Paying down the national debt is not deflationary. If the government buys back issued bonds then the same amount of currency is in circulation. The feds control inflation by buying and selling treasury securities and the government isn't directing the feds to do that.
Here's what's really going on: Biden can't keep raising government spending because that will cause more inflation. Interest rates on bonds are so high because of inflation that the government can't keep paying them without causing more inflation to pay them off. Biden has to pay down debt now or we may see runaway inflation.
Sorry but that is also not deflationary. What you describe will slow the rate of inflation but not cause it to go negative. To be pedantic, deflation means that goods in the CPI are getting cheaper because the supply of money shrinks.
When someone says an action is “deflationary” in a hyper-inflationary environment they don’t necessarily mean the overall rate will go negative, just that the rate of inflation will decrease.
Just like if you are on a mountain top, the action of getting pushed off the summit is de-elevating, even if you haven’t dropped below the Earth’s surface.
In plain language, when someone says 'deflation' they are saying that goods are getting cheaper and existing debts are getting more expensive. The definition doesn't change if the economy is in a poor state, it always means the same thing.
Inflation is described as a rate of change. For example, another rate of change is the speed in a car. If you are decelerating, you are bringing the speed of your car toward 0. If your acceleration is negative, you are going in reverse. They have two very different meanings.
That's just not right. If I'm traveling at a steady 100 kph and hit the brakes, my acceleration is negative. Acceleration is just the rate of change of velocity--the slope of line describing how my velocity changes over time. If I'm stopped, shift into reverse, and hit the gas then my acceleration is still positive because my velocity is increasing (just in the "negative direction" relative to where I started). If my velocity is increasing, my acceleration is positive. If my velocity is decreasing, my acceleration is negative. It doesn't matter what direction I'm going.
So friction doesn’t slow down an accelerating car? You wouldn’t call friction a decelerating force? I think we are talking past each other here and you aren’t able to break this policy’s effect away from the general environment.
In a heavily deflationary environment, if a leader was to increase the money supply suddenly (but not enough for full inflation, just reduction of the deflation) - would you agree this leader’s policy was inflationary?
Why are you being so tedious about this? My general point was correct and everyone understood what I meant
I would assume Biden is talking about reducing new debts (lowering spending) in addition to paying back old debts (of which 33% are foreign held and won’t cause money to circulate in American markets)
Paying down the national debt is not deflationary. If the government buys back issued bonds then the same amount of currency is in circulation. The feds control inflation by buying and selling treasury securities and the government isn't directing the feds to do that.
Here's what's really going on: Biden can't keep raising government spending because that will cause more inflation. Interest rates on bonds are so high because of inflation that the government can't keep paying them without causing more inflation to pay them off. Biden has to pay down debt now or we may see runaway inflation.
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Sorry but that is also not deflationary. What you describe will slow the rate of inflation but not cause it to go negative. To be pedantic, deflation means that goods in the CPI are getting cheaper because the supply of money shrinks.
When someone says an action is “deflationary” in a hyper-inflationary environment they don’t necessarily mean the overall rate will go negative, just that the rate of inflation will decrease.
Just like if you are on a mountain top, the action of getting pushed off the summit is de-elevating, even if you haven’t dropped below the Earth’s surface.
In plain language, when someone says 'deflation' they are saying that goods are getting cheaper and existing debts are getting more expensive. The definition doesn't change if the economy is in a poor state, it always means the same thing.
The act is deflationary, that doesn’t mean it changes the entire economy to be deflationary
Inflation is described as a rate of change. For example, another rate of change is the speed in a car. If you are decelerating, you are bringing the speed of your car toward 0. If your acceleration is negative, you are going in reverse. They have two very different meanings.
That's just not right. If I'm traveling at a steady 100 kph and hit the brakes, my acceleration is negative. Acceleration is just the rate of change of velocity--the slope of line describing how my velocity changes over time. If I'm stopped, shift into reverse, and hit the gas then my acceleration is still positive because my velocity is increasing (just in the "negative direction" relative to where I started). If my velocity is increasing, my acceleration is positive. If my velocity is decreasing, my acceleration is negative. It doesn't matter what direction I'm going.
You're correct, the rate of change of speed is velocity and not acceleration.
Velocity is the rate of change of position.
So friction doesn’t slow down an accelerating car? You wouldn’t call friction a decelerating force? I think we are talking past each other here and you aren’t able to break this policy’s effect away from the general environment.
In a heavily deflationary environment, if a leader was to increase the money supply suddenly (but not enough for full inflation, just reduction of the deflation) - would you agree this leader’s policy was inflationary?
Why are you being so tedious about this? My general point was correct and everyone understood what I meant
I would assume Biden is talking about reducing new debts (lowering spending) in addition to paying back old debts (of which 33% are foreign held and won’t cause money to circulate in American markets)