Is Debt A Major Cause Of Inflation?

[Cliffy]

If we had a fixed amount of currency how would we produce and sell oil? Trade it for Florida oranges? All of the existing dollars are spent.

Where did the money come from to bail these pricks out - trillions. It came out of thin air. What is the value, the product or service that gives it value? Dept, dept to the citizenry, the electorate, the poor working schmuck who has to pay it back and at interest because some over paid CEOs phucked up royally and then paid that bail out money to themselves for phucking up. Perhaps people will one day realize why people are "occupying" all over the planet. I think that they should occupy the stock exchange. They are paying the rent on the building (and many more) through this BS debt.

 

[Cannuck]

It's debt, not dept Cliffy. Dept is short for department (as in US Dept of Bank Helpers)

 

[captain morgan]

Where did the money come from to bail these pricks out - trillions. It came out of thin air. What is the value, the product or service that gives it value? Dept, dept to the citizenry, the electorate, the poor working schmuck who has to pay it back and at interest because some over paid CEOs phucked up royally and then paid that bail out money to themselves for phucking up. Perhaps people will one day realize why people are "occupying" all over the planet. I think that they should occupy the stock exchange. They are paying the rent on the building (and many more) through this BS dept.

The money for the bail-outs really originated from the profits of these corps ($$ paid through taxes)... You'd do well to remember that the gvt is your silent partner in your business Cliffy and they take their 40-50% share of the profits in taxes.

Just 'cause the gvt bribes you with this money doesn't make it yours.

 

[Cliffy]

It's debt, not dept Cliffy. Dept is short for department (as in US Dept of Bank Helpers)

Thanks. Spell check doesn't catch those typos.

 

[Nuggler]

Read the book Draining the Swamp.

The only fix to the financial system is to cap proprtional lending and go back to a specie backed dollar.

Coming off the specie backed was a neat little ponzi scheme that made a lot (well 1 or so %) rich.

Credit for a cars started in the 50's. A 55 for $55 was the slogan.

Mortgages also started post WW2

You sure, Petros. My grandad bought his house for $1500,00 @ 6%/annum with payments of $68.00 due twice a year. That would have been in 1903 (approx). I had the mortgage papers, but can't put me hands on them at the moment. I never bothered to figure it out, but it would seem that at $136.00/annum, and the interest compounding, he might have been a long time paying it off.

At the end of each 1 or 5 year period, can't remember now, he had the option of paying some off the principal. This was in the days when plumbers (he was) took a pig or some chickens, etc., for payment in lieu, as everyone was pretty much in penury.

Yep, the good'l'daze.........step right up and get smallpox.................NEXT!!

 

[Angstrom]

Inflation is not a problem as long as all wages keep up with them.

 

[lone wolf]

Inflation is not a problem as long as all wages keep up with them.

Inflation IS a problem for people who have to live on fixed incomes.

 

[Kreskin]

My grandfather had a $350 monthly mortgage payment on his farm during the great depression. The gold standard didn't do a hill of beans for him.

 

[JLM]

Inflation is not a problem as long as all wages keep up with them.

You got it backwards, it's rising wages that cause inflation!

 

[Cannuck]

You got it backwards, it's rising wages that cause inflation!

Not necessarily. Higher interest rates, housing prices and resources can do it as well.

 

[JLM]

Not necessarily. Higher interest rates, housing prices and resources can do it as well.

Perhaps to a degree, but if wages don't increase, it's hard to fetch higher house prices. Higher interest rates are a two edged sword, while onerous on us that owe money they also attract foreign investment to the country.

 

[Cannuck]

Perhaps to a degree, but if wages don't increase, it's hard to fetch higher house prices.

Where have you been for the last 10 to 15 years? My house has more than tripled in value in the last 8 years and I seriously doubt that wages have.

 

[JLM]

Where have you been for the last 10 to 15 years? My house has more than tripled in value in the last 8 years and I seriously doubt that wages have.

And that is why prices are now starting to head the other way, a lot of the recent increase is mainly due to the Asian influence. Not to mention lower interest rates. 15 years ago mortgage rates were at 10-12%.

 

[Kreskin]

And that is why prices are now starting to head the other way, a lot of the recent increase is mainly due to the Asian influence. Not to mention lower interest rates. 15 years ago mortgage rates were at 10-12%.

What is his house supposed to be worth? Is the rise or fall in price determined by the output of Yukon Cornelius? :smile:

 

[VanIsle]

And that is why prices are now starting to head the other way, a lot of the recent increase is mainly due to the Asian influence. Not to mention lower interest rates. 15 years ago mortgage rates were at 10-12%.

Prices of housing really are not going down much JLM. In fact, news report here just a couple of days ago said exactly the opposite. Houses in Qualicum Landing (not just Qualicum) are selling from around $800,000 to over a million.

 

[JLM]

What is his house supposed to be worth? Is the rise or fall in price determined by the output of Yukon Cornelius? :smile:

:lol::lol::lol::lol: What his house is worth is purely speculation until he sells it. :smile: My house in Grand Forks almost doubled in nine years. There are areas like parts of Greater Vancouver and Victoria where prices have gone on a rampage, but there is a correction starting to happen.

Prices of housing really are not going down much JLM. In fact, news report here just a couple of days ago said exactly the opposite. Houses in Qualicum Landing (not just Qualicum) are selling from around $800,000 to over a million.

Yep, certain areas, but in the North Okanagan sales are down a bit lately because people are not realistically pricing them.

 

[Omicron]

Tricky question.

First thing you need to do is read the Old Testament and notice how they subtly explain/describe how the reason Pharaohs got a year-by-year 10% tax by the time Romans discovered them was because Joseph had dreams about seven years of feast followed by seven years of famine, such that he convinced the Pharaoh to save up piles of grain in order to feed people for the coming famine, such that the deal they made to the farmers was they got grain if the land upon which they had farmed was turned over to Pharaoh, but that he would let them keep living on it if they would give him 10% of their crop per year. They agreed, and it was an early stage of formation of many little entities into a kingdom.

Second thing you have to ask is what would happen if each citizen were to be allowed to pay off their share of the national debt, in order for their taxes to be lower the next year for not having to pay interest.