Renewable Revolution

Quote from: Eddie on August 30, 2015, 02:49:09 pm

that goes for you too Eddie with your callous insensitive remark about the price of hamburg. Be thankful you can dick some poor bastard out of a couple of hundred bucks because of a toothache; you may not always be that fortunate. Inflation is government stealing from the poor and the elderly as well as the trusting citizens of our country. Praise the heavens you have the ability to manage it.

As usual, you miss my point. I mentioned food because we all know food costs are rising quickly . I wasn't being callous, I was trying to understand what's happening with the money.

Considering inflation vs. deflation in assets, ask yourself what happens when food costs eat up a bigger and bigger piece of John Q. Public's income?

 Answer: He spends less and less on anything else, including asset purchases of any kind. So when it comes to assets, higher food prices would seem to me be to actually be deflationary, and not inflationary.

This is not something that is generally understood, but it makes sense to me when I look at what's going on. Rising prices are only half the equation for inflation. Without more money in the form of wages to spend into the economy, food prices can go to the moon, and we'll still be in a depression.

This is the same fallacious and absurd point that another brought up in the first Foss interview of late. The idea that rising prices and taxes are deflationary, not inflationary.

I would like to know of one instance when the price of something rising does not as an absolute fact mean less money is available for something else. It is self evident, but to call rising prices deflationary is the mark of someone so inept and incapable of sound thinking and comprehension that they cannot be reasoned with.

You and another here live in a world where rising prices are deflationary and therefore by the same twisted, contorted, imbecilic logic, falling prices are inflationary since they give us more money to spend on other items. It's really amazing that you would voice such buffoonery in public and be serious on top of it.

Your thinking is backwards Eddie much as the backward reverse thinking Diner mentor you no doubt pick up this insanity from. As soon, and not until, you find the time to think clearly and learn the difference between inflation and deflation; Alasdair would be an excellent teacher, if you can find the time to listen, I will be happy to continue the conversation with you in financial matters.                                                                                                               Regards, GO