Trans-Pacific Partnership Agreement

[husaberg]

Money has no value other than that which is measured by the amount of product it secures.

What do you think happens to the value of money when the the amount of product remains static due to a drop in production (as it has for the last 7 or 8 years internationally) while the amount of money in circulation doubles (like when the Fed was pumping up to $95 billion a month into the international economy during QE1-4)? It halves in value because it has to be divided into the same amount of product as was available before the amount of money doubled. That's inflation with direct correlation to money creation and is easily evidenced in places and in recent times past in the likes of Brazil which saw inflation rates running to triple digits in a matter of days.

Which doesn't at all alter that fact that most drivers for inflation are nothing to do with the availability of printed money, but to do with the price of living our daily lives and the price of doing (and continuing to do,) business.

For instance in NZ all products and services are directly influenced by the price of oil, every part of the supply and delivery chain. If the price of fuel rises, these costs are passed on the chain. delivering and driving inflation, As are the cost of wages or raw products.

All forms of currency is a fluid situation, a snapshot in time it is not fixed hence its name. Currency.

[Brian d marge]

Money has no value other than that which is measured by the amount of product it secures.

What do you think happens to the value of money when the the amount of product remains static due to a drop in production (as it has for the last 7 or 8 years internationally) while the amount of money in circulation doubles (like when the Fed was pumping up to $95 billion a month into the international economy during QE1-4)? It halves in value because it has to be divided into the same amount of product as was available before the amount of money doubled. That's inflation with direct correlation to money creation and is easily evidenced in places and in recent times past in the likes of Brazil which saw inflation rates running to triple digits in a matter of days.

That's currency not money sorry to be pedantic but there is a difference
But the rest of the post is correct
The interesting thing about QE is it hasn't produced price OK inflation yet as the money is still moving between the boys and hasn't hit the high street .. Some it has asset inflation but
If ..or when it does times will be fun fun fun

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[Brian d marge]

No I did think about what you posted, dimissed it then i corrected it for you.
the price of good imported international comodities and raw materials and oil has mostly nothing to do with your asertion. You need to think locally rather than globally.

I've never said that
I have how ever as flying crocodile has added said that money or currency entering a closed system reduces its purchasing power which has the same effect as raising the price


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[Brian d marge]

do you fucken hear yourself? Like, do you actually think about the shit your saying?

Either that or he doesn't know

The ya get pages of text ..

And red if ya decline to be drawn ...which at the end of the day I was
Luckily I had a choice of Japanese TV ....or bogan


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[Brian d marge]

And the amount of money entering the system is controlled to create stable inflation.

Here's a link about inflation you might wish to use to gain a basic education on the subject matter.

http://www.investopedia.com/terms/i/inflation.asp

In any case, clearly a slight and steady inflation does not cause the failure of fiat currency (apart from the rotation of denominations of course), this is evidenced by the link you posted showing only hyperinflation (in which monthly inflation exceeds 50%) causes a currency to fail. Perhaps you would like to try making another point as to why all fiat currencies will fail? or perhaps it is time to learn that your earlier statement was in error.

Dearest B

I have shown u why and how the fail
Look for the posts with % in
Those numbers mean sumfink

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[husaberg]

I've never said that
I have how ever as flying crocodile has added said that money or currency entering a closed system reduces its purchasing power which has the same effect as raising the price


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Never said what?

I quoted your post pointing out what i considered incorrect, its an opinion i still hold.

Inflation comes from currency entering the system
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Say What..........

Inflation drivers

Rising wages
Rising wages are a key cause of cost push inflation because wages are the most significant cost for many firms. (higher wages may also contribute to rising demand)

Import prices
If there is a dollar devaluation then import prices will become more expensive leading to an increase in inflation. A devaluation / depreciation means the Pound is worth less, therefore we have to pay more to buy the same imported goods.

Raw Material Prices
The best example is the price of oil, if the oil price increase by 20% then this will have a significant impact on most goods in the economy and this will lead to cost push inflation.

Higher taxes
If the government put up taxes, such as GST and Excise duty, this will lead to higher prices, and therefore CPI will increase.

Rising house prices
Rising house prices do not directly cause inflation, but they can cause a positive wealth effect and encourage consumer led economic growth. This can indirectly cause demand pull inflation.

Printing more money
If the Central Bank prints more money, you would expect to see a rise in inflation. This is because the money supply plays an important role in determining prices. If there is more money chasing the same amount of goods, then prices will rise. Hyperinflation is usually caused by an extreme increase in the money supply.
Oil prices traditionally drive NZ's inflation as everything is transported to and from markets as are the consumers etc

As you grossly over simplified inflation as only having one driver.

[bogan]

Dearest B

I have shown u why and how the fail
Look for the posts with % in
Those numbers mean sumfink

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You've shown me the fail alright, but it is the failure of your education, not the fiat currency system.

You initially persisted down the logical fallacy that disuse means failure; it does not as it has been superseded by electronic currency. You then put forward inflation as an attribute to cause it's failure, but misunderstood how inflation is managed, and seemed to confuse hyperinflation with controlled inflation. Only the latter has ever caused the failure of fiat currency; and such instances are by far in minority when its usage is looked at.

That's a succinct summation, if you have any rational rebuttal or counterpoint you should be able to reply just as succinctly; but I'm betting this will not be the case...

[Brian d marge]

You've shown me the fail alright, but it is the failure of your education, not the fiat currency system.

You initially persisted down the logical fallacy that disuse means failure; it does not as it has been superseded by electronic currency. You then put forward inflation as an attribute to cause it's failure, but misunderstood how inflation is managed, and seemed to confuse hyperinflation with controlled inflation. Only the latter has ever caused the failure of fiat currency; and such instances are by far in minority when its usage is looked at.

That's a succinct summation, if you have any rational rebuttal or counterpoint you should be able to reply just as succinctly; but I'm betting this will not be the case...

Garbage
Please watch this video

https://youtu.be/9sZdXJbK554

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[bogan]

Garbage
Please watch this video

https://youtu.be/9sZdXJbK554

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No, I'm done with your timewasting misdirection and deliberate misunderstandings. Either you have a succinct rebuttal to those points, or you are an ignorant fool who cannot bring himself to get a decent education due to it's conflict with your whiny, negative world view.

[Brian d marge]

Never said what?

I quoted your post pointing out what i considered incorrect, its an opinion i still hold.





As you grossly over simplified inflation as only having one driver.

Yes I did
As it is simple

See video I posted to bogan

If product enters a system or leaves a system is the same thing.

That's what u call an inflation driver

How or why it enters is a fault of capitalism
But Yes I'm trying not to make it complicated because it isn't


See video ....

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[husaberg]

Yes I did
As it is simple

See video I posted to bogan

If product enters a system or leaves a system is the same thing.

That's what u call an inflation driver

How or why it enters is a fault of capitalism
But Yes I'm trying not to make it complicated because it isn't


See video ....

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Stephen I am not watching a video. If it was explainable by you, You would do so.
I corrected you gross over symplication and assertion of what an inflation driver was. I did this by giving the freely available and understandable other inflation drivers.
As you are unable critique what I wrote, without resorting to a need for me to watch a video. I suggest your points are not strong or are invalid.

[bogan]

Yes I did
As it is simple

See video I posted to bogan

If product enters a system or leaves a system is the same thing.

That's what u call an inflation driver

How or why it enters is a fault of capitalism
But Yes I'm trying not to make it complicated because it isn't


See video ....

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That's why I didn't watch it. Inflation drivers and videos thereof are misdirection. Of what relevance is it when the inflation is controlled, and stable; as long as inflation stays far away from hyperinflation a currency will succeed. As per your own link, all instances of hyperinflation have been due to over-issuance.

[Brian d marge]

That's why I didn't watch it. Inflation drivers and videos thereof are misdirection. Of what relevance is it when the inflation is controlled, and stable; as long as inflation stays far away from hyperinflation a currency will succeed. As per your own link, all instances of hyperinflation have been due to over-issuance.

Then you are uninformed

Marketplace is quite a good YouTube channel that explains financial terms simple



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[Brian d marge]

Stephen I am not watching a video. If it was explainable by you, You would do so.
I corrected you assertion of what an inflation driver was. As you are unable critique what I wrote, without resorting to a need for me to watch a video. I suggest your points are not strong or are invalid.

I think you should watch the video as
Apparently my grasp of the English language is lacking and my marbles are nowhere to be found

So if you watch them maybe you. Will see what I have been saying all along

As ocean pointed out about diamonds
If they go and create good quality ones then you have to many goods chasing same money ..deflation

The opposite applies too much money causes inflation

The knock on effect is price goes up cpi. Cost of living rises etc

But the basic premise is. If there ain't enough stuff for the same money price goes up ...... Too much much money ( tis what Arabs are doing with oil at the moment ...)

If there is too much stuff for the money price goes down

We were talking about fiat money so money or currency was used

And I think at the end of the day semantics apart I am correct in what I said

Have a look at video its informative so is the rest of the channel

If the. QE money ain't destroyed the banks have in there power to destroy nations who have signed up the currency printing program ....



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[bogan]

Then you are uninformed

Marketplace is quite a good YouTube channel that explains financial terms simple



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Yet, for all your confidence in youtube learnings, you can't maintain a rational discussion about the topic at hand... But I do so with ease, so who is really uninformed here?

To put the topic's salient point even more simply, only the over-issuance of fiat currency has ever caused its failure.