Five Ft. Three

“A society that puts equality before freedom will get neither. A society that puts freedom before equality will get a high degree of both.” ― Milton Friedman

Economics 101

on April 26, 2011

The reason for high gasoline and food prices is simple.  The Federal Reserve is printing lots of money, right?  Well, remember that supply/demand says that if something is plentiful, then it is cheap and something rare is more expensive?  If the Fed just adds lots of money to the economy (they are monetizing the debt) then the value of each dollar out in circulation goes down.  Therefore, it takes more of those dollars than previously required to buy all the things we need to buy, like gas and food.

Stop the Fed!!!!!!!!

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27 responses to “Economics 101

  1. soapster says:

    Ending the Federal Reserve bank is not enough. You've got to put a stop to the commercial banks and their practice of fractional reserve lending.

  2. BB-Idaho says:

    Welcome back!There are a number of drivers of oil pricing including supply/demand (China and India are increasing their purchases, futures trading anomalies, mideast problems etc).What you describe IMO isinflation and that could be very serious. Of course there are others that think not .

  3. Beth says:

    How can they be printing so much money and there not be repercussions?BB, does it bother you that the Fed has no oversight?

  4. soapster says:

    Jesus Christ….the studies came from the Fed??!! What the hell do you suppose they're going to say? Considering the Fed's piss poor track record over the past 100 years I wouldn't trust them to feed my dog.

  5. soapster says:

    FYI: the Wall Street Journal, despite its prestige, is a liberal rag (save for its editorial section which is pretty objective).

  6. Now we see the economic destruction of America. The change that Obama wants, IMO.**sigh**

  7. Dave Miller says:

    AOW, why would any President, Democrat or Republican want the economic destruction of America?Isn't saying that the equivalent of the loonies on the left that said President Bush wanted to see soldiers die in Iraq and Afghanistan?What has happened that has caused both sides of the political aisle to ascribe the worst motives to our leaders, instead of the best?Isn't it possible to disagree with policies without impugning motives?

  8. Dave Miller said…AOW, why would any President, Democrat or Republican want the economic destruction of America?Simply put, America is heading towards bankruptcy and heading there quicky, he has put America in the worst deficit in the history of the USA. . This is due only to the horrific out of control spending by the Obama administration. I have read the the Obama administration estimates the U.S. government will need to borrow $10 trillion over the next 10 years. Hows them apples? How are you children and mine going to live under those numbers? And the sad part about it is that YOU liberals are still afraid to question this president. People like that asshat Alex Baldwin wants us to spend more. Why not? We have nothing more to lose, we are already up the creek. Why not throw more money to these Muslim nations and shoot more missiles over there to protect them from what? From who? What the heck, we are already in 3 wars, why not one or 2 more?

  9. Dave Miller says:

    Mal, you never answered the question of why. You spoke of a result, which may or may not come to pass. You did not deal with motivation.The reality is that sometimes Presidents, or anyone for that matter, may have a plan to deal with something, or to accomplish something, and it just does not happen the way they planned.Sometimes, it even goes horribly wrong. Does that mean the motivation to act was evil?I choose to believe that at the heart of of anyone who rises to the office of POTUS is a desire to do what they believe is best for the US.And sometimes, it works out.

  10. Well then it's safe to say the we differ a great deal.You think thathis motivation was not evil..I choose to believe that it is..

  11. BB-Idaho says:

    "Isn't it possible to disagree with policies without impugning motives?"-I'm afraid not, Dave..notin this day and age. 😦

  12. Dave Miller says:

    So Mal, that being said, could you please explain why he would want the destruction of the US?

  13. Dave Miller said… So Mal, that being said, could you please explain why he would want the destruction of the US?If I said it once, I've said it a hundred times. And you read it a hundred times Dave. But I'd be happy to say it once again.He's a Socialist and he wants this country to be a socialist country, thus his senseless economic policies…etc, etc, etc, and etc.

  14. Beth says:

    Wow, this has had a lot of discussion in my absence. Dave, you are an optimistic person, aren't you? At least about liberals, I would venture to say you wouldn't give President Bush the same courtesy of thinking the best of his intentions, but I disgress.Obama as a candidate suggested people see who he surrounds himself with to decide what kind of person he is and what kind of president he would become. Well, he surrounds himself with the likes of Rev. Wright, whose hatred for America is well documented. He also surrounds himself with Van Jones, who calls for the collapse of the economic system. So, to think that Obama does have the motivation to do so is not only possible, it is very likely in my opinion.Liberals want as many people sucking on the teat of the government so that they will get re-elected, who would vote their cow out of office when you become dependent on them instead of having self-reliance? Really Dave, don't you see that?

  15. Dave Miller says:

    Actually, Beth I did, and still do…I've got a fair reputation on some conservative sites as a pretty fair, sane, and rational liberal…I've never been one to buy into the nutty theories about President Bush wanting 9/11, lying about Iraq, loving dead soldiers, etc.He was wrong a lot of times, but that did not, and does not make him evil.I can only wish others felt the same way about President Obama.Mal, one of the big criticisms of conservatives is that President Obama is a socialist. Could we not make that very same argument about any President or politician who supports government subsidies for "private' industry here in the US?Isn't that a Socialistic practice that should define all its practitioners as Socialist and therefore, in your view, evil?

  16. Look, this guy’s handwriting was on the wall form day one with is Hope and Change crap and his re-disputing the wealth crapola, this is socialism 101. Bowing to dictators, his healthcare policy and the way that he had it passed, behind closed doors was also the marks or a socialist. His association with ACORN, and his appointment of Van Jones, his I will end this war attitude without a reference to winning the war, his refusal to call the enemy who they really are. Obama’s philosophy to increase the tax on the rich to redistribute wealth to the poor. And put a chicken in every pot so to say. And his association with commies like Bill Ayers, the weather underground etc. In all seriousness, I think that Obama is taking this country us into bankruptcy on purpose. And you may call me a conspiracy theorist. But then again I never did agree with you anyway. The real scarey thing is that he could very well be re-elected and that would truly be disastrous for America. Lets face it, the majority of Americans don't have a clue about how the economy works or how politicians work or how pretty much anything works and they don't want to know. They vote for the person that is the best looking or who is the same race as they are or who is the coolest. Or who speaks their kind of language. Holds the coolest parties. And in Obama’s case All of the above fits. Bottom line, he may not be a socialist from where you stand, and as a liberal, you would think that way. But from my vantage point he fits it like a glove.

  17. Beth says:

    Yes, Dave, I agree, the government subsidies should not be happening, I do not believe in corporate welfare! You are more rational, I see you as the best hope for someone liberal seeing the light and joining our conservative forces!

  18. And one more thing, these idiots like Shaw and her friends that call ME an others like Jo-Joe Politico and the tea-party members racists just because we aren’t afraid to call things as they are, are full of crap!It’s a pity that they don’t know the difference between Racists and patriotic Americans who stand up for the United States of America.The NAACP, and the Black Panthers, and the people like Al Sharpton, Jessie Jackson, Jeremiah Wright, are the Racists. Not Donald Trump who says what millions of others are thinking. They can call people whatever they want to like"Cracker", "Honkey", "Whitey", and they think it's OK. Well it’s not OK!

  19. Just one question Dave, You just said, "I've got a fair reputation on some conservative sites as a pretty fair, sane, and rational liberal"…And I'm not going to argue or question that, but why do you call people that don't agree with you "the extremists"?Just wondering?

  20. Dave Miller says:

    Mal, I've never called Mike's America, Patrick, Dee from Compassionate Conservatism, or even Z extremists. Even though I seldom agree with them, or they with me.However there are people who hold views that are sometimes a little too far right, or left, that in my opinion are extreme. It has little to do with not agreeing with me.Maybe it is tone and substance Mal.

  21. Dave Miller said…Mal, I've never called Mike's America, Patrick, Dee from Compassionate Conservatism, or even Z extremistsNo you didn't, but I got the impression you called me that on someone's blog, where they were referring to me..

  22. Dave Miller says:

    Mal, in some ways, I do consider you somewhat extreme. But you've always been polite to me, so unlike some others, I'm okay with that.Awhile back I posed this question to Beth, I'd love your take on it.I think we can both agree what an extreme lefty looks like. To me the Code Pink people and the Cindy Sheehan fan club come to mind.But what does an extremist on the right look like? Who on the right would you put in that category?

  23. Beth says:

    I don't recall how I answered you, Dave, but I am beginning to think that people today would consider our founding fathers as "extremists".

  24. Dave Miller says:

    How we view past generations, in light of new information, is always interesting to me.You may be right on that Beth.

  25. soapster says:

    I don't know how many times I need to repeat myself but the term "extremist", while all to often is used to imply a negative, in an of itself has no positive or negative connotation.Is it not possible to have an "extreme" amount of love and compassion? Is it not possible to have an extreme amount of devotion to your wife and family? Both of these examples are virtuous no?And yet the word "extreme" and "extremist" gets tossed around like a damn rag doll with every intention of suggested a negative.Fail. Try again.

  26. Dave Miller says:

    Soap, maybe it falls under the too much of a good thing category.It is possible to have extreme love, or compassion, but psychologists will tell you that in fact too much love or compassion can sometimes lead to very destructive behavior.I stand by my understanding that sometimes extremism is bad for the individual and others.

  27. soapster says:

    Most psychologists are themselves a bit off.

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