Inflation to rise dramatically?

nearlynew

chucky wrote: »

http://www.google.com/hostednews/ukpress/article/ALeqM5jKZ1Q7_biwsZs03MVPEmlI1SOHWQ

it's not just the government or the bankers

Surplus is good.

It is the exact opposite of debt.

Gorgeous_George

The 'theft' was the American's seeing that their banking system was about to drown in toxic debt so they hid the debt in AAA-rated securities and sold it around the world.

Then, when Goldman Sachs are fined $550million, the US Treasury take 3 x more than is returned to RBS (link). RBS were conned out of $800million and saw just an eight of it returned; the US Treasury took $300million from the Goldman Sachs fine.

World security could not allow America to go bankrupt. Whatever happened to 'the polluter pays' Mr Obama? (I know he probably doesn't read these forums - unless he is one of dopester's noms des plume).

GG

chucky

nearlynew wrote: »

Surplus is good.

It is the exact opposite of debt.

but this price inflation is caused by demand supply not by increasing the money supply.

amcluesent

Yes, the Condem's are using/have been told to use inflation to keep the West fiat currency/Ponzi welfarism show on the road a bit longer.

The whole of QE was a ruse to temporarily inflate junk asset prices so the smart money could sell out and get their fiat currency savings into gold and hard assets. Now the elite are sorted, inflation will be used as a policy device to hide the reality of the debt, with the unfortunate side effect of pauperising the silly old savers and middle-classes. However this is of no concern to the 20 multi-millionaires in the Condem Cabinet.

dopester

chucky wrote: »

The price of olive oil could soar because Greek producers are stockpiling their product due to fears about the state of the country's economy, importers have warned.

That is quite an isolated instance. I know this much, there is a very delicate balance to be struck, some of it based on luck, for freedom and success and for nations to rise and fall. For ancient Greece through to modern Greece, with its debt burden.

Where people are always looking to centralised Government to rack up the debt for handouts and bailouts and interfering with the economy - is eventually ruinous. A little story.

Middle Class Topography

Why were the Greek city-states not as despotic as ancient Egypt? We believe the answer lies with differences in megapolitical conditions. It was not because the idea of democracy was more compelling to Greek ears than elsewhere. Nor was it because they were the first to think of democracy and equality. The uniqueness of Greece was that local conditions of climate and topography made it easier for Greek citizens to arm themselves and retain real military power. Because of this, more people were able to retain a voice in the political process in a more economically advanced society.

The key being Greece is open to the sea. If you tried to measure the shoreline of the Greek isles and the Greek basin, you would find that is it extremely long. It was possible to develop a lot of land for farming, and yet be no more than 25 miles from the sea in most cases for the Greek city states. This was crucial. It allowed the Greeks to market their products easily at a time when it was cheaper to ship goods from Syria to Spain than to cart them 75 miles overland. This gave the Greeks tremendous advantages in trade over inland areas than might also have been climatically suited to farming olives and grapes, two of the more profitable crops of the ancient world.

Unlike grain farming, which prospered on flood plains with centrally controlled irrigation, olive and grape farming could prosper as small-scale operations. Even a small plot of land - ten acres, fifteen acres - could support an independent freeholder, who could then trade his wine and oil for grain to feed his family, and retain a significant profit. This meant that, compared to people elsewhere, there were many Greeks who were relatively well off in ancient terms. They were rich enough to buy metal weapons and armour.

In the Classic Age of Greek city-states, the typical soldier was a hoplite, a solider or the owner of rural property who was armed for heavy infantry duty. Because he was heavily armed, he could not be ignored. And his military effectiveness depended upon close cooperation with other highly motivated hoplites who fought shoulder to shoulder in a phalanx. The logic of the phalanx made equality between the hoplites an essential ingredient of classic Greek culture. But this logic did not extend to those who could not afford arms. By and large, they were ignored. Greek liberty and a democratic vote were not ideas for everyone but for those who had the military means to express it.

Athens at its height may have had a population of about 250,000. Of that number perhaps 80,000 were slaves. They had no voice in politics. Neither did women, because they, too, lacked weapons. There may have been 30,000 to 40,000 citizens in all (adult males were citizens). Most citizens had some property. Much of that property was worked by slaves who were not rich enough to buy weapons to assert their voice and liberty.

DaddyBear

chris_m wrote: »

Why do you say it's theft - it's purely and simply due to costs increasing due to a multitude of reasons, none of them theft.

For example, if goods come from abroad and the exchange rates change to our detriment so does the price.
Now, the goods need moving from a port to the shops but, wait, the cost of fuel has gone up - so does the price of the goods to cover that cost.
Now, the truck drivers want, and get, a pay rise - so the cost of transport goes up and so does that price of the goods.
Now, the shop workers want, and get, a pay rise, etc., etc.

Where's the "theft" in that group of scenarios, then?

Why is the inflation target 2%? Why not 0%.

RDB

There is no doubt governments around the world will let inflation eat away at their huge debts by printing currency and spending it. Its the easiest option.

bendix

What a bunch of unbelievably childish arguments there are on this thread. Why do people always wants to see conspiracies everywhere?

The reason for the withdrawal is very simple. The good deal they represent has created an unfair competitive disadvantage for the banks who are struggling to attract deposits in this low interest rate environment. The government - which has pledged to help restore banks' balance sheets - can hardly do that when NSI products - which they control - are making that hard to do.

It's as simple as that.

Generali

DaddyBear wrote: »

Why is the inflation target 2%? Why not 0%.

Because people are scared of deflation. Targeting 2% doesn't allow deflation to be inside the target range.

Economic orthodoxy has it that very low inflation is the best thing for the economy. I don't buy it myself and think that the fear of deflation is irrational but then what do I know?

michaels

I suspect there is a fairly strong correlation between deflation and below trend growth (just as there is for run away inflation eventually)