You are viewing an obsolete version of the DU website which is no longer supported by the Administrators. Visit The New DU.
Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

Reply #36: "t already hasn't driven inflation" [View All]

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » General Discussion Donate to DU
melm00se Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-30-11 12:53 PM
Response to Reply #29
36. "t already hasn't driven inflation"
you sure about that?

as examples: let's look at the worldwide commodities markets:

Oil prices (+40% in the last year)
gold (+25%)
copper (+37%)
coffee (+94%)
cotton (+94%)
sugar (+60%)
soybeans (+40%)

why do you think it is? speculation? partially. The biggest thing is the weakening of the US dollar:



and why is that?

QE is certainly an explanation. QE1: $700-800B; QE2: $1.2T

The next question: how much did the economy grow during that same time? certainly nowhere near the amount of "money" injected into the economy.

The final question: historically what happens when money supplies increase faster then economic growth? review the economic history of:

Angola
Argentina
Austria
Belarus
Bolivia
Bosnia and Herzegovina
Brazil
Bulgaria
China
Free City of Danzig
Georgia
Germany
Greece
Hungary, 1922-1924
Hungary, 1945-1946
Israel
Krajina
Mexico
Nicaragua
Peru
Philippines
Poland, 1921-1924
Poland, 1989-1991
Republika Srpska
Romania
Russian Federation
Taiwan
Ukraine
Yugoslavia
Zaire
Zimbabwe

of course unless you seriously believe that the US economy doesn't follow historical precedent?

Printer Friendly | Permalink |  | Top
 
  -When will interest rates go back up? Courtesy Flush  May-29-11 01:18 PM   #0 
  - just before you can afford to buy a home  FreakinDJ   May-29-11 01:20 PM   #1 
  - When the economy is recovered, not still in recovery  Taitertots   May-29-11 01:21 PM   #2 
  - If the GOP gets their way, it won't be long. Don't count on savings accounts to go up, but loans...  HopeHoops   May-29-11 01:30 PM   #3 
  - As soon as the policy of quantitative easing has allowed the government  individual rights   May-29-11 01:31 PM   #4 
  - So, how does QE "plunder" your assets? n/t  Taitertots   May-29-11 01:53 PM   #7 
     - By creating money ex nihilo...  individual rights   May-29-11 02:10 PM   #10 
     - LOL! Did you base your opinion about the situation on that obvious bullshit?  Taitertots   May-29-11 02:28 PM   #11 
        - It should be obvious, the law of physics affirms that something cannot be created from nothing.  individual rights   May-29-11 04:41 PM   #13 
        - You know little physics and even less economics, apparently. First, you  coalition_unwilling   May-29-11 04:54 PM   #14 
        - I suppose that metaphysically, it is theoretically possible to get something from nothing, but we  individual rights   May-29-11 05:14 PM   #15 
           - Enjoy your stay. Alas, shall be without my insights. - n/t  coalition_unwilling   May-29-11 05:19 PM   #16 
              - You seem to be suggesting that any criticism of Bernanke and the fedreserve  individual rights   May-29-11 07:22 PM   #17 
                 - Not blasphemous, just not based in reality  Taitertots   May-30-11 07:43 AM   #20 
        - Your statement is incorrect for two main reasons  Taitertots   May-30-11 07:39 AM   #19 
        - If you don't understand this BASIC STUFF.  sendero   May-30-11 08:16 AM   #23 
           - Is this supposed to have the sarcasm tag?  Taitertots   May-30-11 09:28 AM   #30 
              - I didn't look at any video..  sendero   May-30-11 11:09 AM   #32 
                 - A lot of people think they know what happens when you print currency  Taitertots   May-30-11 11:34 AM   #33 
                    - Economics..  sendero   May-30-11 11:47 AM   #34 
                       - Two years is generally accepted as long enough to see inflationary effects  Taitertots   May-30-11 12:05 PM   #35 
                          - QE is already causing inflation..  sendero   May-30-11 05:25 PM   #38 
                             - It hasn't, it isn't, and there are other factors  Taitertots   May-31-11 04:58 PM   #41 
     - QE  melm00se   May-30-11 08:18 AM   #24 
        - It already hasn't driven inflation  Taitertots   May-30-11 08:29 AM   #29 
           - "t already hasn't driven inflation"  melm00se   May-30-11 12:53 PM   #36 
              - Cherry picked price increases are NOT inflation  Taitertots   May-30-11 01:26 PM   #37 
                 - the published CPI  melm00se   May-31-11 04:55 AM   #39 
                    - Food and energy were intentionally glossed over to avoid making the results misleading  Taitertots   May-31-11 04:39 PM   #40 
  - I think that interest rates will go up this year.  theoldman   May-29-11 01:40 PM   #5 
  - ->ATTENTION: Starting this June, the Federal Reserve will nolonger be purchasing Federal...  Poll_Blind   May-29-11 01:43 PM   #6 
  - .  divvy   May-30-11 08:19 AM   #25 
  - Your last sentence explains why stocks rocketed during QE.  Lucky Luciano   May-29-11 02:06 PM   #8 
  - Any time the Chinese say it will  ThomWV   May-29-11 02:09 PM   #9 
  - THAT's the correct short term answer.  unblock   May-30-11 08:12 AM   #22 
  - I think Oil Exporters own more debt than the Chinese  divvy   May-30-11 08:28 AM   #28 
  - OP says....  katanalori   May-29-11 03:26 PM   #12 
  - When the bond markets lose confidence in our debt instruments.  roamer65   May-29-11 07:27 PM   #18 
  - that will not happen for at least a couple years.  unblock   May-30-11 08:10 AM   #21 
     - I posed that question to a friend ..... his response  divvy   May-30-11 09:35 AM   #31 
  - interest rates  melm00se   May-30-11 08:21 AM   #26 
  - Unemployment at 7% or less, and upward pressure on wages.  divvy   May-30-11 08:23 AM   #27 
 

Home » Discuss » General Discussion Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC