Associated Press: YOU are the reason for runaway inflation....

RileyHawk

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So you don't believe the $6t increase in money supply has anything to do with the inflation we are experiencing? And I am not avoiding anything. I am laughing at you for using Russia and China to try to make a point. It's funny.
I think it has a little to do with it - much, much more is due to supply chain. Your claim that other countries are seeing inflation because of stimulus doesn't hold water as Russia and China, as two huge examples, demonstrate. Trying to laugh it off doesn't change that.
 

RileyHawk

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What was the Bank of Canada balance sheet January 2020?
What is it today?

Answer: 118 billion then, currently 462 billion.

If only we could figure out what causes prices to rise when the government prints money.

If, 20 years ago, a central banker explained what they would do in a crisis, maybe someone could have seen this coming:


A little parable may prove useful: Today [ed note: speech was given in 2002] an ounce of gold sells for $300, more or less. Now suppose that a modern alchemist solves his subject's oldest problem by finding a way to produce unlimited amounts of new gold at essentially no cost. Moreover, his invention is widely publicized and scientifically verified, and he announces his intention to begin massive production of gold within days. What would happen to the price of gold? Presumably, the potentially unlimited supply of cheap gold would cause the market price of gold to plummet. Indeed, if the market for gold is to any degree efficient, the price of gold would collapse immediately after the announcement of the invention, before the alchemist had produced and marketed a single ounce of yellow metal.
What has this got to do with monetary policy? Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation.


- Remarks by Governor Ben S. Bernanke Before the National Economists Club, Washington, D.C. November 21, 2002
Except when it doesn't. ie 2008-09.
 

seminole97

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Except when it doesn't. ie 2008-09.
Price of gold in 2007 - ~$700/oz
Price of gold in 2010 - ~$1400/oz

When the money printing inflates asset prices morons contend it isn’t inflation, but ‘wealth creation’.
 

luvmyhawks

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I think it has a little to do with it - much, much more is due to supply chain. Your claim that other countries are seeing inflation because of stimulus doesn't hold water as Russia and China, as two huge examples, demonstrate. Trying to laugh it off doesn't change that.

I am laughing it off as anyone that believes anything out of China and Russia is a damn fool. Got any better examples?
 
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RileyHawk

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Price of gold in 2007 - ~$700/oz
Price of gold in 2010 - ~$1400/oz

When the money printing inflates asset prices morons contend it isn’t inflation, but ‘wealth creation’.
LoFL. This is dumb, even for you.
 

RileyHawk

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The difference between then and now has been explained to you numerous times. You just don't want to pay attention.
The difference is the supply chain. Your position is laughably antiquated but I know it won't change.
 

RileyHawk

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Bernanke tried to explain it to you with a parable about the value of gold if an alchemist could make it at whim.
You're just too dumb to understand it.
I mean, you fell for MMT...
This is funny. The guy who wants to go back to the gold standard. You're a hack, but everyone knows that.

Now link some useless information we can all ignore again.
 

seminole97

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This is funny. The guy who wants to go back to the gold standard. You're a hack, but everyone knows that.

Now link some useless information we can all ignore again.
Do you think Bernanke was wrong when he stated in 2002, while the price of gold was $300, that a 'determined government' can always increase prices by printing dollars?

He's been proven correct by reality, I'm just wondering if you are able to understand and accept that reality.
 

RileyHawk

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Do you think Bernanke was wrong when he stated in 2002, while the price of gold was $300, that a 'determined government' can always increase prices by printing dollars?

He's been proven correct by reality, I'm just wondering if you are able to understand and accept that reality.
Ugh - gold is an investment that has had an average of about 9% return over 20 years. Good but certainly not great. Some investments do well, some don't. If you bought gold in 2002 (and I'm sure you did because this was so obvious) you did pretty well. If you bought Apple, or Google, or..... you did way better. If you bought Blockbuster, not so well.

Did you buy a lot of gold in 2002?
 

seminole97

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Ugh - gold is an investment that has had an average of about 9% return over 20 years. Good but certainly not great. Some investments do well, some don't. If you bought gold in 2002 (and I'm sure you did because this was so obvious) you did pretty well. If you bought Apple, or Google, or..... you did way better. If you bought Blockbuster, not so well.

Did you buy a lot of gold in 2002?
You didn't answer the question.

Do you think Bernanke was wrong when he stated in 2002, while the price of gold was $300, that a 'determined government' can always increase prices by printing dollars?
 

RileyHawk

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You didn't answer the question.

Do you think Bernanke was wrong when he stated in 2002, while the price of gold was $300, that a 'determined government' can always increase prices by printing dollars?
I think he's correct. I don't believe we've ever had a "determined government" intent on significant inflation. That suggestion is a crock of shit.

Your turn.
 

Joes Place

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I've posted many times what the 2 drivers of inflation are in the US. Those same drivers exist in other countries as well

Finally, you seem to "get it".
That's what I've been trying to get you and others to recognize here. And those "drivers" in many of those countries are WORSE than in the US.

Thus, your "Blame Biden" schtick is kinda silly, when those same headwinds are just about everywhere right now.
 

Joes Place

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I think it has a little to do with it - much, much more is due to supply chain. Your claim that other countries are seeing inflation because of stimulus doesn't hold water as Russia and China, as two huge examples, demonstrate. Trying to laugh it off doesn't change that.

Yep.

Our resident Biden-Haters forgot all about QE1 and QE2, which didn't trigger shit for upwards of a decade. Then, suddenly, spending during a pandemic triggered EVERYTHING.
 
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