Argentinian-style Inflation in the US: Global Warming for Right Wingers?

[AZRedhawk44]

It hit me last night that lefties love the Globular Warming church because it allows them to attempt a rational justification for the way they want to govern.

Righties love the debtors' story of our government because it allows them to attempt a rational justification for the way they want to govern.

A lot of folks are crying wolf this year, much like they did last year and the year before.  A couple years ago I was hearing about $2500 gold and runaway inflation.  Gold is at $1125 right now and the radio commercials are yammering about inflation, printing money and $2000 gold by the end of the year.

I keep coming back around to the idea of the US not being the leader of the world's economy.  Since all currency is backed purely by speculation, then the value of a currency is merely the value of public opinion of the printer of that currency.

For that reason alone, China will NEVER be the global economy leader.  Unless the world shifts to a currency backed by some tangible asset.  Most folks just don't like China.  And as much as the world likes to bitch about America, they still look to us for leadership and economic stability.  Everyone was crowing about the Euro 5-10 years ago, and look at it now.  A joke.

The only 2 other serious contenders to bounce the dollar off the global market stage are the british pound and the UAE dinar.  Neither country has the global presence to back their currency.

Even if the US prints money (which I think it will unfortunately do, this fall), we'll see a little bit of inflation, but the Euro will continue to fall in comparison and nothing else will rise against the dollar.  Because it's all about speculation, and capitalists do not favorably speculate on increased currency value for communist currencies or for fundamentalist religious regimes.  It's bad for long term profitability.

One last thing:  I "felt" more inflation while GWB was in office than during this first year of Obama.  Granted, I had 8 years to feel it rather than just 1 year for Obama... but could Soros have anything to do with this?  He plays in currency speculation.  Is he somehow leveraging the Euro down in international markets to keep the dollar artificially strong?  Was he leveraging the Euro up over the last 8 years to lower the dollar's strength during Bush's term?

[roo_ster]

I can see your analogy, but I think it lacking on one point of fact and several of interpretation/analysis.

Point of fact:
Anthropogenic Global Warming has never been proved to occur, whereas Argentinian/ruinous(1) inflation caused by gov't action has many examples we can study.  Heck, the process by which AGW occurs has yet to be well-described.  It might be a hypothesis and is certainly not a tested theorem.  OTOH, we know some things which will trigger ruinous inflation.

Points of interp/analysis:
I don't have time to go into them.  One thing, though...any economic system that rests on confidence, fiat, faith, etc. will be subject to wild fluctuation once the faith in it begins to crumble wholesale.  People talk about how all the printed money in the last 18months is no biggie, as it may be just being sat on by lenders.  This may be so, though I remain unconvinced.  Assuming it is correct, under what circumstances could lenders let loose all that cash, willingly or otherwise and flood the money supply, making the "sitting on the cash, no worries" argument moot?






(1) I write "ruinous," as the differences between inflation, high inflation, and hyperinflation are a bit arbitrary. 

[Tallpine]

Righties love the debtors' story of our government because it allows them to attempt a rational justification for the way they want to govern.

You mean those righties who were borrowing money like crazy 2001-2008

 

[HankB]

You mean those righties who were borrowing money like crazy 2001-2008

Actually, it was rinos who did that, and were criticized by righties at the time . . . though perhaps the criticism wasn't as loud as it should have been. And it was really for only 6 years; the lefties took both houses of congress for the last two years of that time frame, and used rino blunders to justify their own misbehavior. (Things really took a turn for the worse after this happened.)

And the lefties solution is to pour gas on the fire . . .

[Nick1911]

Actually, it was rinos who did that, and were criticized by righties at the time . . . though perhaps the criticism wasn't as loud as it should have been. And it was really for only 6 years; the lefties took both houses of congress for the last two years of that time frame, and used rino blunders to justify their own misbehavior. (Things really took a turn for the worse after this happened.)

And the lefties solution is to pour gas on the fire . . .

When a controlling majority of elected candidates from the party are RINO's; I have to think that they aren't RINO's so much as the nature of the party has changed.

It's like saying "Well, 95% of what our company has been doing for 6 years is make kitchen mixers, but yea, we're totally still a tractor company!".  I'm not buying it.  Call a spade a spade.

[mtnbkr]

When a controlling majority of elected candidates from the party are RINO's; I have to think that they aren't RINO's so much as the nature of the party has changed.

It's like saying "Well, 95% of what our company has been doing for 6 years is make kitchen mixers, but yea, we're totally still a tractor company!".  I'm not buying it.  Call a spade a spade.

Someone gets it.

The Republican Party is BROKEN.

Chris

[Balog]

When a controlling majority of elected candidates from the party are RINO's; I have to think that they aren't RINO's so much as the nature of the party has changed.

It's like saying "Well, 95% of what our company has been doing for 6 years is make kitchen mixers, but yea, we're totally still a tractor company!".  I'm not buying it.  Call a spade a spade.

A-freaking-men. The question now is, try to fix the R's or start over?

[zahc]

I've always said the 2-party system was basically the "good cop, bad cop" routine. The Republicans play the "good cop".

[Nick1911]

A-freaking-men. The question now is, try to fix the R's or start over?

I don't know.

Not to get all longeyes on you, but it's probably more or less a crap shoot anyway.  I'm what, one vote out of 300 million?  I don't have any special connections.  I don't have any money.  Even if I build out a huge master plan of how to turn the republican party into a party of true conservative values, why should anyone in a position to change anything listen or care? 

You know, I once posted a thread here about some engine work I did on my car.  It took me all day, but I saved some money on doing the work myself.  Someone presented a counterpoint, "Well, I had dinner with my wife, took my kid to play in the park, and watched the big game.  Oh, and I payed some schmuck a few hundred dollars to work on the engine in my car.    ".  I think the same principal applies here.  You could beat your brains out spending the rest of your life trying to change the massive, immovable, undefinable system. Could you change anything?  Maybe.  Probably not, but maybe.  Me?  I think I'll go have dinner with my wife.

My mama always said: "There's no point in worrying about what you can't change".  I don't think you or I can change the Republican party.

All that besides, who's to say that Americans even want hardcore conservatism?  Maybe that platform wouldn't ever get elected anyway.  It's not like the libertarians are winning big elections left and right.

It's time to have the grown up conversation, look in the mirror, and come to terms with the fact that true conservatism is a fringe concept now.  On the whole, Americans don't want it.

[Leatherneck]

Actually, a large majority of Americans self-identify as conservatives.

TC

[roo_ster]

When a controlling majority of elected candidates from the party are RINO's; I have to think that they aren't RINO's so much as the nature of the party has changed.

It's like saying "Well, 95% of what our company has been doing for 6 years is make kitchen mixers, but yea, we're totally still a tractor company!".  I'm not buying it.  Call a spade a spade.

I wrote about a means elsewhere:
http://www.armedpolitesociety.com/index.php?topic=23303.0

Folks, get your *expletive deleted*ss involved and help make such things a part of the past.  It is much more likely to have an impact than moonshine about a third party.  Or just discussing it whilst ensuring one's couch or chair doesn't spontaneously levitate.

[Nick1911]

I wrote about a means elsewhere:
http://www.armedpolitesociety.com/index.php?topic=23303.0

Folks, get your *expletive deleted*ss involved and help make such things a part of the past.  It is much more likely to have an impact than moonshine about a third party.  Or just discussing it whilst ensuring one's couch or chair doesn't spontaneously levitate.

I remain entirely unconvinced that whatever action you or I take makes any difference at all.

[Jamisjockey]

A-freaking-men. The question now is, try to fix the R's or start over?

I already started over. 
www.lp.org

 

[roo_ster]

I remain entirely unconvinced that whatever action you or I take makes any difference at all.

I guess you'll spend your time demonstrating that a lack of effort produces a lack of results?

That has been proved many times over and repeating the experiment has little utility.

Oh, well.  Pareto applies to most human endeavors.

I already started over. 
www.lp.org

 

BTDT, got bupkis for results.

Oh, its a fine place to argue privatizing the sidewalks, but worthless for action.

IOW, it is the locale for mental masturbation.  Expect ideas and results to be birthed elsewhere.

[Nick1911]

I guess you'll spend your time demonstrating that a lack of effort produces a lack of results?

I intend to spend my time enjoying my life, and putting my effort towards things I can change that will improve my life.  I don't believe that my involvement in politics will do either of these.  I respect that you do.  Best of luck in your endeavors; I sincerely hope you're successful.   

[MechAg94]

When a controlling majority of elected candidates from the party are RINO's; I have to think that they aren't RINO's so much as the nature of the party has changed.

It's like saying "Well, 95% of what our company has been doing for 6 years is make kitchen mixers, but yea, we're totally still a tractor company!".  I'm not buying it.  Call a spade a spade.

You can't really discuss spending/debt in a vacuum.  You must remember that Foreign Policy and terrorism were big on people's minds for a few years there.  People voted Republican for that reason in 2002 and 2004.  I don't recall anyone who thought the high domestic spending was a good idea.  That concern melted a bit in 2006 and the domestic spending issues came to the forefront and Repubs lost out.


The other problem with the domestic spending which is still a problem:  Democrats have yet to offer a good alternative.  Their answer seems to be to just spend more.  Obama and the Dem Congress have managed to dwarf the spending/debt of the Bush years in a short time and show little real effort to slow down.  

IMO, it is up to us as a whole to insure that we get as many "limited govt" types and deficit hawks in there as we can.  

[mtnbkr]

IOW, it is the locale for mental masturbation.  Expect ideas and results to be birthed elsewhere.

And what exactly has the Republican Party come up with lately?  Blaming the Left for their problems doesn't count.

Chris

[Tallpine]

the lefties solution is to pour gas on the fire

I won't argue with that 

Both parties seem to be determined to destroy the country, one at half speed and the other at full speed.  I'm still confused about what they intend to replace it with?

The deficit/debt which has long been a problem, is now unsolveable.

[RocketMan]

Actually, a large majority of Americans self-identify as conservatives.

TC

And many, if not most, have no idea what it means to be conservative, IMO.  It's just the latest fashionable thing to call themselves.

[longeyes]

There are two parties: the Drunk and the Sober.  The former has many more members. 

I agree the wise course is to cultivate our own gardens, but that wisdom originated long before the Greens turned gardening into Holy Writ.

[longeyes]

Runaway debting isn't junk science, it's historic fact, and any resemblance of the current situation to the rise of the Peronists is strictly non-coincidental.

[drewtam]

I intend to spend my time enjoying my life, and putting my effort towards things I can change that will improve my life.  I don't believe that my involvement in politics will do either of these.  I respect that you do.  Best of luck in your endeavors; I sincerely hope you're successful.   

Your pessimism is depressing. On the optimistic side, the "tea party" movement seems to really be sweeping the country, pushing for fiscal wisdom. It puts to shame all other grassroots demonstrations since Vietnam/civil rights. That's a pretty dramatic change in 40years.

The movement is already credited widely for putting a left leaning R into Mass instead of the shoe-in hard left D. That is significant success. Now it seems all D seats are at risk in '10; and R primaries are being pushed toward fiscal conservatism.

The only question remaining in this movement is how much social/moral agenda will be adopted?
If the moral side is left out, my guess if the movement could be extremely powerful in pushing D party and R party onto a significantly different track. Not as a 3rd party, but as an independent movement, with caucus in both parties.

[Sergeant Bob]

The tea party's have made some impact to the good however, as soon a some of the DIABLO's (Mitt Romney, et al), see it gaining popularity, they'll be hopping on the happy train in numbers large enough to stop it at Neocon Juction (kinda like Petticoat Junction, except everyone, including Billie Jo, Betty Jo, and Bobbie Jo look like Uncle Joe).

[Headless Thompson Gunner]

And what exactly has the Republican Party come up with lately?  Blaming the Left for their problems doesn't count.

Chris

How about a local example from Indiana, the solution to the health care problem:

http://online.wsj.com/article/SB10001424052748704231304575091600470293066.html

A little common sense goes a long way.  Basic economics knowledge... knowing how prices work, using prices in our favor rather than trying to fight against them... suddenly health care costs go down and consumer satisfaction goes up.

HSA's are just one simple, effective idea out of many that Republicans (RINOs and conservatives alike) have been pushing for years.  Why don't you lend a hand instead of tossing barbs at us?

[Northwoods]

State employees enrolled in the consumer-driven plan will save more than $8 million in 2010 compared to their coworkers in the old-fashioned preferred provider organization (PPO) alternative. In the second straight year in which we've been forced to skip salary increases, workers switching to the HSA are adding thousands of dollars to their take-home pay. (Even if an employee had health issues and incurred the maximum out-of-pocket expenses, he would still be hundreds of dollars ahead.)

Yep.  When we were shopping for our own health insurance on the open market the difference in premiums meant that no matter what we spent on health care in a given year we were break even or even a bit ahead with the HSA vs an HMO or PPO type plan.  And every year we didn't spend the deductible (nevermind the out of pocket max) that money stayed in our pockets rather than the insurance company's pocket.