Inflation

[Deleted member 292770]

Does the forum troll know what pretend means?


Anything from the forum troll...


Silence.

You need a break from the drugs boyo. They don’t suit you.

 

[Notch7]

Relatively.

FIAT money has no finite reference, only itself. So, you increase money supply (printing) and eventually you devalue the currency.

The effects of which are inflation and deflation.

Inflation of price and deflation of currency.

They don’t print more money

 

[ajohn]

They don’t print more money

Yes and no however if as happens all major currencies do the similar it makes no difference. It's not that simple anyway

https://www.investopedia.com/terms/q/quantitative-easing.asp

 

[Dork Lard]

As a young man starting out I was told to "forget trying to understand politics, try to learn to understand economics instead".

I certainly know a lot more about economics than I do wimmin, yet I still don't fully understand £money. I don't think anyone does, some know more than others but generally, as is evidenced here on Diynot, most folk blissfully know SFA.

There's a theory that China's central bank prints double the currency it is ordered to. You have to delve deep into the world of economics to have heard even a slight whisper of this, yet the possibility they have been answers very many unanswered question.

Here's a cure for inflation. CBDC, or Central Bank Digital Currency. Look it up, read it & weep. If Bitcoin spawned evil children then CBDC is the b@$t#rD offspring of those evil children.

Careful what you wish for, in the future you will own nothing & you will be happy.

 

[Mottie]

As a young man starting out I was told to "forget trying to understand politics, try to learn to understand economics instead".

I suppose that was told to you by your good friend and mentor, the multi millionaire entrepreneur Sir Stanley Kalms (Stan to you but nobody else!)

 

[Dork Lard]

I suppose that was told to you by your good friend and mentor, the multi millionaire entrepreneur Sir Stanley Kalms (Stan to you but nobody else!)

Actually it was a gentleman called Nigel Rudd (quick, rush to Google). If Stan ever gave you financial advice he'd invoice you for it . I met Nige as a teenager when my motorcycle broke down outside his house & we spent a few hours chatting in his kitchen till me dad picked me up. We have remained friends ever since & it has been very mutually beneficial.

Do you have many friends Motty?

Nigel Rudd is famous for not having an ego & by quite a distance he is far more wealthier than almost any other wealthy person on the radar of your tellybox.

Did I ever tell you the story of why Alan Sugar hates me? It's very Stan related & Ruddy thinks it's one of the classic business comedies. They tell me that even after all of these years, Sugar still has a picture of Dork on his dartboard !

 

[Mottie]

Actually it was a gentleman called Nigel Rudd (quick, rush to Google). If Stan ever gave you financial advice he'd invoice you for it . I met Nige as a teenager when my motorcycle broke down outside his house & we spent a few hours chatting in his kitchen till me dad picked me up. We have remained friends ever since & it has been very mutually beneficial.

Do you have many friends Motty?

Nigel Rudd is famous for not having an ego & by quite a distance he is far more wealthier than almost any other wealthy person on the radar of your tellybox.

Did I ever tell you the story of why Alan Sugar hates me? It's very Stan related & Ruddy thinks it's one of the classic business comedies. They tell me that even after all of these years, Sugar still has a picture of Dork on his dartboard !

<Yawn> Thanks for that, just what I could do with - one of your fairy tales just before bedtime. Do me a favour and tell me another one tomorrow about the same time. Night night. Xx

 

[gas112]

What is the great reset? How does it affect savers or interest rates?

Pretend it's six figures or more. Does 350% positive equity (house ownership) count?

Oh excited about 350 % increase how much did you actually pay for your house In actual monthly payments over the years not the actual initial cost of house to justify your supposed profit. Have to laugh at people who say oh I bought my house for £££ and it now worth £££££ forgetting about all the interest they paid . My supposed minimal 1251 %increase ****es all over yours

 

[Dork Lard]

<Yawn> Thanks for that, just what I could do with - one of your fairy tales just before bedtime. Do me a favour and tell me another one tomorrow about the same time. Night night. Xx

Always glad to help those less fortunate Matty. Sleep well you failures I say. You have nothing to fear because you are nothing. Nothing to fear losing & living in bliss because the hand that feeds you keeps on feeding you.

 

[Deleted member 18243]

What does that actually mean.

how does extra money, dilute money?

Let's say that today you can buy in a pub 4 pints of beer with a £10 note. (Yes you can get 4 pints for a tenner here up North!). Tomorrow the government prints and distributes to all the population sufficient £10 notes to double the number of £10 notes in circulation, in order to make everyone look richer and buy more votes. Nothing else has changed, i.e. no new riches have been discovered but you now have £20 to buy your beer, an amount that you think should buy you 8 pints.

Wow isn't that great that they can just print double the money and make us all twice as rich? I'm going to have a real good night out BUT...

No. The government has printed double the money, but it hasn't been able to print double the water, hops, yeast and grain needed to make double the beer, because these are real commodities that require more than just printing to obtain.

So, the pub landlord won't give you double the beer just coz you've got an extra printed £10 note, or he would run out of beer, because his amount of beer hasn't doubled like the money has. Therefore he has to double the price of the beer to keep up with the devalued (diluted) currency and keep his stocks correct.

That's how inflation works; welcome to fiat currency Notch.

 

[Dork Lard]

Let's say that today you can buy in a pub 4 pints of beer with a £10 note. (Yes you can get 4 pints for a tenner here up North). Tomorrow the government prints and distributes to all the population sufficient £10 notes to double the number of £10 notes in circulation, in order to make everyone look richer and buy more votes. You now have £20 to buy your beer, an amount that you think should buy you 8 pints.

Wow isn't that great that they can just print double the money and make us all twice as rich? I'm going to have a real good night out BUT...

No. The government has printed double the money, but it hasn't been able to print double the water, hops, yeast and grain needed to make double the beer, because these are real commodities that require more than just printing to obtain.

So, the pub landlord won't give you double the beer just coz you've got an extra printed £10 note, or he would run out of beer, because his amount of beer hasn't doubled like the paper money has. Therefore he has to double the price of the beer to keep his stocks correct.

That's how inflation works; welcome to fiat currency Notch.

You just repeating some other nonsense that's already been repeated several times by other nonsensicles. You don't even understand the nonsense that you repeated do you?

I'd bet everything I own that you'd fail a cross examination.

 

[Deleted member 18243]

You just repeating some other nonsense that's already been repeated several times by other nonsensicles. You don't even understand the nonsense that you repeated do you?

I'd bet everything I own that you'd fail a cross examination.

Maybe, but how would you explain to Notchy how printing extra money devalues the existing money?

 

[Deleted member 18243]

What is the great reset? How does it affect savers or interest rates?

Pretend it's six figures or more. Does 350% positive equity (house ownership) count?

Nosey your house's value hasn't increased by 350%. It's the same house (Unless you have added something valuable to it). It's the money that has lost its value.

If your house's value had increased by 350% you would be able to sell it and buy 350% more of the same type of houses with the proceeds. That's three and a half houses. Could you sell your house Nosey and buy three and a half of the same type of house with the proceeds?

 

[fillyboy]

Maybe, but how would you explain to Notchy how printing extra money devalues the existing money?

It doesn't necessarily, QE varies between countries, Japan tends to different as an example, they've been printing money for decades. Apparently the QE we've had the last few years hasn't flooded the market with 'money' because the banks haven't 'loaned' that money to joe public, simply bought govt bonds. QE will devalue a currency hugely in normal circumstances, the pound will be worth a lot less against the dollar or deutschmark, unless of course America and Germany et al all do the same thing, then you have parity.
Prolonged low interest rates and covid are more likely the cause of inflation.

That's just my opinion and I'm no expert, but if you research it, the experts all tend to disagree with each other so who's right and who's wrong.

What I do know is that if people can't afford to buy 'stuff', the whole system will collapse and we'll all be camping in Dork Lards forest killing his dogs for food. I suspect the 'system' won't allow that to happen.

 

[fillyboy]

If your house's value had increased by 350% you would be able to sell it and buy 350% more of the same type of houses with the proceeds. That's three and a half houses. Could you sell your house Nosey and buy three and a half of the same type of house with the proceeds?

He could if he moved to Clacton.