INFLATION--FED's cutting rates again...

[Monahorns]

Don’t worry folks……..

The economics textbooks say a little inflation is a good thing.

Yep, all the ones selling Keynesianism, straight out of his book "The General Theory of Employment, Interest, and Money." It was full of false statements but the British government and many others loved it and pushed it on all the schools.

 

[Chop]

No one said we didn't. But you said "money is just illusory." That is a false statement.

Here, where we live, in the USA, money is fiat. Same with UK, Japan, Germany, Australia, pretty much anywhere--money is illusory. Maybe in some make believe country, money represents a voucher for a certain amount of some tangible thing that you can trade in your currency for. That's not what we have in the real world today.

 

[nashhorn]

hahaha, illusory, well I'd rather have it illusion or not, than to not have it.

 

[Monahorns]

Here, where we live, in the USA, money is fiat. Same with UK, Japan, Germany, Australia, pretty much anywhere--money is illusory. Maybe in some make believe country, money represents a voucher for a certain amount of some tangible thing that you can trade in your currency for. That's not what we have in the real world today.

This better explains your point. It wasn't clear before.

 

[Chop]

this is interesting.

I heard a talk given by a Chinese young man who is in tune with the people. He claims Chinese Nationals are hoarding an estimated 2.6 trillion dollars worth of physical cash. Think of our great grandparents—they don’t trust banks and they keep lots of cash hidden around the house.

A. If they spend this, it could drive the world out of a recession.

B. If they spend this, it could drive world inflation up quite a bit.

 

[mchammer]

this is interesting.

I heard a talk given by a Chinese young man who is in tune with the people. He claims Chinese Nationals are hoarding an estimated 2.6 trillion dollars worth of physical cash. Think of our great grandparents—they don’t trust banks and they keep lots of cash hidden around the house.

A. If they spend this, it could drive the world out of a recession.

B. If they spend this, it could drive world inflation up quite a bit.

Oversupply of mfg. capacity in China currently, so not excessively inflationary.

 

[Chop]

Oversupply of mfg. capacity in China currently, so not excessively inflationary.

But do they have the worker capacity?

 

[ViperHorn]

But do they have the worker capacity?

Yes.

 

[Monahorns]

this is interesting.

I heard a talk given by a Chinese young man who is in tune with the people. He claims Chinese Nationals are hoarding an estimated 2.6 trillion dollars worth of physical cash. Think of our great grandparents—they don’t trust banks and they keep lots of cash hidden around the house.

A. If they spend this, it could drive the world out of a recession.

A. Is a Keynesian fallacy. It contradicts actual economics. Keynes was a socialist trying to ruin England's economy and give cover for government control.

 

[Chop]

And there they go………

Cutting the rate again……..