No hyperinflation pending, TIPS are retreating

[halik]

BUMP, still no hyperinflation. Energy prices are actually deflating.

Can we now finally put Austrian economics/Ron Paul nuttery to rest? Per the scientific method, if the predictions from your theory turn out false, it is time to revisit the theory.

 

[zephyrprime]

No ones decided they want to pay off the debt yet, once that happens is when youll see inflation kick in.

Paying down debt is deflationary, not inflationary. Racking up debt is the reverse (inflationary).

Woops. Didn't realize this was such an old necro. Btw, I don't think deflation by lower oil prices matters for oil imported. Price deflation in that case is beneficial. It's the monetary deflation that screws people over.

 

[fskimospy]

We're going to see that hyperinflation annnnnny day now. ANNNNNY DAY NOW.

Peter Schiff told me that we're going to be WeimarZimbabweVenezuela starting really soon so we all better buy lots of gold.

 

[Doc Savage Fan]

I didn't know that Peter Schiff was the spokesperson for the Austrian School or was even an economist for that matter. Silly me.

 

[fskimospy]

I didn't know that Peter Schiff was the spokesperson for the Austrian School or was even an economist for that matter. Silly me.

He's not!

He was just one of the more notable examples of adherents to the Austrian school. Regardless, it has been interesting to watch Austrian economists backpedal and try to rationalize away their predictions of inflation after the fact.

I guess when your school of economic thought rests on what you consider to be self evident axioms it's not easy to change your way of thinking.

 

[Jaskalas]

if the predictions from your theory turn out false, it is time to revisit the theory.

Would you have said that about the housing bubble before it popped?

We're still in the thick of a borrowed economy, fabricated from all the Fed's printing / loaning. You can see the scale of their quantitative easing by looking at their balance sheet. They've begun to taper off the increases... but they still gotta pull it all back, yes?

I believe the action begins when interest rates rise.

Now...maybe you're right and nothing bad will come of it. It's just that some economists say otherwise.

 

[First]

I didn't know that Peter Schiff was the spokesperson for the Austrian School or was even an economist for that matter. Silly me.

That can be explained; you haven't been paying attention. March 13, 2009, Peter Schiff speaks at annual Austrian Scholars Conference, Ludwig von Mises Institute.

EDIT: Link added.

 

[First]

Btw, I can't tell you how many times I heard Peter Schiff talk about investing in Europe, EUROPE, in 2009, just before the Greek debt and Eurozone crisis. Frankly, can anyone here think of a hypothetical person being more wrong about business or economics in the last 5-6 yrs than Peter Schiff? Gold. Inflation. Dollar. Wrong. Wrong. Wrong.

Peter Schiff FTL

Gold collapsing for yrs now

 

[realibrad]

The inflation only comes when the "money supply" increases. While it is true the FED has been making a lot of money, but that is not the only "Money Supply". Many commodities were used like a form of currency. As those commodities lost value, and were wealth/currency. So much of the wealth that was destroyed was also tied to a form of currency.

There is also the issue of velocity of money. The FED has been doing things to make sure the velocity is slow, which suppressed inflation.

Plus, shit is complicated, and you never know what will happen in the future.

 

[Vic]

When rates rise, the government will realize a profit from all the long bonds it sold with yields below the inflation rate.

 

[Vic]

The doom and gloom gold peddlers have always been my one of my favorites. The end of the world is coming and the dollar is going to be worthless, which is why they'll happily take your dollars and sell you gold.

 

[Vic]

The inflation only comes when the "money supply" increases. While it is true the FED has been making a lot of money, but that is not the only "Money Supply". Many commodities were used like a form of currency. As those commodities lost value, and were wealth/currency. So much of the wealth that was destroyed was also tied to a form of currency.

There is also the issue of velocity of money. The FED has been doing things to make sure the velocity is slow, which suppressed inflation.

Plus, shit is complicated, and you never know what will happen in the future.

Correct. Right now, the deflationary pressures are due to the commodities bubble finally popping.

 

[LegendKiller]

The inflation only comes when the "money supply" increases. While it is true the FED has been making a lot of money, but that is not the only "Money Supply". Many commodities were used like a form of currency. As those commodities lost value, and were wealth/currency. So much of the wealth that was destroyed was also tied to a form of currency.

There is also the issue of velocity of money. The FED has been doing things to make sure the velocity is slow, which suppressed inflation.

Plus, shit is complicated, and you never know what will happen in the future.

Inflation is not always caused by increasing the money supply. Tell me, did the supply of dollars suddenly fall that caused oil to get cut by more than half? How will that affect inflation since the supply of money didn't obviously get cut in half?

This is where monetarist inflationists fail. Their economic model is one dimensional.

Velocity of money causing inflation is a joke.