Money itself has a supply and demand curve so the other side of the equation is the monetary supply and money velocity. MV=PQ.
This is how Milei is halting inflation in Argentina by restricting money velocity. He is doing that by limiting ATM withdrawals to $45 a day.
The only real way to reverse inflation is to reduce the actual supply of money, because it was the increase in the supply of money that inflated them in the first place.
You could, perhaps, do this but the scenario is unlikely. It would involve seizing the assets of a large number of criminals, selling them off and then taking the dollars paid for the assets and burning it, literally destroying the money. Money supply would go down, so each individual dollar would now be worth more, so people would willingly trade goods for fewer of them.
This might happen once the cabal is busted: A ton of illegally obtained Federal Reserve Notes (Physical and Digital) will go up in flames in a last ditch effort to destroy any seize-able assets to keep them out of the hands of Patriots
The built their wealth from a House of Cards, and are willing to knock it all down when it no longer belongs to them
No. Once a product gets to a certain price, like a can of green beans, it will never go back down because the cost of production never goes down. You have to get wages to decrease, machinery to decrease, seed, transportation, packaging, etc...all needs to go down in price before those beans go down. Now, if you want cheap goods produced in America then you will have to face reduced wages. Yea, everything will go down, gasoline, houses, beans, etc, but the driving factor is always wages. If you are making say $20/hr right now and a can of beans is a buck are you willing to reduce your wages by five bucks an hour to get a fifty cent can of beans? 98% of Americans would say they want to keep their wages at current levels.
So what will actually happen is the can of beans will stay at a buck but wages will increase. It will be the same beans/wages percentage whether its 20/1 or 15/.50 So in the end goods and services will not decrease, but wages will increase.
I think the only way we will see the dollar slowly return back to it's original value is after the Fiat system is axed and the Gold Standard is restored, The Federal Reserve Note is discontinued in favor of metals and crypto
The media’s message of “inflation has decreased” is infuriating, because people assume that to mean that prices are decreasing. Only THE RATE OF INFLATION INCREASING has slowed, but it’s still increasing.
3% inflation is a POSITIVE NUMBER (increase). In order for prices to reverse course, and decrease, it would need to be a NEGATIVE NUMBER (-3%).
It’s like gaining weight at the rate of six pounds per month, then you change your diet, and now you’re only gaining three pounds per month. Your weight hasn’t now decreased; you’re STILL GAINING, you have only slowed down the rate/speed at which you’re gaining.
And to end inflation Volker rised rates to double digits. He also had the usury laws changed to allow that. Those laws were not put back into effect when rates went down which is why credit cards can have 30% interest. Obama’s treasury sec said real inflation was around 18%.
Rates need to be at least 10% higher to have any effect. But you are correct. No. Items priced in dollars never come down.
Weimar America incoming.
Many Americans did Nazi that coming.
What first needs to be done to bring prices back down to earth is to reduce government spending to minimum levels, return to the gold standard, and dismantle the Federal Reserve alongside all centralized banking corporations
I'll refer you to a quote by what I consider the smartest President among the founders.
“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”
“I sincerely believe that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large scale.” –Thomas Jefferson to John Taylor, 1816.
So yes, in my opinion you can have deflation. Will it be a good thing for the average American? It probably will be as far as every day goods go, but it won't be for the price of large ticket items like homes and vehicles. Everyone would immediately be upside down on their loans with no possibility of ever selling the properties. If we got into that scenario some form of debt relief or forgiveness would be in order.
Yes food prices will go down as they will sell food and not chemical and GMO imitation food. I'm not sure most of what is being consumed in the USA should be considered food.
Probably not all the way to pre-inflationary prices, but they will likely go down. Energy is at each and every stage of the process. Even if it is just the lighting and the freezer. That is the quickest impact. Reducing the corporate tax rate is the next quickest. That affects every stage of the process as well. As the economy grows the more competition grows. I think we will see one the safe deflation scenarios.
Prices will come down 1) when we are free from “The Money Masters” who inflate with bogus Federal Reserve Notes and a) spending on endless wars and b) spending on socialist welfare, bogus healthcare and bogus education and 2) Trump is back to do this and 3) when we have a good supply of American gas and oil which lowers the cost of everything here a) we can sell some too and reduce our trade deficit and b) truckers have reduced costs and can charge less to grocery stores and markets. ____Everything gets rebalanced when good people are back in leadership. During the 1930s Great Depression, there was inflation and deflation, we just have to watch how it all plays out.
That would be called deflation which can have equally bad, if not worse, effects than inflation on regular people. Wages, the value of your house when you sell it, the stock market, on and on...our economy and most businesses are built on quarter-over-quarter "growth" however fake it may be. A decline in revenue for a business leads to layoffs, which leads to suffering for regular people.
They will have to when competitors have lower prices. And new business start popping up giving better value.
It's basic economics: The ratio of supply vs demand determines prices
Market competition tends to always increase supply, therefore reducing prices
Money itself has a supply and demand curve so the other side of the equation is the monetary supply and money velocity. MV=PQ. This is how Milei is halting inflation in Argentina by restricting money velocity. He is doing that by limiting ATM withdrawals to $45 a day.
Economics 101. Supply and Demand.
I bought Thomas Sowell’s book, waiting for it to arrive.
Good choice. Competition is the backbone to a great economy under capitalism.
The only real way to reverse inflation is to reduce the actual supply of money, because it was the increase in the supply of money that inflated them in the first place.
You could, perhaps, do this but the scenario is unlikely. It would involve seizing the assets of a large number of criminals, selling them off and then taking the dollars paid for the assets and burning it, literally destroying the money. Money supply would go down, so each individual dollar would now be worth more, so people would willingly trade goods for fewer of them.
Sounds like a straightforward way to return the globalist criminals' ill-gotten wealth back to the general public that they robbed in the first place.
PREDICTION:
This might happen once the cabal is busted: A ton of illegally obtained Federal Reserve Notes (Physical and Digital) will go up in flames in a last ditch effort to destroy any seize-able assets to keep them out of the hands of Patriots
The built their wealth from a House of Cards, and are willing to knock it all down when it no longer belongs to them
No. Once a product gets to a certain price, like a can of green beans, it will never go back down because the cost of production never goes down. You have to get wages to decrease, machinery to decrease, seed, transportation, packaging, etc...all needs to go down in price before those beans go down. Now, if you want cheap goods produced in America then you will have to face reduced wages. Yea, everything will go down, gasoline, houses, beans, etc, but the driving factor is always wages. If you are making say $20/hr right now and a can of beans is a buck are you willing to reduce your wages by five bucks an hour to get a fifty cent can of beans? 98% of Americans would say they want to keep their wages at current levels.
So what will actually happen is the can of beans will stay at a buck but wages will increase. It will be the same beans/wages percentage whether its 20/1 or 15/.50 So in the end goods and services will not decrease, but wages will increase.
I think the only way we will see the dollar slowly return back to it's original value is after the Fiat system is axed and the Gold Standard is restored, The Federal Reserve Note is discontinued in favor of metals and crypto
I have also wondered if Trump wins and brings production back to America how we will afford the cost of the products?
The media’s message of “inflation has decreased” is infuriating, because people assume that to mean that prices are decreasing. Only THE RATE OF INFLATION INCREASING has slowed, but it’s still increasing.
3% inflation is a POSITIVE NUMBER (increase). In order for prices to reverse course, and decrease, it would need to be a NEGATIVE NUMBER (-3%).
It’s like gaining weight at the rate of six pounds per month, then you change your diet, and now you’re only gaining three pounds per month. Your weight hasn’t now decreased; you’re STILL GAINING, you have only slowed down the rate/speed at which you’re gaining.
You have to look back in history. What happened after the super high inflation years of Jimmy Carter? Did prices go back down?
Silver is the only thing that is cheaper today than that period
And to end inflation Volker rised rates to double digits. He also had the usury laws changed to allow that. Those laws were not put back into effect when rates went down which is why credit cards can have 30% interest. Obama’s treasury sec said real inflation was around 18%.
Rates need to be at least 10% higher to have any effect. But you are correct. No. Items priced in dollars never come down.
Weimar America incoming. Many Americans did Nazi that coming.
Yes
What first needs to be done to bring prices back down to earth is to reduce government spending to minimum levels, return to the gold standard, and dismantle the Federal Reserve alongside all centralized banking corporations
Never. It goes one direction only.
I'll refer you to a quote by what I consider the smartest President among the founders.
So yes, in my opinion you can have deflation. Will it be a good thing for the average American? It probably will be as far as every day goods go, but it won't be for the price of large ticket items like homes and vehicles. Everyone would immediately be upside down on their loans with no possibility of ever selling the properties. If we got into that scenario some form of debt relief or forgiveness would be in order.
Yes food prices will go down as they will sell food and not chemical and GMO imitation food. I'm not sure most of what is being consumed in the USA should be considered food.
The impact the Ukrainian and Russian War has on US prices, is bigger than we realize..
Probably not all the way to pre-inflationary prices, but they will likely go down. Energy is at each and every stage of the process. Even if it is just the lighting and the freezer. That is the quickest impact. Reducing the corporate tax rate is the next quickest. That affects every stage of the process as well. As the economy grows the more competition grows. I think we will see one the safe deflation scenarios.
Prices will come down 1) when we are free from “The Money Masters” who inflate with bogus Federal Reserve Notes and a) spending on endless wars and b) spending on socialist welfare, bogus healthcare and bogus education and 2) Trump is back to do this and 3) when we have a good supply of American gas and oil which lowers the cost of everything here a) we can sell some too and reduce our trade deficit and b) truckers have reduced costs and can charge less to grocery stores and markets. ____Everything gets rebalanced when good people are back in leadership. During the 1930s Great Depression, there was inflation and deflation, we just have to watch how it all plays out.
Price drops would be varied and erratic. The main benefit is that your $$ would retain their value.
That would be called deflation which can have equally bad, if not worse, effects than inflation on regular people. Wages, the value of your house when you sell it, the stock market, on and on...our economy and most businesses are built on quarter-over-quarter "growth" however fake it may be. A decline in revenue for a business leads to layoffs, which leads to suffering for regular people.
Old people can return to stuffing cash under their bed