Higher Inflation Is Here to Stay for Years

Kadal Ijo

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Quote from: MIldic1c on August 19, 2021, 01:27:30 AM

Quote from: countryfree on July 15, 2021, 05:10:24 PM

I've said it for a long time, but this time, I'm not making this up. It's from the WSJ.

[Suspicious link removed]j.com/articles/higher-inflation-is-here-to-stay-for-years-economists-forecast-11626008400

BTC holders shall not worry.

According to the recent basic situation, the pandemic virus is the main reason, and the United States is still a long way from a complete recovery. In terms of inflation, in general, the current epidemic is still spreading, and the supply side is also affected. Although I think there will be particularly high sustained inflation, the overall inflation center may rise in the next two years.

The pandemic has really made the world chaotic, there must be a right solution to overcome the pandemic, in my country the budget for health has increased by more than 10% and many budgets from other fields have to stop, even many companies have stopped because people's purchasing power is very low.

Sithara007

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Quote from: rodskee on August 19, 2021, 01:01:37 AM

While i use to think about this since the Lock down from 2020 , yet not i am considering changing my mind because the reaction of the world specially my country seems like changing the course from Pandemic to now economic meaning we are recovering and making the best for the betterment of the situation.
maybe in the next next 2022 we will be having the best result after the whole world be vaccinated and ended this damn pandemic Corona Virus.

I am not sure whether 2022 will be virus free. 4 months remain in this year, and only 24% of the population is fully vaccinated. Herd immunity requires 70% to 85% of the total population to be fully vaccinated, and as you can see, we are a long way behind this target. And I don't think that the gap can be covered in the remaining 4 months of this year. And there are talks about a third booster shot, to take care of the delta variant. This will further slow down the vaccination program, especially in the third world.

MIldic1c

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Quote from: countryfree on July 15, 2021, 05:10:24 PM

I've said it for a long time, but this time, I'm not making this up. It's from the WSJ.

[Suspicious link removed]j.com/articles/higher-inflation-is-here-to-stay-for-years-economists-forecast-11626008400

BTC holders shall not worry.

According to the recent basic situation, the pandemic virus is the main reason, and the United States is still a long way from a complete recovery. In terms of inflation, in general, the current epidemic is still spreading, and the supply side is also affected. Although I think there will be particularly high sustained inflation, the overall inflation center may rise in the next two years.

rodskee

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Quote from: countryfree on July 15, 2021, 05:10:24 PM

I've said it for a long time, but this time, I'm not making this up. It's from the WSJ.

https://www.wsj.com/articles/higher-inflation-is-here-to-stay-for-years-economists-forecast-11626008400

BTC holders shall not worry.

While i use to think about this since the Lock down from 2020 , yet not i am considering changing my mind because the reaction of the world specially my country seems like changing the course from Pandemic to now economic meaning we are recovering and making the best for the betterment of the situation.
maybe in the next next 2022 we will be having the best result after the whole world be vaccinated and ended this damn pandemic Corona Virus.

Sithara007

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Quote from: bitcub on August 18, 2021, 09:57:20 AM

Indeed, a higher number of notes printed means higher BTC lols.

Higher number of banknotes being printed obviously means lower purchasing power for that particular currency. It will result in higher inflation rate, and commodities and assets with limited supply will witness their prices increasing. For example, the crude oil prices have increased by almost 80% since the beginning of this year. Natural gas prices have gone up by 4 times. Even gold prices are showing an increasing trend. And I believe this was one of the reasons why BTC made such a rapid recovery.

sana54210

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Quote from: countryfree on July 15, 2021, 05:10:24 PM

I've said it for a long time, but this time, I'm not making this up. It's from the WSJ.

https://www.wsj.com/articles/higher-inflation-is-here-to-stay-for-years-economists-forecast-11626008400

BTC holders shall not worry.

Higher inflation is not the cause of a problem, it is the result of the problem itself. We could have very very little inflation if the money we have in the world was used properly, a tiny bit of increase is healthy because it creates a demand to grow bigger, but these super high ones are a big problem because of what we are doing with the money.

Think about it, do you really believe that Zimbabwe and Venezuela has a problem because they have high inflation, or do they have a big problem already that just has side effect of having high inflation along with it? They are corrupted and problematic places that runs everything horribly including economy and this caused high inflation, but many believe high inflation caused the problems which is false. So if we could use the money we have in every nations economy, we could have a proper inflation to go along with it.

inoes

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United Crowd

If a country called America can experience inflation, let alone a small country. When it comes to inflation, this cannot be separated from the role of the government. The government can suppress inflation by reducing spending, so that the demand for goods and services decreases which in turn can lower prices. and preferably during a pandemic like this, it can be maximized to empower local companies, that's even better.
although in the end the government will increase the tax rate. and the people will be burdened burdened by taxes. Huh

bitcub

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Indeed, a higher number of notes printed means higher BTC lols.

Quote from: countryfree on July 15, 2021, 05:10:24 PM

I've said it for a long time, but this time, I'm not making this up. It's from the WSJ.

https://www.wsj.com/articles/higher-inflation-is-here-to-stay-for-years-economists-forecast-11626008400

BTC holders shall not worry.

so98nn

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This scenario can change over the years, if banks go digital in full fledge. What I mean is, complete use of internet banking, Unified Payment Systems, and services like wallets etc. If this happens to be adopted by every single person in the country then we may not need cash at any place. However, this will take big infra structure, network coverage areas everywhere so that we will have online connectivity to pay the money. There is high chance of happening in the in the country like USA, because I can see big change in developing country like India that they are using UPI's at enormous rates, whether it is small hawker to big merchant everyone now has access to digital payment system.

This process will slowly discard the cash system and if "Printing Money" is associated with inflation, then this will get over if we go digital all the way.

Sithara007

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Quote from: semobo on August 17, 2021, 02:08:39 AM

But the printing bill power is in the hands of FED so they decide how much bills printed every year, if they want they can limit the supply but they won't. Actually banks are individual body if I am not wrong so they are not supposed to be a puppet for the leaders action.

So you are saying that the FED has the power to turn down the request from government to print more banknotes? I really suspect that it works in real life scenarios. Theoretically the Federal Reserve is supposed to be an autonomous body, but I really don't think that they have the power to over-rule government demands. And the current chairperson of the Federal Reserve (Jerome Powell), although a Republican has avoided confrontation with the Biden admin and enjoys bipartisan support.

breathlessz

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Quote from: semobo on August 17, 2021, 02:08:39 AM

Quote from: bryant.coleman on August 17, 2021, 02:03:04 AM

Quote from: semobo on August 17, 2021, 12:59:28 AM

Inflation will never stop increasing until the banks stop printing the papers, accumulating bitcoin is a way to save yourself from the inflation trap but bitcoin is not actually created to avoid inflation at all. But inflation can be only stopped with the change in government policies and increase the cash flow in their economy instead of taking money from poor people as tax and give it to the rich people.

Why blame the banks? They are just following the orders from the government. In recent times, the government attitudes have changed. Many of the governments are trying to win electoral support by distributing freebies. And this requires huge amounts of cash. The tax rates are already high, and they can't be increased further. So the only option left is to print more and more banknotes. For the common people it means that their purchasing power goes down in the near future. But their only focus is on the temporary gains.

But the printing bill power is in the hands of FED so they decide how much bills printed every year, if they want they can limit the supply but they won't. Actually banks are individual body if I am not wrong so they are not supposed to be a puppet for the leaders action.

right, bank operations are still controlled by the government, and banks must comply with government regulations, therefore they cannot act alone and must comply with regulations. maybe this is a consideration from the government which until now has not been able to legalize crypto, because the government is more difficult to control it

semobo

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Quote from: bryant.coleman on August 17, 2021, 02:03:04 AM

Quote from: semobo on August 17, 2021, 12:59:28 AM

Inflation will never stop increasing until the banks stop printing the papers, accumulating bitcoin is a way to save yourself from the inflation trap but bitcoin is not actually created to avoid inflation at all. But inflation can be only stopped with the change in government policies and increase the cash flow in their economy instead of taking money from poor people as tax and give it to the rich people.

Why blame the banks? They are just following the orders from the government. In recent times, the government attitudes have changed. Many of the governments are trying to win electoral support by distributing freebies. And this requires huge amounts of cash. The tax rates are already high, and they can't be increased further. So the only option left is to print more and more banknotes. For the common people it means that their purchasing power goes down in the near future. But their only focus is on the temporary gains.

But the printing bill power is in the hands of FED so they decide how much bills printed every year, if they want they can limit the supply but they won't. Actually banks are individual body if I am not wrong so they are not supposed to be a puppet for the leaders action.

bryant.coleman

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Quote from: semobo on August 17, 2021, 12:59:28 AM

Inflation will never stop increasing until the banks stop printing the papers, accumulating bitcoin is a way to save yourself from the inflation trap but bitcoin is not actually created to avoid inflation at all. But inflation can be only stopped with the change in government policies and increase the cash flow in their economy instead of taking money from poor people as tax and give it to the rich people.

Why blame the banks? They are just following the orders from the government. In recent times, the government attitudes have changed. Many of the governments are trying to win electoral support by distributing freebies. And this requires huge amounts of cash. The tax rates are already high, and they can't be increased further. So the only option left is to print more and more banknotes. For the common people it means that their purchasing power goes down in the near future. But their only focus is on the temporary gains.

semobo

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Quote from: Hughes_Ryan on August 16, 2021, 05:19:38 PM

For developing and poor countries, inflation will kill everyone's future there. It puts people under extreme pressure to go to a dead end. Inflation indirectly increases the rate of theft and social evils. What is condemnable is that it happened before covid and now everything is just natural process, Hyperinflation will be the flame that burns after covid 19
This increases the odds of bitcoin will hitting an ATH over $100k this year. It is not an unwarranted prediction. Just accumulate bitcoins and erase inflation

Inflation will never stop increasing until the banks stop printing the papers, accumulating bitcoin is a way to save yourself from the inflation trap but bitcoin is not actually created to avoid inflation at all. But inflation can be only stopped with the change in government policies and increase the cash flow in their economy instead of taking money from poor people as tax and give it to the rich people.

Sithara007

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Quote from: Gyfts on August 13, 2021, 03:15:27 PM

It might be true that the stimulus checks helped out a lot of drug addicts but drug addiction in the US has been rising. Not sure if it's something in the water or what the deal is that Americans can't lay off the meth and oxycodone, but I'd make the guess that the poor economic situation and readily available drug dealers on their local corners would be the major contributing factors.

Just watch, once USD starts to collapse, you'll find more and more will turn to drugs when the economic situation turns even more dire than it is. Inflation is not supposed to be the "new normal", but some bureaucrats at the national banking institutions will tell you otherwise.

Prescription opioids are destroying the rural communities. Pharma giants are making tens of billions every year from it, while huge number of mostly young people die from drug overdose. In addition to prescription opioids, now they have synthetic drugs such as fentanyl and xylazine. On the other hand, the urban areas have witnessed a decline in drug addition (mostly heroin/cocaine), partly as a result of the unavailability of these drugs. But the negative here is that synthetic drugs like fentanyl are much more likely to cause overdose deaths, when compared to drugs like heroin.

Hughes_Ryan

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For developing and poor countries, inflation will kill everyone's future there. It puts people under extreme pressure to go to a dead end. Inflation indirectly increases the rate of theft and social evils. What is condemnable is that it happened before covid and now everything is just natural process, Hyperinflation will be the flame that burns after covid 19
This increases the odds of bitcoin will hitting an ATH over $100k this year. It is not an unwarranted prediction. Just accumulate bitcoins and erase inflation

Silberman

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Quote from: Fortify on August 13, 2021, 03:00:58 PM

Quote from: countryfree on July 15, 2021, 05:10:24 PM

I've said it for a long time, but this time, I'm not making this up. It's from the WSJ.

https://www.wsj.com/articles/higher-inflation-is-here-to-stay-for-years-economists-forecast-11626008400

BTC holders shall not worry.

When money is cheap everyone tries to borrow as much as they can and invest it in assets that they think will appreciate faster than inflation. It's worth remembering though that pretty much every crisis in history has appeared out of nowhere and taken pretty much everyone by surprise. Just look at Covid - Bitcoin fell as much as the stock market in the early days. Inflation is bad news for everyone really, because it will ultimately cause an affordability issue for everyone who owns a mortgage (see: the majority) and will eventually lead on to a recession if ongoing inflation rises turns out to be true into the future. Let's hope supply chains settle down and Covid does not cause too much instability or even crypto holders will not be safe.

It is true that some crises come out of nowhere and the coronavirus pandemic is one example of that, this is why they call them black swans, however not every single crises is like that, for example the crisis that happened in 2007 that put the financial system at risk all over the world was something that people have been predicting for at least a decade, however those at the top of the financial system and the governments choose to not listen to them, why? Because it was more comfortable and they believed the control they had over the economy was simply too strong.

Gyfts

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Quote from: Sithara007 on August 04, 2021, 11:00:39 PM

The impact of stimulus measures is already visible in the US economy.

https://www.ama-assn.org/system/files/2020-12/issue-brief-increases-in-opioid-related-overdose.pdf

The number of annual deaths from drug overdose is now >90,000, after remaining somewhat stable at around 60,000 for the past many years. The reason is that a lot of people used the stimulus cheques to purchase drugs. The conclusion here is that stimulus measures have left money in the hands of people who don't really need it. And in such a situation it is only a matter of time before the inflation levels jump higher.

It might be true that the stimulus checks helped out a lot of drug addicts but drug addiction in the US has been rising. Not sure if it's something in the water or what the deal is that Americans can't lay off the meth and oxycodone, but I'd make the guess that the poor economic situation and readily available drug dealers on their local corners would be the major contributing factors.

Just watch, once USD starts to collapse, you'll find more and more will turn to drugs when the economic situation turns even more dire than it is. Inflation is not supposed to be the "new normal", but some bureaucrats at the national banking institutions will tell you otherwise.

Fortify

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Quote from: countryfree on July 15, 2021, 05:10:24 PM

I've said it for a long time, but this time, I'm not making this up. It's from the WSJ.

https://www.wsj.com/articles/higher-inflation-is-here-to-stay-for-years-economists-forecast-11626008400

BTC holders shall not worry.

When money is cheap everyone tries to borrow as much as they can and invest it in assets that they think will appreciate faster than inflation. It's worth remembering though that pretty much every crisis in history has appeared out of nowhere and taken pretty much everyone by surprise. Just look at Covid - Bitcoin fell as much as the stock market in the early days. Inflation is bad news for everyone really, because it will ultimately cause an affordability issue for everyone who owns a mortgage (see: the majority) and will eventually lead on to a recession if ongoing inflation rises turns out to be true into the future. Let's hope supply chains settle down and Covid does not cause too much instability or even crypto holders will not be safe.

Silberman

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Quote from: Sithara007 on August 10, 2021, 10:10:20 PM

Quote from: Silberman on August 10, 2021, 04:03:07 PM

They just made assumption that people were going to take care of their needs instead of their wants with the money they were given, an expectation that is completely out of place as it is obvious that there is a lot of people that are unable to control themselves and will spend that money in whatever they wanted, so it would have been better to not give that money directly the way they did, also I do not really think that the US government cares that other countries are using their currency as legal tender or as a store of value and if anything they are taking advantage of that fact.

In an ideal world, the government expects the citizens to behave in a responsible manner. It is best to provide the support in the form of legal tender, because then it is easier for the people to take care of their needs. For example, if you provide food stamps it may be useless for people who don't have cash with them to purchase medicines. So ideally, support should be given in the form of cash. But the startling fact that an addition of 30,000+ overdose deaths have been reported makes me rethink. Perhaps the ordinary citizens are not capable of spending money in a responsible manner.

Well you said it best, this will be the best possible option in an ideal world, unfortunately we do not live in an ideal world and while there is a big segment of the population that is able to use their money responsibly there is a lot of evidence that shows that there is also a very significant group of people that are unable to do so, and what's worse this latter group is the one that needs the most help precisely because they do not know how to administer their own money.

Topic: Higher Inflation Is Here to Stay for Years (Read 746 times)