Tuesday, July 21, 2009

Inflation is Comming - BIG TIME!

About 20 years ago while in College, I came up with a formula for Inflation and my professor thought it was really good and very interesting and here it is....

Delta Inflation is equal to Delta M3 divided by Delta GNP.

Or in other words to simplfy the above formula....A change in Inflation is equal to the change of amount of money in circulation divided by the change in the gross national product.

This goes along with the classical definition of Inflation..... "Too much money chasing too few goods." Notice that there are really only two components to Inflation....Money and goods.

The pied piper of washington is going to ruin this country with run-away inflation because of his spending plans. When ever there is a deficit, there are three ways for the government to get the money to pay for it...

1. Taxes - He wants to just raise the taxes on the rich...but the truly rich have their money protected! Also raising taxes can often lead to less revenue because of the "Laffer Curve." http://en.wikipedia.org/wiki/Laffer_curve
UPDATE: 7-29-09 Actually the correct way to use taxes for the government to have more money to pay for it's spending is to lower taxes since this creates more profit for companies because people will then spend it and hence more taxes and more revenue.

2. Borrow - Borrowing money just makes more unemployment because it means less money for the private sector.

3. Inflation - Put more money in circulation - which has the effect of taxing all of us, rich and poor, because the price of everything goes up, (or more correctly the value of our money goes down.)

Value or Cost is equal to Demand over Supply.

Welfare Health Care ( Also known as Oboma Care ) will raise the cost of health care beyond belief.

Lets say that there are 100,000 doctors in this country and 70,000,000 people in the health care system. Now, all of the sudden we add 30,000,000 more people into the system with the same number of Doctors.... Value or Cost will be More demand over the same supply....

Volia - Much higher costs. Perhaps even double or more. It amazes me how Oboma doesn't acknowledge this very important fact. Either he doesn't understand or know it, or he is being dishonest to suit his goal of the "end justify's the means", meaning as long as everyone has health care, it doesn't matter the cost to the taxpayers, as long as they think they are getting taken care of.

This President will go down in history as the worst President we ever had because he will destroy our health care and our economy and even perhaps our freedom.

There you have it...math to prove my points. Of course proof is subjective. Proof is only what a person belives to be true, not what is true. Hence the same facts presented to a Jury, and often half of the Jury will see it 180 degrees from the other half.

2 Comments:

At 1:18 AM, Blogger M. Rigmaiden said...

Thanks for sharing this FAR. Common sense coupled to an understanding of mathematics tells us that we are in an untenable economy.

 
At 3:55 PM, Blogger Free Agency Rules said...

Thanks Disa for stopping by. I try to always share whenever I can. :)

And I always value your comments.

 

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