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Ba1k3es

Ba1k3es
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  • The Deteriorating Fiscal Situation In Japan [View article]
    Do you pay taxes from money saved ten years ago? No. You pay taxes on money you earned THIS year. You are confused, or you haven't payed taxes in a while.

    How many people have spent with no savings? It happens everyday. But sales taxes are, in the scope of things, unimportant to the discussion.
    Jan 18 04:58 PM | Likes Like |Link to Comment
  • The Anti-Scientific Foundation Of Macroeconomics [View article]
    "Bank reserves can enter the economy through rehypathocation. This can change Mb, Mmzm, M1, and M2 which in tern can impact CPI. Between 2008 and 2013 M2 increased by about 3.5 TUSD. A very large portion of that was because of bank reserves increasing. If velocity and GDP had remained constant, this would have resulted in significant inflation. However because both velocity and GDP were declining, prices only changed slightly."

    Velocity is only calculated after the fact. If there is no resultant Nominal GDP change, then by definition velocity will decline. According to you this should trigger increasing QE. But then this just becomes a positive feedback loop, which increasing QE decreases velocity.
    Jan 18 04:45 PM | 1 Like Like |Link to Comment
  • Why We Are Not OK And Not On A Sustainable Trajectory [View article]
    In societies, are economies a means to an end or are they an end in themselves?
    Jan 18 04:38 PM | Likes Like |Link to Comment
  • The Anti-Scientific Foundation Of Macroeconomics [View article]
    "This is probably related to the demand for money. As demand for money declines but the volume increases, one might reasonably conclude that velocity would decline."

    Demand for money should, by definition, put downward pressure on velocity. I wasn't sure if you were saying that here.

    Also velocity should have the units currency/time.

    I apologize I have tried to follow your example, but I am not sure what conclusion is being reached.

    Simple question, do you think money in bank reserves has direct changes to CPI or GDP? Asked another way, if tomorrow the Fed 100 trillion in bank reserves (via QE) will there be a spike in GDP or CPI tomorrow?
    Jan 18 12:53 AM | Likes Like |Link to Comment
  • The Deteriorating Fiscal Situation In Japan [View article]
    Why try being blunt and beating-around-the-bush about it. Anecdotal evidence proves nothing. This isn't difficult, just look at the direct data. http://bit.ly/1axl0kQ

    Your comment is like saying "The Lakers have the best record in basketball, as proven by these videos of Pau Gasol dunking the basketball." Instead of simply just looking at the standings.

    The chart of the actual data I provided, and these quotes from your article:
    "has made Tokyo apartments cheaper this year" and "Tokyo real estate has become a bargain," say it all. I do not think you understand what deflation is.

    "...because real estate developers just LOVE to jump into deflationary RE markets, right?" Please look up some logical fallacies.

    Stop digging your own hole. I am just trying to help. I am not sure why you have such a personal attachment to your initial statement, I sure don't care about which direction prices in Tokyo have been moving, just which direction it is.

    Edit:
    Here is another chart, focusing on the most recent decade.
    http://bit.ly/1hA4eqi
    Jan 18 12:01 AM | Likes Like |Link to Comment
  • The Deteriorating Fiscal Situation In Japan [View article]
    I provided links in a comment (below) showing real estate in Japan has been in deflation since the 90s. If your had some actual reading comprehension you would have noticed my comment referred to Japanese market.

    However, the link I provided just above also shows that Tokyo itself has been in deflation since the 90s. I do not know why you would "still be waiting" when I had already provided this link, or why you would "still be waiting" despite having never asked for this information before.

    I found this information in about 35 seconds by googling the phrases "Real Estate Japan" and "Real Estate Tokyo" and clicking on images.
    Jan 17 10:46 PM | 1 Like Like |Link to Comment
  • The Deteriorating Fiscal Situation In Japan [View article]
    I watched your video link, did you? The video reports about the creation of tiny apartments and people living in them. It says absolutely nothing about increasing prices. Again the data shows you are wrong.
    Jan 17 10:35 PM | Likes Like |Link to Comment
  • The Deteriorating Fiscal Situation In Japan [View article]
    Well the data shows otherwise. I haven't even seen you present data showing the the real estate in Tokyo is even rising significantly.

    Edit: googled it.
    http://bit.ly/1axl0kQ
    You are wrong about Tokyo also. I guess ignorance is bliss.
    Jan 17 10:12 PM | Likes Like |Link to Comment
  • The Deteriorating Fiscal Situation In Japan [View article]
    Japanese real estate prices are not inflating any significant amount if any. Google "Real Estate Japan" and go to images, there are dozens and dozens of chart showing the same thing, the Japanese real estate market has been in DEFLATION since the 90s.
    Jan 17 09:36 PM | Likes Like |Link to Comment
  • The Deteriorating Fiscal Situation In Japan [View article]
    Here is a chart of inflation-adjusted Japanese real-estate I found on the first google image search.

    http://bit.ly/1dD6ePh

    Here is another, not sure if it inflation adjusted.
    http://bit.ly/1dD6fCX

    The data is in complete disagreement with you.
    Jan 17 09:28 PM | Likes Like |Link to Comment
  • The Deteriorating Fiscal Situation In Japan [View article]
    Maybe I missed that chart. Where is the one showing Japanese real-estate inflation?
    Jan 17 09:22 PM | Likes Like |Link to Comment
  • The Deteriorating Fiscal Situation In Japan [View article]
    Tax revenue does not coming from savings. Maybe you are confused how taxes work?

    Taxes in most cases come from spending or income, not savings.

    Why not just look at the direct chart... you know the one showing tax revenue over the last few decades, instead of some obtuse way?
    Jan 17 09:21 PM | Likes Like |Link to Comment
  • Why We Are Not OK And Not On A Sustainable Trajectory [View article]
    It isn't about income or wealth when trying to figure out who affects the economy the most, it is the spending. Wealth and income may in most cases equal more spending, but they don't have to.
    Jan 17 09:10 PM | Likes Like |Link to Comment
  • The Anti-Scientific Foundation Of Macroeconomics [View article]
    If the the Fed reserve increased the QE policy to infinity, then this will drive M to infinity thus driving V to infinity (because QE money cannot end up in the general economy to affect GDP unless banks chose to lend). So then by your what your telling me, the next step would be to increase QE infinitely more because V is now zero. Doesn't seem like the right approach to me.

    As an aside I think QE is useful for driving down interests rates, and the Fed was right in using it. Unfortunately it is the Fed's most powerful tool against deflation at the zero-bound, but it really isn't all that powerful. Fiscal policy holds the more powerful tools for that situation.
    Jan 17 07:29 PM | 1 Like Like |Link to Comment
  • The Deteriorating Fiscal Situation In Japan [View article]
    If Japan is your guide, then I do not see how you conclude more and more taxes. Chart 3 shows constant tax revenue since 1990, so the data on Japan does not agree.
    Jan 17 09:35 AM | Likes Like |Link to Comment
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