Open Forum: June 12, 2021

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1,255 Responses to Open Forum: June 12, 2021

  1. Cassie of Sydney says:

    Fat Tony is not a sock.

  2. Spurgeon Monkfish III says:

    We need a Mary Jane thread from hell – those cuddlee li’l Chow Chows aren’t going to nourish themselves … 😵

  3. Fat Tony says:

    Cassie of Sydney says:
    June 13, 2021 at 9:48 pm
    Fat Tony is not a sock.

    Thank you Cassie

  4. Dot says:

    JC says:
    June 13, 2021 at 9:33 pm
    Dot

    Where’s the inflation though? A sudden supply shock that we’ve experienced over the past 15 odd months culminating in price increases for certain items is not a permanent rise in the price level.

    Lumber isn’t going down soon. It’s not all inflation though. It is a contraction in the real economy. Mandates shut the real economy down.

    Look at PPI. The inflation is definitely there.

    The US Fed is running what, 8% base money inflation per month?

    This is absolutely unprecedented, and it’s also nuts.

    Then we have the recaps in late 2019 hardly anyone knows about. Look at M2 here and in the US! The whole financial system nearly shit itself in ONE NIGHT under saner policies.

    However, I for one welcome massive, massive inflation….and a AUD at 1.60 USD.

    🙂

  5. JC says:

    Mitch

    I think it’s a bullshit article. It’s painting a scenario and the assumption is that a change in relative prices as a result of a very serious global supply shock, is inflation. It isn’t. It’s fucking not! This is the same fucking mistake people and the central banks made in the GFC when they misread a sudden material increase in demand for commodities by the developing world as a signal of much higher inflation when it wasn’t. It was a change in relative prices. It was a price signal to producers to produce more. Instead of those price increases during the GFC being inflationary, perversely they were dis-inflationary because more real wages had to used to compensate for the loss of purchasing power, In other words, as oil prices rose, people needed to devote more resources to filling up their tanks in order to live their lives. Compounding this were the central banks tightening policy then. They really fucked it up hugely.

    We have a similar problem now in that the supply shock has caused material shortages for goods. This needs to be worked off with prices increases to signal the need to produce more.

    Let’s stop being whiny little bitches and inflation.

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