Printing money reduces inflation- the reverse melly trade.

Got that forum????

"Printing money reduces inflation" !!!!!

I think benny the clown & company have outdone themselves. This joke not only had me spilling my coffee through my nose, I shot it like a projectile across the room.

Funny stuff guys, keep it up.

'But according to melly printing money leads to hyperinflation'


Great to see nothing has changed

Where is the tsunami of inflation Meltdown Melly?

Take your time. I don't want to rush you.

don't worry, melly may eventually be right, some day.

but if he's not, I'm not sure what he is going to do with all those tampons and liquor chocolates that he has been hoarding for that eventuality.

I explained to you that money is created as debt - Why did I get for it other than insults and temper tantrums from you ?

I explained to you that hyperinflation is not very high inflation - Why did I get for it other than insults and temper tantrums from you ?

I explained to you the right price of Oil - Why did I get for it other than insults and temper tantrums from you ?

I explained to you what deflation really is - Why did I get for it other than insults and temper tantrums from you ?

I explained to you that your expectation of AUD 1.10 and EUR 1.40 was utter rubbish thus saving you money - Why did I get for it other than insults and temper tantrums from you ?

I explained to you that your Facebook call was utter rubbish thus saving you money - Why did I get for it other than insults and temper tantrums from you ?

and many others…….


Now you post more utter rubbish and your expect me to set you straight again.






















Remind me again, why should I continue to educate a clueless, brain dead clown like you ?

Take your time.

explain why inflation fell?


'I explained to you that hyperinflation is not very high inflation"

make sense you moron.

all the rest of your post is brilliant- except for one thing- AFTERTIMING!!!!!

everyone is a genius with aftertiming you mug.

Wipeout, since you're still on your knees with nothing else to do, just scroll back through some of my older posts that explain experiencing "bouts of inflation and deflation" (deleveraging causes the deflation part, central bank policy response causes the latter) and read them over again. It's only a couple of days work, and you'll benefit greatly from it. AEP, whom I met on several occasions, use to be one of my favorites until he sold out. Evidently, there's a price for attending Davos.

The only thing you ever have said to AEP is "would you like fries with that sir".

carlos

You will just get condescension and gobbledegook from the Baron Of Bullshiit. I'll do my best for you:

There are several things which are inflationary: Devaluating your currency when you have a trade deficit will usually help, printing money as you say can be inflationary as can credit expansion. In direct answer, the printing of the money is only one part of the equation. I'll put it another way. Imagine you drive round in a great big pimp mobile, you also live in a great big pink pusssy palace, you have hookers hanging out of your car and bed and you are buying coke for them and all your pals. Everybody thinks you are doing well. The truth is that you are living a life beyond your means. You don't work. Everything is going on the plastic and to loan sharks. Until you hit the wall.

Now at that moment you have a great big black hole in your finances but you have a rich uncle who steps in and offers to pay you £5000 per month to get straight. You realise that the life you were living cost you £50,000 per month and you are still fecked because you can't go back to that life. The pimps won't extend you credit, the drug pushers won't give you the drugs and the hoes have started laughing at your little pecker now the money has dried up. Even worse every motherfrucker wants their money. So you sit down and you work out a repayment plan which satisfies nobody but gives everybody something and leaves you enough to scrape by.

Now logic would say that this £5000 of green which you didn't have and is now going back into the local economy should be inflationary because it wasn't there before as it was underneath your uncle's bed. The point is that it isn't because nobody can now live the life which your borrowed 50k was affording them. Everybody is poorer. Especially the people who leant you the money and are now sweating that they will get it back.

So we arrive at the answer to why in this instance printing money isn't necessarily inflationary. The black hole of banks finances haven't properly been addressed and nobody has admitted who owes what and to who because if they do then everybody will know how much shiit they are still in. Even though they are pouring in the money it aint filling it up the hole enough. Or more specifically, the banks balance sheets are wrecked, they don't want to lend what they still don't have and in the bust phase of the economic cycle in general people don't want to borrow.

The bigger the boom the bigger the bust.

So, you tell me, how effective is pushing on a piece of string? That is why printing isn't always inflationary or more specifically inflationary enough to create a tsunami of inflation in a rabidly deflationary environment because the banks probably need trillions and are at best treading water and skimming off the top at the same time because they know how much shiit they are in.

Hyperinflation is a more difficult one because there is no universally recognised definition. Some people believe that it is exceptionally high inflation over a period of time. In other words it is a monetary event where you can say that if inflation goes above x then that will result in a state of hyperinflation. I'm more inclined to lean towards a slightly different and somewhat controversial definition that it is a tipping point in a country whereby essentially the currency itself falls into disrepute and by definition is repudiated by the people. The clue is in the word hyper because it is accompanied by a collective mania. Again by that I mean that no motherfrucker wants money because they feel as if they would get as much use out of it by wiping their arse with it than trying to spend it. As witnessed in Weimar Germany when people were shovelling notes into their fires to keep warm because they got tired of pushing wheelbarrows to the bakery to buy bread which had doubled in price in the time it took them to get from their house to the bakery.

Hyperinflation leads to serious shiit if what I contend is right because a number can be addressed but a shift in crowd mentality of such a profound nature leads to serious social unrest manifested in beans and bullets. Nobody is safe and that tends to usher in strongmen who promise to restore order at a price.

I hope that has addressed your concerns in a way which you can dig but bear in mind mine is only one of many explanations out there. Feel free to ask anytyhing else and I'll answer as honestly as I can within the limits of my knowledge.

Great explaination ETO. Fun and informative.

Your bang on, it needs more than simply printing money to cause great inflation.Only simpleton economics students hold that view. Any number of events must line up and those events evolve over time and are not identical each time.

That's why I fall off the chair every time I read someone quoting germany's hyperinflation as the benchmark for today.

Carlos- what is your criteria for saying-In expect gold to go down a bit over the next few months and maybe new records around the Xmas period. ???

Why christmas? Why not easter? why not labour day in october? Why not in 3 school holidays time? How did you come up with christmas?

My view is Gold is going nowhere significant.Esp to the upside. If there is any big big move in gold it will be down, in response to falling markets, not up in response to inflation.

The whole piece reveals the massive ignorance of the ALL FLUFF AND NO SUBSTANCE chap, wrong on so many levels I wouldn't even know where to start, but it also reveals that benny the clown wasn't the only one who misunderstands hyperinflation.

Hyperinflation is NOT very high inflation, it's LOSS OF FAITH IN FIAT CURRENCY. ALWAYS. PERIOD. And it's not an event as it's falsely described, it's a process. And there is nothing controversial about it.

Trying to disguise ignorance, hiding it behind colorful language doesn't make it any less odious......IT'S STILL IGNORANCE........and an EPIC fail in feigning intellect.




To be fair though, the whole piece might be interesting for teaching five year old children what they probably already know that "the bigger the boom the bigger the bust" (I never knew that until I saw it posted here) if you correct about 100 mistakes and clean-up the language a little bit.

You heard how a simpleton describes it to five year old children, where the lines between right and wrong are blurred, where fact and fantasy are indistinguishable, and the emphasis is to impress that the writer read yesterday's business section editorial more so than demonstrate a solid understanding of the subject matter. Here how an economist explains it to adults, albeit without the h00kers and blow.

Inflation is the expansion in the money supply and credit (remember money is created as debt, blah, blah, blah, don't make me go through it again - whether, as Keen's models advocate, lending comes first and reserves later is a moot point at this juncture)

Deflation is the opposite


Those are the correct economic definitions of inflation and deflation here, there and everywhere and always. It is not a general increase or decrease in prices "of things' as most lemmings on here falsely keep regurgitating it is. Not to mention no one bothers to specify "what prices?" (consumer prices as measured by CPI, or producer prices as measured by PPI, or prices in general?) and "how are they measured?" . The how they are measured part is important because the methodology and the basket of goods used in arriving at the "inflation" number has changed a number of times over time convoluting the true picture, not to mention that asset prices such as stocks (equities) are not properly accounted in any basket of goods, distorting the picture even further. Yes, a "wealth effect" that doesn't count as having wealth. You couldn't make this stuff up.

Arguing that inflation/deflation is up/down movements in general prices is patently false and akin to putting the cart ahead of the horse. Those are the effects of inflation/deflation. Inflation/deflation can not coexist, period. But the effects can, that's what throws most people off. It gets more confusing, because lemmings mistake up/down price movements to be the disease instead of the symptoms, and falsely declare "inflation/deflation" taking place when in fact price movements are merely responding to basic supply/demand fundamentals, productivity, speculation, geopolitical events, etc., etc., and have nothing to do with a change in the broad money supply.

I hope I haven't lost you so far. Moving on to the crux of the matter…..

This financial crisis has been more or less defined by the severity of the tag of war between deflation and inflation ("bouts of inflation and deflation" remember?). The severity and extent of money destruction (that's the deflation part) and the policy response from the CBs (that's the money printing inflation, rather reflation, part) has been unprecedented. The *real* deflation is taking place on bank balance sheets. This is where money is being destroyed at a most severe and unprecedented level. The CBs have expanded their balance sheet (aka printed money) to cover the gaping hole because if they don't, the financial system collapses. It's that simple.

And everything was moving right along as the genius of Bernanke planned when he woke up one morning and realized that the one thing he can't print, Oil, was getting away from him, and it was causing havoc around the world. Yes, my halfwit friends, the Arab spring was not about democracy, freedom and ideology, it was about the price of bread. So he had no option but to slow down with the money printing, do barely enough to keep the wheels from coming off, because some people around the globe started starving to death (which he doesn't care about) and the price of petrol in the US was pushing north of $4/gal (which he does because Presidents don't get reelected when people moan right after they filled up their brand new 6 miles to the gallon Escalade with those shinny 28" rims). The money supply is contracting despite of all the money printing. Capital is being destroyed at a faster rate than new money is being created. Have a look if you don't believe me (http://research.stlouisfed.org/fred2/categories/24). Deflation is winning the day for now, although price inflation multiples of the official government reported numbers is here to stay. Try and wrap your head around that.

Still with me?

Deflation however is a central banker's biggest enemy because……..drum roll please…….it collapses the very system that benefits the banking cabal. That is, the power to conjure money out of thin air. So as Bernanke stated in just about every paper that he ever wrote, deflation will not be allowed to take place. He's done an outstanding job so far in balancing his actions so as to prevent a complete deflationary collapse and not starve too many people around the planet but rest assured, when push comes to shove, he'll choose people starving rather than losing power. That's ALWAYS been a central banker's choice in the past. This is where the tsunami of inflation takes place.

Bottom line, the road to hyperinflation (WHICH IS LOSS OF FAITH IN FIAT CURRENCY, a process, not an "tipping point" event) goes through deflation first. I've said that repeatedly on here but it still goes over the lemmings' head. It's the "ends" part in "this is how it ends" part that throws everyone off. Besides, those in power, the cabal, those with the ability to create money out of thin air, will at the end make sure they benefit again. After all, the FED deliberately popped the Wall Street bubble in 1928, it lead to the Great Depression but it also lead to a massive transfer of hard asset wealth. The deflationary vortex phase will allow them to convert fiat money, which they have plenty of, to hard assets by buying those assets that are collapsing in value for pennies to the dollar. History also teaches that lesson.

So they will print, print, print. 100% certainty, there's no Plan B……….while the lemmings who are having their wealth stolen from them are soundly asleep.

I must confess that I'm also beginning to find his empty rhetoric somewhat exasperating. I give an opinion that there is no settled definition of hyperinflation but explain that there are two main schools falling broadly into monetary and psycological with Mr Ben pointing out that the former is backed by a lot of considered opinion. Then gob almighty starts flinging his own turds around once again. Can it really be the case that he thinks that only his opinion is valid in the entire world?

Thanks for that link Whippet - a good read.
I think we can expect a deflationary Christmas in the West as all those toys and gadgets seem to get better and cheaper every year!

You're making really hard to choose between massively ignorant and disgracefully hypocritical.

And no, you don't post "opinion" on here, you post a massively erroneous understanding of economics. The rest is regurgitation from the morning news.

No, certainly not, my opinion is not the only valid one in the world, but it's at least MINE and ORIGINAL backed by research and a solid understanding of economics, not broad brush statements I picked up reading the financial section of my favorite rag.

The Mona Lisa wasn't painted with a roller brush, and that's all I keep seeing in your hands.

You are ALL FLUFF AND NO SUBSTANCE. You can wiggle, you can dance, you can join hands with the halfwit cartel and sing the Kumbay but.......you are still ALL FLUFF AND NO SUBSTANCE.

carlos

Funnily enough I take the opposite point of view. Such is the amount of fat in most western countries that the kids will soon get bored of rioting because they haven't got the latest trainers, especially if it becomes so bad that they have to go out and get a job. The opposite is the case in many poorer countries. I think there is a direct corrolation between the commodity inflation post QE and the Arab Spring. Those motherfruckers don't mess about with throwing shoes when the shiit hits the fan. Revolution tends to start with empty bellies rather than ideology.

Tell me, that chap that you "totally destroyed" on the politics forum, did you spell check him to death?

So in answer to your question I'd say that barring calamity in the eurozone or some other catastrophic external shock there is a fair chance of rates dropping by a quarter point but zero chance of them dropping to zero by year end. Of course I could be wrong but my best guess is that they will stay where they are.
Menelaus     10 Jul 12 23:59  
Tell me, that chap that you "totally destroyed" on the politics forum, did you spell check him to death?


carlos monzon     11 Jul 12 20:49  
Thank u eo. Fair reply that. I think u could be right on this 1. It's a close run thing. An increase would be devastating do u agree???  I mean in terms of property prices.



Melenius I have never insulted u !!!!

Never have I asked stupid questions!!!!

So y have u stoped talking to me.

I feel as though iv lost a soul mate.

Yet u keep chating to eo, whipet, mcben who seem far more insulting than I ever was

Please tell me yyyyyyyyyyyy.



Lolololol

No. Not realy, I have just bought 1.

After a long time considering this (about a month). I bought a house for 57k on 2 months ago. Same house sold for 100k 2008.

How much more can it go down by I'm thinking. Maybe it could fall to 40k. Anything below that then at least every1 who has bought property in the last 11 years is financialy f00ked. Especialy 1st time buyers who have nothing to fall back on