Inflation-Consider yourselves warned

[Rshermr]

Back to the subject of this thread, I consider myself warned. I am also warned about the end of the world.
Is that what it takes to prove that you are a dipshit?? Making predictions that have been made over and over again, and that did not come true? Ignoring the preponderance of economic thought on the issue???
If so, several have proven that they are dipshits. Is there, or was there, a point??? Or did they (the dipshits) just want to waste time again?? I mean, why bother to actually try to discuss policy based on knowledge, and what has worked in the past.

 

[JimmieD]

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?

Why wouldn't an equity security be a financial asset for those who own it?

 

[Richard-H]

I'm amazed that in reading through this thread how little is mentioned of the importance of real production.

 

[william the wie]

I'm amazed that in reading through this thread how little is mentioned of the importance of real production.

That's because inflation reduces real returns, real investment and therefore real production. The US has not yet recovered from the great inflation of 1964-82. Reduce inflation and production increases, increase it and quantity and quality of production decreases.

 

[Rshermr]

I'm amazed that in reading through this thread how little is mentioned of the importance of real production.

That's because inflation reduces real returns, real investment and therefore real production. The US has not yet recovered from the great inflation of 1964-82. Reduce inflation and production increases, increase it and quantity and quality of production decreases.

Simplistic and stupid. Which is why you can not find a rational source that will agree with you. But congratulations. You came up with a theory right out of the bat shit crazy web sites and claimed it for yourself. Which is both stupid AND dishonest.

 

[oldfart]

I'm amazed that in reading through this thread how little is mentioned of the importance of real production.

That's because inflation reduces real returns, real investment and therefore real production. The US has not yet recovered from the great inflation of 1964-82. Reduce inflation and production increases, increase it and quantity and quality of production decreases.

Simplistic and stupid. Which is why you can not find a rational source that will agree with you. But congratulations. You came up with a theory right out of the bat shit crazy web sites and claimed it for yourself. Which is both stupid AND dishonest.

Inflation mongering is a form of intellectual masturbation, making the participant feel good while producing nothing.

 

[Rshermr]

That's because inflation reduces real returns, real investment and therefore real production. The US has not yet recovered from the great inflation of 1964-82. Reduce inflation and production increases, increase it and quantity and quality of production decreases.

Simplistic and stupid. Which is why you can not find a rational source that will agree with you. But congratulations. You came up with a theory right out of the bat shit crazy web sites and claimed it for yourself. Which is both stupid AND dishonest.

Inflation mongering is a form of intellectual masturbation, making the participant feel good while producing nothing.

Ahhh. There we have it, eh. The base of the issue. The participant talks to other knuckle draggers who all determine their truth and pontificate around the water cooler. Which saves the need to do actual work based activities like study, impartial investigation, that sort of nasty activity that requires mental effort. And goes a long way in proving that old simplistic concept that ignorance is bliss.