Love the Davos crowd's future concerns. MIne are a little different: food and energy shortages cause worldwide famine with deaths/riots/murders; US political divide results in same; stock market crash leaves all except 1% devastated; autocratic govt completely controls our lives eliminating free speech,etc--Constitution and checks and balances gone. In short, full makeover of US and most of world into autocratic "utopian" nightmare, with riots/murders etc part of the process.
And now private equity is getting into mobile home parks and hiking rents. I'm a free market supporter, but this sort of thing is really sick, especially because ZIRP is what encouraged these firms to get into niches that were long mom & pop industries (rental housing, now mobile home parks, etc)... https://www.washingtonpost.com/business/2022/06/06/mobile-manufactured-home-rents-rising/
I hope I can expound on your thoughts. Keynes had everything right. He has been unjustly maligned. My dissertation was on Keynesian monetary theory. I agree with some of your earlier posts that said PhD students today are forced into quantitative everything without understanding anything, except that they must obey the "rules" set down by the masters. No questioning allowed. So many non-economists (like you) generally understand better.
I've seen some things along the lines of "are you kidding?" First, inflation is a rise in the price level--this cannot be caused by supply chain issues or an oil shortage. If spending is predictable and steady, and appliances suddenly spike in price because of a shortage, or even because people want a computer on their ice maker, sure, that price will rise. But, if people buy a more expensive appliance, they will have to cut back spending on other stuff, and those prices will fall. Unless there is an increase in the means of payment, the price LEVEL will not rise. So, Janet, the only way a society can experience INFLATION is if TOTAL spending rises because an increase in the money supply finances higher spending--people can then spend more on everything. So simple.
Love the Davos crowd's future concerns. MIne are a little different: food and energy shortages cause worldwide famine with deaths/riots/murders; US political divide results in same; stock market crash leaves all except 1% devastated; autocratic govt completely controls our lives eliminating free speech,etc--Constitution and checks and balances gone. In short, full makeover of US and most of world into autocratic "utopian" nightmare, with riots/murders etc part of the process.
This whole piece is fucking brilliant, but if I had to pick a favorite line: "I’d rather own Dogecoin than bonds . . ."
Krugman is a total clown.
Speaking of IYIs, here's an article on "fixing" social security that you might (not) enjoy, written by a guy who's first name is also Rudy: https://www.wsj.com/articles/social-security-needs-saving-again-retirement-planning-wages-earnings-benefits-eligible-savings-11654631767 Of course, messing with inflation adjustments is part of the formula.
And now private equity is getting into mobile home parks and hiking rents. I'm a free market supporter, but this sort of thing is really sick, especially because ZIRP is what encouraged these firms to get into niches that were long mom & pop industries (rental housing, now mobile home parks, etc)... https://www.washingtonpost.com/business/2022/06/06/mobile-manufactured-home-rents-rising/
Nice piece Rudy.
FUGAZI FUGAZI FUGAZI
I hope I can expound on your thoughts. Keynes had everything right. He has been unjustly maligned. My dissertation was on Keynesian monetary theory. I agree with some of your earlier posts that said PhD students today are forced into quantitative everything without understanding anything, except that they must obey the "rules" set down by the masters. No questioning allowed. So many non-economists (like you) generally understand better.
I've seen some things along the lines of "are you kidding?" First, inflation is a rise in the price level--this cannot be caused by supply chain issues or an oil shortage. If spending is predictable and steady, and appliances suddenly spike in price because of a shortage, or even because people want a computer on their ice maker, sure, that price will rise. But, if people buy a more expensive appliance, they will have to cut back spending on other stuff, and those prices will fall. Unless there is an increase in the means of payment, the price LEVEL will not rise. So, Janet, the only way a society can experience INFLATION is if TOTAL spending rises because an increase in the money supply finances higher spending--people can then spend more on everything. So simple.