tag:blogger.com,1999:blog-27697009.post7427838470072946394..comments2024-02-29T03:21:35.007-08:00Comments on The Great Depression of 2006 : Inflation ”An Old People’s Disease”Jim in San Marcoshttp://www.blogger.com/profile/09435296419912935381noreply@blogger.comBlogger16125tag:blogger.com,1999:blog-27697009.post-33618564224796148262010-01-28T10:52:39.907-08:002010-01-28T10:52:39.907-08:00What government spending there is in excess of tax...What government spending there is in excess of taxes is funded by treasury bonds. Like taxes, treasury bonds shifts money from elsewhere in the economy, over to government spending, but there is no net creation of money, so is not inflationary.<br /><br />Only that which comes out of the Fed is inflationary.SF Mechanisthttps://www.blogger.com/profile/05601876497745234890noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-19775515452022506082010-01-28T05:12:27.489-08:002010-01-28T05:12:27.489-08:00Work always has represented renumeration. It does ...Work always has represented renumeration. It does not have to be in metals. Your trapped in trading work for paper. Thats not good. Not only that it IS THE ONLY LEGAL TENDER. Thats by law. So you work and get a hand full of paper. Now if I worked for you for a day and you game me oh say something of real value. Like oh a trailer hitch or a computer monitor. Thats more akin to have something of valueAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-19093612769629945892010-01-26T20:02:14.692-08:002010-01-26T20:02:14.692-08:00Hi Anon 4:25
I don't think the people in char...Hi Anon 4:25<br /><br />I don't think the people in charge have any intension of paying off the national debt. It's kind of like trying to wash your car with a q-tip.<br /><br />I think if the government seriously wanted to back the currency with gold, the price would be closer to $8,000 per ounce.<br /><br />Historically an ounce of gold represented a weeks wages, so that could mean some pretty healthy inflation if everything gets marked to market.<br /><br />Thank you for your comments.Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-52605485872635370952010-01-26T19:34:32.493-08:002010-01-26T19:34:32.493-08:00Hi Franco
The trouble with any currency, it is b...Hi Franco<br /><br /><br />The trouble with any currency, it is based on faith.<br /><br />Our government never saved for that rainy day, and now they want to spend their way out of it.<br /><br />I has me worried too.<br /><br />I liked your bit on shoelace tying in your blog. Here is a <a href="http://boomersbrigade.blogspot.com" rel="nofollow">link</a> to it for others reading.<br /><br />Thank you for your post.Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-54355537724400672152010-01-26T16:25:21.164-08:002010-01-26T16:25:21.164-08:00We bought our first house in 1962, paid $12,800, l...We bought our first house in 1962, paid $12,800, lived there for 41 years, sold it for $130,000. Two years later it was sold for $354,000, and now is in default. That’s what you call inflation and bubble inflation. (In fact we bought it from FHA because the builder had gone bankrupt).<br /><br />I got to thinking the other day, how much gold would it take to pay off the national debt? So I used gold a $1,095 an ounce and divided it in to $12.327 trillion, hang on to your hat. It came out to be over 11,257,534,247 ounces of gold. Correct me if I’m wrong.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-72205575358387857822010-01-26T06:31:00.450-08:002010-01-26T06:31:00.450-08:00I have my own moment to add to Jim's "mil...I have my own moment to add to Jim's "milestones for government induced inflation".<br /><br />In the early Seventies, we were paid by cash or check. I remember complaining that all of the bills I was getting paid in were new and freshly printed. I couldn't seem to get my co-workers to realize that something was wrong, and there was a danger involved with printing so much new currency. No one seemed to care, the general response was that "money is money", and everything was well with the world as long as "the check cleared."<br />I wonder what they're saying now?<br /><br />I for one am getting a little worried.Franco Bollohttps://www.blogger.com/profile/10284254316900738715noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-81826526271413894442010-01-25T15:31:21.769-08:002010-01-25T15:31:21.769-08:00Is there any way out of this? Our entire system is...Is there any way out of this? Our entire system is based on factoring in inflation. <br /> Would it be worth collapsing our deck of cards and starting over with a solid non-FED foundation, or is inflation the lesser evil?<br /><br />random thought:<br />If the dollar falls in the forest, but there is no citizen intelligent enough to understand it, did it still fall?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-71720749390526000722010-01-25T14:13:42.129-08:002010-01-25T14:13:42.129-08:00I'll bet that most people, when asked what cau...I'll bet that most people, when asked what causes prices to go up (inflation), they'll tell you that companies have to raise prices because the workers are always demanding more money. Very few actually have a clue about the true cause.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-82519557398579301022010-01-25T08:50:40.975-08:002010-01-25T08:50:40.975-08:00It will be all digital. A bunch of zeros and onex ...It will be all digital. A bunch of zeros and onex in a randomn computer out there.JMShttps://www.blogger.com/profile/07209116028204451060noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-30984448946537521102010-01-25T07:51:12.891-08:002010-01-25T07:51:12.891-08:00Hey!
How long until the paper a dollar is printed...Hey!<br /><br />How long until the paper a dollar is printed on costs more than a dollar?<br /><br />What will they substitute then?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-80227326118314804692010-01-24T20:05:00.845-08:002010-01-24T20:05:00.845-08:00Hi Rob
Thank you.
Many of the posts I write, I e...Hi Rob<br /><br />Thank you.<br /><br />Many of the posts I write, I expect some comments and get very few. But this one I really didn't even expect a peep. Funy how it works out.<br /><br />Glad you liked it.<br /><br />Take care.Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-79666440109544594852010-01-24T19:57:04.936-08:002010-01-24T19:57:04.936-08:00Hi Frakrak
When you examine your billfold, there ...Hi Frakrak<br /><br />When you examine your billfold, there are the credit cards and they are plastic.<br /><br />I use to go to Las Vegas and there, you heard the coins dropping out of the slot machines. Now the machines still make the coin noise, but nothing drops out. It is coin-less.<br /><br />So I think you are right, and it will be hard for me to adjust to. My coin collecting will suffer the effects. You can't press credit cards into those round coin holes.<br /><br />Take care.Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-17728934901380544912010-01-24T19:39:52.538-08:002010-01-24T19:39:52.538-08:00Hi El Scorcho
Funny you should mention coinflatio...Hi El Scorcho<br /><br />Funny you should mention coinflation.com. The other day, I accidentally dropped a magnet into a box of Canadian coins I had, and a lot of the nickels stuck to it. Nickel is magnetic so I went to that site. Come to find out, the nickels are worth about 20 cent apiece for their metal content. I also learned that some of my Canadian coins had silver in them.<br /><br /><br />I don't really collect pennies, but there is an incentive now, I'm going to keep all of the 1982 or before pennies. Let's take the good money out of circulation.<br /><br />Thank you for your comments.Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-50956923762279700782010-01-24T18:03:22.715-08:002010-01-24T18:03:22.715-08:00Jim
Great post. Best commentary on inflation I...Jim<br /><br />Great post. Best commentary on inflation I've read in a while.<br /><br />Cheers from NSRob in NSnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-69427575651545545822010-01-24T14:31:02.395-08:002010-01-24T14:31:02.395-08:00Eye catching post Jim!!
We've progressed fur...Eye catching post Jim!! <br /><br />We've progressed further from the "zinc" standard to the "plastic" standard over these past thirty or so years ....<br />cheersfrakrakhttps://www.blogger.com/profile/10110027067402980842noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-26221369714576092382010-01-24T12:51:48.204-08:002010-01-24T12:51:48.204-08:00Great blogpost, Jim.
About a year and a half ago,...Great blogpost, Jim.<br /><br />About a year and a half ago, while checking out coinflation.com, I noticed that nickels were actually worth (looking at their true metal content) a hair above seven cents.<br /><br />Big deal right? A whole two cents.<br /><br />That's a 40% premium to face value!<br /><br />Nickels are now back around .05 again - but with them being composed of 75% copper and 25% nickel, it might be a wise investment to put back a few hundred dollars worth.<br /><br />El ScorchoAnonymousnoreply@blogger.com