Thread: The federal Reserve is the key.

Originally Posted by Retro Fit

Ok, don't you think it would be nice if our currency remained stable?
It will never be stable for long while the fed is in power.
Why do you not see the over 95% loss of buying power the dollar has experienced since 1913, as a sign that the fed is not doing their job? How can you find merit in this? How can you not blame the fed?
Congress might be horrible at coining our currency, but at least we can do something about congress. With the fed in charge it is no longer a country by, for and of the people. It is a country by, for and of the fed. The people have no control.
In war it is always advantageous to cut off the enemies supply's. The war on drugs is funded by fiat funds because there would not be enough money to put out for such an expense. The same goes for our Iraq and Afghanistan excursions and all our foreign military bases as well as our ginormous welfare state. None of these expenditures would be possible without fiat cash. And, regardless of what you believe the fact remains that fiat currencies always eventually revert back to their intrinsic worth.......$0.00.
How can this ever be good for the people of the U.S.? Do you know what will happen when the dollar fails? Do you realize it will be carnage? The fed is all about the fed, not us. We do not need a financial middle man. We can fuck things up on our own, we certainly do not the fed to do it for us at interest.

From a macroeconomic perspective, an inflation rate is relatively meaningless if wages outperform inflation.

Better public policy could ensure that wages outperform inflation by simulating full employment of resources in the market for labor.

Originally Posted by danielpalos

From a macroeconomic perspective, an inflation rate is relatively meaningless if wages outperform inflation.

Better public policy could ensure that wages outperform inflation by simulating full employment of resources in the market for labor.

What about servicing the national debt? What about imports and exports?

You mean bonds?

Why would we be any worse off with full employment of resources in the market for labor where wages are outperforming inflation?

It would change the equilibrium of our current status quo and result in some volatility until a new equilibrium is reached.

However, if wages are outperforming inflation, wouldn't that imply that our fiat money is worth more relative to inflation?

From a macroeconomic perspective, an inflation rate is relatively meaningless if wages outperform inflation.

From a reality perspective you have to know that wages rarely outperform inflation, and certainly it does not cover everyone.

Better public policy could ensure that wages outperform inflation by simulating full employment of resources in the market for labor.

My God you keep repeating this same tired sentence. If we had "Better public policy", then possibly....But we don't...We have the fed..and they've got'z to go and they need to take their fiat wall paper with them. Daniel, you either work for the fed, or someone like your Dad works for the fed, or you recently visited the fed and thought they were just swell. You must of somehow fallen in love with the fed and your love has clouded your judgment and blinded you to their evil. Maybe your star struck or its puppy love, It matters not which. Clearly you are under their spell.
Daniel, a word for the wise is, be prepared for surprises. I know you believe everything's all "Hunky dory" with the fed, but you might not want to be keeping the bulk of your wealth in U.S. dollars, savings bonds or securities....Just to be safe...

Why would we be any worse off with full employment of resources in the market for labor where wages are outperforming inflation?

Again...Why would we be any worse off if I crapped out solid gold eggs? Regardless of how many resources you cannot possibly cover every employee. And what is then to become of the employer? Wheres all the money coming from?
Lots of things look great on paper, but don't function in real world models...like most government bureau's and agencies.

It would change the equilibrium of our current status quo and result in some volatility until a new equilibrium is reached.

Change who's equilibrium? Civil servants and min wage workers?

However, if wages are outperforming inflation, wouldn't that imply that our fiat money is worth more relative to inflation?

No, because the wages are raised to address inflation. We should not have the Federal government artificially adjusting wages. These market manipulations are not needed with hard currency.

From a macroeconomic perspective, an inflation rate is relatively meaningless if wages outperform inflation.

Tell that to your Grandmother and everyone on fixed incomes. Tell that to anyone who saved cash year after year in a mattress or a coffee can. Who is going to supplement their loss's? Literally 10's to hundreds of thousand dollars stolen from every adult throughout their working years. Who is going to reimburse those funds?

I hope you are right to be honest! The sooner it happens, the better it is for this country in the long run! It may be kick in nuts that will knock us out for a bit but it won't be a kick to the neck that will effectively put us out for good! I disagree with you on this part! We need this rude awakening and we need it now!

You are right, the sooner we make the correction the better. And we must refuse to accept another fiat currency , which is surely what they will be offering up...and we, so desperate for a new medium of exchange, had best not allow another fiat fiasco.

But, I fear the panic that will set in when the dollar fails. It is not going to be pretty out on the streets. I think we can expect some rioting, looting and some loss of life.

Originally Posted by Retro Fit

From a reality perspective you have to know that wages rarely outperform inflation, and certainly it does not cover everyone.

My God you keep repeating this same tired sentence. If we had "Better public policy", then possibly....But we don't...We have the fed..and they've got'z to go and they need to take their fiat wall paper with them. Daniel, you either work for the fed, or someone like your Dad works for the fed, or you recently visited the fed and thought they were just swell. You must of somehow fallen in love with the fed and your love has clouded your judgment and blinded you to their evil. Maybe your star struck or its puppy love, It matters not which. Clearly you are under their spell.
Daniel, a word for the wise is, be prepared for surprises. I know you believe everything's all "Hunky dory" with the fed, but you might not want to be keeping the bulk of your wealth in U.S. dollars, savings bonds or securities....Just to be safe...

You keep resorting to the fallacy of false cause. The Fed does not legislate fiscal policy. The Fed is responsible for the function of money through monetary policy.

Better public policy from those empowered to legislate such Things could ensure that wages outperform inflation by simulating full employment of resources in the market for labor via fiscal policy.

Originally Posted by Retro Fit

Again...Why would we be any worse off if I crapped out solid gold eggs? Regardless of how many resources you cannot possibly cover every employee. And what is then to become of the employer? Wheres all the money coming from?
Lots of things look great on paper, but don't function in real world models...like most government bureau's and agencies.
Change who's equilibrium? Civil servants and min wage workers?

No, because the wages are raised to address inflation. We should not have the Federal government artificially adjusting wages. These market manipulations are not needed with hard currency.

Tell that to your Grandmother and everyone on fixed incomes. Tell that to anyone who saved cash year after year in a mattress or a coffee can. Who is going to supplement their loss's? Literally 10's to hundreds of thousand dollars stolen from every adult throughout their working years. Who is going to reimburse those funds?

You are right, the sooner we make the correction the better. And we must refuse to accept another fiat currency , which is surely what they will be offering up...and we, so desperate for a new medium of exchange, had best not allow another fiat fiasco.

But, I fear the panic that will set in when the dollar fails. It is not going to be pretty out on the streets. I think we can expect some rioting, looting and some loss of life.

We are referring to the concept of full employment of resources in the market for labor. Can you re-state your argument. It isn't very clear.

Wages outperforming inflation can also viewed as our fiat money increasing in value due to the function of money, and not any intrinsic worth of the money.

Unemployment compensation, at-will can ameliorate the economic inefficiency you describe concerning inflation and solve for official poverty.

From a macroeconomic perspective, an inflation rate is relatively meaningless if wages outperform inflation.

But wages never outperform inflation. wages never outperform inflation. wages never outperform inflation. wages never outperform inflation. And you never addressed how inflation hurts the elderly and those on a fixed income. Why do you ignore this problem?

The Fed does not legislate fiscal policy.

Yes they do. Not directly. But the fed has incredible sway when it comes to getting fed favorable laws passed and laws that go against the fed removed.

Better public policy from those empowered to legislate such Things could ensure that wages outperform inflation by simulating full employment of resources in the market for labor via fiscal policy.

It could but it doesn't. And where is all this extra money going to come from? How is it funded?....I repeat, how would it be funded?

Unemployment compensation, at-will can ameliorate the economic inefficiency you describe concerning inflation and solve for official poverty.

We already have unemployment compensation and it is not ameliorating the economic inefficiency. So, what your suggesting is already enacted and it's not working. And what about people on fixed incomes and the elderly? Inflation turns many into shopping cart pushing transients. Would you like to see your Grandmother reduced to a transient? The monetary system has to be fair for everyone and your way is not fair.

Wages outperforming inflation can also viewed as our fiat money increasing in value due to the function of money, and not any intrinsic worth of the money.

So it's intrinsic value before it outperforms inflation is $0.00, and its intrinsic value after it out performs inflation is $0.00.....Wow, that is stable.

Originally Posted by Retro Fit

But wages never outperform inflation. wages never outperform inflation. wages never outperform inflation. wages never outperform inflation. And you never addressed how inflation hurts the elderly and those on a fixed income. Why do you ignore this problem?

Yes they do. Not directly. But the fed has incredible sway when it comes to getting fed favorable laws passed and laws that go against the fed removed.

It could but it doesn't. And where is all this extra money going to come from? How is it funded?....I repeat, how would it be funded?

We already have unemployment compensation and it is not ameliorating the economic inefficiency. So, what your suggesting is already enacted and it's not working. And what about people on fixed incomes and the elderly? Inflation turns many into shopping cart pushing transients. Would you like to see your Grandmother reduced to a transient? The monetary system has to be fair for everyone and your way is not fair.

So it's intrinsic value before it outperforms inflation is $0.00, and its intrinsic value after it out performs inflation is $0.00.....Wow, that is stable.

Simply resorting to propaganda and rhetoric isn't very convincing either.

Simulating full employment of resources will better ensure that wages outperform inflation on a consistent basis. The Lowest Unemployment Rate in 30 Years

If that premise holds, then the rest of the rationale does as well.

Simply resorting to propaganda and rhetoric isn't very convincing either.

So, you admit that your argument isn't very convincing? That shows character. And your White house press secretary speech was back in 1999. Jobs were growing in the private sector....92% of them...That's not something you can just wish up..If Clinton was President today it would still suck....Everything they do to "patch" the economy is theft. You go keep reading White house press releases from Jan 2000 for your stats.

Simulating full employment of resources will better ensure that wages outperform inflation on a consistent basis. (The Lowest Unemployment Rate in 30 Years)

If that premise holds, then the rest of the rationale does as well.

Simulating full employment of resources will better ensure that wages outperform inflation on a consistent basis. (The Lowest Unemployment Rate in 30 Years)

If that premise holds, then the rest of the rationale does as well.

You have taken a quote from a white house press secretary speech from 10 years ago and use this a proof that inflation doesn't have an adverse affect on society? In my view, simulating full employment of your mental resources will better insure that you wont have to repeat the same old stupid sentence over and over again. To bad Clinton couldn't keep wages ahead of inflation. because of that your rational does not hold water.

The point was that the lowest unemployment in thirty years is the closest Capitalism has come to eliminating poverty through market friendly means.

Sufficient socialism to comply with theory of supply and demand could enable full employment of resources in the market for labor and could achieve zero percent official unemployment in that market.

How is your contention that inflation is a meaningful metric, if wages consistently outperform inflation?