The Awesomesauce of the American 2024 Presidential Elections

Topic: The Awesomesauce of the American 2024 Presidential Elections (Read 16927 times)

Re: The Awesomesauce of the American 2024 Presidential Elections

Reply #100 – 2024-06-02, 07:45:23

Quote from: ersi on 2024-06-01, 21:40:45

what insight are you providing here? What is inflation according to you, doofus? Nah, never anything of substance from you, just factless partisan blather.

I'm doing other things as well as this simple correction of a simple Estonian's misconceptions, so I'll begin with the last point you made:

Inflation is caused by the over-supply of money. Government spending beyond tax receipts (as a proxy for GDP) requires borrowing by the government. That borrowing is "deficit spending" and the mortgaging of future tax receipts is the only way to manage it. Unfortunately, deflating the currency has some nasty consequences!
Inflation is a de facto deflation of the currency...
But if the growth of the economy can't keep pace, the "hole" gets deeper and deeper! (Remember the simple maxim: When you find yourself in a hole, stop digging!) Continued deficit spending sucks up more and more of the available capital, and less and less is available for growth or maintenance...
TANSTAAFL
Pauper-ation is the end result. (The Weimar Republic achieved it... Remember how it extricated itself?) I, for one, don't want to push to that choice. Does anyone else?

"Doofas," eh!

Just because I never succumbed to Soviet propaganda doesn't make me dumb. It makes me -mostly- lucky: I wasn't inundated. I feel sorry for you.

Re: The Awesomesauce of the American 2024 Presidential Elections

Reply #101 – 2024-06-02, 08:38:55

Astonishing. You replied. What happened?

Quote from: OakdaleFTL on 2024-06-02, 07:45:23

Inflation is caused by the over-supply of money. Government spending beyond tax receipts (as a proxy for GDP) requires borrowing by the government. That borrowing is "deficit spending" and the mortgaging of future tax receipts is the only way to manage it. Unfortunately, deflating the currency has some nasty consequences!

I have heard of those theories. The problem with them is that they are just theories with no basis in reality. No basis whatsoever, zero validity. Anybody who holds to the theories you are citing is a miserable fool. You are having a big balls day, so I can upgrade you from doofus to miserable fool status.

First, over-supply of money does nothing when all of it is stashed away in holdings. This is easily seen by Obama's attempt to address the Great Recession. He pumped out trillions to keep the banks up in crisis and to encourage lending, which according to mainstream economic theory should in turn encourage general consumption, thus ending the recession. The banks used the windfall for CEO bonuses and other static hoarding, therefore the recession persisted. That was trillions printed that had no inflationary effect whatsoever for a decade.

Then covid hit, which changed the dynamic in economy. People stayed at home, with no way to go anywhere, nothing to do, and started spending online on little luxuries for nothing better to do. And only then inflation raised its head.

Conclusion: Only money in circulation, i.e. money mass in transactions, matters. Static money has no effect, no matter how much you print it, because it is, well, static — it is not participating in the economy. It starts having an effect when it starts participating in the economy.

You see, different from your theoretical nonsense, I have a practical sense of economics. I have the capacity to observe how economy works in practice. I have survived the hyperinflation at the collapse of Soviet Union. That hyperinflation did not happen because government printed money, but rather because politico-economic deregulation and introduction of private entrepreneurship brought about the explosion of black market and grey economy outside state control where alternative money was used (DEM, USD, and gold) indicating utter distrust for the official rouble, whose value thus collapsed.

Inflation is not government printing money. Inflation is reduced trust/valuation of a particular currency. It is called inflation because in every economic sector the increased price (=valuation in terms of currency) of a commodity is called inflation, so when there is an increase of prices across the board, which does not appear to be due a change of objective valuation of the commodities, but rather sinking value of the currency itself, then that is called inflation too. (It is nonsensical to call inflation "deflating the currency" as you do above. Keep your terms straight. Nah, I know it's too much for you.)

In addition to end-of-SU hyperinflation, I have also survived two monetary reforms in person. I know all about money. If you want to know anything about money or about broader economics, you ask me and listen carefully.

Re: The Awesomesauce of the American 2024 Presidential Elections

Reply #102 – 2024-06-02, 10:39:15

Quote from: ersi on 2024-06-02, 00:38:55

Astonishing. You replied. What happened?

Reply after reading the 1st sentence you posted...
I'm bored and a little drunk (it still happens, occasionally). And — although I hate to admit it, I'd like to "educate" at least one European!

Quote from: ersi on 2024-06-02, 00:38:55

Obama's attempt to address the Great Recession. He pumped out trillions to keep the banks up in crisis and to encourage lending, which according to mainstream economic theory should in turn encourage general consumption, thus ending the recession.

When you say "Main-stream Economics" you must mean Keynesian... Keynes famously said, when asked what was the result of perpetual deficit spending by government, "In the long term, we are all dead." Indeed, that is so.
But are the profligate our best guides?
If you only care about yourself (and your cohorts), maybe. Still, that makes you a reprehensible person, in my view.

The "Great Recession" didn't end until the Trump administration's tax cuts enabled the economy's growth. (Reagan -and Kennedy- both understood this dynamic...).

—As an exercise in honesty I ask a simple question: What do you think caused the so-called Great Recession?

Quote from: ersi on 2024-06-02, 00:38:55

First, over-supply of money does nothing when all of it is stashed away in holdings

It detracts from the economic growth! (Where, BTW, is this "stashing away" you refer to?) When the incentives for investing are paltry, less will be invested; when less is invested, there is less potential for growth.
You doubt that?

Quote from: ersi on 2024-06-02, 00:38:55

I have survived the hyperinflation at the collapse of Soviet Union. That hyperinflation did not happen because government printed money, but rather because politico-economic deregulation and introduction of private entrepreneurship brought about the explosion of black market and grey economy outside state control where alternative money was used (DEM, USD, and gold) indicating utter distrust for the official rouble, whose value thus collapsed.

You missed (understanding) what actually happened: The U.S.S.R. tried to match the USA's expenditure for modernizing nuclear forces -specifically, SDI (so-called "Star Wars") which was to be an effective defense against a First-Strike... And, of course, a "defense" was -to the Soviets- an attack!
So, the U.S.S.R. spent more and more on keeping up with the U.S, technology — to the detriment of its obligations to its people.

Can you seriously claim that the U.S.S.R. ever had the welfare of its people an important consideration? (Ask the Ukrainians...)

BTW: The black and grey markets were always a boost to the Soviet economy...

Where'd the Soviet government get the money to — fail?

One more thing:
Is Nikita's "We will bury you!" taunt still one of your favorites!?

——————————————
I know it's going to cause your on-line persona some angst, but do you really think the election od Donald J. Trumpt is — a problem, for the world?

Try to be specific, if your immediate response is FUCK YES!.

———————————————
Oe more thing
Did MAD (Mutual Assured Destruction) ever make sense to you?