Inflation-Consider yourselves warned

[TakeAStepBack]

 

[TakeAStepBack]

The day accounting identities become behavioral law.......

 

[Kimura]

The day accounting identities become behavioral law.......

The day you understand basic accounting principles.....

Repeat after me: for every financial asset there is an offsetting/equal financial liability.

It's sort of amusing how you connect the laws of naturalism to economics, btw.

 

[percysunshine]

Would you consider deflation theft against debtors? Deflation can be considered a tax on people and firms in debt. They have to pay back said debts with $$$$ that has increased purchasing power. This sounds like tax on modern life to me.

A little inflation in a healthy economy is a good thing. It discourages hoarding and stimulates investment.

The corollary of inflating out of debt would be deflating into it. The massive scale of US government debt makes either circumstance untenable.

Then again, sometimes shit happens.

Why are US debt levels untenable? Take a look at Japan, twice the debt-to-GDP ratio of the US and zero interest rates.

Currency issuing governments don't operate like households or firms, nor do they usually run down their national stock of debt. Why would they? US public debt should actually be renamed national savings or national equity. This would be a first step in alleviating some of the confusion.

Emulating Japan is, like, having sex with a robot.

Something to ponder after smoking a joint in Aspen, but not really a sound strategy.

If someone is willing to sell Japanese debt for 30 cents on the dollar...well

 

[Kimura]

The corollary of inflating out of debt would be deflating into it. The massive scale of US government debt makes either circumstance untenable.

Then again, sometimes shit happens.

Why are US debt levels untenable? Take a look at Japan, twice the debt-to-GDP ratio of the US and zero interest rates.

Currency issuing governments don't operate like households or firms, nor do they usually run down their national stock of debt. Why would they? US public debt should actually be renamed national savings or national equity. This would be a first step in alleviating some of the confusion.

Emulating Japan is, like, having sex with a robot.

Something to ponder after smoking a joint in Aspen, but not really a sound strategy.

I'm using them as a an example. They haven't pursued the correct fiscal policy in my estimation, but it does show the limits/pointlessness of monetary policy after a certain period of time.

 

[TakeAStepBack]

The day accounting identities become behavioral law.......

The day you understand basic accounting principles.....

Repeat after me: for every financial asset there is an offsetting/equal financial liability.

It's sort of amusing how you connect the laws of naturalism to economics, btw.

You sure do bloviate a lot. Is that part of chartilism, or simply your own spin on it?
Rhetorical question, BTW.

 

[Kimura]

The day accounting identities become behavioral law.......

The day you understand basic accounting principles.....

Repeat after me: for every financial asset there is an offsetting/equal financial liability.

It's sort of amusing how you connect the laws of naturalism to economics, btw.

You sure do bloviate a lot. Is that part of chartilism, or simply your own spin on it?
Rhetorical question, BTW.

I'll answer anyway, thanks.

It's called what you would learn at Podunk CC in an Intro to Accounting class.

 

[oldfart]

The day accounting identities become behavioral law.......

...is the day they cease to be identities and become functions!

 

[Toro]

Repeat after me: for every financial asset there is an offsetting/equal financial liability.

What's the offset to equity?

 

[JimmieD]

Repeat after me: for every financial asset there is an offsetting/equal financial liability.

What's the offset to equity?

In accounting, Assets = Liabilities + Equity

 

[Toddsterpatriot]

Repeat after me: for every financial asset there is an offsetting/equal financial liability.

What's the offset to equity?

I had that argument with him recently.

He had no response then either.

 

[Kimura]

Repeat after me: for every financial asset there is an offsetting/equal financial liability.

What's the offset to equity?

I had that argument with him recently.

He had no response then either.

You're right, I'll find it and post the link. If I recall, there was a comprehension problem on your end.

 

[Toddsterpatriot]

What's the offset to equity?

I had that argument with him recently.

He had no response then either.

You're right, I'll find it and post the link. If I recall, there was a comprehension problem on your end.

I had a hard time comprehending the depth of your confusion.

 

[Kimura]

Here's where our discussion started:

Here

 

[percysunshine]

Interesting numbers;

China Sold Second-Largest Amount Ever Of US Treasurys In December: And Guess Who Comes To The Rescue | Zero Hedge

.

If nobody wants to buy them....well

 

[Bombur]

Interesting numbers;

China Sold Second-Largest Amount Ever Of US Treasurys In December: And Guess Who Comes To The Rescue | Zero Hedge

.

If nobody wants to buy them....well

Our interest rates are low for a reason.

 

[Toro]

Here's where our discussion started:

Here

I'm talking about net financial assets. One's financial asset is offset by a another's financial liability. Bonds and currency are financial assets. In the aggregate, as a matter of accounting, net financial wealth must ultimately equal zero.

REAL assets aren't offset by another liability which means at the aggregate level net wealth would equal the value of real assets. For example, you may have purchased and automobile and went into debt. The car note (financial liability) would be offset by the financial asset held by the loan company. Since they ultimately net to zero, what we have left is the value of the real asset - the automobile.

Sorry about the confusion. I'm mostly concerned about with financial assets when discussing macro and monetary operations, but I will try to remember that real assets provide net wealth at aggregate and individual levels so to speak. If we subtract any and all financial liabilities from total assets - both financial and real - we're only left with real assets (aggregate net worth).

So equity securities aren't financial assets?

 

[Toddsterpatriot]

Here's where our discussion started:

Here

I'm talking about net financial assets. One's financial asset is offset by a another's financial liability. Bonds and currency are financial assets. In the aggregate, as a matter of accounting, net financial wealth must ultimately equal zero.

REAL assets aren't offset by another liability which means at the aggregate level net wealth would equal the value of real assets. For example, you may have purchased and automobile and went into debt. The car note (financial liability) would be offset by the financial asset held by the loan company. Since they ultimately net to zero, what we have left is the value of the real asset - the automobile.

Sorry about the confusion. I'm mostly concerned about with financial assets when discussing macro and monetary operations, but I will try to remember that real assets provide net wealth at aggregate and individual levels so to speak. If we subtract any and all financial liabilities from total assets - both financial and real - we're only left with real assets (aggregate net worth).

So equity securities aren't financial assets?

This should be interesting.

 

[Toro]

Here's where our discussion started:

Here

I'm talking about net financial assets. One's financial asset is offset by a another's financial liability. Bonds and currency are financial assets. In the aggregate, as a matter of accounting, net financial wealth must ultimately equal zero.

REAL assets aren't offset by another liability which means at the aggregate level net wealth would equal the value of real assets. For example, you may have purchased and automobile and went into debt. The car note (financial liability) would be offset by the financial asset held by the loan company. Since they ultimately net to zero, what we have left is the value of the real asset - the automobile.

Sorry about the confusion. I'm mostly concerned about with financial assets when discussing macro and monetary operations, but I will try to remember that real assets provide net wealth at aggregate and individual levels so to speak. If we subtract any and all financial liabilities from total assets - both financial and real - we're only left with real assets (aggregate net worth).

So equity securities aren't financial assets?

This should be interesting.

Equity represents wealth. It's partly real assets, but it's also partly intangibles such as intellectual property.

 

[william the wie]

Also human capital which is harder to quantify.