He isnt arguing supply and demand. Inflation and deflation are not demand issues, they are monetary policy issues. The economy doesnt know if there is too much or too little money, especially at the margins. Politicians decided the monetary policy they want and the economy copes.
Furhermore saying >deflation always hurts the poor but not the rich Is laughable. The grest depression was the biggest modern deflationary event and rich people lost their shirts.
@BowsacNoodle@Xenophon@Oven_Operators_LU_88 Deflation means there is not enough money to go around, inflation means too much, and the latter is always preferable. Deflation always benefits the haves, while inflation benefits the have-nots by undermining debt (if you owe $100, inflation goes up by 10%, you owe 10% less relatively speaking).
Interest rates are both profit for lending the money and cover inflation typically, but regardless deflation makes debt worse because there is less money available to cover the debt. "The House always wins" and wealthy people are house-guests that usually have an out, but deflation ALWAYS hurts the people at the bottom. Inflation is case-sensitive.
@Xenophon@Oven_Operators_LU_88 But that’s true of every economy in history. Mild inflation is good because it means the economy is “growing”. Deflation almost always brings severe economic pain, and disproportionately on normal people (blue collar, working class). I don’t say that to defend the status quo but when I hear some w*gnats saying > :wojak_psycho: BURN IT DOWN BURN IT DOWN I can’t help but wonder what they expect to happen or arise from the ashes.
I disagree with both statements. Mild deflation is preferable. People dont defer. Inflation is a sin created by government.
And im not defending what they do. I want it to burn as well. Im saying they are so far past the tipping point they dont even bother pretending like they did during bush and obama.
@Xenophon@Oven_Operators_LU_88 If we had zero usury and money supply was just gold coins, we’d still see price fluctuation and ultimately some inflation. Velocity of money causes inflation, massively aided by banks, but still exists just from having a lot of people and moving parts. Add new people and wealth into the mix and it starts to expand the total coins in the mix. Not every area can expand at the same rate etc. it’s just that it’s not supposed to be some predictable nonsense level that’s constantly screwing over people who are too taxed and underpaid to build wealth.
They aren't trying to hid it. Joe Kent said it so chalantly on Tuckers yt about how defense of the petrodollar is viewed not just as an American need but as if it is a societal good. Your comfortable life depends on the US forcing the exportation of dollars at gunpoint. So yes, he wants home prices to rise. Because inflation is necessary to keep the game going.
@Oven_Operators_LU_88 The only possible explanation that isn’t horrible that I could accept for this type of statement is if it’s related to interest rates and the hopes that they go down. Even then, it’s foolish and awful in its own right.