(04-27-2012 02:00 PM)Max Power Wrote:  No it destroys accumulated wealth while being largely indifferent to earned income (though it can trail; wages are sticky like I said), and because most poor and middle class people spend all of their paycheck it doesn't hit them much at all. There was a time when populists actively promoted inflation for this reason. Again, another good reason for inflation because it hurts the rich with sh!tloads of net worth.

so you still don't understand economics beyond 101

Inflation isn't generally a surprise. If they expect inflation. They will purchase assets that do well when things inflate. Like metals, which are doing quite well, aren't they? Hmmm... And even oil, which is why other countries are trying to get oil denominated in someone other than the dollar... Because it would help that currency and hurt us if it were.... Primarily the poor and middle class because we import so much and control so little of the global supply. Real estate used to be considered an inflation hedge... I'm not so sure in general... But at that level, you weren't relying on wall street to finance you anyway... With inflation, rent rates rise so commercial finance becomes more lucrative... And only the poor and middle class own office buildings, right?

And most important, because wall street isn't stupid, they will simply demand a higher return on their investment to compensate them for inflation losses.

I mean seriously... You don't think investors bought bonds at. 5% yield or stocked with a 10% roe expectation when inflation was expected to be 12% do you?? They wanted 15 or 20. How would a company go about increasing their roe or paying higher debt service? By raising prices and cutting costs, right? What sector of the population is most sensitive to rising consumer prices? What sector is most vulnerable to outsourcing?

I realize that static economy studies make sense to you... But that doesn't mean they reflect the REAL world.

(04-27-2012 11:46 AM)wvucrazed Wrote:  

(04-27-2012 10:27 AM)Max Power Wrote:  and all I have to say is thank God we at least got one sizeable stimulus through to inject some demand when we needed it most.

Absolutely.

more from the illiterate hillbilly.

So just so I'm clear, in the first quarter of 2012, the federal government spent $966 billion. That's 10% more than the $877 billion spent during the previous quarter, and 2% more than the $949 spent during the first quarter of 2011. Sorry, I'm missing where exactly the "cuts" are.