I don't really understand economics...

[Towncryr]

It is not something that I am particularly interested in but I have been trying to follow along as my move to Buenos Aires is set for September.

So I have a few questions that I would like some help with. If someone could explain I would be very grateful. Remember, this is not my strong point so simple terms and examples would be appreciated.

1. Everyone agrees that Argentina is heading into a recession correct? Normally don't prices of items go DOWN in a recession? Why is it that Argentina prices are going up?

2. I realize that the worst part about a recession in unemployment.. which i think leads to increase in crime... but what else should one expect during a recession?

3. If the value of the peso continues to decrease. I realize that this is bad for Argentina as a whole but... is it negative for those who make their money in dollars/euros? It seems to me that this would be a positive for increasing tourism... Is that not true? why?


Thanks in advance, I am going on faith that there is no such thing as a dumb question!

1. Everyone agrees that Argentina is heading into a recession correct? Normally don't prices of items go DOWN in a recession? Why is it that Argentina prices are going up?

There are two types of recession/depression. One is inflationary (too much fiat paper currency (notice I did NOT say 'money') issued by the countries Central Bank (backed by sovereign bonds and fed by taxes for ROI). Example, Germany in the 20's & Zimbabwe last decade. What Argentina and most of the world going through now and even MORE in the future until the entire fraudulent system goes down.

The other type is a deflationary depression/recession. That is what happened in the U.S. in the 30's. This is a DECREASE in circulating fiat, bogus currency and because of the lack of currency prices have to go down. This is what TPTB (the powers that be) scare the most. They are trying to do everything possible to avoid this type this time.

If you are going to start learning about economics you need to know there are two major schools. One is the one the entire world is under and the reason we are seeing all these problems. That is called Keynesian. John Maynard Keynes. Read about him. Never was anything but a flunkie UNTILL Versailles after WWI. Keyes ENTIRE scheme is backed by "government deficit spending" which means printing money backed by bonds backed by the people's taxes.

The second type, FAR MORE REALISTIC AND GROUNDED, is called The Austrian School of economics founded by Von Mises. It is reality based and free market driven, you know the old "supply & demand" standards. ALL markets today are manipulated, we have very few free markets in the world with the possible exception of the sex trade.

If you would like to learn more visit www.lewrockwell.com on a regular basis. Based in Auburn, Alabama LR.com is the main site for connecting with The Austrian School in the U.S.

Hope that helps. EVERYBODY will start being interested in economics as their Ox gets gored......

What we CALL 'money' is NOT MONEY AT ALL! IT IS DEBT! DEBT CAN NOT BE 'MONEY' BY IT'S VERY NATURE! Tip, start reading and studying about the Federal Reserve A PRIVATE CENTRAL BANK not 'public'. EVERY Central Bank n the world is run on the same model... It is through the ability to issue fiat paper currency (NOT MONEY but CURRENCY) that they control business, markets, politicians and governments.....

Worth the time and study..... Henry Ford and Edison BOTH stated publically that the financial system was the MOST IMPORTANT subject any man can study......

For what it's worth.....

TC

 

[KarlaBA]

There are two types of recession/depression. One is inflationary (too much fiat paper currency (notice I did NOT say 'money') issued by the countries Central Bank (backed by sovereign bonds and fed by taxes for ROI). Example, Germany in the 20's & Zimbabwe last decade. What Argentina and most of the world going through now and even MORE in the future until the entire fraudulent system goes down.

The other type is a deflationary depression/recession. That is what happened in the U.S. in the 30's. This is a DECREASE in circulating fiat, bogus currency and because of the lack of currency prices have to go down. This is what TPTB (the powers that be) scare the most. They are trying to do everything possible to avoid this type this time.

If you are going to start learning about economics you need to know there are two major schools. One is the one the entire world is under and the reason we are seeing all these problems. That is called Keynesian. John Maynard Keynes. Read about him. Never was anything but a flunkie UNTILL Versailles after WWI. Keyes ENTIRE scheme is backed by "government deficit spending" which means printing money backed by bonds backed by the people's taxes.

The second type, FAR MORE REALISTIC AND GROUNDED, is called The Austrian School of economics founded by Von Mises. It is reality based and free market driven, you know the old "supply & demand" standards. ALL markets today are manipulated, we have very few free markets in the world with the possible exception of the sex trade.

If you would like to learn more visit www.lewrockwell.com on a regular basis. Based in Auburn, Alabama LR.com is the main site for connecting with The Austrian School in the U.S.

Hope that helps. EVERYBODY will start being interested in economics as their Ox gets gored......

What we CALL 'money' is NOT MONEY AT ALL! IT IS DEBT! DEBT CAN NOT BE 'MONEY' BY IT'S VERY NATURE! Tip, start reading and studying about the Federal Reserve A PRIVATE CENTRAL BANK not 'public'. EVERY Central Bank n the world is run on the same model... It is through the ability to issue fiat paper currency (NOT MONEY but CURRENCY) that they control business, markets, politicians and governments.....

Worth the time and study..... Henry Ford and Edison BOTH stated publically that the financial system was the MOST IMPORTANT subject any man can study......

For what it's worth.....

It's not worth much. All this sounds good, but unfortunately it is nonsense. That being said, most of the widely held views about economics are nonsense so this is no surprise. As it seems you care about this type of topic, please investigate some heterodox economic schools of thought; in particular Modern Monetary Theory. http://www.moslereconomics.com/wp-content/pdfs/MMT-Scott-Fullwiler.pdf

 

[redrum]

It's not worth much. All this sounds good, but unfortunately it is nonsense.

i can assure you that it is not nonsense. the world needs to be educated on the fact that keynesian economics is junk economics and is used in large part for the benefit of a small majority via the exploitation of the masses.

also i don't understand where you state in your post that towncryr should investigate heterodox economics when the austrian school is heterodox.

 

[KarlaBA]

i can assure you that it is not nonsense. the world needs to be educated on the fact that keynesian economics is junk economics and is used in large part for the benefit of a small majority via the exploitation of the masses.

also i don't understand where you state in your post that towncryr should investigate heterodox economics when the austrian school is heterodox.

I do appreciate the efforts to rid the world of Keynesian economics (as it was practiced in the mid 20th century), however, you are attempting to replace it with an even more nonsensical theory (Austrian - Von Hayek - Mises). And this babble theory which you are promoting is in fact fairly mainstream; many governments have tried it, many economists promote it, many universities teach it, and many uninformed fools promote it. The very foundations and assumptions this theory sets itself up on are nonsense. Though I do understand the simplistic intuitive appeal of it. I have studied this theory a lot and it is dead wrong. A far more realistic approach is the one i mentioned earlier: MMT. You might look at some post-Keynesian work as well, particularly Steve Keen from Australia.

 

[camberiu]

And this babble theory which you are promoting is in fact fairly mainstream; many governments have tried it, many economists promote it, many universities teach it, and many uninformed fools promote it. The very foundations and assumptions this theory sets itself up on are nonsense.

I laughed out loud at this one. Please do let us know which government tried Austrian Economics. Also, please let us know which mainstream economist promotes it. Also, please let me know which mainstream university teaches it. Thanks.

 

[KarlaBA]

I laughed out loud at this one. Please do let us know which government tried Austrian Economics. Also, please let us know which mainstream economist promotes it. Also, please let me know which mainstream university teaches it. Thanks.

This statement shows how little you know about the very nonsense you peddle.

 

[camberiu]

This statement shows how little you know about the very nonsense you peddle.

Oh please enlighten me then. Please oh please wise one.

 

[redrum]

I do appreciate the efforts to rid the world of Keynesian economics (as it was practiced in the mid 20th century), however, you are attempting to replace it with an even more nonsensical theory (Austrian - Von Hayek - Mises). And this babble theory which you are promoting is in fact fairly mainstream; many governments have tried it, many economists promote it, many universities teach it, and many uninformed fools promote it. The very foundations and assumptions this theory sets itself up on are nonsense. Though I do understand the simplistic intuitive appeal of it. I have studied this theory a lot and it is dead wrong. A far more realistic approach is the one i mentioned earlier: MMT. You might look at some post-Keynesian work as well, particularly Steve Keen from Australia.

austrian economics fairly mainstream? hmm would that be on the planet of mars perhaps?

well, since you seem to be only person in the world to have studied economic theory, perhaps you can educate the rest of us "uninformed fools" by shedding a bit more light onto why the austrian school is even "more nonsensical" than keynesian theory.

and please don't just post a link to some paper. please state in your own words, without the use of too many big words, on why you feel it is just "babble theory". i'd really like to know.

 

[surfing]

"Now is the time on Sprockets when we dance"

 

[redrum]

"Now is the time on Sprockets when we dance"

http://www.youtube.com/watch?v=QHZR9SA5pOg