Porteroso said:
whiterock said:
J.R. said:
whiterock said:
J.R. said:
What the hell is Trump thinking? He has no freaking business telling the Intel CEO to resign, Telling Coke what type of sweetener to use. Now this gem! Telling the Goldman Sach CEO (who is worldly expected) to fire their chief economist because Trumps did not like his assertion that Trumps tariffs would impact the consumer. ***? Mr. Soloman should tell Trumps to go eff himself. When does this authority insanity stop. This is no free market capitalism. Trump is just horrible.
Now he is calling for the CEO of Goldman to resign. What a loon. I'd say 90% Goldman Bankers, PE and traders are way smarter than fat boy.
https://www.cnbc.com/2025/08/12/trump-solomon-goldman-sachs-economist-tariffs.html
LOL here's the part you missed - any economist who tells you tariffs cause inflation is not worth keeping on the payroll. Inflation is caused when the supply of money exceeds the supply of goods. Please explain how tariffs create an increase in the supply of money
Price increases caused by supply/demand forces are NOT inflation.
Geez.....
you are incorrect. You are obviously not a business person.(I don't mean cube jockey) Yeah, you got a better handle on it than Goldman Sachs. You are a fool and over your head on the subject matter.
Dude. Words mean things. Inflation has a definition in Econ 101 textbooks. Increases in prices according the supply/demand curve are NOT inflation. Inflation is when the growth of money exceeds the growth of production. And those guys at Goldman know it.
Were you an English Lit major or something?
You were a B.S. major obviously.
https://www.clevelandfed.org/center-for-inflation-research/inflation-101
https://sunrisebanks.com/stories/econ-101-what-is-inflation/
https://www.exploring-economics.org/en/discover/inflation/
https://www.nu.edu/podcast/business-and-marketing/understanding-inflation-a-view-of-the-economic-landscape/
https://www.academia.edu/34518580/Inflation
I can teach it to you, but I cannot understand it for you. I will try one more time:
https://www.cambridge.org/core/books/abs/theories-of-inflation/inflation-definition-and-measurement/0D8864A09F06FA3B44B3AF1126C1E3FFKey concept at that link -
"...it is not a one-time or short-run increase in the general price level. Similarly, one cannot label as inflation price increases during the recovery phase of the business cycle that are rescinded through price reductions during the recession. Only when price increases are irreversible can one speak of inflation without qualification."In other words, rising prices alone do not equal inflation, because prices ALSO fluctuate in response to supply/demand pressures.
https://www.britannica.com/money/inflation-economicThe key phrase at that link -
"...too much money, chasing too few goods..." If you bother to attend Econ101 class, that is what the professors will say, what the textbooks will say =
too much money chasing too few goods." I have run the textbook example here before - in an economy with a money supply of 100 and a widget supply of 10, the cost of widgets is 10 each. But if government doubles the money supply to 200 but the widget supply remains unchanged at 10, the cost of widgets is 20 each. Inflation
It's so simple. Even a college freshman can understand it. What it is NOT is a situation where a shortage of raw materials causes a price increase. That is supply/demand pressure. Over time, competition and innovation work to reduce demand. And in the interval, people who have to pay more for, say, steel will cut back on spending elsewhere. But while one sector may see price increases, others don't = markets doing what markets do. Fluctuating. What interrupts the fluctuation and causes large, sustained upward price pressure is......
too much money chasing too few goods. Yes, there is upward pressure on prices when an economy expands (demand tends to exceed supply) but there is also downward pressure on prices when an economy contracts (supply exceeds demand). That is, over the long term market FLUCTUATION. And the Fed uses monetary policy to attenuate it, limit the delta, to prevent big swings. Long-term structural increase in the money supply is caused by the financing of government deficit spending = printing money to pay bills. When government does that....it infuses cash into the economy. It is economically stimulative. (think Keynesian theory, which purposely advocates fiscal poslicy to do such). The GDP equation is instructive: GDP = C + I + G + T. The private sector (C & I) shrinks by a small amount, then govt can offset by ramping up G drastically (short-term), thereby offsetting the decline in C & I. Problem is, govt has to scale back the deficit spending when the economy recovers. All too often, that doesn't happen. So you have chronic federal deficits. If those deficits are below the rate of economic growth and/or inflation, then the financial ratios do not deteriorate (can actually improve). But if they exceed growth/inflation, the financial ratios deteriorate. That is where we are now.
Do you see the difference between monetary policy and fiscal policy?
Do you want to understand market cause/effect relationships, or just complain in ignorance?