[Tainari88]

It is still about profits going one way:

He gets racist too near the end....Hispanic and Blacks are not educated. Whatever Larry. He is destroying that poor Larry Summers.

Why not attack corporate profit? It is SACRED. Lol.

Tax those corporations right away.

Get those people to pay forever....bring the money home to the workers.

[Puffer Fish]

Wasn't the Left telling us that all this inflation was only temporary and due to supply chain disruptions?

Where are they all now?

Now the Left, needing to find an explanation for the inflation, is blaming "corporate greed" (the usual go-to).


Don't want to admit it could have anything to do with massive money printing, or Biden Administration policy.

[Steve_American]

Wasn't the Left telling us that all this inflation was only temporary and due to supply chain disruptions?

Where are they all now?

Now the Left, needing to find an explanation for the inflation, is blaming "corporate greed" (the usual go-to).


Don't want to admit it could have anything to do with massive money printing, or Biden Administration policy.

The inflation is slowing now. This makes it temporary. If you assert that it is slowing because of the high interest rates, please explain why it is also slowing in Japan where the Gov. made more payments (created more money) so the poor could pay the higher prices, and the BoJ didn't increase interest rates.

Didn't you see that the corps had higher rates of profits, as if the price increases mostly increased their profits?

.

[Tainari88]

The inflation is slowing now. This makes it temporary. If you assert that it is slowing because of the high interest rates, please explain why it is also slowing in Japan where the Gov. made more payments (created more money) so the poor could pay the higher prices.

Didn't you see that the corps had higher rates of profits, as if the price increases mostly increased their profits?

.

Puffer fish does not get some basic economics Steve American.

[wat0n]

Inflation is temporary partly because the Fed is moving to suppress any potential long-term effects.

[Steve_American]

Inflation is temporary partly because the Fed is moving to suppress any potential long-term effects.

IMO, you are making a post hoc, ergo propter hoc logical fallacy error.

In Japan the BoJ didn't increase interest rates and gave money to the poor to pay the temporary price increses, and still, infltion is slowing there also.

So, we have an example where inflation is slowing even though interest rates were not increased. I assert that this is evidence that you assumption that inflation is slowing 'because' interest rates were raised is not established as a fact. My economic experts predicted that inflation would slow and stop as soon as the supply chains were working better. This has happened. So, why is your veiw better than mine?

Lurkers, remember my assertion that none of modern mainstream economic theory has been proved if it was proved only with logic, starting from false premises, because false premises are not allowed in logic. However, Prof. of (MS) Economics ignore this and use false premises to prove their entire theory.
. . IMHO, this fact should be enough to make you question all MS economics. And then you should be abe to see that it fails to make many acurate predictions. These 2 facts should get you to throw it all out, and start over.

As an example of how just 1 fact makes a whole theory fail is. I recently found the YouTuber, Erica @Gutsick Gibbon. She attacks Young Earth Creationism with a passion. She thinks that her best, and in fact sufficient, argument is to point out that jaming 500 million yeas of events into just the 1 year that Noah was floating in his ark, creates a huge problem. It is the "Heat Problem". This is that radioactive decay of elements/atoms in the crust, mantel and core of the earth releases heat. A lot of heat. Something like 5 X 10^26 joules (IIRC). She says this is equal to (IIRC) about 5,000 1 Mton hydrogen bombs worth or energy per each sq. km of the earth's surface. This would boil the inceased volume of the ocean over 1000 times over. So, the ark would be floating in boiling water early in the 1st day. And sitting on red hot rock after a few more days. Recently, some YEC-ists have admitted that they need a miracle to get rid of the heat fast enough. so the new version of the theory is not 'scientific' because it needs a miracle.
. . . Just like this, I assert that all theories about reality that are based on logic and false premeises have not proved a thing. They are useless. MS Econ. is also useless because only about 5% of its predictions are acurate. So, it didn't predict the GC/2007or8, it didn't predict that supply chain problems during covid would cause inflation, it didn't predict that Clinton's surplus would be followed by a recession, it didn't predict that Japan could keep increasing its national debt and have almost zero interest rates for 30 years without high inflation, it did predict that Japan would heve high interest rates several times, it predicted that giving tax cuts to corps and the rich would trickle down to the mass of the people at all during the next 40 years, it predicted that in the EU using austerity after the GFC would stimulate the EU's economy (which didn't happen), etc.
. . . BTW --- MMTers did make all those predictions correctly.

.

[late]

Wasn't the Left telling us that all this inflation was only temporary and due to supply chain disruptions?

Where are they all now?

Now the Left, needing to find an explanation for the inflation, is blaming "corporate greed" (the usual go-to).


Don't want to admit it could have anything to do with massive money printing, or Biden Administration policy.

Your sources suck, and you don't have enough knowledge to compensate.

Guys like Krugman NEVER say it's "all temporary". It's a question of managing risk.

Second, a lot of the supply chain disruption has gone away, and prices have gone down.

Third, it's not solely due to supply chain disruptions. That's moronic, with a war going on that is also impacting the energy markets.

Fourth, it's income inequality. Read Price of Inequality...

Lastly, and back to the managing risk aspect, economists have been figuring out what did what. IOW, they *never* denied what Biden did added to the situation. But most would argue it was the right choice. Which it was.

[wat0n]

IMO, you are making a post hoc, ergo propter hoc logical fallacy error.

In Japan the BoJ didn't increase interest rates and gave money to the poor to pay the temporary price increses, and still, infltion is slowing there also.

So, we have an example where inflation is slowing even though interest rates were not increased. I assert that this is evidence that you assumption that inflation is slowing 'because' interest rates were raised is not established as a fact. My economic experts predicted that inflation would slow and stop as soon as the supply chains were working better. This has happened. So, why is your veiw better than mine?

Lurkers, remember my assertion that none of modern mainstream economic theory has been proved if it was proved only with logic, starting from false premises, because false premises are not allowed in logic. However, Prof. of (MS) Economics ignore this and use false premises to prove their entire theory.
. . IMHO, this fact should be enough to make you question all MS economics. And then you should be abe to see that it fails to make many acurate predictions. These 2 facts should get you to throw it all out, and start over.

As an example of how just 1 fact makes a whole theory fail is. I recently found the YouTuber, Erica @Gutsick Gibbon. She attacks Young Earth Creationism with a passion. She thinks that her best, and in fact sufficient, argument is to point out that jaming 500 million yeas of events into just the 1 year that Noah was floating in his ark, creates a huge problem. It is the "Heat Problem". This is that radioactive decay of elements/atoms in the crust, mantel and core of the earth releases heat. A lot of heat. Something like 5 X 10^26 joules (IIRC). She says this is equal to (IIRC) about 5,000 1 Mton hydrogen bombs worth or energy per each sq. km of the earth's surface. This would boil the inceased volume of the ocean over 1000 times over. So, the ark would be floating in boiling water early in the 1st day. And sitting on red hot rock after a few more days. Recently, some YEC-ists have admitted that they need a miracle to get rid of the heat fast enough. so the new version of the theory is not 'scientific' because it needs a miracle.
. . . Just like this, I assert that all theories about reality that are based on logic and false premeises have not proved a thing. They are useless. MS Econ. is also useless because only about 5% of its predictions are acurate. So, it didn't predict the GC/2007or8, it didn't predict that supply chain problems during covid would cause inflation, it didn't predict that Clinton's surplus would be followed by a recession, it didn't predict that Japan could keep increasing its national debt and have almost zero interest rates for 30 years without high inflation, it did predict that Japan would heve high interest rates several times, it predicted that giving tax cuts to corps and the rich would trickle down to the mass of the people at all during the next 40 years, it predicted that in the EU using austerity after the GFC would stimulate the EU's economy (which didn't happen), etc.
. . . BTW --- MMTers did make all those predictions correctly.

.

Not a post-hoc. Japan has also experienced an increase of its inflation rate, even if it may have peaked this last January at... 4.1%. Why would the BoJ hike interest rates when its inflation has historically been well below its stated target of 2% since the early 1990s? If anything, the BoJ actually wants for some of that increase in inflation to be permanent.

The situation is not really the same here, in the US, where inflation has been well above the 2% target for 2 years now and was not constantly far below target before the pandemic.

[Puffer Fish]

Inflation is temporary partly because the Fed is moving to suppress any potential long-term effects.

Okay, but let's keep in mind the Fed doesn't have magical powers to control inflation.
There's mainly only one thing the Fed can do to stop inflation, and that's stop adding more money.

("Raising interest rates" only helps lessen inflation because what that really means is they are stopping handing out free money at lower interest rates. i.e. They have to keep printing more money if they do not "raise interest rates")

[Steve_American]

Not a post-hoc.Japan has also experienced an increase of its inflation rate, even if it may have peaked this last January at... 4.1%. Why would the BoJ hike interest rates when its inflation has historically been well below its stated target of 2% since the early 1990s? If anything, the BoJ actually wants for some of that increase in inflation to be permanent.

The situation is not really the same here, in the US, where inflation has been well above the 2% target for 2 years now and was not constantly far below target before the pandemic.

Yes it is a post-hoc proper hoc falacy.
Japan also spent a lot to deal with covid. It had the BoJ buy most of its bonds during covid. This was, at least, more infltionary than selling bonds to the public and corps. It had inflation, but like you said less infltion, it didn't increase interest rates, and yet its inflation is coming down as the supply chains improve. Just like MMT economists predicted.

So, I have some reason to assert that the interest rate increases didn't *cause* inflation to improve in the US.

Can you explain just how the interest rate increases caused infltion to slow, when they didn't make employmnet fall? Job growth has been very strong over the winter in the US. There has not been a recession, yet; so how did interest rate increases cause inflation to slow? I bet you can't explain it.

.

[wat0n]

@Steve_American Japan didn't just have less inflation, but it was well below target for 25+ years before COVID. The BoJ wants some of this increase to be permanent, to be on target.

[Steve_American]

@Steve_American Japan didn't just have less inflation, but it was well below target for 25+ years before COVID. The BoJ wants some of this increase to be permanent, to be on target.

I'm wondering why pointing out the fact that Japan has had low inflation for the last 30 years makes your believe that the money supply theory of inflation is true?

Yes, excatly, Japan has had a debt to GDP ratio over 240% for a few years now, incl. before covid, and still had inflation close to zero%/year. According to your theory, this is impossible.

.

[Unthinking Majority]

Don't worry, MMTers say we can just raise taxes on everybody to bring inflation down. You know, erode their incomes and buying power.

[wat0n]

I'm wondering why pointing out the fact that Japan has had low inflation for the last 30 years makes your believe that the money supply theory of inflation is true?

Yes, excatly, Japan has had a debt to GDP ratio over 240% for a few years now, incl. before covid, and still had inflation close to zero%/year. According to your theory, this is impossible.

.

Not really.

There's one case where money supply increases are not inflationary: When the banking system is broken and the usual mechanisms of money creation don't work as usual. That's pretty much what happened in Japan.

[Steve_American]

Don't worry, MMTers say we can just raise taxes on everybody to bring inflation down. You know, erode their incomes and buying power.

This is sort of true.

However, under MMT, the min. wage will be a socially inclusive wage with full benevits, incl. excellent healthcare insurance. So, somewhere areound $25/hr.

So, 1st almost everyone gets a big raise and then maybe, taxes are raised a little, but only if there is some inflation.

Also, a tax is a little effect on almost everyone, while raising interest rates gives income to some (bankers, etc.) and focuses the hurt on just a few, those who get lid off.

IMHO, the tax is more ethical.

.

[Steve_American]

Not really.

There's one case where money supply increases are not inflationary: When the banking system is broken and the usual mechanisms of money creation don't work as usual. That's pretty much what happened in Japan.

How is the Japanese banking system broken?
I have never heard about this. So, I used google.

I learned that this was a problem in the 1990s. It was caused by bad, aka stupid, loans made in the late 80s during the housing bubble. It seems that it was solved before 2000 by an injection of (borrowed) Gov. money, that let banks write off the remaning bad loans.
. . . So, it seems the banking system was fixed for over 20 years before covid hit. IMO, this is long enough to be a problem no more. So, the Japanese banking system has not been broken now for 23 years.

.

[wat0n]

How is the Japanese banking system broken?
I have never heard about this. So, I used google.

I learned that this was a problem in the 1990s. It was caused by bad, aka stupid, loans made in the late 80s during the housing bubble. It seems that it was solved before 2000 by an injection of (borrowed) Gov. money, that let banks write off the remaning bad loans.
. . . So, it seems the banking system was fixed for over 20 years before covid hit. IMO, this is long enough to be a problem no more. So, the Japanese banking system has not been broken now for 23 years.

.

The zombie banks have never truly shut down as far as I know.

[Steve_American]

Steve_American wrote:
How is the Japanese banking system broken?
I have never heard about this. So, I used google.

I learned that this was a problem in the 1990s. It was caused by bad, aka stupid, loans made in the late 80s during the housing bubble. It seems that it was solved before 2000 by an injection of (borrowed) Gov. money, that let banks write off the remaning bad loans.
. . . So, it seems the banking system was fixed for over 20 years before covid hit. IMO, this is long enough to be a problem no more. So, the Japanese banking system has not been broken now for 23 years.

The zombie banks have never truly shut down as far as I know.

If the Zombie banks wrote off their bad loans 20 years ago, they are not Zombie banks any more. Are you asserting they are still Zombie banks? Evidence, please.

[wat0n]

@Steve_American you can see this paper, which uses data from 2000-2016 and finds they're concentrated among the large regional banks.

https://www.tandfonline.com/doi/full/10 ... 21.1893200

[Steve_American]

Bill Mitchell's blog today is about how there is no sign of a recession in the US, and its labor market is still very strong.
So, how did raising interest rates cause infltion to fall?
Or, did it fall because the supply chains improved?
IMHO, the fall in inflation happened because the supply chains improved, at least somewhat [I think mostly]; and not much because interest rates were increased.

US labour market defies the Federal Reserve and continues to improve, [so no sign of a recession.]

https://billmitchell.org/blog/?p=60759