Comments by "" (@foxmoongaze) on "The days when managing the economy is all about inflation should be over" video.

@Ghengiskhansmum We never get the deflation needed to bring back the original value of the currency. Inflation is a stealth tax.
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"The state alone is responsible for inflation: inflation without government, or indeed against government, is impossible." Felix Somary, The Raven of Zurich
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@abody499 It's the name of the book from which the quote is taken. Felix Somary was a leading banker among other things and well respected.
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It's probably actually worse than that as they changed the way they calculate the inflation (CPI) so it looks more favourable. There has been about 98% lost in value of the GBP since the early 1970s. Efficiencies in manufacturing, farming and supply have actually made many things cheaper to produce, but they have still soared in price because the currencies are devaluing.
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@marcopolotimetraveller Indeed. Also, during the 19th century the UK had almost no inflation and at times deflation, and it was the most prosperous time of all. There was a central bank, but very small government compared to today.
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@WarrenPeaceOG Actually it is as simple as a matter of the amount of currency - I think your points are causes of why more money was created, but does not change the fact that inflation can only be as a consequence of increasing the volume of money - that's the very definition of inflation as it "inflates". Supply and demand values will correct over time, but inflation needs deflation. Also, measuring one currency to another does not work as they are all inflating, we have to measure against something real such as gold. This is why gold, and real assets, priced in all currencies have risen since the 1970s - in simple terms gold, and other real assets such as property, have not risen in value, it's the currency that's lost value.
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@WarrenPeaceOG I politely disagree. Inflation is purely an increase in the money supply, and rising prices are a consequence of the currency devaluation it brings. Prices can give a measure of the value of the currency, not a measure of inflation. Inflation will cause all prices to rise if there is no matching increase in the nations productivity (which does not include gov spending). A price rise for a scarce product has nothing to do with currency inflation and is just normal market forces. Only productivity can stimulate an economy - printing huge amounts of currency with abandon leads us to where we are now i.e. your " rising deficits, rising private and public debt, and economic stagnation".
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Well said. Inflation is always caused by government increasing the money supply (inflating it). We never get the deflation that would restore the purchasing power of the currency. The GBP has lost about 98% of it's value in the last 50 years.
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@stephfoxwell4620 The west has profited well since 1945. Efficiencies of manufacture, farming and supply give cheaper abundance of goods. However, the constant spiral of devaluing currency, increasing wages, and destruction of savings, while accruing massive national debt that cannot be paid is not a sign of a healthy financial system. Inflation is probably one sign that the piper wants paying.
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@downshift4503 Well, people have to constantly earn more because the currency becomes constantly worth less. And yes, saving cash is not a good idea because inflation is always higher than interest earned.
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@Vroomfondle1066 Price rises are a consequence of inflation. Inflation can only be caused by the state inflating the money supply (hence "inflation"). Short term inflation sometimes by temporary supply shortages. I'm sure there are some companies who might exploit a situation, but generally not as it would be bad for long term business.
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@Vroomfondle1066 1. Supply shortages can cause temporary inflation of a certain product. Otherwise, prices rise because of inflation. Inflation is the expansion of the money supply which can only be done by the state. 2. Inflating the money supply devalues the currency and so wages have to rise, but they are always lagging and often don't keep up with the real levels. 3. The devaluation of the £ means that the value of your labour today loses value in the future - it's the same as being paid £100 today, but if you spend it later you can buy less than you could today. It's a form of taxation, or theft, as someone else benefits from your loss i.e.: they get to use the new money created before currency devalues. Hope that makes sense.
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@Redf322 Completely wrong - prices rises are a consequence of inflation!
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@Vroomfondle1066 1. Supply shortages can cause temporary inflation of a certain product. Otherwise, prices rise because of inflation. Inflation is the expansion of the money supply which can only be done by the state. 2. Inflating the money supply devalues the currency and so wages have to rise, but they are always lagging and often don't keep up with the real levels. 3. The devaluation of the £ means that the value of your labour today loses value in the future - it's the same as being paid £100 today, but if you spend it later you can buy less than you could today. It's a form of taxation, or theft, as someone else benefits from your loss i.e.: they get to use the new money created before currency devalues.
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@downshift4503 The money supply should only Inflate by true increases in national production (not including government spending!), that would seem sensible and retain the value of the currency. I think most problems would then disappear, but we would have a certain amount of turmoil as the banks adjust to losing their money for nothing, and the investment bubbles stop artificially inflating. We are probably in an "illusion vs reality" situation right now.
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@downshift4503 True, but the money supply has always grown far more than the economy/production has, which is why we have constant inflation. Government spending should not be included as growth, as it's a cost until any consequential real growth feeds back into the economy.
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@gio-oz8gf Oh dear - you need to rethink things here, and do some research - start with why it's called "inflation" and always happens after things like QE (quantitive easing) or after periods where rates are very low and banks create/lend large amounts.
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@Redf322 Well, because we would need negative inflation, i.e.: deflation, which would increase the value of the currency and so bring prices down.
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@stephfoxwell4620 Oil prices are subject to supply and demand, and fluctuations in value of currencies - like everything that's bought and sold.
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@charliemoore2551 Your comment just proves how little you understand about inflation, and that you have fallen for the CPI lie - real inflation is (much) higher. Inflation causes purchase prices for components to go up for vendors as well so they have to rise their prices. Gouging is nothing to do with inflation and some businesses will try it at any time if they think they can get away with i.e.: some think every Apple product is gouging........
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@abody499 Ok, but, I'm sure everyone is liked by some and disliked by others. Did you have an actual comment about his statement? BTW - Felix Somary was respected by his peers, and by economists of the time, he has since been described : "as the greatest economic and financial specialist in financial crisis analysis and forecasting ever.".
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@abody499 Er, maybe wind it back a bit as you are rather missing the point. No one is asking you to accept anything, just think about what he said, which obviously was the point of the post. Stop worrying about how great or not he may have been. Good luck and good day 😉
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@kevinsyd2012 Unless the tattoo is a treasure map to gold 😄
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@steviesteveo1 Only the state can cause inflation, which is the increase, or inflation, of the money supply. Inflation devalues the currency, which is why it's a problem for anyone who has the currency, or gets paid with it.
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@InnuendoXP I do agree with you, but, most other influences are shorter term affects and not the fundamental reason for inflation, which is always an increase in the volume of money created. Most people confuse price rises as inflation rather than the consequence of it. I also think we shouldn't really call our currency "money" as in reality what we use now is a credit or promise for money... but that's a whole other thing :)
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@WarrenPeaceOG MMT is a failed experiment, we are now suffering the consequences and realising that deficits do matter........ Milton Friedman just repeated what others have stated many times over the past centuries.
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@andielines Thanks for the thoughtful and enlightening feedback!
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