Comments by "Charles Brightman" (@charlesbrightman4237) on "Stoic Finance"
channel.
-
7
-
ECONOMIC INFLATION:
The way I see it is that regardless of the currency utilized (gold, silver, fiat, crypto, etc), economic inflation is still economic inflation. ANY economic inflation over previous economic inflation, overtime, eventually becomes exponential economic inflation. If an entities' wages, benefits and investments do not keep up with the true cost of inflation, then the entity falls behind in buying power and becomes poorer. A nation will eventually fail as will a global economy will eventually fail with ever increasing economic inflation because most people do not have wages, benefits and investments that keep up with the true cost of inflation. Math is still math.
3
-
2
-
2
-
US FED: Economic Inflation: Lessons learned: (copy and paste from my files):
The US Fed has a goal, I repeat 'goal', of 2% annual inflation. And this is on top of all the 2%'s that came before it, which turns out to be an exponential amount of inflation over time.
Most people do not have wages and benefits that keep up with the true cost of inflation, which causes many social and economic problems in this nation and in this world. Zero income is sill zero income and zero pay raises are still zero pay raises. This is also a NATIONAL SECURITY item as many nations in the world stop utilizing America's currency as a reserve currency due to in part America's currency being weaker in this world. America has less influence in this world, which allows other nations in this world to take the lead.
As a nation becomes greater, it's currency should be able to buy more, not less.
Higher inflation:
* Obviously higher prices.
* Also at times lower quantity.
* Also at times lower quality.
(And if not lower quantity and/or lower quality, then that much more higher prices).
Many rich people and large corporations have taken America's wealth and hid it in out of country bank accounts and/or invested that wealth in other nations for various reasons. This has the net effect of basically stealing America's wealth from America.
Now also, rich people and certain businesses operate on huge debt, and even the US Government operates on huge debt. These entities love higher inflation because it helps to wipe out their debt, as they pay back their debt with currency that is worth less (worthless). Additionally, things like saving's account's get next to nothing for 'normal' people trying to save money for future expenses. Those that are operating on debt get rewarded and those trying to be more financially responsible are getting punished.
America's currency system is broken and needs to be fixed.
In part, a law needs to be passed that the US Fed has to have a 'goal' of 0% (zero percent) inflation. Sure, this is going to piss off those who game the financial system, but it would help with curing some of societies' issues as well as strengthening US currency thereby strengthening America's position in this world as more nations would want to utilize the US Dollar as a reserve currency. Inflation is still going to occur due to various reasons, but we don't have to automatically have a goal of increasing inflation.
Another idea might be to give the US Fed just 1 single job: Control Inflation, (and take away their other job of trying to have full employment). Let the markets control full employment.
And for any entity that thinks economic inflation is a 'good' thing, then you must also be okay with many of life's social and economic issues as well as a nation becoming weaker in this world as it's currency eventually loses value in this world. You must be okay with poor people suffering and dying due to higher economic inflation. In part, at least some of this world's suffering and death is on you. You caused this with your higher economic inflation goals. (A man made problem and can have a man made fix with 1 simple change. Change the US Fed's economic inflation goal from 2% to 0% which would help ease suffering and death in this world.)
And if you still say that 2% inflation would be fine, then surely you would not have a problem with making a Federal law that says that all businesses all across America are mandated to increase their employee's salaries by at least 2% every year, (the 2% just keeping up with inflation, any above 2% due to the increased value of that employee).
Otherwise, it's a system set up by the rich to transfer wealth from the middle class and poor to the rich. And if the middle class and poor do not stand up for their own interests against the rich, who will?
2
-
Lessons learned: US FED:
The US Fed has a goal, I repeat 'goal', of 2% annual inflation. And this is on top of all the 2%'s that came before it, which turns out to be an exponential amount of inflation over time.
Most people do not have wages and benefits that keep up with the true cost of inflation, which causes many social and economic problems in this nation and in this world. This is also a NATIONAL SECURITY item as many nations in the world stop utilizing America's currency as a reserve currency due to in part America's currency being weaker in this world. America has less influence in this world, which allows other nations in this world to take the lead.
Higher inflation:
* Obviously higher prices.
* Also at times lower quantity.
* Also at times lower quality.
(And if not lower quantity and/or lower quality, then that much more higher prices).
Many rich people and large corporations have taken America's wealth and hid it in out of country bank accounts and/or invested that wealth in other nations for various reasons. This has the net effect of basically stealing America's wealth from America.
Now also, rich people and certain businesses operate on huge debt, and even the US Government operates on huge debt. These entities love higher inflation because it helps to wipe out their debt, as they pay back their debt with currency that is worth less (worthless). Additionally, things like saving's account's get next to nothing for 'normal' people trying to save money for future expenses. Those that are operating on debt get rewarded and those trying to be more financially responsible are getting punished.
America's currency system is broken and needs to be fixed.
In part, a law needs to be passed that the US Fed has to have a 'goal' of 0% (zero percent) inflation. Sure, this is going to piss off those who game the financial system, but it would help with curing some of societies' issues as well as strengthening US currency thereby strengthening America's position in this world as more nations would want to utilize the US Dollar as a reserve currency. Inflation is still going to occur due to various reasons, but we don't have to automatically have a goal of increasing inflation.
1
-
@DrScopey2 a. "0% inflation means a dead economy..."; I disagree. Plus, inflation is still going to occur, it does not have to be a 'goal' to occur.
b. "...you need costs to rise to offset people taking out loans."; If people were paid a fair wage that kept up with the true cost of inflation, less people would need loans.
c. "Money has to keep a move on it like a fish tank..."; Even an economy that has non-GDP (used items) and black market items can have a very vibrant economy.
d. "...so goes for money volume ."; But what is the backing for that currency? Otherwise, let's do away with ALL taxes and just have the Government print out money as they desire.
e. Also, for those who say economic inflation is necessary for an economy must be okay then with:
1. The population getting poorer with all the added social and economic problems.
2. Buying less for more, and often lower quality as well.
3. As the nation's currency gets worth less (worthless), more nations would stop utilizing the nation's currency as a reserve currency, thereby that nation having less influence in this world which could also be a national security issue.
4. The entire human race eventually going extinct because ONLY those species who get off of this Earth one day continue to survive. Everybody else eventually dies and goes extinct. Space travel, the ONLY thing that might save any species from this Earth, has gotten more expensive just in my lifetime. Sure, while we have a long time before this Earth is no more, what is space travel going to cost in the next 100, 1000, 1 million years from now? Economic inflation is going to be a contributing factor to all life on this Earth dying and going extinct.
f. What good is life is no entities are left to live it?
g. What good is money if no entities are left to spend it?
1
-
1
-
1
-
1
-
@besomewheredosomething Well, if it does not occur, it most probably won't turn out well for any species upon this Earth.
Space travel, the ONLY thing that will save any species from this Earth one day, has gotten more expensive just in my lifetime. What is space travel going to cost in the next 100, 1000, 1 million years from now? Economic inflation just might be a contributing factor to all life on this Earth dying and going extinct, (which is probably going to occur anyway, but without economic inflation, less so).
So, I don't think you and others are looking long term enough. Survive beyond this Earth, or die and go extinct, those are the choices, (if we even actually have a choice for various reasons).
1
-
1