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What actually causes inflation to slow down and stop?
Posted on 10/11/24 at 4:03 pm
Posted on 10/11/24 at 4:03 pm
As I understood it from my economics professor, inflation happens when the money supply expands. Prices can’t go up forever if the money supply isn’t still going up, so then prices just stay where they are. Is this not true?
I’m asking because there was some law passed to tackle inflation, but I think it was just government spending?
I’m asking because there was some law passed to tackle inflation, but I think it was just government spending?
This post was edited on 10/11/24 at 4:07 pm
Posted on 10/11/24 at 4:04 pm to baybeefeetz
The complete collapse of the dollar which is imminent
Posted on 10/11/24 at 4:05 pm to baybeefeetz
Companies will begin cutting prices to spur more sales once this hyper inflationary environment is halted. It’s how markets work.
Posted on 10/11/24 at 4:06 pm to baybeefeetz
quote:
As I understood it from my economics professor
Probably best to disregard anything this retard told you. When you print money with nothing to back it up it makes what you have worth less. Prices will continue to go up. The so called "inflation reduction act" was nothing more than printing more money on New Green Deal nonsense. Oh, and it was just government spending to buy votes.
Posted on 10/11/24 at 4:07 pm to baybeefeetz
If we would cut back on government spending it would go a long way.
Posted on 10/11/24 at 4:07 pm to 91TIGER
lol if I told you my prof was, I have no doubt you would edit that post.
Posted on 10/11/24 at 4:07 pm to baybeefeetz
Lack of demand. For instance, pet food prices have probably stabilized in Springfield, Oh.
This post was edited on 10/11/24 at 4:09 pm
Posted on 10/11/24 at 4:08 pm to baybeefeetz
Removing the demand. You let 15 million illegal aliens into the country and giving them taxpayer money for food and shelter caused massive inflation. Remove the 15 million people you let in and the demand for food and shelter will decrease and so will the prices.
Posted on 10/11/24 at 4:09 pm to baybeefeetz
quote:Inflation increases when demand > supply. Demand increases with money supply expansion.
As I understood it from my economics professor, inflation happens when the money supply expands.
Posted on 10/11/24 at 4:10 pm to baybeefeetz
That's a very good question. Stop printing or expanding the money supply faster than the natural growth of the economy. Stop overspending, contract the government. Then, the natural growth will overtake the overspending to a more natural equilibrium.
Posted on 10/11/24 at 4:12 pm to Riverside
quote:
Companies will begin cutting prices to spur more sales once this hyper inflationary environment is halted. It’s how markets work.
They have to stop printing money and running such large deficits. Debt is reasonable but annual deficits like this is causing inflation. Its not hard, more money supply, more inflation.
Posted on 10/11/24 at 4:12 pm to baybeefeetz
Books are cooked so it’s a bit difficult to give you the proper answer without analyzing all the variables with true data. There are a few immediate things that can be done that will stop inflation but we aren’t going back to prices we were used to. We will always have inflation but it’s out of control the last 6 years with a lot of issues we faced and how the govt has spent out their arse.
Posted on 10/11/24 at 4:15 pm to NC_Tigah
quote:
Demand increases with money supply expansion.
It also increases when you let in 15 million illegal aliens and give them taxpayer money for food and shelter
Posted on 10/11/24 at 4:18 pm to RaginCajunz
quote:
Stop printing or expanding the money supply faster than the natural growth of the economy.
Do we understand how this happens?
Posted on 10/11/24 at 4:18 pm to momentoftruth87
quote:
There are a few immediate things that can be done that will stop inflation
Incorrect, remove 15 million illegal aliens from the country and I guarantee food and housing prices decrease.
Posted on 10/11/24 at 4:19 pm to momentoftruth87
quote:
ooks are cooked so it’s a bit difficult to give you the proper answer without analyzing all the variables with true data. There are a few immediate things that can be done that will stop inflation but we aren’t going back to prices we were used to. We will always have inflation but it’s out of control the last 6 years with a lot of issues we faced and how the govt has spent out their arse.
Current monetary system is designed to have 2% inflation year over year.
Posted on 10/11/24 at 4:19 pm to baybeefeetz
Monetary Inflation is too much money chasing too few good. The other piece is additional costs that go into the production of goods.
For 1, higher interest rates slow debt creation which is inflationary. Keep higher rates and you see less borrowing to chase existing goods. Leas demand equals lower prices. Also, M&A and asset investing is all driven by the cost of capital….higher costs for debt then you get less of that. Our govt is creating an extra $2T of money per year in deficit spending via debt creation.
The second half is the regulatory burden that goes into the cost of goods. You tell Ford they have to average 40 mpg, the cost of your F150 goes up. You tell meat processors they have to meet new EPA guidelines, the cost of meat goes up. If the cost of electricity and fuel goes up due to Green bullshite, everything gets more expensive.
As for Congress, they can do two things.
1. Stop creating money via deficits that get pumped into the economy -ie monetary inflation. If you create an extra $2T in money via debt issuance it has an impact.
2. Reduce the regulatory mandates on industry and energy so the cost to produce goods is lower.
For 1, higher interest rates slow debt creation which is inflationary. Keep higher rates and you see less borrowing to chase existing goods. Leas demand equals lower prices. Also, M&A and asset investing is all driven by the cost of capital….higher costs for debt then you get less of that. Our govt is creating an extra $2T of money per year in deficit spending via debt creation.
The second half is the regulatory burden that goes into the cost of goods. You tell Ford they have to average 40 mpg, the cost of your F150 goes up. You tell meat processors they have to meet new EPA guidelines, the cost of meat goes up. If the cost of electricity and fuel goes up due to Green bullshite, everything gets more expensive.
As for Congress, they can do two things.
1. Stop creating money via deficits that get pumped into the economy -ie monetary inflation. If you create an extra $2T in money via debt issuance it has an impact.
2. Reduce the regulatory mandates on industry and energy so the cost to produce goods is lower.
This post was edited on 10/11/24 at 4:23 pm
Posted on 10/11/24 at 4:22 pm to baybeefeetz
Who prints money to cause inflation?
Who gave this entity the authority to print money?
Who sets interest rates?
How are interest rates set?
Do "they" just push a button or do they have to do something to make it so?
And if they have to do something to achieve a stated interest rate, what is it they are doing?
Who gave this entity the authority to print money?
Who sets interest rates?
How are interest rates set?
Do "they" just push a button or do they have to do something to make it so?
And if they have to do something to achieve a stated interest rate, what is it they are doing?
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