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Originally posted by JBME
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I think the tank on this vehicle is bigger!! I think the opinions on the 90s are mixed. It is hard to know how much of the in retrospect bubble of the dot.coms was caused by certain Greenspan policies. It is hard to know how much of the implosion and recovery was affected by 9/11. -
I might be wrong but weren’t gas prices in the low to mid 4s in California in the early-mid 2000s? If so it seems inflation adjusted that would have been higher than today. Although it really is crazy to see it so high nominally today.
as usual I think those on one side of the political spectrum focus mainly on money supply and the other side focuses on supply chain. Both are obviously a factor and I don’t know how we can accurately attribute a percentage fault to either one.
it’s very interesting that in my short time investing I’ve seen 2 very interesting phenomenons, people flipping out at the Covid crash and people flipping out about inflation. Very grateful I can learn from these times without having real money at stake.Comment
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money supply problems exacerbate supply side problems
its funny at an individual level we all know someone shouldnt spend more than they make. leverage increases risk and can blow up in your face
we understand the same at a business level. if you can't make enough to pay expenses you gonna go out of business eventually and again leverage increases risk
and again at a municipal and state level. we cant build arenas and bridges and provide services without the revenues to pay for them
but when it comes to a national level that concept goes out the window?Comment
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I think the monetary policy and the circumstances of covid are directly related to the inflationary pressures. Add in higher energy costs and wage cost inflation to the mix. Continued wage and energy inflationary costs , are not transitory unless either is expected to go down by either increased productivity and / or future lower energy costs. Try telling and employee you just hired for $20/hr and in a year when inflation normalizes you are doing to drop their rate to $17. So far renewables have not been linked to decreased energy costs. Maybe they will be in the future.
People flip out over inflation , because it directly impacts their life, costs more to drive and costs more to eat. I don't live paycheck to paycheck , but for many it means cutting something else out in order to have enough money at the end of the week.Comment
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Don’t you think that the rules would be different if an individual had the ability to print money? Obviously at every level other than federal dollars are finite. That isn’t true when you control the money supply. I do not think the federal government and a random US household are all that comparable.Originally posted by jacoavlu View Post
but obviously yes even the ability to print money is not a perfect solution when inflation rears it’s head.Comment
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you’re making my pointOriginally posted by Turf Doc View Post
Obviously if one person could print the money, they can confiscate all the value from everyone else.
If a group of people can print the money, then they can confiscate the value from the people that can’t
If a business could print the money…
If a state could print the money…
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Right, but that’s a different discussion than the one about how an individuals ability to spend more than they take in differs from the federal government’sOriginally posted by jacoavlu View PostComment
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Ahhhh Greenspan a fond blast from the past. I remember hanging on his every word. There are so many issues at play right now it is overwhelming me.Comment
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An individual shouldn’t spend more than they take in because eventually they will go bankrupt. Dave Ramsey 101Originally posted by jacoavlu View Post
The federal government can spend more than they take in because they control the money supply, unlike an individual, but needs to be careful because printing too much money can devalue they dollar to an undesirable amount for everyone else in the country
are these not different consequences?Comment
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you think they're different, i think they're the same. like we agree if a person could print the money that would be bad. and at a business or small group level. at what point does the transition happen where it just becomes ok?Originally posted by Turf Doc View Post
printing all the money works until it doesn't. its a house of cards
its like we're all ok with a little bit of devaluation of our money bc we're in our position of privilege and in the end it helps us more than hurts usComment
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A new variant was like an early Christmas present to the Feds. I can't wait until it peters out and turns out to be nothing.Originally posted by jacoavlu View PostComment
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its almost as if they couldn't have planned it betterOriginally posted by CordMcNally View PostComment
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Originally posted by Hatton View Post
As you already know, the dotcom was more than irrational exuberance.. Companies got millions with no coherent business plan, let alone a path to profit. All they had to do was use the words internet, web, this time it is different, profits will come later etc. and money was handed over to them. The bubble had to burst, no question about it. And there was no way to let the air out slowly and let the sick companies die ( when the majority were sick). Like pricking that abscess to let out the pus and get relief, it was better to do it in one shot and get over with it.
Even though I suffered a bit, the end result was much better and a great relief.
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