Seriously, they should have "accidented" the whole plane? So how many innocent people should have died to protect their poorly guarded secrets?
"I'm all for whistleblower status, but Snowden should have been DEAD, HORRIBLY"
You sure downt sound like you are for whistleblower. I dont many people forget that the NSA violated many US laws.
You don't really believe things like the "FDA" is what is driving up the price to you?
Canada has an equivalent system (Health Canada) and cheaper drugs then the US. We also have a different copyright system which allows generic drugs to be available sooner. Wonder if that helps drive the prices down?
US Solution? Ban cheap canadian drugs from canada as they were "not tested" or such.
Warren Buffett says even though he and other top earners are paying higher taxes this year, he thinks he's still paying a lower rate than his secretary.
(and that's after we already taxed him, presumably, at about 35%.)
Incorrect.
His "net worth" is probably based on his stock and stock options. He wont pay taxes until he actualy sells them and is subject to "capital gains" taxes.
On one hand i agree with you 100% as there are a lot of people driving who behave really badly.
On the other i've been places where the "state limit" is 55 but suddenly becomes a 45 for the next 5 miles with "fines doubled". Sure enough, you often find cops right behind the sign but this is clearly not a revenue tool?
Perhaps instead of a monetary find they could find some suitable punishment. There is a lot of litter on the sides of roads so perhaps they can spend a few hours picking it up?
Seriously, how will many of these speed-trap cities fund their police force?
This sort of thing is utter crap. If the goal of policing is to make sure people are driving the speed limit, and i warn someone and they do the limit isn't the goal met?
The main road where i live (Ontario) is posted 60 KM/H zone but it turns into a 50 for some unknown reason (same road, same area of mixed commercial) and often there is a cop hiding not far from the 50 sign. I guess for "safety"?
I find it odd that in 100 or so replies people have attempted to explain it to you but you are too dense to grasp it. The government is not taxing cash as they only indirectly control inflation. Inflation (CPI) is a basket of goods. Some the government can control, others they can not. Do the oil exporting countries get together with the US government to determine the price of oil, or is it driven by the market? When the price of oil goes up and therefor CPI goes up how exactly does the government benefit from this "tax on cash"?
As i pointed out risk free rates and inflation are independent. US treasuries are generally considered "risk free" since they are denominated in USD they can always print money to avoid default. Anyhow, you can find the yields here: http://www.treasury.gov/resour...
The US sold $15BLN in negative yield bonds. So all those people are idiots? Perhaps you should be running a multi-billon dollar hedge fund instead of posting on slashdot?
Do you not know the difference between money ($100 bill) and a bond? Here's a quick clue, money is considered an acceptable form of payment (legal tender) while a bond is a "promise to pay you back later" and NOT legal tender.
Your statements defy logic. lets look at this one: "Then keep your money in a low-interest account in something other than USD. And it's safe from anything the Federal Reserve does"
So where do you put it? In CAD so you can be exposed to anything the Bank of Canada bank does? In EUR so you can be exposed to anything the european union does? In CNY so you... wait, you cant do that....
I know, by putting it in non-USD you escape inflation right?
"Because some idiot would buy them?" - Real smart answer, and demonstrates your advanced economic knowledge.
" because they don't like their opinion of the result of the implications, "
what are you talking about? That your logic is flawed and yet they dont like the results?
"If the fall of the purchasing power of money corresponds to the return of some stored money, is that money going to be able to buy as much after the inflation as before? "
No, the purchasing power of money does NOT correspond to any return. It corresponds to what you can currently buy with said money. Your mistake is you continue to link purchase power and returns. They are not related. Again, the definitin of "money" doesnt include some auto-adjustment factor for inflation.
Looking at the CPI tables i think current US inflation for 2013 was 1.5%. That is for the basket of goods but energy was 3.2% higher. So if your "$100" was to pay for electricity you would find it now gets you 3.2% less then it did before. Since inflation is quoted monthly does your salary increase/decrease monthly with the CPI? If not, you are suffering from inflation because your salary (not your return on investment) buys less.
"If you want to disagree with my $105=$105, then please do so. Anything else will be taken as agreement with that statement."
what does that mean? of course 105=105. Are you trying to say that 100 + 5% return = 100 + 5% inflation? They do not because "money" doesn't get any return. Your "salary" does not adjust up 5% just because inflation does. Inflation erodes wealth. It is also a weird thing to write, not sure why you want to force people to agree with you, or make weird assertions like this.
You didnt write this? "Yes. Someone gets it. When the rates cancel out, "inflation" doesn't directly hurt you." You may not have "asserted" it, but you agreed and it is NOT accurate. Risk free rates are independent of inflation.
You need to make up your mind. First you say "money in the bank", then "401k". Next you agree with someone posting about risk free rates equalling inflation now you dont?
Lets just agree to disagree. On your side you seem to think inflation is good and you can just "cancel it away" with matching investments. This is in sharp contrast to pretty much every central bank in the world who's primary mandate is controlling inflation. You also have a lot of examples of "runaway inflation" and the disastrous consequences you can read up on (Brazil, Argentina, Germany, Zimbabwe, Poland).
I suppose it could be due to the fact not everyone has "investments" which are growing faster then inflation and are therefore HURT by it. It could also be because many people's wages are also not tied to it and therefor they earn less year-on-year. Look at some of the tables which show "Real US income since 1960" for an example.
I leave you with this three items to think about:
1) If inflation is "good" and simply cancels out with investment returns, why is it so watched by the financial instituations around the world?
2) As others have pointed out in this thread stop trying to put forward flawled logic, then stating people agree with you when they dont.
3) In your own words, what does this sentence mean to you? "A general increase in prices and fall in the purchasing value of money."
This is the definition of "Inflation" yet you seem to come here and argue over and over again that inflation means something else.
One last thing and its similar to what you have been told before. Please stop saying I agree with you, you have no idea about the basics of finance and I would hate to have ppl think I do and bucket me together with you.
Just sit there in your fantasy land where "risk free rates" = "Inflation" and your moving goalposts to "prove your point".
Seriously, yet another ridiculous "confirmation you are right" post?
Re-read what you and he guy you agree with wrote.
"When the rates cancel out, "inflation" doesn't directly hurt you."
Did you see the "risk free" rate and "inflation" cancelling each other out? Perhpas you misunderstand the purpose a decimal place serves and think that 0.13% and 1.5% cancel each other out?
I see now you have moved to "the market is outperforming inflation" rather then "money in the bank"?
What do they call this here, "moving the goalposts"?
Just do everyone a favour and read THE DEFINITION OF INFLATION!
Why do you constantly post "so you agree with me" when people clearly do not?
As others have said, go read what inflation is, then come back and have a conversation.
Let me save you the trouble and copy/paste from wikipedia
"
In economics, inflation is a persistent increase in the general price level of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services."
Please read the second sentence multiple times until it sinks in.
So then make up your mind.
At first you said money in the bank is equal to inflation, now its your 401k?
Probably not going to get through to you as others have tried as well, but let me just ask you TWO questions.
1) Why did US sell bills and bonds with negative yields during the financial crisis? As you claim investments beat inflation but here you have positive inflation and negative returns?
"The Treasury sold $15 billion in 10- year inflation-indexed notes at a record negative yield as investors sought a hedge against rising consumer prices amid speculation the Federal Reserve will add more stimulus."
2) Why is it that almost every central planner has inflation targets and the "buttons" they push to control the markets center around inflation?
Canada:
The Bank of Canada aims to keep inflation at the 2 per cent midpoint of an inflation-control target range of 1 to 3 per cent.
US
The Federal Open Market Committee (FOMC) judges that inflation at the rate of 2 percent (as measured by the annual change in the price index for personal consumption expenditures, or PCE) is most consistent over the longer run with the Federal Reserve's mandate for price stability and maximum employment. Over time, a higher inflation rate would reduce the public's ability to make accurate longer-term economic and financial decisions. On the other hand, a lower inflation rate would be associated with an elevated probability of falling into deflation, which means prices and perhaps wages, on average, are falling--a phenomenon associated with very weak economic conditions. Having at least a small level of inflation makes it less likely that the economy will experience harmful deflation if economic conditions weaken. The FOMC implements monetary policy to help maintain an inflation rate of 2 percent over the medium term
Bank of america money market savings account rates 0.03% - 0.07% (depeding on how much you have in your account).
So while you are 0.07% better off not keeping your money under the mattress it certainly is not growing at the rate of inflation.
Many times here you read about how China only holds a small portion of the national debt. What those "oh, China doesn't rule the US as they only have a small part of our national debt" people forget is that any devaluation also hurts those who do hold the "large portion of the National debt". I believe the largest holder is the US Social Security System.
"Social Security Trust Fund, which represented $2.7 trillion in 2011"
Slashdot Mirror
Seriously, they should have "accidented" the whole plane? So how many innocent people should have died to protect their poorly guarded secrets?
"I'm all for whistleblower status, but Snowden should have been DEAD, HORRIBLY"
You sure downt sound like you are for whistleblower. I dont many people forget that the NSA violated many US laws.
I know, and you know what we need longer term patents as it is clearly the only way to encourage big pharm to do R&D (scarcasm).
How else would "important life saving" medication like yet another "blue pill" come about?
You don't really believe things like the "FDA" is what is driving up the price to you?
Canada has an equivalent system (Health Canada) and cheaper drugs then the US. We also have a different copyright system which allows generic drugs to be available sooner. Wonder if that helps drive the prices down?
US Solution? Ban cheap canadian drugs from canada as they were "not tested" or such.
Only poor people pay taxes...
Warren Buffett says even though he and other top earners are paying higher taxes this year, he thinks he's still paying a lower rate than his secretary.
(and that's after we already taxed him, presumably, at about 35%.)
Incorrect.
His "net worth" is probably based on his stock and stock options. He wont pay taxes until he actualy sells them and is subject to "capital gains" taxes.
Try watching them driving around local streets. Often you will see unlawful lane changes (no signals), unlawful left hand turns (turning on a red)....
Just the sort of stuff you would get a ticket for..
On one hand i agree with you 100% as there are a lot of people driving who behave really badly.
On the other i've been places where the "state limit" is 55 but suddenly becomes a 45 for the next 5 miles with "fines doubled". Sure enough, you often find cops right behind the sign but this is clearly not a revenue tool?
Perhaps instead of a monetary find they could find some suitable punishment. There is a lot of litter on the sides of roads so perhaps they can spend a few hours picking it up?
Seriously, how will many of these speed-trap cities fund their police force?
This sort of thing is utter crap. If the goal of policing is to make sure people are driving the speed limit, and i warn someone and they do the limit isn't the goal met?
The main road where i live (Ontario) is posted 60 KM/H zone but it turns into a 50 for some unknown reason (same road, same area of mixed commercial) and often there is a cop hiding not far from the 50 sign. I guess for "safety"?
Those are "yield curve rates" and can give you an estimation for longer term bonds (among other things).
If you want to see the actual prices change the dropdown "Select type of Interest Rate Data"
I find it odd that in 100 or so replies people have attempted to explain it to you but you are too dense to grasp it. The government is not taxing cash as they only indirectly control inflation. Inflation (CPI) is a basket of goods. Some the government can control, others they can not. Do the oil exporting countries get together with the US government to determine the price of oil, or is it driven by the market? When the price of oil goes up and therefor CPI goes up how exactly does the government benefit from this "tax on cash"?
Here is your citation
As i pointed out risk free rates and inflation are independent. US treasuries are generally considered "risk free" since they are denominated in USD they can always print money to avoid default. Anyhow, you can find the yields here: http://www.treasury.gov/resour...
The US sold $15BLN in negative yield bonds. So all those people are idiots? Perhaps you should be running a multi-billon dollar hedge fund instead of posting on slashdot?
Do you not know the difference between money ($100 bill) and a bond? Here's a quick clue, money is considered an acceptable form of payment (legal tender) while a bond is a "promise to pay you back later" and NOT legal tender.
Your statements defy logic. lets look at this one: "Then keep your money in a low-interest account in something other than USD. And it's safe from anything the Federal Reserve does"
So where do you put it?
In CAD so you can be exposed to anything the Bank of Canada bank does?
In EUR so you can be exposed to anything the european union does?
In CNY so you... wait, you cant do that....
I know, by putting it in non-USD you escape inflation right?
"Because some idiot would buy them?" - Real smart answer, and demonstrates your advanced economic knowledge.
" because they don't like their opinion of the result of the implications, "
what are you talking about? That your logic is flawed and yet they dont like the results?
"If the fall of the purchasing power of money corresponds to the return of some stored money, is that money going to be able to buy as much after the inflation as before? "
No, the purchasing power of money does NOT correspond to any return. It corresponds to what you can currently buy with said money. Your mistake is you continue to link purchase power and returns. They are not related. Again, the definitin of "money" doesnt include some auto-adjustment factor for inflation.
Looking at the CPI tables i think current US inflation for 2013 was 1.5%. That is for the basket of goods but energy was 3.2% higher. So if your "$100" was to pay for electricity you would find it now gets you 3.2% less then it did before. Since inflation is quoted monthly does your salary increase/decrease monthly with the CPI? If not, you are suffering from inflation because your salary (not your return on investment) buys less.
"If you want to disagree with my $105=$105, then please do so. Anything else will be taken as agreement with that statement."
what does that mean? of course 105=105. Are you trying to say that 100 + 5% return = 100 + 5% inflation? They do not because "money" doesn't get any return. Your "salary" does not adjust up 5% just because inflation does. Inflation erodes wealth. It is also a weird thing to write, not sure why you want to force people to agree with you, or make weird assertions like this.
You didnt write this? "Yes. Someone gets it. When the rates cancel out, "inflation" doesn't directly hurt you." You may not have "asserted" it, but you agreed and it is NOT accurate. Risk free rates are independent of inflation.
You need to make up your mind. First you say "money in the bank", then "401k". Next you agree with someone posting about risk free rates equalling inflation now you dont?
Lets just agree to disagree. On your side you seem to think inflation is good and you can just "cancel it away" with matching investments. This is in sharp contrast to pretty much every central bank in the world who's primary mandate is controlling inflation. You also have a lot of examples of "runaway inflation" and the disastrous consequences you can read up on (Brazil, Argentina, Germany, Zimbabwe, Poland).
I suppose it could be due to the fact not everyone has "investments" which are growing faster then inflation and are therefore HURT by it. It could also be because many people's wages are also not tied to it and therefor they earn less year-on-year. Look at some of the tables which show "Real US income since 1960" for an example.
I leave you with this three items to think about:
1) If inflation is "good" and simply cancels out with investment returns, why is it so watched by the financial instituations around the world?
2) As others have pointed out in this thread stop trying to put forward flawled logic, then stating people agree with you when they dont.
3) In your own words, what does this sentence mean to you? "A general increase in prices and fall in the purchasing value of money."
This is the definition of "Inflation" yet you seem to come here and argue over and over again that inflation means something else.
One last thing and its similar to what you have been told before. Please stop saying I agree with you, you have no idea about the basics of finance and I would hate to have ppl think I do and bucket me together with you.
Just sit there in your fantasy land where "risk free rates" = "Inflation" and your moving goalposts to "prove your point".
Seriously, yet another ridiculous "confirmation you are right" post?
Re-read what you and he guy you agree with wrote.
"When the rates cancel out, "inflation" doesn't directly hurt you."
Did you see the "risk free" rate and "inflation" cancelling each other out? Perhpas you misunderstand the purpose a decimal place serves and think that 0.13% and 1.5% cancel each other out?
I see now you have moved to "the market is outperforming inflation" rather then "money in the bank"?
What do they call this here, "moving the goalposts"?
Just do everyone a favour and read THE DEFINITION OF INFLATION!
No, he is just as clueless as you are.
"risk free" rarely equals inflation and therefore they do not "cancel out".
What is the current yield on US T-bills (considered risk free)?
http://www.treasury.gov/resour...
Would you look at that, the "Risk free" rates are MUCH lower then the current inflation rates are (CPI).
A one year T-bill yield is around 0.13% while the one year CPI is 1.5%
Why do you constantly post "so you agree with me" when people clearly do not?
As others have said, go read what inflation is, then come back and have a conversation.
Let me save you the trouble and copy/paste from wikipedia
" In economics, inflation is a persistent increase in the general price level of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services."
Please read the second sentence multiple times until it sinks in.
Go look at the CPI tables and figure it out..
http://www.bls.gov/cpi/
So then make up your mind.
At first you said money in the bank is equal to inflation, now its your 401k?
Probably not going to get through to you as others have tried as well, but let me just ask you TWO questions.
1) Why did US sell bills and bonds with negative yields during the financial crisis? As you claim investments beat inflation but here you have positive inflation and negative returns?
"The Treasury sold $15 billion in 10- year inflation-indexed notes at a record negative yield as investors sought a hedge against rising consumer prices amid speculation the Federal Reserve will add more stimulus."
2) Why is it that almost every central planner has inflation targets and the "buttons" they push to control the markets center around inflation?
Canada:
The Bank of Canada aims to keep inflation at the 2 per cent midpoint of an inflation-control target range of 1 to 3 per cent.
US
The Federal Open Market Committee (FOMC) judges that inflation at the rate of 2 percent (as measured by the annual change in the price index for personal consumption expenditures, or PCE) is most consistent over the longer run with the Federal Reserve's mandate for price stability and maximum employment. Over time, a higher inflation rate would reduce the public's ability to make accurate longer-term economic and financial decisions. On the other hand, a lower inflation rate would be associated with an elevated probability of falling into deflation, which means prices and perhaps wages, on average, are falling--a phenomenon associated with very weak economic conditions. Having at least a small level of inflation makes it less likely that the economy will experience harmful deflation if economic conditions weaken. The FOMC implements monetary policy to help maintain an inflation rate of 2 percent over the medium term
No, i disagree with our argument. There are numerous examples of hyperinflation throughout history which can outline why.
US CPI for 2013 = 1.5%
Bank of america money market savings account rates 0.03% - 0.07% (depeding on how much you have in your account).
So while you are 0.07% better off not keeping your money under the mattress it certainly is not growing at the rate of inflation.
Seriously, your money goes up to $105 if the fed increases the supply 5%?
Are you sure your 100 is not reduced 5% due to supply/demand curves, etc?
We use polymer notes here as well (Canada). Even the lowest bill ($5) is moving from paper to plastic ;)
Exactly!
Many times here you read about how China only holds a small portion of the national debt. What those "oh, China doesn't rule the US as they only have a small part of our national debt" people forget is that any devaluation also hurts those who do hold the "large portion of the National debt". I believe the largest holder is the US Social Security System.
"Social Security Trust Fund, which represented $2.7 trillion in 2011"