You're glad for nothing. Way too little too late. — Benkei
Wikipedia has changed the definition of ‘recession’ and locked the page from further edits. These changes were made during the week that the White House proposed a re-definition of recession to mean something other than two consecutive quarters of negative GDP growth.
Until July 11, the world’s largest online encyclopedia included in its definition of a recession ‘two negative consecutive quarters of growth’ with users free to make alterations. But as of July 25 any mention of ‘two negative consecutive quarters of GDP growth’ was removed from this section. A Wikipedia administrator then froze the edit feature, blaming a ‘persistent addition of unsourced or poorly sourced content,’ with a warning that the page may have been ‘affected by a current event’.
Well, lets see how much the net deficit will be reduced.According to Manchin, reducing the deficit is the "best way" to fight inflation. Why else do you think the bill has $300 billion in net deficit reduction instead of literally anything else?
I mean, there are some aspects of the bill like the drug price negotiation stuff that would help reduce costs. Also the bill is tied to more oil and gas drilling so if you're one of those people who think a pipeline will slash gas prices then that may do something for you. There are some people who say that this will reduce pressure on the Fed in raising rates, but I'm not an economist. — Mr Bee
Well, if inflation would be calculated as it was in 1980, the US would be now experiencing 15% inflation. But that's not dangerous...only several years of this high inflation will be.Inflation isn't important and isn't a problem. What's important is doing something about climate change. This bill takes a few baby steps in that direction. — Xtrix
(IEA, March 8th, 2022) Global energy-related carbon dioxide emissions rose by 6% in 2021 to 36.3 billion tonnes, their highest ever level, as the world economy rebounded strongly from the Covid-19 crisis and relied heavily on coal to power that growth, according to new IEA analysis released today.
The increase in global CO2 emissions of over 2 billion tonnes was the largest in history in absolute terms, more than offsetting the previous year’s pandemic-induced decline, the IEA analysis shows. The recovery of energy demand in 2021 was compounded by adverse weather and energy market conditions – notably the spikes in natural gas prices – which led to more coal being burned despite renewable power generation registering its largest ever growth.
Tell that to my fellow senior citizens on fixed incomes. :roll: — jgill
It doesn't need to be hyperinflation. Just look what couple years of (actual) double digit inflation will do. I think we will have stagflation, just as during the 1970's. The war in Ukraine has quite similar effects as did the Yom Kippur war and the Oil Embargo after that. And as the workforce is shrinking, there is a reason for wage inflation to continue. After all, now in the US there is low unemployment. It's all a central bank play: either it's a recession or double digit inflation. Likely they deny everything, hope that people don't notice the inflation and with their actions will just prolong the stagflation.The whole "price stability" has been bullshit from the start. "We'll never have another crisis": my ass. Only hyperinflation is an issue. Both moderate deflation and inflation should just run its course. — Benkei
You do understand that assisting ordinary people (by printing a lot of money) was partly the cause of the inflation now? — ssu
If you don't personally lose your job (or your wealth). Otherwise recession and even economic depressions can be great!we had double digit inflation in the 70s here. Golden years. It's not very interesting if wages can keep up. — Benkei
To make economics part of the "culture war" is what I think will happen. People will come to learn economic words to be dog whistles and just to mention them, you are put in one political camp. And totally forget (if not even understand) that when it comes to the US, both Republicans and Democrats have had, when in power, the same economic policies. Even if the parties desperately try to mask it otherwise (which people, unfortunately, believe).In my view it accounts for very little, but it’s telling that you want to highlight this “part” over and over again — rather than COVID or the war. Why exactly I’m not sure, but it’s a right-wing talking point and cover for desired austerity. — Xtrix
Couples earning up to $150,000 received $2,400, plus an additional $500 for each child.
Individuals earning up to $75,000 received $1,200, plus an additional $500 for each child.
These payments will phase out for those earning over $75,000, $112,500 for head of household filers, and $150,000 for married couples filing joint tax returns.
But if you genuinely think the problem of inflation can be dealt with giving more assistance (which is basically printed money) to the people who will use it, then I assume Joe Biden will be happy with you. — ssu
Really?Inflation is global, and we know why. It’s not because the US gave people more money. Nor the ECB. But if that’s the story you want to latch onto, that’s your choice. Again, having people believe this is wonderful for the ruling class. What a shame you perpetuate it. — Xtrix
You really think that the ECB multiplying the monetary base many times over won't in the end create inflation? — ssu
Especially when this was started by the Trump administration, you think it's just a right-wing talking point? — ssu
Sorry, but nobody is talking about the Modern Monetary Theory now in economic circles. For obvious reasons. — ssu
Partly yes, because the dollar is used globally. Inflation is exported to other countries:And this accounts for inflation in Mexico, Brazil, Russia, Argentina, Canada, South Africa, and India? — Xtrix
See How does the United States export inflation?1. The US Federal Reserve lowers interest rates or creates dollars through quantitative easing – both of which are aimed at increasing the total supply of dollars in the world.
2. The Fed’s actions allow cheaper dollar credit to be accessed by the US Federal Government, US companies, and those with connections to American banks. When this credit is used by taking out loans, new dollars are created.
3. Those who receive new dollars spend them – often on imports to the US – and the extra dollars end up circulating in foreign countries.
4. Now, foreign countries are flooded with new dollars and their governments face a choice:
Let their own currency appreciate in value against the dollar, which would reduce the country’s competitiveness in the world market and decrease their exports. Or then...
5. Create more of their own currency to stabilize its value against the dollar and retain competitiveness on the world market. However, this causes price inflation for their citizens and makes imports more expensive.
Many developing countries are dependent on cheap exports in order to keep their economy growing, so they cannot let their own currency appreciate. However, if they create too much of their own currency they risk setting off rampant inflation and increased import prices. Individuals choosing to hold US dollars instead of local currency in times of crisis also push down the value of the local currency, causing price inflation.
This is simply wrong.No. The reason you see inflation everywhere is due to factors that have nothing — zero — to do with monetary policy. — Xtrix
What then do you think the reason is? Partly it is that we haven't invested in the industry as we have anticipated we would be using alternative energy resources. Yet oil prices started to climb from 2020, far earlier than February 24th this year.We know why energy prices are up— around the world. It’s not because of the central banks, nor fiscal policy — and certainly not of the Fed or Congress. — Xtrix
Those will already be punished by stagflation. It's the workers arguing for higher salaries (because of higher expenses) that are the last in the line, yet that is political rhetoric to make them the culprits for inflation.But by all means keep emphasizing US fiscal policy. This way we can punish the true culprits: working people. — Xtrix
And this accounts for inflation in Mexico, Brazil, Russia, Argentina, Canada, South Africa, and India?
— Xtrix
Partly yes, — ssu
No. The reason you see inflation everywhere is due to factors that have nothing — zero — to do with monetary policy.
— Xtrix
This is simply wrong. — ssu
What then do you think the reason is? — ssu
If you argue that inflation doesn't export itself in a globalized world, you are simply going against the facts. The global economy has had low inflation and low interest rates for many years. Before the financial sector and the central banks caused asset inflation. The COVID response was different: the money went actually to the real economy.No, it isn’t. Monetary policy of the US does not lead to inflation in all the countries mentioned. They’ve had low rates for years — no inflation. The reason for global inflation has many factors— but the biggest is COVID and the war, and their impacts on supply/demand and especially energy. — Xtrix
Umm, I think you have not studied economics.The Fed’s policies move asset prices. That’s it. Fiscal policy— the government giving it checks, etc. — has some effect, sure. But it does not account for the higher prices of oil and gas. — Xtrix
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