Ron Paul on the Economy

[s0urce]

I suggest you go back to hitting the books and learn to not make blanket statements about other people's capacity to understand and learn.

[rwh11385]

The problem is that we can magically print up fiat money and drive inflation through the roof.

I don't know what weed you and Ron Paul are smoking, but we don't necessarily print new money to expand the money supply...

are you in such beginner econ courses you don't know what open market operations are? and simply announcing the fed rate is changing...

And inflation through the roof?? 2.85%?

[rwh11385]

The rapidly rising Canadian dollar has barely made a dent in the deficit. Yet Senators Schumer and Graham (bipartisan economic illiterates) think a rising Chinese currency will lower the trade deficit with China when it has done no such thing with Canada, and dropped the $112 billion deficit with Europe by just 10%, almost entirely composed of lower imports and only a little by increased exports.

This assumes that we buy the same types of goods at similar prices for similar reasons between Canada and China. I would say that is definitely not true between the two countries. We go to China for cheap shit, real cheap shit. If cheap shit isn't so cheap, we will find other alternatives, possibly making it ourselves. Walmart will definitely be hurting.

[Kruzen]

Nah, meant he should accept that a 3.4% inflation rate is pretty okay by me. Sounds redundant though to reuse acceptable. But was typing fast and didn't think of another word to say that he should STFU and think about what a 96% increase is over 95 years. The answer is not very significant.

If you put $1 in a bank at 4.5% interest and a today's dollar is worth only $.04 in 100 more years, you are still better off than today. IT people don't know finance...

Would you agree or disagree that if I have $1000 in my bank account, and the value of the dollar decreases by 50% due to inflation that I have lost half of my hard earned money?

I don't know what weed you and Ron Paul are smoking, but we don't necessarily print new money to expand the money supply...

are you in such beginner econ courses you don't know what open market operations are? and simply announcing the fed rate is changing...

And inflation through the roof?? 2.85%?

Money supply is expanded by adjusting reserves and removing reserves of federal banks. When requested, the government is required to print currency to match a withdrawel of funds. So in essence, yes. We print more money when we introduce more money into the system.
The point is that with the current system, by introducing more money into the system you can artificially tax americans through inflation. With a commodity based system such as the Gold Standard, it is much easier to regulate the value of the currency in the global theatre.

[atomic]

Donald Trump said it best the other day. He said that we need this correction in our current market and that the FEDS need to stay out of it and let it run its own course. Mainly because it would teach our banking institutions from selling out to investors to invest in their bank. And if it meant alot of our banks going belly up, well so be it. He said it wasn't far from being that all of the banks investors where going to be from the middle east and china and they will just about own America and control our economy and have complete control over us by these means.

[rwh11385]

Would you agree or disagree that if I have $1000 in my bank account, and the value of the dollar decreases by 50% due to inflation that I have lost half of my hard earned money?

a) If you have interest more than 50%, the purchasing power increases

b) when the fuck has the inflation rate been anywhere close to that? Smoke some hydro and burn some DVDs bro, and stop trying to talk economics.

Is near 3% a cause for concern? No. Unless you are high right now.

[Kruzen]

Donald Trump said it best the other day. He said that we need this correction in our current market and that the FEDS need to stay out of it and let it run its own course. Mainly because it would teach our banking institutions from selling out to investors to invest in their bank. And if it meant alot of our banks going belly up, well so be it. He said it wasn't far from being that all of the banks investors where going to be from the middle east and china and they will just about own America and control our economy and have complete control over us by these means.

I really love it when I've got a bunch of college students flocking to the thread laughing at what I'm posting and telling me I'm ignorant and that everyone thinks gold standard is retarded only to have more and more globally renown wealthy people, economists, and market professionals tell them they're wrong. I had no idea Donald Trump was all about it too, hah!

[Kruzen]

a) If you have interest more than 50%, the purchasing power increases

b) when the fuck has the inflation rate been anywhere close to that? Smoke some hydro and burn some DVDs bro, and stop trying to talk economics.

Is near 3% a cause for concern? No. Unless you are high right now.

Oh yeah man I'm so high right now.... How did I get roped in with the stoner crowd again?

Quit dodging the fucking question. I'm asking what you think about the statement, not whether its a feasible statement or not. Is or is your money not worth less if the value of your dollar decreases by 50% over the course of a 100 year period while other contesting currencies stay the same price and/or go up.

Its hard enough to understand the sentences you churn out with your wonderful grasp of the English language, do us a favor and form complete thoughts when you're rebutting.

[s0urce]

a) If you have interest more than 50%, the purchasing power increases

b) when the fuck has the inflation rate been anywhere close to that? Smoke some hydro and burn some DVDs bro, and stop trying to talk economics.

Is near 3% a cause for concern? No. Unless you are high right now.

Oh how cute...you analyzed a graph. Did you learn how to do that at Purdue? Do you have any idea what you're talking about, or do you just like to see yourself type?

[Ral]

Thank God you guys won't run the country.

[CorvallisBMW]

Donald Trump said it best the other day. He said that we need this correction in our current market and that the FEDS need to stay out of it and let it run its own course. Mainly because it would teach our banking institutions from selling out to investors to invest in their bank. And if it meant alot of our banks going belly up, well so be it. He said it wasn't far from being that all of the banks investors where going to be from the middle east and china and they will just about own America and control our economy and have complete control over us by these means.

Ya, because the whole subprime mortgage thing worked out GREAT when we let the banks run the show without any oversight. And banks going under? Not a big deal? That's half the reason we're in the mess we are now. The Fed needs to do more to make sure this doesn't happen again, not less. Most of the time the free markets take care of and regulate themselves. But sometimes the Fed does need to step in and regulate when things get too out of hand.

[rwh11385]

Oh yeah man I'm so high right now.... How did I get roped in with the stoner crowd again?

Quit dodging the fucking question. I'm asking what you think about the statement, not whether its a feasible statement or not. Is or is your money not worth less if the value of your dollar decreases by 50% over the course of a 100 year period while other contesting currencies stay the same price and/or go up.

Its hard enough to understand the sentences you churn out with your wonderful grasp of the English language, do us a favor and form complete thoughts when you're rebutting.

What question? I told you 96% value lost over 95 years is only an inflation rate of 3.4% per year. Who gives a flying fuck? (since most of that wasn't caused any time recent)

Wait? You are trying to say the other currencies don't have inflation? What fucking planet are you living on?

http://www.parliament.uk/commons/lib...9/rp99-020.pdf
Page 19.
100 pence (1 pound) from 1918 is worth 3 pence in 1998. Seems pretty fucking similar to the United States.

http://www.dailyreckoning.co.uk/article/19032004.html

The 20th century American had a vastly different experience. As the "Triumph" authors note, “A dollar bill put under the mattress 101 years ago would today have only 4.2 percent of its 1900 purchasing power, that is, four cents in 1900 had the same purchasing power as $1 in 2000.” Said another way - that’s a loss of 95%.

Furthermore, the pace of price increases was much greater in the period subsequent to 1970, where - as "Triumph" notes - annual prices rose at a 5.1% clip compared to 2.4% for the first seventy years of the century.

What is particularly scary about the dollar is that it has been the third-best-performing currency in the world. Only the Swiss franc and the Dutch guilder (by a very small margin) have held up better. In the UK, for example, the rate of price increases over the same full 101-year period was 4.2%, compared to the 3.2% in the US - a seemingly small difference. And yet, compounded over time, UK prices increased 55-fold, a factor more than 2 times that of the US!

In a line graph found on page 92, the authors show us a spread of sixteen currencies, plotted in terms of nominal exchange rates against the US dollar. Because of the German hyperinflation in the early 1920s, the German mark just falls off the graph, literally becoming worthless. The other currencies turn in visibly worse performances than the dollar, with the aforementioned exceptions of the Swiss franc and Dutch guilder.

Keep in mind, as I pointed out earlier, the dollar has lost 95% of its purchasing power...and yet, it still beats almost all of its rivals, sometimes by very large margins. The performance of fiat currencies in the past century has been dreadful.

But what has changed? If anything, the monetary setting of today is worse than that of the 20th century, for at least in the earlier part of that century there was still a gold standard. Really, up until 1971, there was some semblance, however weak, of an international gold standard.

THE MORE YOU KNOW = THE LESS YOU ARE FOOLED BY POLITICIANS

[rwh11385]

hahaha. Ron Paul is for gullible retards.

Fuck Ron Paul.

and fairly uneducated people who jump on the bandwagon because of misleading "facts". Sure they are true but they don't provide the context like 96% loss value is the 3rd BEST in the world.

And Kruzen, Inflation isn't all bad:

Maybe you should read more economic stuff duders.

http://ideas.repec.org/a/taf/irapec/v18y2004i2p191-207.html

There is growing evidence from multi-country studies indicating that there is a turning point in the relationship between inflation and economic growth beyond which the detrimental effects of high inflation offset the stimulating effects of mild inflation on growth. .... The estimated turning points are found to vary widely from as high as 15% per year for the lower-middle-income countries to 11% for the low-income countries, and 5% for the upper-middle-income countries.

Sure, this is a study and theory, but inflation isn't necessary bad and most likely will always exist naturally, albeit we should keep it at a low stable rate.

[rwh11385]

Is or is your money not worth less if the value of your dollar decreases by 50% over the course of a 100 year period while other contesting currencies stay the same price and/or go up.

What is a single country that prices have stayed the same for 100 years??

http://www.sunshinecable.com/~eisehan/V80-10en.htm

They have all gone down, even from 1980... even the stable Swiss franc (CH)

Read more books. Go to more class. Don't fuck with an international economic student, you IT geek.

[rwh11385]

Oh how cute...you analyzed a graph. Did you learn how to do that at Purdue? Do you have any idea what you're talking about, or do you just like to see yourself type?

Yes. Given I'm minoring in both International Business and Economics as well as getting a certificate for an Honors study of Economics, I say I may be capable of understanding economics better than some IT dude who "reads something".

I am still debating whether to write a thesis on factors of exchange rate determination, or do one about car pricing...