hide in?
 
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Tom Facts

Council Member
It's evident you have bought or priced any rural land if you think it's Cheap and you will not have to worry about getting a government check in the mail when you get "mawmaw" age. (surely you know she paid into the government each paycheck for 50/60 years) and the checks don't come in the mail!

What cave do you hide in?
It’s not? I understand there’s development cost involved along with the factory itself.

But you’re saying the land isn’t cheap?
 

EatTheRich

President
What part of "we pretend to work and they pretend to pay us" is so hard for you to understand?
What don’t you understand about the Soviet Union, for all its success, being just the most primitive prototype version of socialism, born in a society that was backward by capitalist standards, with not all the economic backwardness overcome and with the political backwardness actually intensified as a result of the ferocity of the counterrevolution?
 
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