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<blockquote data-quote="paternos" data-source="post: 1549689" data-attributes="member: 24137"><p>In 1919, the English economist John Maynard Keynes called inflation a means by which "governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens." If allowed to run out of control, the falling value of currency turns "the process of wealth-getting...into a gamble and a lottery."</p><p></p><p>Isn't that what all the talk about bitcoins and stocks is? A big gamble and lottery. Who is looking nowadays at dividends of a company? It's a lottery. The extreme valuations of tech growth stocks and all the cryptocoin is a sign of the inflationary time we are in.</p><p></p><p>Seems quite spot on to me.</p><p></p><p>Deflation is when the value of money rises.</p><p></p><p>This happens when production grows faster than money supply. Last year money supply grew with 50% and production declined strongly, that's inflation.</p><p></p><p>It's that simple.</p><p></p><p>Deflation arises when governments stop printing money (less money supply), when people go work again (more product & service supply) and/or demand declines (this is a short term deflationary effect, lower prices, companies then need to adjust to new lower demand and prices rise again)</p><p></p><p>It depends mostly on the federal reserve and government if deflation comes.</p><p></p><p>The Fed stops the printing press, if government opens te market, if people start to be more prudent with their money (e.g. if the Fed increases interest rates), if the people become inventive again producing more and better products with less people and less energy, deflation will come.</p><p></p><p>On the other hand, if the Fed keeps printing money in the current pace to devalue the loans, if government will keep locking us up, if the incentive system is benefitting those not working (welfare, equality) and taking loans (real instate), inflationary pressure is a lot higher.</p><p></p><p>I think personally all indicators point to inflation, but that might change. (i hope so as an inflationary economy is a sign of perversion)</p><p></p><p>So why do people talk about deflation? The rulers wants to portray themselves as if they are "fighting" deflation to fund their power grab, to devalue their loans and take a larger grip on society. It's propaganda.</p><p></p><p>Just open the main papers and news channel to see what they want you to think.</p><p></p><p>[URL unfurl="true"]https://www.nytimes.com/2021/11/11/opinion/inflation-history.html[/URL]</p></blockquote><p></p>
[QUOTE="paternos, post: 1549689, member: 24137"] In 1919, the English economist John Maynard Keynes called inflation a means by which "governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens." If allowed to run out of control, the falling value of currency turns "the process of wealth-getting...into a gamble and a lottery." Isn't that what all the talk about bitcoins and stocks is? A big gamble and lottery. Who is looking nowadays at dividends of a company? It's a lottery. The extreme valuations of tech growth stocks and all the cryptocoin is a sign of the inflationary time we are in. Seems quite spot on to me. Deflation is when the value of money rises. This happens when production grows faster than money supply. Last year money supply grew with 50% and production declined strongly, that's inflation. It's that simple. Deflation arises when governments stop printing money (less money supply), when people go work again (more product & service supply) and/or demand declines (this is a short term deflationary effect, lower prices, companies then need to adjust to new lower demand and prices rise again) It depends mostly on the federal reserve and government if deflation comes. The Fed stops the printing press, if government opens te market, if people start to be more prudent with their money (e.g. if the Fed increases interest rates), if the people become inventive again producing more and better products with less people and less energy, deflation will come. On the other hand, if the Fed keeps printing money in the current pace to devalue the loans, if government will keep locking us up, if the incentive system is benefitting those not working (welfare, equality) and taking loans (real instate), inflationary pressure is a lot higher. I think personally all indicators point to inflation, but that might change. (i hope so as an inflationary economy is a sign of perversion) So why do people talk about deflation? The rulers wants to portray themselves as if they are "fighting" deflation to fund their power grab, to devalue their loans and take a larger grip on society. It's propaganda. Just open the main papers and news channel to see what they want you to think. [URL unfurl="true"]https://www.nytimes.com/2021/11/11/opinion/inflation-history.html[/URL] [/QUOTE]
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