But in REALITY they are both the fault of the Fed.
fed taking major actions
- Thread starter abandonconflict
- Start date
Canna Sylvan
Well-Known Member
I almost coughed up a lung as much as from a good toke, laughing.
So the premise is the economy is improving, and you want the conclusion to be Obama did it? Keep dreaming. It will take more than an Irish man with Indonesian citizenship to make that happen.
UncleBuck
Well-Known Member
do you want a bustling economy where gas is cheap? that doesn't happen here.
in case you haven't noticed, gas prices drop when the economy drops. that is why we witnessed a huge drop in gas at the end of the bush admin.
if you want cheap gas and a booming economy, go move to the UAE on your deficit funded, taxpayer provided paychecks. they are doing great with cheap gas and a good economy with lots of jobs.
but they also have a central bank. so boo hoo.
i meant LOL.
UncleBuck
Well-Known Member
obama is all foreign and shit. we get it. he's not the lily colored cardboard cutout that romney is. he looks like he is from africa and shit. and fuck africa.
we get it already. deal with it. most of america already has.
abandonconflict
Well-Known Member
no, not Obama did it, gop complaining
Canna Sylvan
Well-Known Member
Winning isn't enough, you have to humiliate your enemy. Gotcha. That part of the progressive platform?
newatit2010
Well-Known Member
Oh hell yea push the country farther in a hole. The American democrats way of feeling good.
So why does gas cost so much? The economy is slumped right now but gas is still expensive. Must be this awesome economy the fed never keeps trying to fix eh?
Whats really funny is that we don't get much oil from UAE, most is from Canada, but you wouldn't know that due to complete ignorance of reality.
Fungus Gnat
Well-Known Member
It's a global market for oil and China's consumption continues to grow. As an oil executive said speculation is the cause and that it should be around 50 dollars a barrel right now(back when it was 90per barrel). The problem in the commodity market is people do not have to take delivery of their purchases just paper(or data) being pushed around inflating the price. Also oil companies are exporting refined fuels at a greater amount.
nope. Its a great post that blames speculators, but speculators only buy commodities because they are hedging against inflation, so while it may seem that speculators are the ones causing prices to rise, its really just inflation.
Explain the MASSIVE rise in almost ALL commodities over the last 5 years. Can't just be speculators jumping into every conceivable market for shits and giggles, there must be a reason.
Fungus Gnat
Well-Known Member
It's not their money and in the case of the london whale sometimes they use clients money without their consent...It's like giving someone else your money at a casino and expecting them to care as much as they would with their own money.
It's inflation that exists only in the commodity market. Strange isn't it?
Clayton? Are you a UB Groupie? LMAO
S&P 500 up, DJIA up, NASDAQ up. None of these are commodity markets, yet if you look at a graph of performance, you will see every spike upwards coincides EXACTLY with Fed QE announcements.
You know that inflation is the growth of the money supply right? Some people think inflation is the rise in prices.
Fungus Gnat
Well-Known Member
stock markets generally rise on the belief of economic growth which happens when there is QE, otherwise there would be deflation.
As to why there hasn't been inflation despite an increase in the money supply:
http://en.wikipedia.org/wiki/Liquidity_trap
ChesusRice
Well-Known Member
Canna Sylvan
Well-Known Member
Because that's the definition. No offense, but were you high?
According to Oxford:
Economics a general increase in prices and fall in the purchasing value of money.
Inflation is caused by many reasons. One of which is an increase of the money supply. Other reasons off the top of my head.
Speculation. Fear money won't exist. Look up the Asian market scare of the 90s. No new money was put into the system. Investors just demanded to see real money. With fractional banking, like we have, the system collapses if everyone demands money at the same time. So as we can see, demand triggered inflation, not money supply increasing.
Trade imbalances. When imports exceed exports, the money value decreases. The money supply never changed. The value of a good is the same. Your purchasing power changed. So again, no increase in the actual money supply caused inflation.
Actually, increasing the money supply can cause the price level to remain the same or cause deflation. If the population increases, infrastructure increases, jobs increase but people have excess money and demand is less than supply, producers will decrease price in order to entice consumers to buy.
Ever since Brazil kept printing the old Real and caused hyperinflation, increasing the the money supply has rarely caused inflation.
In short, the supply and demand of goods and services determines if inflation happens.
Mr Neutron
Well-Known Member
Sounds like my argument against the income tax.
cannabineer
Ursus marijanus
With balloons. And ... inflate. cn