I'm done here,.

I'd quit too if I was trying to argue something that retarded. This is 8 years of Clemens over 13 years of Clemens all over again.

No you wouldn't.   You have the retarded belief that everyone on a fixed income is drawing income from bond heavy retirement accounts and savings accounts.   A lot of people have no savings account and no retirement plan.    I'd even say most people have no retirement plan and a very limited savings account.   People like to spend not save.

I had to finally block jrd.  The more he posted about "negative interest rates", when he clearly had no idea what he was talking about or was trying to say, the more I felt my IQ going into a recession.

In other news, the WPE stiffed a restaurant for a $55 lunch bill yesterday.  Thus further damaging the economy.

That bottled water is also damaging the enviroment.

http://www.allaboutwater.org/environment.html


Why does Obama hate America?

His "point" makes sense from a pure mathematical standpoint.   If I have $100 in the bank and receive 2% interest annually on it, I have $102 at the end of the year.   If inflation is 3%, that $102 needs to be $103 at the end of the year to keep up.   So, technically, I've "lost" $1 by doing nothing.    The entire theory falls apart if I don't invest/spend that $100 wisely in hopes of making it worth more than $103.   Poor spending/investment makes it worth $0.   Jacking up inflation in hopes of "forcing" me to make the "smart" decision to spend/invest simply doesn't work because of all the fixed income people, and that includes people who have jobs that spend virtually all their money every week on necessities, who are damaged by inflation. 

Making a point that inflation stimulates the economy is dumb.

What's dumb is when one tries to argue that if one number (interest rate) is less than another number (inflation rate), then the smaller number can be considered a negative number.

Now THAT is dumb.

Allowing inflation to rise just a couple points higher isn't some crazy idea I made up.  You saw the article from the former Bush adviser/Harvard Econ professor in 2009 arguing for a little more inflation.  This is written by Krugman (April 2012), a nobel prize winning economics professor at Princeton:

http://www.nytimes.com/2012/04/06/opinion/krugman-not-enough-inflation.html


"Modest inflation would, however, reduce that overhang — by eroding the real value of that debt — and help promote the private-sector recovery we need. Meanwhile, other parts of the private sector (like much of corporate America) are sitting on large hoards of cash; the prospect of moderate inflation would make letting the cash just sit there less attractive, acting as a spur to investment — again, helping to promote overall recovery."

And this is from Mark Thoma in May 2012:

http://www.thefiscaltimes.com/Columns/2012/05/08/Will-Limiting-Inflation-Mean-Limiting-Growth.aspx#page1

"In fact, given the net benefits that more inflation would provide right now, the Fed should try to raise the inflation rate through additional stimulus programs."

I've addressed both of those "points".    "Forcing" people to invest isn't necessarily a good thing.   Increasing the cost of living for fixed income people, and the number is FAR MORE than you, Klugman or Thoma think, is definitely not a good thing.

No one is forcing anyone to do anything.  Policy encourages behavior.  If inflation is 5% and interest rates are zero, businesses are still free to leave capital sitting still.

And the fixed income thing...are you referring to people on social security?

That's why "forcing" was in quotes.  Of course no one is forced.  But the intent is to keep people/business from sitting on money.

I'm referring to anyone who makes/gets x-amount per month and will not make/get more than x-amount regardless of your policy.    That's the meaning of "fixed".

Well, yeah.  The intent is to make it less appealing to sit on money.  Lowering interest rates does the same thing.

Can you give me an example of a person on a fixed income and where their income is coming from?