Our biggest problem is deflation - not inflation

[Toddsterpatriot]

I literally showed you in a PREVIOUS thread that the GAO claims that deficit spending is deflationary.

https://www.gao.gov/assets/nsiad-87-135.pdf

You just linked to a paper about the trade deficit, not the budget deficit.

The words deflation or deflationary aren't even in it once.

 

[DarthTrader]

You just linked to a paper about the trade deficit, not the budget deficit.

View attachment 653699

The words deflation or deflationary aren't even in it once.

Maybe you should fucking read the paper and not be a god damn moron. They use the words "inflation" the opposite of inflation is DEFLATION.

LOLOLOLOL.

I even screenshotted you the pertinent part.

 

[Toddsterpatriot]

Also - how do you count treasuries as collateral to Federal Reserve Notes when Federal Reserve Notes are printed to buy treasuries? LOLOL.

That's literally "monetizing the debt". So yeah - go ahead - count treasuries as assets if you want to have hyperinflation.

The FED counts treasuries as an asset because in banking parlance that's what they are. But the FED isn't a normal bank. They don't earn dollars and then buy treasuries with them. They are given dollars by the treasury from a printing press.

Also - how do you count treasuries as collateral to Federal Reserve Notes when Federal Reserve Notes are printed to buy treasuries? LOLOL.

If they printed dollars to buy gold, would the gold count as collateral?

That's literally "monetizing the debt". So yeah - go ahead - count treasuries as assets if you want to have hyperinflation.

Counting their Treasury assets as libilities wouldn't stop hyperinflation, it's just bad accounting.

The FED counts treasuries as an asset because in banking parlance that's what they are.

Probably why I'm pointing out your error.

But the FED isn't a normal bank.

But their assets are still assets.

They don't earn dollars and then buy treasuries with them. They are given dollars by the treasury from a printing press.

The Treasury doesn't give the Fed dollars. The Fed can create dollars independently.
Out of thin air.
No paper required.

 

[Toddsterpatriot]

Maybe you should fucking read the paper and not be a god damn moron. They use the words "inflation" the opposite of inflation is DEFLATION.

LOLOLOLOL.

I even screenshotted you the pertinent part.

Here's a hint, if you want to prove deficit spending causes deflation, link to a paper that says that.
Linking to a paper about the "Trade Deficit", which is different than a "Budget Deficit" is no help.

 

[DarthTrader]

Look "Todd". You're just a fucking retard. And I think you've just proven it to everyone here.

Also - how do you count treasuries as collateral to Federal Reserve Notes when Federal Reserve Notes are printed to buy treasuries? LOLOL.

If they printed dollars to buy gold, would the gold count as collateral?

That's literally "monetizing the debt". So yeah - go ahead - count treasuries as assets if you want to have hyperinflation.

Counting their Treasury assets as libilities wouldn't stop hyperinflation, it's just bad accounting.

The FED counts treasuries as an asset because in banking parlance that's what they are.

Probably why I'm pointing out your error.

But the FED isn't a normal bank.

But their assets are still assets.

They don't earn dollars and then buy treasuries with them. They are given dollars by the treasury from a printing press.

The Treasury doesn't give the Fed dollars. The Fed can create dollars independently.
Out of thin air.
No paper required.

They didn't print dollars to buy the gold. But yes, if they did print dollars to buy the gold that would have been inflationary. But - the US never did. Which is why it is the VALID COLLATERAL OF THE FEDERAL RESERVE.

It's not bad accounting, dumb ass, because the only way a "treasury" is considered collateral is if you monetize it. Which the Federal Government would never due BECAUSE OF HYPERINFLATION.

I have no error.

Their assets are not assets in the collateral sense in the case that the Congress closes the Federal Reserve. Hence why GOLD behaves the way it does.

 

[DarthTrader]

Here's a hint, if you want to prove deficit spending causes deflation, link to a paper that says that.
Linking to a paper about the "Trade Deficit", which is different than a "Budget Deficit" is no help.

Seriously, fuck you.

You're so fucking stupid and everyone here can see it plain as day. I'm sorry your world view is so retarded that you can't read a paper that literally says:

"Deficit spending lowers the value of the dollar and increases the trade deficits" which are "inflationary" and so you can't fucking figure out that increasing the deficit does the opposite.

Sorry that YOU are that fucking stupid.

But hey. You also think that "Treasuries" are collateral for Federal Reserve Notes. LOLOL

 

[excalibur]

You didn't actually even say anything. Some dumb. meaningless blurb.

You are truly clueless.

 

[Toddsterpatriot]

Look "Todd". You're just a fucking retard. And I think you've just proven it to everyone here.

They didn't print dollars to buy the gold. But yes, if they did print dollars to buy the gold that would have been inflationary. But - the US never did. Which is why it is the VALID COLLATERAL OF THE FEDERAL RESERVE.

It's not bad accounting, dumb ass, because the only way a "treasury" is considered collateral is if you monetize it. Which the Federal Government would never due BECAUSE OF HYPERINFLATION.

I have no error.

Their assets are not assets in the collateral sense in the case that the Congress closes the Federal Reserve. Hence why GOLD behaves the way it does.

They didn't print dollars to buy the gold.

But they could buy gold, instead of Treasuries and MBS. Or oil, corn, wheat, pork bellies etc.

But yes, if they did print dollars to buy the gold that would have been inflationary.

Right. Just like buying bonds was.

It's not bad accounting, dumb ass, because the only way a "treasury" is considered collateral is if you monetize it.

A treasury is considered collateral if you own it. Whether you bought it with cash, check or charge.

Which the Federal Government would never due BECAUSE OF HYPERINFLATION.

Renaming the collateral a liability doesn't magically save you from potential hyperinflation.
It just makes you look stupid.

 

[DarthTrader]

You are truly clueless.

Maybe help me out and point out how fucking retarded Todd is. The guy literally refutes EVIDENCE in front of his dumb ass

 

[excalibur]

Maybe help me out and point out how fucking retarded Todd is. The guy literally refutes EVIDENCE in front of his dumb ass

It can't be done.

 

[DarthTrader]

They didn't print dollars to buy the gold.

But they could buy gold, instead of Treasuries and MBS. Or oil, corn, wheat, pork bellies etc.

But yes, if they did print dollars to buy the gold that would have been inflationary.

Right. Just like buying bonds was.

It's not bad accounting, dumb ass, because the only way a "treasury" is considered collateral is if you monetize it.

A treasury is considered collateral if you own it. Whether you bought it with cash, check or charge.

Which the Federal Government would never due BECAUSE OF HYPERINFLATION.

Renaming the collateral a liability doesn't magically save you from potential hyperinflation.
It just makes you look stupid.

But they didn't buy gold you moron. Learn what capitalizing a bank is. The gold wasn't bought with printed dollars or rather - if it was - the inflation that caused has already been washed through the system 90 years ago.

The Treasury cannot be collateral for the FED, because as soon as they have to hand over that collateral dollar-per-dollar then the dollar has to revalue.

If you count how many treasuries are on the books, that'd devalue treasuries by some 90%. IDIOT

 

[LordBrownTrout]

I am ready to see the fat cats die on the vine.

They won't. The global elites are watching out for themselves. They'll be ready when the world currencies crash.

 

[Toddsterpatriot]

"Deficit spending lowers the value of the dollar and increases the trade deficits"

Deficit spending can lower the value of the dollar. Which would be inflationary, not deflationary.

and so you can't fucking figure out that increasing the deficit does the opposite.

Increasing the deficit does the opposite of deficit spending? Let's check the tape.....

Damn. Look at that. LOL!

 

[Toddsterpatriot]

Maybe help me out and point out how fucking retarded Todd is. The guy literally refutes EVIDENCE in front of his dumb ass

I refute your confusion.

When it comes to helping your claim, your evidence sucks. LOL!

 

[pknopp]

You are truly clueless.

You still haven't said anything.

 

[1srelluc]

The only thing the dems didn't do the reverse of what Trump did was spend money we don't have.

 

[Toddsterpatriot]

But they didn't buy gold you moron. Learn what capitalizing a bank is. The gold wasn't bought with printed dollars or rather - if it was - the inflation that caused has already been washed through the system 90 years ago.

The Treasury cannot be collateral for the FED, because as soon as they have to hand over that collateral dollar-per-dollar then the dollar has to revalue.

If you count how many treasuries are on the books, that'd devalue treasuries by some 90%. IDIOT

But they didn't buy gold

No, they bought other assets. Assets. ASSETS.

They didn't buy liabilities.

The Treasury cannot be collateral for the FED

Collateral, asset, whatever. Not a liability.

because as soon as they have to hand over that collateral

Hand it over to who? Why would they "hand it over"?

You're making less and less sense. What are you drinking?

If you count how many treasuries are on the books, that'd devalue treasuries by some 90%.

Why does counting them change their value?

Toro

 

[excalibur]

You still haven't said anything.

You poor thing.

 

[DarthTrader]

Deficit spending can lower the value of the dollar. Which would be inflationary, not deflationary.

and so you can't fucking figure out that increasing the deficit does the opposite.

Increasing the deficit does the opposite of deficit spending? Let's check the tape.....

View attachment 653708

Damn. Look at that. LOL!

I'm sorry you're a fucking retard.

But the GAO says lowering budget deficit will lower value of dollar by lowering interest rates.

So fuck off. You're not the GAO, you're some dumb shit on the internet

 

[DarthTrader]

But they didn't buy gold

No, they bought other assets. Assets. ASSETS.

They didn't buy liabilities.

The Treasury cannot be collateral for the FED

Collateral, asset, whatever. Not a liability.

because as soon as they have to hand over that collateral

Hand it over to who? Why would they "hand it over"?

You're making less and less sense. What are you drinking?

If you count how many treasuries are on the books, that'd devalue treasuries by some 90%.

Why does counting them change their value?

Toro

Now you really prove how fucking retarded you are.

If the FED were to shut down and the Congress balance the books. All bonds would lose 90% of their value.

That would literally be a world ending catastrophy.