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06-07-2022, 07:05 PM
#461
Originally Posted by SailorRob
Utter nonsense.
So prices will go back to what they were, will they? Just a supply/demand glitch?! Every bill that's gone up, those providers will drop their prices, will they? The big pay rises occurring, those salaries will drop?
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06-07-2022, 07:58 PM
#462
Originally Posted by Azz
So prices will go back to what they were, will they? Just a supply/demand glitch?! Every bill that's gone up, those providers will drop their prices, will they? The big pay rises occurring, those salaries will drop?
No Ass, prices will DECREASE in real terms as they have for 5000 years.
It's called productivity and rising standard of living over time.
Just about everything will become cheaper per hour worked over time as it always has.
In 50 years time people could not conceive of living how we live now. For their annual salary they will be able to purchase far more in terms of goods and services than we can now.
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06-07-2022, 08:31 PM
#463
Originally Posted by SailorRob
No Ass, prices will DECREASE in real terms as they have for 5000 years.
It's called productivity and rising standard of living over time.
Just about everything will become cheaper per hour worked over time as it always has.
In 50 years time people could not conceive of living how we live now. For their annual salary they will be able to purchase far more in terms of goods and services than we can now.
Amazing! Inflation doesn't exist! You better tell the Reserve Bank! Drop a line to the Federal Reserve while you're at it. Thank the Lord, I was worried for a moment there.
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06-07-2022, 08:41 PM
#464
Correct, in real terms (and often nominal too see below). We live in a deflationary world and always have.
Inflation may exist in numbers but not in real purchasing power, or economically speaking.
Even in 'numbers' terms, I encourage you to watch a episode of 'sale of the century' or other such game shows of the late 80's early 90's where they advertised the prices of the goods they gave away - usually overseas holidays, bikes, stereo systems, cars. 30 years later EVERYTHING is far far cheaper even in dollar terms, let alone per weeks pay.
You will find the same if you go to your local library and look through the Herald from 1995, check out the prices of everything, in many cases far higher than now.
Deflation.
I would say the 1000 PhD's at the Fed, like yourself, would really struggle with this.
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06-07-2022, 08:50 PM
#465
Originally Posted by SailorRob
Correct, in real terms (and often nominal too see below). We live in a deflationary world and always have.
Inflation may exist in numbers but not in real purchasing power, or economically speaking.
Even in 'numbers' terms, I encourage you to watch a episode of 'sale of the century' or other such game shows of the late 80's early 90's where they advertised the prices of the goods they gave away - usually overseas holidays, bikes, stereo systems, cars. 30 years later EVERYTHING is far far cheaper even in dollar terms, let alone per weeks pay.
You will find the same if you go to your local library and look through the Herald from 1995, check out the prices of everything, in many cases far higher than now.
Deflation.
I would say the 1000 PhD's at the Fed, like yourself, would really struggle with this.
Working people's savings being wiped out by inflation - we'll just tell them that in REAL TERMS they're better off!
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06-07-2022, 09:04 PM
#466
Originally Posted by Azz
Working people's savings being wiped out by inflation - we'll just tell them that in REAL TERMS they're better off!
Different argument, however if people insist on saving in a debt instrument then this is what happens. They have a fixed coupon, they will get wiped out.
As long as you save by investing in the means of production you will always be fine. If people lend their savings to Big Grant, or a bank then you will not be fine.
As you have taught us, Bitcoin solves this and those who don't own it will have fun staying poor.
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06-07-2022, 09:13 PM
#467
Originally Posted by SailorRob
Different argument, however if people insist on saving in a debt instrument then this is what happens. They have a fixed coupon, they will get wiped out.
As long as you save by investing in the means of production you will always be fine. If people lend their savings to Big Grant, or a bank then you will not be fine.
As you have taught us, Bitcoin solves this and those who don't own it will have fun staying poor.
No it's not a different argument at all. You live in a fantasy world where inflation is some sort of "construct" and you're apparently utilizing a 5,000-year timespan. These little fetishes of yours do not resonate with working people - or the middle classes either for that matter - as their wages become worth less and less and their savings are destroyed. Inflation, the destruction of money, hits the poor the hardest. The big pay rises we're seeing in NZ are within the upper ranges. And you don't care about any of this at all. You talk a bunch of nonsense.
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06-07-2022, 09:16 PM
#468
Originally Posted by Azz
No it's not a different argument at all. You live in a fantasy world where inflation is some sort of "construct" and you're apparently utilizing a 5,000-year timespan. These little fetishes of yours do not resonate with working people - or the middle classes either for that matter - as their wages become worth less and less and their savings are destroyed. Inflation, the destruction of money, hits the poor the hardest. The big pay rises we're seeing in NZ are within the upper ranges. And you don't care about any of this at all. You talk a bunch of nonsense.
As I've explained, peoples wages become worth more and more over time. Always have always will.
For a single weeks minimum wage in 20 years from now, I could purchase goods and services unimaginable to me now.
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07-07-2022, 12:22 AM
#469
Originally Posted by SailorRob
As I've explained, peoples wages become worth more and more over time. Always have always will.
For a single weeks minimum wage in 20 years from now, I could purchase goods and services unimaginable to me now.
Sailor rob is right.
How long have you been alive?
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07-07-2022, 07:56 AM
#470
the only things cheaper are things made with slave labour
one step ahead of the herd
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