Loading ...
Sorry, an error occurred while loading the content.

RE: [LandCafe] Re: Four Horsemen

Expand Messages
  • harrypollard
    Haven t a clue what you mean. But, you should get it right. You said: when the money supply increases, inflation will ensue. Not so. The increase in the
    Message 1 of 90 , Jan 30, 2013
    • 0 Attachment

      Haven’t a clue what you mean. But, you should get it right. You said: “when the money supply increases, inflation will ensue.”

       

      Not so. The increase in the money supply is inflation (according to me and the Austrians). Nothing tautological about it.

       

      My criticism of inflation as it was and what it has become is a longtime argument of mine.

       

      Either you misread, or I was unclear. I was using the official arguments including their meaning of inflation.

       

      Of course, I later pointed out what seems to me to be yet another poor direction of neoclassical thinking.

       

      It is difficult to change the minds of people who have invested a large slice of their lives in a particular theoretical construct – to suggest they should go back and reconsider their basics.

       

      I read a paper about a year ago where two young economists suggested that economics should consider the importance of “space” which effort seemed to be a discussion of land. I’ve seen nothing more on this subject. Probably it’s not a profitable use of time. Particularly as the “hyperinflation” of land has been buried beneath the neoclassical’s “hyperinflation” of housing.

       

      When there is increased demand, the market raises prices and increased production lowers them. It would be interesting to see if manufactured housing  prices zoomed in response to the “bubble” demand, or if instead there was a mild price mechanism increase to be handled by increased production.

       

      The stumbling block to using their production is the “shortage” and price of land. Where can you put the manufactured houses?

       

      If not from houses, from whence came the bubble prices? Seems to us obviously to be land-value increases, but land as something separate from capital isn’t accepted by modern economists who are therefore simply unable to handle the problem. (So, they tackle finance!!)

       

      I suggest they may make mistakes in other areas – in this case money. When one looks at the various monetary manipulations that are current, with each following the failure of the previous one, one should at least be a little cynical.

       

      Harry

       

      ***********************

      The Alumni Group

      Henry George School

      Of Los Angeles

      Tujunga  CA  91042

      (818) 352-4141

      ***********************

       

       

       

       

       

       

      From: LandCafe@yahoogroups.com [mailto:LandCafe@yahoogroups.com] On Behalf Of walto
      Sent: Wednesday, January 30, 2013 4:11 AM
      To: LandCafe@yahoogroups.com
      Subject: [LandCafe] Re: Four Horsemen

       

       



      --- In LandCafe@yahoogroups.com, "harrypollard" wrote:
      >
      > Walter,
      >
      >
      >
      > You assume too much.
      >
      >
      >
      > I accept Quantity Theory because it makes sense. I mentioned its long
      > history for interest's sake.
      >
      >
      >
      > I follow Classical Political Economy rather than the mess we have now
      > because it made -and makes - sense.
      >
      >
      >
      > I am well aware that velocity is part of the mess but don't attach much
      > importance to it. To me, it seems contrived.
      >
      >
      >
      > Price changes are part of the market price mechanism. I am concentrating on
      > inflation in its original meaning - an increase in the money supply (which I
      > think only the Austrians continue to accept).
      >
      >
      >
      > The original use was worthwhile. Now, inflation is simply shorthand for
      > price increases and is of not much use in economic thought.
      >
      >
      >
      > Harry
      >

      There is little doubt that if "inflation" is to mean nothing but increase in the the money supply, when the money supply increases, inflation will ensue. Presumably, however, it was not that tautology that you were originally plumping on this thread.

      In fact, your first posts on the matter (the ones that KJ, Roy, and I have disputed) specifically mentioned the cost of goods--something which you now say is "of not much interest."

      W

    • roy_langston
      ... Inflation is shorter and more descriptive. ... Having a label and definition for the concept helps people share information about it. ... Maybe that s
      Message 90 of 90 , Feb 1, 2013
      • 0 Attachment
        --- In LandCafe@yahoogroups.com, "harrypollard" wrote:

        > So why not say they are changing systematically?

        "Inflation" is shorter and more descriptive.

        > How does calling rising prices inflation help to "understand how, when and why"?

        Having a label and definition for the concept helps people share information about it.

        > Whereas inflation in its original meaning indicates that the money issuer has done something.

        Maybe that's part of it: the apologists for bankster privilege want to conceal the fact that it is private commercial banks that are issuing the money, not government.

        -- Roy Langston
      Your message has been successfully submitted and would be delivered to recipients shortly.