roman_mir's Journal: eating cat food in hyper-inflationary depression

Well, unfortunately /. does not have an economics section, so I can't post anything there because it does not exist, but I can still have debate threads about what is happening in US economy now and how it will change America in the future.

(compiling some comments together)

Hopefully the end of that thread is shown here.

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If you don't understand that corn and gold aren't the only two things on the market, that is your problem.

  - I presented a much bigger list a few comments ago, if you can't read - that's not my problem. Of-course the things I provided in that list are a tiny subset of the list there is, because all commodities are going up in price, because US dollar is falling, which you probably do not understand even the concept of, but you maybe able to read a number, right?

US dollar index fell 18% since 2006. The only reason it's even as high as it is, is because the other currencies that constitute the index are also being printed in currency wars. Good thing Asia has waken up last week, it looks like Singapore decided it cannot win the currency war and the rest of Asia just may follow suit.

Of-course in this war 'winning' means you destroy your own people's purchasing power, nothing else. Those who 'win' this war, lose their quality of life.

There is a measure for the rate of change in overall price levels, and it is showing historically low rise. You can cherry-pick a few commodities whose prices are going up, but you're not fooling anyone.

  - except of-course that the smart money has left USD and is in other currencies, in Asian equities and in commodities.

So if you are so dumb not to understand the insane levels of inflation presented by the price increases, then you deserve to lose your purchasing power.

You think ALL metals going up is 'cherry picking', you think ALL agriculture going up is 'cherry picking'? You think cotton going up by 17.5% in JUST September of this year is cherry picking? Sugar? Rice? Wheat? Basically futures of all staple foods is cherry picking. Ha, interesting. I must check what happened to the cherries, they must have done better than the DOW and S&P in September just as well, though I do not have that number in front of me right now, I'll find out.

It's amusing how you make up ridiculous strawmen like this. I can tell that even you realize that you're utterly out of your league, and you're flailing around as fast as you can to try to distract yourself from your own incompetence.

  - I see, so I am dealing with a troll. Well I understand I am dealing with a troll, but this thread has gone long enough for me just to stop destroying every single one of your arguments in every comment I make.

You are the one saying deflation hurts the poor by taking away their purchasing power. You amuse me in your ignorance by making such statements, so I am waiting for more and more comes with every new comment of yours.

You are the one saying inflation provides people with more purchasing power, which is bullshit because nobody has wages rising at all except for the bankers and probably politicians taking bribes to help out the bankers.

So you have to decide, which is it? Is deflation hurting people or is it inflation?

I am clearly on the side that inflation hurts people more, all things considered inflation will destroy currency at this point.

You believe that deflation hurts people. So it must really hurt people if commodities, the basic foods, the basic elements go down in price, it must be truly painful to know, that sugar would go down in price rather than going 19.3% UP just in month of September of 2010. Which shows clear inflation because at the same time dollar lost a few percentage points and S&P gained only 8.8% and Dow gained only 7.7%. You do not see the inflation and move into the commodities and foreign markets, but what else is new? nothing.

You know as well as I do that falling wage and price levels are bad for people with debt, and good for people with stockpiles of cash. You know it because it's so simple and obvious that there's no way not to know it, especially after I've spoon-fed the explanation to you over and over.

  - but you are willfully ignoring the simple fact that inflation will not allow people to pay their debt out ever.

Of-course inflation will PREVENT people from actually being able to pay their debt out ever, because inflation forces prices up but wages are stagnating. So people have only one option: get into MORE debt. Your society at the end will have insurmountable amount of debt. Your mind is unable to comprehend the simple truth that those with debt will never get out of debt in inflation. For them to get out of debt would take an extraordinary effort, which they will not be able to achieve, since the gov't is ramping up the inflation levels now.

The idiot at the head of the Fed came out with a statement that he wants to see 'inflation' up to be at 2% level, from the level he 'sees now', which he insists is 1.5%. All of these numbers are cooked. BUT EVEN if he actually was telling the truth (which he is not) then who believes that Bernanke knows exactly what to do to finetune this imaginary levels of inflation by .5%?

So he knows exactly how many treasuries to buy back to achieve this specific levels? He'll overshoot by a landslide. Nixon started price controls when his CPI numbers were at 4% (and at that time they counted inflation differently as well), but at 4% he decided to implement price controls, which are of-course fighting the symptoms of inflation, not the cause of them. And price controls do not work.

Bernanke will create more massive inflation than exists now, which is going to be amazing. Corn up by 60% in 3 months? HA! He'll push it up by 600% in 3 months, that's what he is going to achieve, yet you are still going to sit here and yup about not having any inflation.

You'll be sitting one of these days, in a cold apartment with no heating and no electricity and no running water, eating cat food out of a can that you heated up on a piece of wood you found outside, and you'll be saying how great inflation is. You'd have all that money and nothing to buy with it. Keep an eye on that wheelbarrow that you'll be dragging your piles of money around in, because if you leave it unattended, somebody will dump the cash and steal the wheelbarrow.

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Tell me this: why on earth would you talk about "rampant inflation" when you know perfectly well that "inflation" means something else in the minds of everyone who will read your comment? Are you trying to deceive them, or do you just not care whether they understand what you're saying?

  - I answered this ridiculous thing in every comment, you are just too stupid to understand it.

Whatever your definition of inflation in your head is, it does not change the fact that money is being printed, that USD index is going down, that commodities are going up. It does not matter that you do not believe in something that is clearly happening around you.

Nobody will ever pay out their debt in inflation, especially in hyper inflation, nobody sees their wages rising. Bernanke specifically stated he wants purchasing power of all Americans to fall faster, because in his mind that's how you make Americans more competitive. This obviously relies on Americans NOT HAVING WAGE INCREASES THAT CORRESPOND TO INFLATION.

So nobody will be paying out their debt. Eventually people will be borrowing money to buy food (and some do now, the food-stamp program is basically IT now, but the borrower/printer is the gov't instead of separate people). Eventually you will be eating that cat food, I hope you remember this conversation thread then.
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