Why is inflation happening? It makes no sense. With all the productivity deflation should be happening. It makes no sense why inflation is happening.
>Inb4 government printing money
Governments don't print money, they borrow.
https://www.youtube.com/watch?v=3ugDU2qNcyg
>>78603746
usury or as it's now called fractional reserve banking. I am sure a more informed /pol/ack could go into further elaboration.
>>78604876
Thats what i was thinking.
>>78603746
The system is designed like this. The money supply keeps expanding so existing money has less value. It is inpossible to get out of debt, and foreclosures are guaranteed. Non fiat money might be a solutionx but is better to get rid if money completely.
>Inb4 government printing money
Answered your own question, leafy.
>>78605878
Governments don't print money tho dingus.
>>78605987
You're right, mints print money, on the order of government.
Also >>78604876.
>>78603746
As an economy grows, new currency must be added to facilitate the growing number of economic transactions. As new currency enters the market it slightly dilutes value of the individual units of currency
>>78606120
>You're right, mints print money, on the order of government.
And where does that money go once it is printed?
>>78606188
Ok then why are we in debt? Why not use that as an opportunity to print money instead of borrowing? We are 19 trillion in debt for Christ sakes.
>>78606120
Or in our case it's the FED, I think the IMF handles the Eurozone.
>>78606282
Usually to banks.
They also 'print' money in a metaphorical sense - simply issuing funds to a central bank or treasury by writ. So-called quantitative easing is an example of this.
>>78603746
take a wild guess.
central banks, mass immigration, soaring rent prices, nigh free labor.
>>78603746
>not understanding usury
>not understanding how Juden are artificially manipulating the market
Hitler, once again, was right.
>>78603746
Deflation means your economy is shrinking you fucking tit. Go do Economics 101.
inflation is meaningless the entire world is invested in the USD. fractional reserve banking and low interest rates boosts the economy.
it's like walking a tightrope, big bubbles and big crashes, but it still works.
>>78606627
Kid, (((they))) really mind fucked ya.
surely this isn't angry Jews and merchant smiting the uk for becoming GREAT BRITAIN again
>>78603746
>governments don't prink money
How about you stop posting?
>>78606555
>Banking conspiracy
Hitler put Germany 101 billion in debt.
>>78606348
We are in debt from borrowing and we borrow because we believe we can produce more than the cost of borrowing. So for example we spend all of our tax money then an opportunity that comes that requires $200 million investment at a 10% tax rate in perpetuity and makes us 21 million dollars per year in perpetuity. We are making 1 million dollars per year even though we are $200 million in debt
>>78606508
Then why is every country in debt?
quantitative easing
>>78606697
Then why not pay off our debts?
>>78606936
sure even though Britain was always in debt even during the industrial revolution.
>>78607266
Get the fuck off my board
>>78607441
QE is just buying treasury bonds.
>>78603746
>Governments don't print money, they borrow.
they borrow from the central bank you idiot, it's a branch of the state.
>posing a cuck-I-forgot-the-name-of video
>>78606627
Go learn economics stupid! I know inflation is good but WHY the fuck is it happening if the Gov isn't printing money, dumbfuck
>>78607669
>they borrow from the central bank you idiot, it's a branch of the state.
If they are borrowing from themselves why are they in debt? Fucking idiot.
>>78603746
FIAT money and more importantly poor people get salary raises thanks to unions. If poor people get more money people it means prices raising. People with more qualified jobs gets pissed that people that didn't really put in any effort gets more more money and everything is getting more expensive so they also demands a raise. Then poor people gets jealous and then it keeps going. It's arguably a good thing to keep people spending money in the now instead of saving.
>>78607871
>FIAT money
It's only a problem if people are printing it
> more importantly poor people get salary raises thanks to unions. If poor people get more money people it means prices raising. People with more qualified jobs gets pissed that people that didn't really put in any effort gets more more money and everything is getting more expensive so they also demands a raise. Then poor people gets jealous and then it keeps going. It's arguably a good thing to keep people spending money in the now instead of saving.
Inflation normally only happens if the demand outweighs the supply. How can that be happening with unions because poor people barley have any money and therefor can't spend very much and therefor can't raise the demand.
>interest rates are low
>more money being borrowed
>less being paid back
>more money in circulation
>value of money decreases
>interest rates are high
>less money being borrowed
>more being paid back
>less money in circulation
>value of money goes up
>>78608337
But for every dollar not paid back is a dollar lost by savers.
>>78608101
>Inflation normally only happens if the demand outweighs the supply. How can that be happening with unions because poor people barley have any money and therefor can't spend very much and therefor can't raise the demand.
Poor people in the civilised world usually means having at least $2000 per adult and month after taxes and healthcare to live on. That's actually quite a lot. And thanks to credit expansion they can keep buying stuff on credit for a cheap price. With a salary increase they get the impression they can keep spending.
I'm not sure a deflation scenario is desirable. The best time to buy anything is always tomorrow which slows down consumption.
>>78608882
Where is the money coming from the give these poor people raises?
>>78607707
Because of credit
Banks create money when lending.
OP, keep asking those questions. And you will realize in time that money is an outdated and absurd mechanism for interchange of goods and services.
Then, you will know what had to be done.
>>78609548
That's stupid, why is that allowed?
>>78609781
What's the alternative?
>>78603746
Because of increased minimum wage and an increase across the board in unskilled labor.
>>78609936
unskilled labour would cause deflation
Deflation is bad. If you get a house loan for $100,000 and then your house deflates to $95,000 you've just lost money.
>>78609792
It is called Fractional Reserve. It is way 99% of the world works today. Is something that people do not understand yet.
When they do, shit will hit the fan, but it is considered a fringe position today. See what happened to Ron Paul.
>>78609258
Lower profit margin and/or raising the price for their products/services. This means the prices are eventually going to normalise. Inflation is just an illusion to keep people spending.
You may think the central bank prints money to increase the inflation but that's not really true. The central banks typically only lends out money short term as in a 1 day to maximum 4 weeks loan. Banks typically finance their loans by selling bonds on the global market. Which was contributing to the crash 2008.
>>78610753
Ok so tell me why is inflation happening? Who is printing the money?
>>78610757
I have debunked Ron Pauls theories
Ron Paul says Lincoln, Jefferson, and Jackson fought against the fractional reserve banking system. It doesnt make sense tho because our government was still in debt during that time.
>>78610027
No. People with unskilled jobs typically spends all of their salary each month. They don't future plan. That's why they are poor.
>>78611104
No they are poor because they have low paying jobs.
>>78611498
The reason why they have low paying jobs is because they aren't smart enough, enough of an entrepreneur and/or lazy/satisfied with their simple lifestyle.
>>78612198
So anyone who doesn't have a business is dumb? What? And it's not their fault they are poor if you aren't born rich it's almost impossible to not be poor.
>>78603746
they print money in your case and usa.
Remember,
the more money is in circulation the less worth it is.
>>78612619
The Canadian government hasn't printed a dollar since 1971 and USA has never printed a dollar since Lincoln. So no thats a fallacy.
>>78612344
>So anyone who doesn't have a business is dumb?
Not necessarily. They may be lazy or lack the will to be an entrepreneur. Or just simply not wish to risk their comfy lifestyle for something possibly more rewarding. The risk for failure is greater than success.
>What? And it's not their fault they are poor if you aren't born rich it's almost impossible to not be poor.
It most likely is or it's the fault of their parents genetics and/or upbringing. I know people that came here more or less penniless and lived on the street. They started their own business after amassing starting capital working for someone else. After 20 to 30 years developing their business they are now multi millionaires.
Grow up,stop being lazy and expect to leech off someone else.
>>78603746
When someone borrows money from a bank, it doesn't exist. That bank goes to the Jewbank and borrows that amount, which still doesn't exist, and pays the interest amount for that in real money. They then print that money and give it to the bank, which gives it to you, and viola inflation by dilution of the currency.
>>78603746
central banks, fiat currency, money supply growing faster than goods&services
>>78613509
>It most likely is or it's the fault of their parents genetics and/or upbringing. I know people that came here more or less penniless and lived on the street. They started their own business after amassing starting capital working for someone else. After 20 to 30 years developing their business they are now multi millionaires.
Grow up and stop believing that crap. Those were just the lucky ones who got rich.
>>78613647
I'm confused
>>78612726
>the U.S. Hasn't printed a dollar since Lincoln
Goddamn your a special kind of fucking stupid.
>>78603746
"Why is there inflation?" "Don't give me the answer just give me some bullshit" You fucking retard they do print money, ever heard of mints They print money because they can't create systems that gain money to buy stuff. Governments are businesses if you don't agree then you're the problem.
>>78614362
DAm you're fucking stupid. The government BORROWS
>>78614549
Dam you're dumb
>>78614240
>Grow up and stop believing that crap. Those were just the lucky ones who got rich.
No you grow up you ungrateful hateful commie fuck. Those people took a risk and got rewarded. Their other option was to be wageslaves for the rest of their lives and watch TV after coming home from work as their greatest reason to live on. How about you actually do something with your life instead of wanting to rob other people of their hard earned money so you can keep fapping in your parents basement on autism bucks?
>>78614362
Well central banks don't typically print money to create inflation. They lend out money to other countries to low interest and often with no date when the money shall be paid back.
>>78615013
>No you grow up you ungrateful hateful commie fuck. Those people took a risk and got rewarded. Their other option was to be wageslaves for the rest of their lives and watch TV after coming home from work as their greatest reason to live on. How about you actually do something with your life instead of wanting to rob other people of their hard earned money so you can keep fapping in your parents basement on autism bucks?
Grow the fuck up will you autist? Many people start businesses and die poor. Who work really hard.
>inb4 your just lazy
The people with your attitude tend to be poorer.
>>78603746
Value of a currency is determinate by it's purchasing power. Purchasing power falls down if there is less services and goods available.
It means you produce less and there is less work done. Less goods are bought if people can't afford them. Less work is done if nobody buys it.
I think it's overvaluing by replacing workers with cheaper ones or machines but keeping the same price.
Nobody will buy thing that are overprice because people get less money and can't afford it anyway.
Also greed. If you stop money from flowing by hoarding them you create a clog that drives inflation.
>>78603746
>Governments don't print money, they borrow
Yeah, but somebody is creating huge amounts of money.
It's actually rather stupid that this is done by banks and not governments.
>>78614240
John goes to BankA and borrows $10 million dollars at 5.6% interest.
BankA goes the Federeal Reserve System(a private jew bank) and borrows $10 million at 1% interest, and pays them out of the capital they're actually storing(citizens money).
Jewbank prints $10 million and gives it to BankA, who gives it to John who invests it in his business. BankA doesn't owe Jewbank, but John owes BankA that 5.6% interest even though they never actually had the $10 million to begin with.
BankA replaces the 1% they paid to the Jewbank out of the money John is paying them, hopefully before its needed, if not, they just borrow more from the Jewbank.
>>78615246
THIS!
>>78615470
But FED returns profits to treasury right?
>>78615521
No, they don't. Not only that, but they rarely get audited and they decide who they money gets lent to, not the government.
>>78615202
>Grow the fuck up will you autist? Many people start businesses and die poor. Who work really hard.
Stop being fucking retarded. Did you even read my posts you god damn stupid fuck? No you didn't. I fucking posted that there is a great risk in starting your own business. And working hard is meaningless if you don't work smart.
>The people with your attitude tend to be poorer.
I'm well off but not yet a dollar millionaire since I chose to be a wageslave although a well paid one. I don't have the balls to start my own business.
>>78615470
>BankA goes the Federeal Reserve System(a private jew bank) and borrows $10 million at 1% interest, and pays them out of the capital they're actually storing(citizens money).
Not really. BankA get a short term loan from FED to be able to give the customer money immediately. BankA transforms and splits up John's debt into bonds that they sell on the global market so they can pay back the short term loan from FED.
Mainly giving credits with interest.
This way you create more money than what exists in the market. Like, today banks owe us more than we actually have...
So it's like printing more money, except banks are the one doing it.
Printing and self-borrowing cause inflation too, but it doesn't generate that much of new money compared to the inflation.
This is why interest in forbidden in Islam and so is banks notes. In Islam money should have their value inside them.
Like... 1 cent should contain what is worth 1 cent of gold, and 1 dollar should contain 1 dollar of gold. This way no one can create money out of blue except by working hard for it and with a small margin (mining).
There's other small reason like transaction costs and such but not as much as interest. You can make sure by checking the counties inflation rate and the interest percentage and they will look close to each other.
>TL;DR: Banks cucking us all, even if you choose to not deal with them.
Ask me on the Islamic economy anything if you want to get redpilled.
>>78603746
So many cranks here, God.
>>78609792
The larger an economy is, the more money it needs for transactions, and vice-versa. The more future economic activity individuals expect to engage in, the more money is needed for transactions, a vice-versa.Letting private banks create money allows for the money supply to be flexible. This means, for instance, that seasonal variations in economic activity don't lead to spikes in interest rates, like it happened in the 19th century in the US. Also, in this scenario, by letting interest rates increase a lot, many business opportunities on the margin are lost. The system hinges on the fact that the lender, to be profitable, needs to guarantee the borrower has means to pay back, obviously.
>>78603746
because of DEBT and its Interests
>>78619525
W E W L A D
E
W
L
A
D
>>78603746
The government WANTS low inflation since it artificially puts us in a perpetual "expansion" state without ever having to peak. They do this mainly by keeping interest rates low, It also keeps our currency up and up since the value of investments won't deteriorate too much over time (although inversely, higher interest rates are attractive to debt-owners due to higher yield but it also leads to slower economic growth).
The government has been committed to steady low-inflation since the late 90's and it's been good for our economy. And the whole "wages don't follow inflation meme" is a lie. Yes, wages may lag behind inflation but they inevitably follow. If they didn't, there would be product surpluses and prices would fall, leading to deflation. Also, inflation is like 2% in Canada, not exactly earth-shattering. I'm more worried about the negative GDP growth rates we've been experiencing in the past months.
>>78603746
no, privately owned central banks create the money from nothing and charge 6% interest on it, yet the 6% can never be payed until more pretend money is created from nothing
nice work if you can get it
>>78603746
It's called socialism dum dum
>>78619836
what else?
when you collect interest of debts this money has to come from somewhere but it doesnt exist.
so they print or create new digital money to pay the debts
>>78620974
>so they print or create new digital money to pay the debts
forgot to tell the most interesting part...
when they print new money, they dont give it away for free...
they collect interest for that new printed money aswell.
so lets say they print 1.000.000 new dollars with 5% interestrate
you need 50.000 dollars extra to pay the interest
but from where? right, you print new dollars again.
>>78615013
If course there is an implicit prize in taking more risks. But the basic system for interchange, money, is so fucked up, that we can not rely on it to evaluate how hard or how important a job is to the society.
>>78603746
>Governments don't print money, they borrow.
oh child
>>78622028
and again
>>78622233
>22233
FUUUUCK
IVE GOT A FULL HOUSE
>>78603746
>It makes no sense why inflation is happening.
someone else controls the money, the people have dared to say they oppose the aristocracy,
of course they should be punished, let them starve, hope they stockpiled food, or can get organized, these people have starved people to death before,
those Irish people during that famine? they had just grown a record crop, more food yielded than at any other recorded moment in history,
they starved because England took all the food but rotten potatoes
and those people rushed out as soon as the snow melted and ate slime off rocks on the shore
>>78622028
so how is it that it's possible to pay back more money than your entire worth?
>>78622734
Is not possible. It is a scheme, a joke, not a meaning of interchange of value, but a tool of social control.
It is not evident by now?
