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23
The Phillips curve is an economic model illustrating a historical, inverse relationship between a nation's unemployment rate and its rate of inflation. Proposed by economist A.W. Phillips in 1958, it suggests that lower unemployment tends to correlate with higher inflation. Of course, it's bunkum. (youtu.be) Interesting Theory
posted 1 day ago by Wellifthisaintdandy 1 day ago by Wellifthisaintdandy +23 / -0
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– bubble_bursts 4 points 1 day ago +4 / -0

Its all part of the Keynesian fraud, and applies only consumer side economics (which is what the world has been for past few decades) with debt driving consumers.

But in production side economy (which is where Trump is taking us) inflation correlates to higher productivity and prosperity

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– Whiptail 3 points 1 day ago +3 / -0

Inflation has nothing to do with the "economy" or the "market". It's directly caused by conjuring infinite credit and currency from nothing.
In a global market, Increasing productivity does ZERO to help affordability, since excess is just sold to other countries. How insane is growing our own food and pumping our own oil, instead of increasing supply domestically (and reducing prices) it's sold into the global market keeping prices inflated. This fantasy of growing our way out of this is just that, a fantasy. Until the unit of account is soundly based and credit\fiat restrained and reset, things get more expensive v.s. your income to infinity, because that too is globally priced (your labor.) "Growing our way out of this" means "inflating our way out of this", which is another hilarious saying, there is no inflating your way out of this. It's mathematically impossible. But if people "believe" (faith) that the system is fine, then it just keeps going, and why they jawbone these ridiculous ideas because people still believe this crap.

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– bubble_bursts 1 point 20 hours ago +1 / -0

It's directly caused by conjuring infinite credit and currency from nothing.

Its important to question the basic assumptions we make. First lets differentiate between "infinite credit" and "debt based currency". We have only seen "infinite credit" for a while because we are running a demand side economics. We print money to spend it. Spend it on welfare. Spend it on foreign aid. Spend it on everything the Cabal wants done.

Yes - in this case, this kind of conjuring leads to inflation. More money supply = more buying power (for the recipients of the spending) = increased prices.

But thats not what we are talking about here. Instead of printing money to spend, if we print money to invest in the economy, then two things happen:

  1. The amount printed is limited by how much you can invest = NOT infinite credit. Credit capped by what can be used by the economy

  2. This newly printed debt triggers economic activity and increases supply = reduces prices. But this new economic activity increases employment and pushes up wages = increased demand = higher prices. So the newly printed debt causes both downward and upward pressure on the prices and hence, overall contributes to price stabilization.

The only real argument you have offered to counter this is that increased supply will simply be sold in international markets and hence does ZERO for affordability. This is worth exploring.

  1. Domestic markets react to demand and supply immediately. Global markets take a long while to react, and require new trade deals before increase in supply can make its way overseas (at least for physical resources).

  2. This new system of growing our way into freedom is not happening in isolation. Every country is part of this, hence it has to take this long. When all countries start looking after their own best interests (unlike current "Free Trade" system) they all invest in their own domestic production and have no incentive to import something from another country, unless its specialised resource that they dont have.

  3. tariffs are intended exactly for these situations. They put natural barriers to blindly importing and exporting good that already have domestic demand.

Until the unit of account is soundly based and credit\fiat restrained and reset

This is the most important point - "soundly based". What is soundly based? Infinite printing is not soundly based. Issuing debt soley for unlimited spending is not soundly based. However issuing debt to invest in economy is soundly based.

Very few people even understand that there is a third alternative to infinite money printing and fixed asset backed currency - the real American System where currency is backed by the economy.

"Growing our way out of this" means "inflating our way out of this",

I hope I have presented you enough perspective to show you that growth based economy is not the same as inflating our way out of this. If there is any specific area you want to debate, I would be happy to continue this conversation.

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– The_Watcher 3 points 1 day ago +3 / -0

In a Tucker Carlson interview with Richard Werner, Werner described how inflation worked. First, he said that it was not just about the central banks printing money because local banks also "print money".

If you go to your local bank to get a loan then that bank just invents that money and assigns it to your account.

Inflation is caused because of what the loan is for. If the banks get together and permit only home loans then house price inflation results. When the housing market crashes the banks can then step in and buy cheap property. That is inflationary.

Alternatively, if money is lent for entrepreneurial purposes, that is, to people who want to create something new, then that same loan is not inflationary.

Basically, if more money is chasing the same goods then inflation happens but if something new is created then it doesn't.

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– Wellifthisaintdandy [S] 1 point 1 day ago +1 / -0

That's interesting.

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– redtoe-skipper 2 points 1 day ago +2 / -0

For those that are absolutely disgusted with YOUTUBE and wish to turn traffic somewhere else:

https://rumble.com/v7bm2ns-trumps-fed-chair-ends-the-cruel-choices-era-to-destroy-the-city-of-london.html?e9s=src_v1_s%2Csrc_v1_s_o&sci=67b9f9c4-8410-470a-ba3e-bbd6a6c59985

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– Wellifthisaintdandy [S] 1 point 1 day ago +1 / -0

thanks

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– Revodude 2 points 1 day ago +2 / -0

That is because of the use, by the democrats especially, of the Keynesian model. Stimulate the economy with a whole bunch of debt, cause inflation, crush inflation with high interest rates, cause stagflation and a recession. Start the whole process over again.

Supply side, productivity and importantly the reduction of money for nothing generates growth without inflation.

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– BerlinWallCrosser 2 points 1 day ago +2 / -0

A good mathematician can manipulate numbers to make anything seem like a facts. But I guess that actually makes them an evil mathematician.

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– Wellifthisaintdandy [S] 1 point 1 day ago +1 / -0

the fed would basically sit down and plan 'forward guidance', and if the economy was cranking up, they would quickly raise interest rates. So that somehow it would 'cool' the markets.

Duh/

I have been railing against this since I was a teenager.

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