Is Debt A Major Cause Of Inflation?
- Thread starter Liberalman
- Start date
Obviously if there is only one then no one has a need for any other $20 bill (because more could've been made). Demand = 0. You could put it in a garage sale and see if it can be traded it for something else.
Fiat currency has a value while specie backed currency has worth in something tangible. Value and worth have different meanings.
... So, what is backing the worth of this single $20?
Whatever that 'collateral' is (assuming more can be sourced), can also account for the $5 difference in interest.
I doubt it, it probably counteracts inflation. The biggest cause of inflation is greed and demanding higher wages!
Not very much, about the same as what was backing a $1 bill about 40 years ago!
There might be one slight problem with that, when you are paying an hourly wage you can likely fire the guy on an hours notice, whereas with a monthly salary you may be encumbered for a full month!
Gold has little to no use or value except for that created by speculation. Speculation in future price is the only reason it is dug out of the ground. How is that any different than running a printing press where people speculate on the future value of what you print?
And that is precisely why they keep manufacturing more dept - it has value to those who control it.
Creation of money out of thin air for loans, and low chance of person paying it back is not a good combination.
As long as your Economy is good and the people can manage to pay back the money, the system works.
Major default by a large number must be avoided at all cost.
As long as your Economy is good and the people can manage to pay back the money, the system works.
Major default by a large number must be avoided at all cost.
I'm not sure what this has to do with inflation. Inflation happens when money loses value.
Loses value? Whether you pay it or not, interest is still counted against you. Funny how intangible money is an asset in the money game....
In most cases I would say your first mistake was watching Glen Beck. In this case it is true
inflation is partially caused by debt but there are other factors as well. Sometimes it is a
requirement to bail out certain businesses or financial institutions. The problem is that the
business world is getting used to behaving badly and being bailed out. After all the first thing
these large companies did was pay bonuses to people who caused the mess in the first
place.
It is now time to not bail them out. Government should let them fall take over the assets and
resell them to others who are willing to take the risk of rebuilding those industries. For
example, take over the company when the bailiff moves in, and resell the assets, do not keep
them and have them Government run, that is as bad as having them run the way they are.
The time has come for the middle men and those who are the brokers of industry to be
introduced to reality. Ordinary people are paying the shot for products, services and taxes and
it is time the bonuses and commissions reflected reality.
The times they are a changing Dylan once wrote and the people are waking up.
inflation is partially caused by debt but there are other factors as well. Sometimes it is a
requirement to bail out certain businesses or financial institutions. The problem is that the
business world is getting used to behaving badly and being bailed out. After all the first thing
these large companies did was pay bonuses to people who caused the mess in the first
place.
It is now time to not bail them out. Government should let them fall take over the assets and
resell them to others who are willing to take the risk of rebuilding those industries. For
example, take over the company when the bailiff moves in, and resell the assets, do not keep
them and have them Government run, that is as bad as having them run the way they are.
The time has come for the middle men and those who are the brokers of industry to be
introduced to reality. Ordinary people are paying the shot for products, services and taxes and
it is time the bonuses and commissions reflected reality.
The times they are a changing Dylan once wrote and the people are waking up.
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.
Inflation happens when money loses value. Money loses value
Mostly cause we need to print it for easy liquidity in the market.
Our Economy stays stronger if wages keep up with inflation.
Our private industry salary's falling behind is a bad problem right now.
People buying house's, cars, anything etc... Is what makes jobs.
The more high paying jobs this country has the better everyone will be.
Because it produces demand, and that's what produces jobs.
Not Corporate tax cuts. Even if Corporates have more money why would they invest it into jobs,
when there is no demand.
Now if we, give tax cuts to corporations for every well payed positions/job. that could be a step in the right direction.
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