I guarantee you I've been poorer than pretty much anyone who has posted on these boards. Your silly stereotypes are cute, but this isn't Facebook, and most posters here aren't 16.
Counterfeiting currency doesn't reduce the value of said currency! You simpletons just wouldn't understand. Come back when you have your doctorate in economics. EDIT: I think it's time to post some pics... brb
Go to politicalforum.com with your "picture arguments" and watch yourself get schooled into submission.
i wasn't trying to with that one lol and heres some substance showing you and that other person how inflation works im going to try to make it simple but im not good at explaining stuff when im stoned... pretend you have 10 apples and a buyer has 10$ which means you exchange at 1:1 if the next harvest, the buyer comes back with 12$, has the cost of the apple increased? the correct answer is "impossible to know" without knowing the number of apples you're selling him. if this year you harvested 18 apples, that means there is deflation because you now exchange 1.5 apples for 1$ if you harvest 12 apples, there is no change in price if you harvest 6 apples that means inflation has been 100% in apple prices because 1$ buys .5 of an apple. i hope that was simple enough for rubbs to understand.
lol, I wish I could fool myself like this still. When you do thought experiments like this, the "cost of the apple" is a measurement of the unit price of the apple, which, in this case, would be ONE apple. The number of apples you're selling doesn't affect the UNIT PRICE of the apple. I know I won't get through to you, but I just wanted to point out how stupid this was to everyone else. You really just aren't making any sense at this point. I would try laying off the drugs if you actually think you're going to convince someone like this. If that's not the case, then just continue trolling I guess. No one is saying that inflation is ONLY affected by the money supply, but the money supply certainly is a MAJOR FACTOR in terms of affecting inflation. Another stupid picture:
Wow... bro... can you like, explain the "why"? It seems as if you've stated what you think will happen, but have not explained why you think it will happen so.
no the scenario i laid out was meant to show that increasing money supply or like some people say "counterfeiting" or "printing money" does not cause inflation. that is the theory of how inflation works and how to calculated it. those are the only possibilities of inflation changing when the money supply increases inflation happens when growth of money is higher than growth of "apples" only the effects of inflation are not reflected in prices as soon as there is arbitrage.
So, if the growth of money is higher than the growth of X than the price of X will increase. Who exactly was disputing this and how does this prove that increasing the money supply doesn't cause inflation? Are you seriously trying to blame inflation of speculators? I really don't get it... The Federal Reserve and the banks are the only ones allowed to create money out of thin air. The fact that you don't think this is a problem either means you're a shill or you're trolling. Either way...
i explained in my other thread how money is created, take a few minutes to review that then come back to this one. although it might not make sense to you considering you had problems making sense of how inflation works.
So you're saying it has no effect at all? Wait what...? When you say growth, are you speaking of supply? It's inconsistent to claim that it causes inflation in one part of your argument and to vehemently deny that it does in another.
Kstigs, if he were to argue that speculators cause price increases the form of argumentation he's been using wouldn't even support his conclusion. "Growth" in some good would reduce it's price... EDIT: Actually idk, I think Marianass has sufficiently con-fuddled my ass rofl.
im saying that many ron paul acolytes believe that growth of money directly correlate to inflation. and i showed that this was not true in 2 out of 3 possibilities. inflation, deflation, and no change. although it WAS true in 1 possibility.
i think he was talking about why inflation exists whereas you were talking about the factors that influence it.
But the growth of the money supply does directly correlate to an increase in inflation. What do you mean it's not true in 2 of 3 possibilities? Let's say there is a basket of goods which we can use the current supply of money to make purchases from. If the supply of money increases but the supply of goods does not, then it will take more dollars to buy any given good because the dollars are competing for those goods.
ah! but that is the genius of this system! monetary policy changes do not have instant effect so policy makers target inflation for economic conditions 2 years or more in the future. then it is simply a question if you expect economic output to increase or decrease.
Lol you're so consistent. Really it's the truth. Is a consistent lack of consistency actually consistency?