Ontopic Ru Paul

ZRH said:
Um gold standard isn't exclusive from central planning...

The price of gold from 1995 to 2011ish went up 466% ish, think of what that means in terms of deflation. Inflation was like 9% I think.
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It excluded if you're using a true commodity based currency. Not gold backed paper...

And really, going up 466% in relation to the dollar means that there are 466% more dollar bills today. That tells you nothing.
 
fly said:
It excluded if you're using a true commodity based currency. Not gold backed paper...

And really, going up 466% in relation to the dollar means that there are 466% more dollar bills today. That tells you nothing.
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Gold coins, that will be convenient. From the people who make fun of me for writing checks.

and *sigh*

You really should read some actual textbooks on economics and not just popular non fiction.
 
ZRH said:
Gold coins, that will be convenient. From the people who make fun of me for writing checks.

and *sigh*

You really should read some actual textbooks on economics and not just popular non fiction.
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How much harder could gold coins be? And besides, most transactions these days are 1s and 0s. That wouldn't change...

And inflation is an increase in the money supply. I know that it was 'redefined' by central planners economists to mean an increase in prices, but the root cause remains the same.

edit: And yes, I know it isn't *that* simple, so being with your argument where we beat semantics to death.
 
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fly said:
How much harder could gold coins be? And besides, most transactions these days are 1s and 0s. That wouldn't change...

And inflation is an increase in the money supply. I know that it was 'redefined' by central planners economists to mean an increase in prices, but the root cause remains the same.

edit: And yes, I know it isn't *that* simple, so being with your argument where we beat semantics to death.
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This gem was awesome
And really, going up 466% in relation to the dollar means that there are 466% more dollar bills today. That tells you nothing
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Yup, 466% increase in money supply just because thats how much the price of gold increased...

That's not semantics, that's retarded.
 
ZRH said:
This gem was awesome

Yup, 466% increase in money supply just because thats how much the price of gold increased...

That's not semantics, that's retarded.
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Like I said, obviously economics isn't so cut and dry, but there certainly is a relation. Looks like in that time frame M2 increased ~300%, so I'd say that caused a majority of the price increase.
 
fly said:
Like I said, obviously economics isn't so cut and dry, but there certainly is a relation. Looks like in that time frame M2 increased ~300%, so I'd say that caused a majority of the price increase.
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If I had friends I would show this to them so we could laugh together.

Because yes of course the real value of gold has little to do with speculation.
 
Also M2 money increased by 257% so your strange idea they are somehow linked in any but the most tenuous manner is sorta moot.
 
fly said:
Please explain to me how an increase in the money supply doesn't increase inflation.
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It depends. Over the long term it should if you believe Friedman and quantity theory. For short periods it shouldn't matter since the pricing of goods is not an efficient process and the velocity of money is so far an unmeasurable variable. That's why the Fed tampering with short term interest rates doesn't seem to matter much. It's when the prime rates are pegged far too low for too long that we are impacted by inflation. Companies adjust prices, and all of a sudden my McDonalds cheeseburger is no longer 59 cents. See years 2000 to now. In hind sight, it's pretty fucking stupid. But that argument is away from monetary policy and in to the realm of politics.

Inflation is also hard to quantify because it will become apparent to different degrees in different markets. Fuel, food, housing, etc inflate to different degrees at different times and are probably most affected by forces outside of money supply.
 
Sarcasmo said:
I thought Casper was a college student who plays golf.
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I'm a real estate appraiser that has nerdy friends with Ph.Ds in economics. This kinda shit is what we talk about over beers. I didn't even get my masters,which I am teased for. Also, golf.
 
Thank you.

Casper said:
It depends. Over the long term it should if you believe Friedman and quantity theory. For short periods it shouldn't matter since the pricing of goods is not an efficient process and the velocity of money is so far an unmeasurable variable.
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And this is why fiat money favors the rich. By the time newly printed money is 'fully dispersed' into the economy (aka, poor people have it), inflation from that printing has already been factored.
 
fly said:
Thank you.

And this is why fiat money favors the rich. By the time newly printed money is 'fully dispersed' into the economy (aka, poor people have it), inflation from that printing has already been factored.
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I don't believe it necessarily favors the rich. You know what certainly does though? Gold standard.
 
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