Pro-Hillary Media Bias

[EyeBRollin]

So with oil down about 70% on price, where is the profound deflation?

We did have deflation, but it was not 70%. Interest rates have been held at zero.

 

[Tictac]

So energy prices do NOT cause inflation or deflation. For if they did, with oil prices down 70%, deflation would be profound. Disinflation is not deflation.

 

[Bible_Belt]

Deflation is nothing to brag about. It's even worse than inflation, other than Zimbabwe-style. Think of Japan's economy for the past 20 years - that's deflation.

 

[EyeBRollin]

So energy prices do NOT cause inflation or deflation. For if they did, with oil prices down 70%, deflation would be profound. Disinflation is not deflation.

Disinflation isn't a word.

Inflation is a function of energy prices, supply of money (spending), and demand for money (interest rates). Energy prices is the key variable, because the Central bank has full control over the supply and demand of money.

If you pay attention to the graph, when the cost of oil goes up, interest rates historically rise with it to ease inflation. The target rate is set by the government at 2%, which means interest rates and easing will be used to get as close to that target rate as possible.

Inflation is not simply about supply and demand for money, as Japan has been using stimulus and 0% interest rates for decades with no success at stimulating inflation, due to falling demand (rapidly aging population).

 

[Tictac]

Case closed Pee Wee.

 

[EyeBRollin]

View attachment 199

Case closed Pee Wee.

lol

 

[phillies]

Disinflation isn't a word.

Inflation is a function of energy prices, supply of money (spending), and demand for money (interest rates). Energy prices is the key variable, because the Central bank has full control over the supply and demand of money.

If you pay attention to the graph, when the cost of oil goes up, interest rates historically rise with it to ease inflation. The target rate is set by the government at 2%, which means interest rates and easing will be used to get as close to that target rate as possible.

Inflation is not simply about supply and demand for money, as Japan has been using stimulus and 0% interest rates for decades with no success at stimulating inflation, due to falling demand (rapidly aging population).

Disinflation is a decrease in the rate of inflation – a slowdown in the rate of increase of the general price level of goods and services in a nation's gross domestic product over time. It is the opposite of reflation.

You're a retard

 

[phillies]

lol

Opinion discarded. Looks like tic tac wins.

 

[phillies]

Yes, actually we have. We cut the deficit by well over 200% since 2008, interest rates have remained at historic lows, and the price of oil has plummeted. We had deflation the last quarter of 2015, not inflation.



No, it's not. Energy prices cause inflation. Interest rates are adjusted to achieve the target inflation rate of 2%.

They've been keeping the interest rate artificially low. That's not a good thing at all.

 

[EyeBRollin]

You're a retard

They've been keeping the interest rate artificially low. That's not a good thing at all.

"Artificially low" doesn't mean anything. They set the interest rates. They raise them as a response to an economy that is overheating. Keeping them low is supposed to boost the economy, which it hasn't. The economy isn't growing because Public Sector Spending has been decreasing steadily since 2008. Austerity doesn't help the economy. Quite the opposite.

 

[Tictac]

Austerity doesn't help the economy.

When has austerity been tried in the United States?

NEVER.

Pitiful overstatement Pee Wee.

 

[Tictac]

"Artificially low" doesn't mean anything. They set the interest rates. They raise them as a response to an economy that is overheating. Keeping them low is supposed to boost the economy, which it hasn't. The economy isn't growing because Public Sector Spending has been decreasing steadily since 2008. Austerity doesn't help the economy. Quite the opposite.

Do you ever tire of being so wrong all the time Pee Wee?

 

[phillies]

"Artificially low" doesn't mean anything. They set the interest rates. They raise them as a response to an economy that is overheating. Keeping them low is supposed to boost the economy, which it hasn't. The economy isn't growing because Public Sector Spending has been decreasing steadily since 2008. Austerity doesn't help the economy. Quite the opposite.

Keeping them artificially low never boosts the economy.

They set interest relative to the demand of credit. So If there is a demand for credit and they keep it at 0% , it's artificially low.

You're about as economically illiterate as Bernie Sanders, maybe more. You really need to research this topic more thoroughly before you attempt to debate. You're making yourself look like an idiot.

 

[Tictac]

Nope, it is caused by energy prices. Read the graph. It is supply and demand, pal. There's no energy shortage because the global supply has increased due to domestic oil. Every time there was an oil shortage, inflation shoots up.

Note the very "close relationship" to changes in the oil price and the US Consumer Price Index.
LOL Pee Wee.

Keep tap dancing Pee Wee. The more you type, the funnier this gets.

 

[yuppee]

fycking moron. there was PLENTY of inflation before petroleum ever existed as a usable item. the GOVT causes inflation, by creating more money than there is productivity increase to justify there being more money. over 90% of the "money" created is not printed as paper currency, it's just a number in a computer, transferred to different banks, all over the world.

 

[EyeBRollin]

When has austerity been tried in the United States?

NEVER.

We're in a period of Austerity right now.

Keeping them artificially low never boosts the economy.

They set interest relative to the demand of credit. So If there is a demand for credit and they keep it at 0% , it's artificially low.

And what do you think demand for credit is based on, smart guy?

You're about as economically illiterate as Bernie Sanders, maybe more. You really need to research this topic more thoroughly before you attempt to debate. You're making yourself look like an idiot.

Yea ok. Call me when you understand how modern money works.

So back to my original questions....If oil is the cause of inflation

How did oil cause the inflationary problem Rome went through?

You're being a smartass. The oil-fiat currency dynamic is relevant from 1971, when it replaced the gold-standard.

The inflationary problem in Rome has the same causes as hyperinflation today - political instability and / or significant amounts of foreign debt.

Why is only Venezuela just going through hyperinflation right now and no other country?

Why did only Zimbabwe undergo hyperinflation last decade?

Political instability and / or significant amounts of foreign debt.

 

[EyeBRollin]

fycking moron. there was PLENTY of inflation before petroleum ever existed as a usable item

Would you like wood for your strawman, or do you just enjoy being obtuse?

Why does the oil vs. CPI graph start in 1971... hmmm?

Oooopf!

. the GOVT causes inflation, by creating more money than there is productivity increase to justify there being more money. over 90% of the "money" created is not printed as paper currency, it's just a number in a computer, transferred to different banks, all over the world.

No one said otherwise. You're also failing to mention the central bank sets the interest rates.

 

[EyeBRollin]

View attachment 201

Note the very "close relationship" to changes in the oil price and the US Consumer Price Index.
LOL Pee Wee.

Keep tap dancing Pee Wee. The more you type, the funnier this gets.

Lmao. You're the funny one. That's a **** graph. You have to plot the change in the CPI against the change in oil.

 

[phillies]

We're in a period of Austerity right now.



And what do you think demand for credit is based on, smart guy?



Yea ok. Call me when you understand how modern money works.



You're being a smartass. The oil-fiat currency dynamic is relevant from 1971, when it replaced the gold-standard.

The inflationary problem in Rome has the same causes as hyperinflation today - political instability and / or significant amounts of foreign debt.





Political instability and / or significant amounts of foreign debt.

Not only energy

 

[EyeBRollin]

Not only energy

What else did I mention before as a function of inflation?