Topic: Higher Inflation Is Here to Stay for Years - page 2. (Read 678 times)

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.

Agreed. The government should have provided the aid in the form of food stamps, or they could have created a mechanism where the landlords would receive the due rent from the authorities. Giving hard cash as handouts has never worked anywhere in the world. It encourages all sort of unwanted behavior, in addition to increasing the inflation rate. And in the US, the government needs to be very carful. Because the US Dollar is one of the few fiat currencies that are used as legal tender by multiple countries.

While it is true that a lot of people receive money that they did not needed at the same time we cannot really say that those people that used the money to buy drugs did not actually needed that money, they just decided to use that money to buy drugs instead of using it to pay rent, which shows why it is such a bad idea to give money away in such fashion, it would have been better for the government to use that money to buy food and to give it directly to people that needed it.

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.

Bitcoin must be a great asset to fight against hyper inflation. The simple difference of bitcoin from our fiat helped that to become possible. If bitcoin was designed with unlimited supply then probably you cannot depend on bitcoin to fight against inflation (then bitcoin and fiats may not have big differences as well ). Higher inflation is to stay with us for years as incoming days food production may diminish and economic revolutions may not happen due to lack of innovation and shortage of manpower and many other similar reasons but governments may not stop printing money whenever they need.

The best thing you can do with bitcoins is store them so you can protect yourself from inflation. Even though bitcoin is volatile, if it is withdrawn over a longer period of time (logarithmic chart), the value of bitcoin has remained or even increased drastically in the last 10 years.

This actually is pretty true and quite obvious. The amount of fiscal deficits that have been created by governments around the world in the past two years is honestly much more than what was created in years before that which means it would actually take a lot of time for the economy to adjust itself according to this deficit, also covid even until now doesn't look like it's ending which means in some countries there might still be some lockdowns leading to even more fiscal deficits and then the same cycle could continue even further for a longer time frame. But I am sure with an increase in inflation the interest rates would rise too and therefore investing in traditional markets would be profitable. But yes Bitcoin holders will obviously be at an edge.

This actually is pretty true and quite obvious. The amount of fiscal deficits that have been created by governments around the world in the past two years is honestly much more than what was created in years before that which means it would actually take a lot of time for the economy to adjust itself according to this deficit, also covid even until now doesn't look like it's ending which means in some countries there might still be some lockdowns leading to even more fiscal deficits and then the same cycle could continue even further for a longer time frame. But I am sure with an increase in inflation the interest rates would rise too and therefore investing in traditional markets would be profitable. But yes Bitcoin holders will obviously be at an edge.

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.

And how is something that regularly drops 10% in a single day a hedge against inflation of a currency that has an annual inflation rate of 2-3%?  The USD will never have periods where it devalues anywhere near the drops that bitcoin has on a regular basis.  The point of a hedge against inflation is the the volatility is less, not more.

You don't know what you're talking about in your title OP, it's going to eventually subside, it's just that at this point we just can't see it so we think that there's no end to it. There's a lot of hyperinflation throughout history and all of them seem to subside in time and the country that was affected did recovered from the damage.

Isn't it funny how people are worried about inflation now?

It's almost like they have selective amnesia. If they hear inflation fears from bitcoiners (and they have, for 10 years), then they automatically deem us the radicals who are just spewing garbage to fulfill agendas. Whilst if they hear from mainstream media, they panic and start raising their inflationary expectations too.

Anyway, the period of deflation/low inflation is transient and now that is gone. This inflationary period is naturally reflective of the Fed and other central banks' wild policies during the pandemic. I don't know why anyone should be surprised.

BTC is still a great hedge against this, nothing has changed on that front.

This comes to no surprise since the pandemic has hit and is still hitting a lot of the world' economy and by result the finical system, and the only possible solution to immediately solve the problem is to print more money, and i am pretty sure that  this going to go on for a couple of years, so the best solution for us is to keep our trust in bitcoin to be our savoir against this inflation

Isn't it funny how people are worried about inflation now?

It's almost like they have selective amnesia. If they hear inflation fears from bitcoiners (and they have, for 10 years), then they automatically deem us the radicals who are just spewing garbage to fulfill agendas. Whilst if they hear from mainstream media, they panic and start raising their inflationary expectations too.

Anyway, the period of deflation/low inflation is transient and now that is gone. This inflationary period is naturally reflective of the Fed and other central banks' wild policies during the pandemic. I don't know why anyone should be surprised.

BTC is still a great hedge against this, nothing has changed on that front.

Isn't it funny how people are worried about inflation now?

It's almost like they have selective amnesia. If they hear inflation fears from bitcoiners (and they have, for 10 years), then they automatically deem us the radicals who are just spewing garbage to fulfill agendas. Whilst if they hear from mainstream media, they panic and start raising their inflationary expectations too.

Anyway, the period of deflation/low inflation is transient and now that is gone. This inflationary period is naturally reflective of the Fed and other central banks' wild policies during the pandemic. I don't know why anyone should be surprised.

BTC is still a great hedge against this, nothing has changed on that front.

The pandemic has caused so many challenges that almost every country in the world faced unprepared. Almost everyone has not anticipated the huge effect a pandemic may bring. Hence, it was such a difficult struggle for the majority, particularly to the developing and third world countries to cope up with the negative impact of the virus on the country's state and to its economy. Inflation is really expected to happen because the safety protocols and measures imposed were a disadvantage to the economic aspect of the country. The lockdowns, social distancing protocols in every place, travel restrictions, the closing of businesses, and job losses contributed a large percentage to the inflation rise after several years. The debt of the country made it even worse because they can hardly pay on time resulting in higher interest rates.

However, despite the negative effects of the pandemic crisis such as higher inflation, it won't last permanently. The higher inflation rate is just temporary - a repercussion of the actions done in response to the pandemic which can later be lowered the moment the economy will bounce back once again. It's just that the burden to the less fortunate ones will be a little heavier compared to those who belong to the upper bracket of the society given that the former barely have the means to survive and the latter are privileged enough to buy all the things they need without breaking their pockets.