Our Benevolent Leader...JT is going to pick up the Tab:)

[Gilroy]

this could back and forth round and round she goes.

Point being.
The boys in blue are outsmarted at least half the time, by gutter rats and those that more often than not dont get through high school. The other half of the time, the justice system lets you down. Your free to feel otherwise, I might point out just how much money gets spent, and how many highly educated people trying to best them, win a few and losing

R. Well true to some extend but the majority of my repeat customers are already pushing up daises, stabbed in the pen, thrown of a balcony in the pen, suicide, overdose, murdered, run over ,shot by the police, shot by criminals....

Boiler Room.
I remember that, and Emanual Jacques vividly. In part because I was spending way too much time there as well, and wasnt much older. Also recall our discussion about her, which is specifically why I mentioned her.

R. Yeh strange World Emmanuel Jacques (shoe shine boy) brutally murdered by those three and the Portuguese community in Toronto up in arm's about the death could not believe what happened to one of their own. Fast forward a few years and the same community up in arm's about Carlos Terceira being charged for killing her in the boiler room and not believing the police.
Re Credit.
Money makes the world go around. So does credit. If and when it ever dried up, our economy would grind to a halt.....Oh, wait sec, we today are just getting the smallest taste of it...Think about it T. Average Canadian debt these days is 170% of income.....Thats a very big boat, a very big boat of spending. Your paycheck, your lifestyle, everything.....Since around I dont know when it took off but lets say the 80s.

next topic.
inflation: What causes it, and subsequently who?????

Well I assume your going to tell me about bank's and figures on paper that is allowed to be counted as real money. LOL

Does the bank really have us covered by CDIC or it it true they can actually only cover 3% of all deposits.

[JBen]

Honestly T. I doubt they could cover 3% of deposit. Would depend on the snowball I guess. There are regulations about reserves. And capital requirements. Will say it’s not something any of us want to entertain. Even a moderate run on deposits would be nightmarish.

Let alone people selling off investments and hoping to get their cash out. Way to broad a “topic”. Was a time I would borrow billions in equity ( common stock) from the major banks. So I could cover the billions I shorted. Then use the cash from from the short sales, to buy US Treasuries. Which I would use as collateral, with the bank I borrowed billions in dollars worth of

Your equity

Inflation.
What causes it?

[JBen]

I should maybe add that’s why German authorities seized our company. Won’t get into what they claimed with respect to taxation of dividends and moving $$ around the world.

They “feared” that with the back taxes they wanted. The German depositors would get screwed. When they seized Frankfurt operations, I couldnt get collateral back, flow it through the Germany ( they’d seize those US treasuries for depositors) which meant in essence I couldn’t buy back the stock I shorted, which meant the bank that lent me the stock....

Round and round and round and round the world she goes....

[JBen]

I see this morning you can’t be troubled to consider how inflation factors into it all. Too often. In all the hundreds of threads discussions seem to treat each issue as one off.


Maybe I can help start. Then think about the last 30-40years.

3 causes.
Demand>supply. Think RE

Cost>push: think high oil prices increasing downstream prices or simply Carbon Taxes.

Your loving buddies printing money. What was our debt ( personal and govt) say in 1985.


If the Central Bank prints more money, you would expect to see a rise in inflation. This is because the money supply plays an important role in determining prices. If there is more money chasing the same amount of goods, then prices will rise. Hyperinflation is usually caused by an extreme increase in the money supply. However, in exceptional circumstances – such as liquidity trap/recession, like 2008, it is possible to increase the money supply without causing inflation. This is because, in recession, an increase in the money supply may just be saved, e.g. banks don’t increase lending but just keep more bank reserves.

You can chirp all you like about people living beyond their means. Or corporate greed and stagnant wages. I’ll agree with most.

It’s not that simple Gilroy, not remotely. And the people paying the prices. Are the ones you Lefties ( wink) claim to care about

[Gilroy]

We I hate to say it but the lefties on this forum appear more to be like Conservatives. Prudent and frugal, went to work in the some place day after day for 30 years, planned ahead, and kept the original wife, in my case the original wife and van. LOL

[JBen]

lol touche.

Another cause of inflation?
labour Unions ( think Ontario)

Potential costs of trade unions
~Trade unions can push wages above the equilibrium. Therefore fewer people are employed by the firm – this leads to a loss of earnings to those outside the trade unions.
~Time lost due to strike action.
~Trade unions bargaining for higher wages can cause cost-push inflation. In the 1970s, union activity was responsible for some of the cost-push inflation of that period. Though unions were also trying to protect wages against the higher inflation.
~Trade unions can increase incomes of union members, but this is only a limited approach to reducing inequality. Lowest income groups are often unemployed or not employed in a union job.

Potential benefits of trade unions
~Trade unions can provide counter-balance to monopsony – increasing wages and employment for their members.
~Trade unions can provide greater coordination between firms and employers, e.g. introducing productivity deals.
~Trade unions can develop co-operation between workers and firms.
~Trade unions can represent workers in disputes over health and safety and disciplinary matters.
~Trade unions can increase wages – which leads to increased spending in the economy.

It depends on the quality of the relationship – is it antagonistic or mutually beneficial?

[fishermccann]

Thank a union member for, overtime, 40 work week, vacations, lunch and coffee breaks. Need I say more. In some states it is still ‘Norma Jean’ time. Everyone loves Sally for that piece of work. 3rd world working conditions, in the heartland of America.

[JBen]

So basically all the stuff in the 2nd half. Convenient of you to completely ignore the first paragraph. Lol...

Back to "JT picking up the tab"
few things as mentioned, why is it and you can pick a topic, things are considered very narrowly. As in
Unions good

Ok, fine Gord. Unions have caused wages to go up and done all those other things. Lets ignore the affects of inflation. Lets also ignore, those extra wages result in increased cost of goods and services. Companies either jack the prices of cars, or "JT" jacks taxes, or goes further into debt ( printing money). See things that cause inflation.

Now as it pertains to the middle class, you would be one of the first to argue "stagnant wages and corporate greed". Whether stats can or economist are measuring "stagnant wages" what are the three words that always follow?

adjusted for inflation.


Yes, lets thank Unions. I won't even get into their self serving, care about themselves only aspects.
It's not rocket science. Though sometimes you need to think things through to see how they are all inter-connected.

Governments printing money, or going into debt picking up tabs.
Obvious effect is taxes. Obviously, very obviously, since you never seem to think things before making the damndest comments. Increased taxation, on top of stagnant wages, results in what exactly?

Consumers having less buying power ( or ability save) pound for pound, ergego less ability to grow GDP.

Debt to GDP

[Gilroy]

JBEN,

Your a pretty smart guy so let's just talk Unions and a little walk down memory lane.

A union guy back in the day was making a pretty good buck, a guy on the line made the same as a COP and maybe more with overtime. He could buy that little bungalow in Oshawa and everything was rosy.

Except suddenly Globalization came along, the Union guy was to expensive and folk's were getting sick of paying $50,000.00
for a pick up truck, so screw you guys were are off to sunny Mexico, where we can pay $2.50hr and no health benefits.

Fast forward 20 years and they have been down there producing pick up's and cars for next to nothing and now you paying $70,000 for a pick up truck.

So JBEN where does the spread go, the average Joe up hear never got a break on his truck price, where did all the saved money end up. Share holders and CEO salary I suspect and also not to mention a tax friendly climate for the company.

[JBen]

One reason why I go back to the 60s/70s, single incomes and what not. What occurred not long after?
Cost push inflation (think oil)??
Investing in the markets and need for stock appreciation, dividends and thus profits/corporate greed? Your Pension?
PET and really the start of our debt problems? See "govts printing money"
Early 80s, inflation and mortgages rates in the teens?
And as consumers, start finding there's fewer bucks in their pockets, and life getting more and more "unfordable" what starts being used more?

As for "globalization". Or even Free trade.
Like your Pension Gilroy? Without profits, your bills arent getting paid.
And yes, I am somewhat on the fence about it.

back to JT, Covid, the need, yes need ( arguements aside about good/bad debt, or 240b being swept under the rug) to incur eye bulging amounts of additional debt.

In order to keep Canadians that live pay check to pay check and smaller companies afloat. And GDP......
Sometimes seem to me, few really wonder why in the first place.
/points to oh so many "discussions" since around 2006