Could the Weimar Hyperinflation Happen Again in America?

Atilla · Jun 25, 2010, 6:17pm

Quote:

Originally Posted by LondonJimmy

If you can't work it out for yourself I am not sure I should bother, especially when you post like ipso facto you are correct.

Modern definition is that inflation and deflation tend to relate to prices. In the long run changes in the money supply tend to equate to changes in price, but the modern definition relates to prices.

Older economics textbooks refer to the money supply. I buy into this definition. If we look at the last three decades then there has been plenty of inflation (increase in the money supply) but prices for things like computers, plasma tv's, calculators etc. has been falling due to advances in technology. These prices would suggest a deflationaty environment by the modern definition, whereas if you look at the money supply you would see that we were in an inflationary environment during the last 3 decades.

Well this is where NRs arguement fails.

To explain these discrepancies in Ms and prices and nominal and real inflation etc etc one must consider economic activity the frequency of exchange of money from one hand to another as well as increase in productivity and output for goods and services.

Then one can see the economy and transaction mechanism how money feeds into prices at work.

EG.

Ms rises x frequency of exchange stays same = Output rises x prices remain same.

In electronic items if Output of these items due to mass production rises ie

OUTPUT > Ms

then for the equation to balance prices must fall.

HIGH OUTPUT x FALL IN PRICES.

N Rothschild · Jun 25, 2010, 6:18pm

Also to flip the question over, seeing you think i am wrong in my theory and views. Why is it i make a living from trading and do rather well from it? Another pondering for your glass of scotch..

Atilla · Jun 25, 2010, 6:18pm

Quote:

Originally Posted by N Rothschild

and im still waiting on why fed needs to push yields to 0, from you two experts.

So that it can sell junk bonds to mugs like you...

N Rothschild · Jun 25, 2010, 6:19pm

Uh huh, care to hazzard a real guess? or do you not know? Did they not teach you that as part of your supply and demand equations?

N Rothschild · Jun 25, 2010, 6:22pm

Quote:

Originally Posted by Atilla

Well this is where NRs arguement fails.

To explain these discrepancies in Ms and prices and nominal and real inflation etc etc one must consider economic activity the frequency of exchange of money from one hand to another as well as increase in productivity and output for goods and services.

Then one can see the economy and transaction mechanism how money feeds into prices at work.

EG.

Ms rises x frequency of exchange stays same = Output rises x prices remain same.

In electronic items if Output of these items due to mass production rises ie

OUTPUT > Ms

then for the equation to balance prices must fall.

HIGH OUTPUT x FALL IN PRICES.

Right so, let me get this right..if production of electornic items increase, supply icnreases, prices fall? yeh? sweet.

So where does the producer get the money to pay for the increase in production.. bank loans? Sale? Etc? But if there is no money in the system to lend how is this company going to start mass producing **** to increae supply and make prices fall? They dont.

And if the consumer has no money to buy said items, prices will far regardless of supply.

Atilla · Jun 25, 2010, 6:23pm

Quote:

Originally Posted by N Rothschild

Uh huh, care to hazzard a real guess? or do you not know? Did they not teach you that as part of your supply and demand equations?

Stop blowing your trumpet and going off on tangents.

You haven't dealt with

Ms fall = Price fall yet???

On balance yes true correlation but not always. WAY TOO SIMPLISTIC.

Your dinky winky formula doesn't explain Jimmy's observation does it?

N Rothschild · Jun 25, 2010, 6:24pm

If you answer the yield question it will unravel the rest, and i asked first, manners please..

Go just admit you dont know? Then we can put this to bed that while you may have a good grasp of text book economics you dont know how things REALLY work, which we have actually proved time and time again in the various threads regarding your lack of understanding in money creation and the credit markets.

And i will admit you seem to be more clued up on the supply demand ratios etc than i am, but it would seem i know more about the parts that matter! (hence being a proftible trader and you not)

N Rothschild · Jun 25, 2010, 6:29pm

Quote:

Originally Posted by Atilla

Stop blowing your trumpet and going off on tangents.

You haven't dealt with

Ms fall = Price fall yet???

On balance yes true correlation but not always. WAY TOO SIMPLISTIC.

Your dinky winky formula doesn't explain Jimmy's observation does it?

as i stated in earlier post, jimmy observation is completely incorrect.

Jun 25, 2010, 6:18pm	#562
N Rothschild Legendary Member Member Since Oct 2008 5,317 Posts	Re: Could the Weimar Hyperinflation Happen Again in America? Also to flip the question over, seeing you think i am wrong in my theory and views. Why is it i make a living from trading and do rather well from it? Another pondering for your glass of scotch.. __________________ "Let me issue and control a nation's money and I care not who writes the laws." Mayer Amschel Rothschild Bullsh!t, Bearsh!t all smells the same to me! "It is not cheap to develop automated systems , mine already cost over $1m. " oildaytrader

Jun 25, 2010, 6:19pm	#564
N Rothschild Legendary Member Member Since Oct 2008 5,317 Posts	Re: Could the Weimar Hyperinflation Happen Again in America? Uh huh, care to hazzard a real guess? or do you not know? Did they not teach you that as part of your supply and demand equations? __________________ "Let me issue and control a nation's money and I care not who writes the laws." Mayer Amschel Rothschild Bullsh!t, Bearsh!t all smells the same to me! "It is not cheap to develop automated systems , mine already cost over $1m. " oildaytrader

Jun 25, 2010, 6:24pm	#567
N Rothschild Legendary Member Member Since Oct 2008 5,317 Posts	Re: Could the Weimar Hyperinflation Happen Again in America? If you answer the yield question it will unravel the rest, and i asked first, manners please.. Go just admit you dont know? Then we can put this to bed that while you may have a good grasp of text book economics you dont know how things REALLY work, which we have actually proved time and time again in the various threads regarding your lack of understanding in money creation and the credit markets. And i will admit you seem to be more clued up on the supply demand ratios etc than i am, but it would seem i know more about the parts that matter! (hence being a proftible trader and you not) __________________ "Let me issue and control a nation's money and I care not who writes the laws." Mayer Amschel Rothschild Bullsh!t, Bearsh!t all smells the same to me! "It is not cheap to develop automated systems , mine already cost over $1m. " oildaytrader

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