EE Chat - July - BF2S Forums

2009-07-25 07:39:12

#5551

AussieReaper: ( ͡° ͜ʖ ͡°); +5,761|6433|what

Kmarion wrote:
AussieReaper wrote:
Harmor wrote:
So how bad is all this inflation going to be? As long as my income is better will I really see a difference?
Inflation is a good thing, it means the economy is going strong.

However it is a bad thing, your variable mortgage rate will rise because the interest rates will climb because the govt. will want to keep inflation pressures which can be negative to an economy down.

It's a balancing act. lol
trex1210 wrote:
FUCKING MADE ME LAUGH!
Zimbabwe must be the worlds strongest economy.

the govt. will want to keep inflation pressures which can be negative to an economy down.

See that last sentence, yeah? That's where Zimbabwe failed.

Last edited by AussieReaper (2009-07-25 07:40:07)

2009-07-25 07:43:40

#5552

Kmar: Truth is my Bitch; +5,695|6881|132 and Bush

inflation as an economic indicator is always considered bad.. end of story.

Xbone Stormsurgezz

2009-07-25 07:45:46

#5553

AussieReaper: ( ͡° ͜ʖ ͡°); +5,761|6433|what

Kmarion wrote:
inflation as an economic indicator is always considered bad.. end of story.

Do you know why inflation is a good thing to have during a recession?

lol

2009-07-25 07:48:35

#5554

Kmar: Truth is my Bitch; +5,695|6881|132 and Bush

Because your money is worth less, you can buy less food, gas prices go up, and interest rates are fist fucking you?

Xbone Stormsurgezz

2009-07-25 07:51:42

#5555

AussieReaper: ( ͡° ͜ʖ ͡°); +5,761|6433|what

Kmarion wrote:
Because your money is worth less, you can buy less food, gas prices go up, and interest rates are fist fucking you?

http://i36.tinypic.com/o594x5.jpg

http://i35.tinypic.com/2q2kg35.jpg

http://i36.tinypic.com/1zvcor6.jpg

http://i34.tinypic.com/2vdiow9.jpg

Guess not then.

From wiki since it words it oh so well, positive effects include a mitigation of economic recessions, and debt relief by reducing the real level of debt. Low (as opposed to zero or negative) inflation may reduce the severity of economic recessions by enabling the labor market to adjust more quickly in a downturn, and reduce the risk that a liquidity trap prevents monetary policy from stabilizing the economy.

2009-07-25 07:59:59

#5556

Kmar: Truth is my Bitch; +5,695|6881|132 and Bush

AussieReaper wrote:
Kmarion wrote:
Because your money is worth less, you can buy less food, gas prices go up, and interest rates are fist fucking you?

http://i36.tinypic.com/o594x5.jpg

http://i35.tinypic.com/2q2kg35.jpg

http://i36.tinypic.com/1zvcor6.jpg

http://i34.tinypic.com/2vdiow9.jpg
Guess not then.

From wiki since it words it oh so well, positive effects include a mitigation of economic recessions, and debt relief by reducing the real level of debt. Low (as opposed to zero or negative) inflation may reduce the severity of economic recessions by enabling the labor market to adjust more quickly in a downturn, and reduce the risk that a liquidity trap prevents monetary policy from stabilizing the economy.

Sure..lol. In a time when money is tight and the economy is growing at a negative rates it's good to have less of it. .. wages are relatively lower and purchasing power is decreased. Liquidity may be a good thing, and it will even help.. but ..

"Inflation is a good thing, it means the economy is going strong.".. is not at all correct.

Xbone Stormsurgezz

2009-07-25 08:06:35

#5557

AussieReaper: ( ͡° ͜ʖ ͡°); +5,761|6433|what

Kmarion wrote:
Sure..lol. In a time when money is tight and the economy is growing at a negative rates it's good to have less of it. .. wages are relatively lower and purchasing power is decreased. Liquidity may be a good thing, and it will even help.. but ..

"Inflation is a good thing, it means the economy is going strong.".. is not at all correct.

It's also growth in GDP that causes inflation, not simply a rise in the Consumer Price Index, which is what I think your only basis.

And Africa as an example is pretty funny, since they are well into the hyperinflation range and have been for years.

2009-07-25 08:18:10

#5558

Kmar: Truth is my Bitch; +5,695|6881|132 and Bush

AussieReaper wrote:
Kmarion wrote:
Sure..lol. In a time when money is tight and the economy is growing at a negative rates it's good to have less of it. .. wages are relatively lower and purchasing power is decreased. Liquidity may be a good thing, and it will even help.. but ..

"Inflation is a good thing, it means the economy is going strong.".. is not at all correct.
It's also growth in GDP that causes inflation, not simply a rise in the Consumer Price Index, which is what I think your only basis.

And Africa as an example is pretty funny, since they are well into the hyperinflation range and have been for years.

It is funny.. and it was a joke.. you know EE?

Of course the GDP APPEARS to grow with higher inflation. That is not an accurate indicator of economic growth or "going strong" though. Spending more does not mean getting/producing more when what you are spending has lost value.

The CPI (as it relates to inflation) is an economic indicator.

Xbone Stormsurgezz

2009-07-25 08:25:20

#5559

AussieReaper: ( ͡° ͜ʖ ͡°); +5,761|6433|what

Kmarion wrote:
Of course the GDP APPEARS to grow with higher inflation. That is not an accurate indicator of economic growth or "going strong" though. Spending more does not mean getting/producing more when what you are spending has lost value.

You've got it backwards, what I'm saying is that it's a strong GDP output that increases inflationary pressures, not that GDP grows with higher inflation.

I agree that spending more doesn't mean much when what you are spending has lost value, but that's why you'll usually see a wages increase during an inflationary period.

But as I said way back from that original post: "it's a balancing act" by the govts. who try to set inflation to usually above zero and trying to keep it positive.

2009-07-25 08:30:09

#5560

Kmar: Truth is my Bitch; +5,695|6881|132 and Bush

I guess I am just being nit picky about your wording. It is a balancing act, which is why inflation as an economic indicator is not a good idea.

Xbone Stormsurgezz

2009-07-25 08:32:38

#5561

mafia996630: © 2009 Jeff Minard; +319|7043|d

http://forums.bf2s.com/viewforum.php?id=15
^^ ITS THERE FOR A REASON!

2009-07-25 08:34:06

#5562

AussieReaper: ( ͡° ͜ʖ ͡°); +5,761|6433|what

Kmarion wrote:
I guess I am just being nit picky about your wording. It is a balancing act, which is why inflation as an economic indicator is not a good idea.

I only meant it's a good thing in the context of the current recession the US is in. If you were still deflating you'd be in for more months of recession.

Anyway, it's getting late.

Night.

2009-07-25 08:34:26

#5563

CammRobb: Banned; +1,510|6410|Carnoustie MASSIF

mafia996630 wrote:
http://forums.bf2s.com/viewforum.php?id=15
^^ ITS THERE FOR A REASON!

2009-07-25 08:36:19

#5564

Kmar: Truth is my Bitch; +5,695|6881|132 and Bush

AussieReaper wrote:
Kmarion wrote:
I guess I am just being nit picky about your wording. It is a balancing act, which is why inflation as an economic indicator is not a good idea.
I only meant it's a good thing in the context of the current recession the US is in. If you were still deflating you'd be in for more months of recession.

Anyway, it's getting late.

Night.

I hope you're right..

I have to go clean my drunken mess from last night (dead hookers etc).. god I'm a slob when I'm drunk.

Xbone Stormsurgezz

2009-07-25 08:37:00

#5565

mafia996630: © 2009 Jeff Minard; +319|7043|d

SirSchloppy wrote:
mafia996630 wrote:
http://forums.bf2s.com/viewforum.php?id=15
^^ ITS THERE FOR A REASON!

EDiT: igetit

Last edited by mafia996630 (2009-07-25 08:39:51)

2009-07-25 08:37:49

#5566

CammRobb: Banned; +1,510|6410|Carnoustie MASSIF

mafia996630 wrote:
Kmarion wrote:
AussieReaper wrote:

I only meant it's a good thing in the context of the current recession the US is in. If you were still deflating you'd be in for more months of recession.

Anyway, it's getting late.

Night.
I hope you're right..

I have to go clean my drunken mess from last night (dead hookers etc).. god I'm a slob when I'm drunk.

Not like that.

2009-07-25 08:40:51