Inflation seen as Nation's salvation! (10min.32sec.)

[LargoWinch]

I find this clip, quite disturbing.

Disclaimer: this does NOT represent my views in anyway whatsoever.

-W.

Runtime: 10min 32 sec.

[metalman]

Re: Inflation seen as Nation's salvation! (10min.32sec.)

that's excellent and proves the point... deflation/inflation is political!

[labasta]

Re: Inflation seen as Nation's salvation! (10min.32sec.)

Nice video, but what realy shocked me was the amount of men in the car factory assembling each car. Holy employment Batman, it's friggin machines that are causing unemployment.

I remember seeing an old photo in Germany of Thyssen Krupp making artillery cannons in preperation for WW1 (1910). I saw roughly a dozen males working around each cannon. They were of the age range between roughly 10 and 70 years old.

These photos and films say it all really.

If technology won't accomodate employment anymore then the whole monetary system will have to change to destigmatise unemployment, create a more equal playing field and allow true use of leisure time. Feast or famine will have to stop at any rate.

Either the monetary system changes or we go back to the technological time more suited to today's monetary system: the Middle Ages.

[politicalfootballfan]

Re: Inflation seen as Nation's salvation! (10min.32sec.)

----nm----

[ST]

Re: Inflation seen as Nation's salvation! (10min.32sec.)

I find this clip, quite disturbing.

Disclaimer: this does NOT represent my views in anyway whatsoever.

-W.

Runtime: 10min 32 sec.

Very nice find - thanks for posting.

[grapejelly]

Re: Inflation seen as Nation's salvation! (10min.32sec.)

fabulous find, thank you.

There has to be a flaw in the logic here. And I think the flaw is that the standard of living increases as prices increase from inflation...how does one follow from the other?

If living expenses are HIGHER, wouldn't wages buy even LESS?

[LargoWinch]

Re: Inflation seen as Nation's salvation! (10min.32sec.)

fabulous find, thank you.

You, SteveA and metal. are welcome. I keep my eyes on Utube et al. for clip like this one for the potential benefit of all iTulipers (take something; give something). :rolleyes:

There has to be a flaw in the logic here. And I think the flaw is that the standard of living increases as prices increase from inflation...how does one follow from the other?

If living expenses are HIGHER, wouldn't wages buy even LESS?

I have noticed the same problem, hence my disclaimer.

I am currently trying to find the author/purpose of this clip, but it appears to be some form of government propaganda, hence the flawed logic.

[ST]

Re: Inflation seen as Nation's salvation! (10min.32sec.)

fabulous find, thank you.

There has to be a flaw in the logic here. And I think the flaw is that the standard of living increases as prices increase from inflation...how does one follow from the other?

If living expenses are HIGHER, wouldn't wages buy even LESS?

I don't think it's a black and white argument. The real question is one of relativity once you are in the predicament - what is worse: deflationary death spiral or inflation?

The only time to make a 'change the system' decision would be at the end of a hyperinflation or at the end of a deflationary spiral, but whenever a deflationary spiral threatens, inflation is a better alternative, not just politically but in practice....a better decision, until it's not. i.e. one of the two scenarios above.

[grapejelly]

Re: Inflation seen as Nation's salvation! (10min.32sec.)

I don't think it's a black and white argument. The real question is one of relativity once you are in the predicament - what is worse: deflationary death spiral or inflation?

The only time to make a 'change the system' decision would be at the end of a hyperinflation or at the end of a deflationary spiral, but whenever a deflationary spiral threatens, inflation is a better alternative, not just politically but in practice....a better decision, until it's not. i.e. one of the two scenarios above.

Well I think you are quite 100% wrong.

A deflationary "death spiral"? Only thing it brings death to are over inflated financial assets. RIP.

Yes, commodities crash. But that is temporary.

The Austrians got this right. You have to have this period after a boom to work out all the overly inflated and leveraged malinvestments. If you don't do anything, it all goes to right.

It's the inflationary "stimulus" that takes a two year sharp depression and makes it a 15 year one. Same thing they are doing now. Removing good money from productive uses, and frittering it away PENALIZING savers, investors and wage earners.

[FRED]

Re: Inflation seen as Nation's salvation! (10min.32sec.)

Well I think you are quite 100% wrong.

A deflationary "death spiral"? Only thing it brings death to are over inflated financial assets. RIP.

Yes, commodities crash. But that is temporary.

The Austrians got this right. You have to have this period after a boom to work out all the overly inflated and leveraged malinvestments. If you don't do anything, it all goes to right.

It's the inflationary "stimulus" that takes a two year sharp depression and makes it a 15 year one. Same thing they are doing now. Removing good money from productive uses, and frittering it away PENALIZING savers, investors and wage earners.

Unfortunately, as we have pointed out since 1999 when we devised Ka-Poom Theory, asset and commodities prices aren't the only thing that deflate: unemployment shoots up and if it stays there through elections the unemployed vote for jobs.

They mythical unfettered economy is therefor an interesting thought experiment but we don't pay much attention to it here because it doesn't tell us anything about what's going to happen, and that's why most readers come here.

[ST]

Re: Inflation seen as Nation's salvation! (10min.32sec.)

Well I think you are quite 100% wrong.

A deflationary "death spiral"? Only thing it brings death to are over inflated financial assets. RIP.

Yes, commodities crash. But that is temporary.

The Austrians got this right. You have to have this period after a boom to work out all the overly inflated and leveraged malinvestments. If you don't do anything, it all goes to right.

It's the inflationary "stimulus" that takes a two year sharp depression and makes it a 15 year one. Same thing they are doing now. Removing good money from productive uses, and frittering it away PENALIZING savers, investors and wage earners.

"It will work itself out" - it is an alluring argument esp. for us libertarians, except it has never worked because things get so bad along the way that society changes beyond recognition and the political system devolves quicker than anything gets fixed.

I think one has to start with the premise that there never was and never will be a free market on a national scale, because as long as there is surplus there will be gov't intervention:

No Time for Utopian Anti-Interventionism

[grapejelly]

Re: Inflation seen as Nation's salvation! (10min.32sec.)

"It will work itself out" - it is an alluring argument esp. for us libertarians, except it has never worked because things get so bad along the way that society changes beyond recognition and the political system devolves quicker than anything gets fixed.

Where is your evidence?

I think this is ridiculous...an assertion with not a scrap of proof.

The entire 19th century, there were sharp depressions, no stimulus, and things got right after awhile. It wasn't perfect, but the Progressive Era and World War I, along with the founding of the Fed, accelerated interventionism to an unprecedented scale, and now people take it for granted today.

The country grew at a rapid rate and the standard of living increased beyond recognition in this era of no central bank and no stimulus.

[ST]

Re: Inflation seen as Nation's salvation! (10min.32sec.)

Where is your evidence?

I think this is ridiculous...an assertion with not a scrap of proof.

You may want to read some of what EJ & FRED have written. No disrespect intended.

[FRED]

Re: Inflation seen as Nation's salvation! (10min.32sec.)

Where is your evidence?

I think this is ridiculous...an assertion with not a scrap of proof.

The entire 19th century, there were sharp depressions, no stimulus, and things got right after awhile. It wasn't perfect, but the Progressive Era and World War I, along with the founding of the Fed, accelerated interventionism to an unprecedented scale, and now people take it for granted today.

The country grew at a rapid rate and the standard of living increased beyond recognition in this era of no central bank and no stimulus.

Still looking for your Lost Atlantis of the Pure Free Market Economy.

[LargoWinch]

Re: Inflation seen as Nation's salvation! (10min.32sec.)

Still looking for your Lost Atlantis of the Pure Free Market Economy.

I will put all my weight behind Grapejelly's efforts for the Lost Atlantis. I owe it to the earth citizens not aware (by choice or means) of this financial debauchery.