An easy way to overcome inflation - page 2.

KingsDen

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Quote from: tvplus006 on August 15, 2022, 12:20:12 PM

Quote from: DashingAgent on August 15, 2022, 12:07:12 PM

Inflation exists just because of the secondary currency, if all US states eliminate their secondary currency and make the dollar their base currency, it can help control inflation. Because when the dollar is a base currency the devaluation can be bypassed(just because after that, if a European country wants to do business with you, then it has to buy dollars.). The wages can be increased and businesses can be grown fast.

If there is no inflation, then there will be deflation, the consequences of which are considered much worse for the economy. It is for this reason that the national bank lays down a small percentage of inflation in order to prevent deflation.

There can be a balance between them, where there is neither inflation nor deflation. That is what every economy crave for. When there are human oriented policies that are economically enforceable, it can be partially achieved.

@Op, every state using dollar as base currency is not the problem. Since US dollar is the world reserved currency, there ought to be no inflation at all in the States, but that's not the reality. So, every country is technically on the inflation lane.

Mr.right85

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Quote from: el kaka22 on August 15, 2022, 04:15:40 PM

Think about a world where there is a finite amount of dollars and nothing more, never can be printed ever,

The foresight to the creation of a finite number of bitcoins. This is some of the reasons that attests to why bitcoin isn't just a currency to be used for exchange but, it looks towards solving some of the issues of humanity in ways that it would benefit both the common man and the elite.
It's finite nature has given its evolving phase a volatility ratio with time to ensure proper validation of its base to ensure its able to accommodate the worlds population.

Speaking of having the dollar for a base currency in nations undergoing inflation, its always down to printing although, dollar adoption might help but this is most likely never going to be the case of a global dollar adoption but, we could come close to this in bitcoin.

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Quote from: el kaka22 on August 15, 2022, 04:15:40 PM

That's not how it works at all. Inflation happens because you print more money, that's it, there is really nothing else. If you do not print more money then you won't have inflation.

Think about a world where there is a finite amount of dollars and nothing more, never can be printed ever, then if people start to sell stuff for a lot more money, then eventually some will have a lot and many will have none but that won't work for the people who have a lot neither because the ones who have none will not play by their rules anymore, hence they have to eventually sell to redo it all over again, but if they print some more, then they can give it to people who have none again and take it from them again and repeat that forever.

Good way on describing it which is really that on point or the easy way on knowing about inflation.Lets not mind on how it would be stopped since it wont really happen no matter what.Government would definitely be

doing things on which they do look right or must thing to be done.As an individual and if you are really that heavily affected with inflation then it would really be just common sense that you would really be

finding other ways for you to earn more income and able to make yourself sustain this very hard moment and this would be only the solution that i do have in mind or overall
on making yourself to sustain despite of the inflation.

el kaka22

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That's not how it works at all. Inflation happens because you print more money, that's it, there is really nothing else. If you do not print more money then you won't have inflation.

Think about a world where there is a finite amount of dollars and nothing more, never can be printed ever, then if people start to sell stuff for a lot more money, then eventually some will have a lot and many will have none but that won't work for the people who have a lot neither because the ones who have none will not play by their rules anymore, hence they have to eventually sell to redo it all over again, but if they print some more, then they can give it to people who have none again and take it from them again and repeat that forever.

jossiel

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One contribution on this huge inflation rate was due to the effect of the pandemic. It has resulted to print a lot of new money in the circulation and that's why we've got the high inflation rate.

Plus, the effects of war also is contributing a lot.

Every single way of defeating inflation will depend on how the governments going to take actions. And as an individual, we also have way of defeating it based on how we deal with it.

DashingAgent

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You are right, but inflation is making people poorer and reducing their purchasing power. While banks are getting richer than people. If people's incomes are increased more than inflation, the effect may be to keep the economy in balance.

Quote from: DashingAgent on August 15, 2022, 12:07:12 PM

Inflation exists just because of the secondary currency, if all US states eliminate their secondary currency and make the dollar their base currency, it can help control inflation. Because when the dollar is a base currency the devaluation can be bypassed(just because after that, if a European country wants to do business with you, then it has to buy dollars.). The wages can be increased and businesses can be grown fast.

If there is no inflation, then there will be deflation, the consequences of which are considered much worse for the economy. It is for this reason that the national bank lays down a small percentage of inflation in order to prevent deflation.

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