Topic: Higher Inflation Is Here to Stay for Years - page 3. (Read 746 times)

Not really, the middle class is the one that is the most affected by inflation, I am not saying that those with low income are not affected, they are, but not on the same level as the middle class, the rich are not that affected because a great deal of their wealth is not on cash but in assets that can create a hedge against inflation and in many instances they benefit from it, those with low income are not as affected as they did not had that much money to begin with, but the middle class is the one that losses the most as they are indebted and have most of their equity on their homes which they lose because of the higher interest rates while also losing their savings as the inflation destroy their purchasing power.

I agree, not doing anything won't solve the problem but instead will cause the problem to get bigger to the point that a collapse or long-term fix is the only choices for the government to deal with the hyperinflation.

"An asset needs to have a value that doesn't go down drastically in the long term to be used as a store of value."  If that's your criteria, there's no possibly way you can view bitcoin as a better store of value than the dollar.  The dollar depreciates very slowly and rather predictably.  Bitcoin depreciates very rapidly and without any predictability whatsoever.  There's no possible comparison between bitcoin and the USD in terms of what is a better store of value, it's unequivocally the USD.

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.

If there was a plan, it had to be started way back before the pandemic blew up. It's only now that the Biden administration started planing out something like bringing the jobs back to US. They did have plans for infrastructures now, it's almost too late, carrying that plan out will be a race against time. US have not built a train for years while a train is essential to building a country, in fact, they united east to west by building their first railroad. If they didn't stop innovating just like the Chinese, the devastation isn't this big.

Agriculture should solve almost anything but the drought is adding to the effect of the pandemic. They've adjusted the stimulus to $600 but this will change the way of life.

Low income people have more to do with inflation because they are more affected than this that is why inflation is called the silent killer of the economy. Even if the income does not increase it is also called compulsory tax as it costs more money to buy the same product than before it is inappropriate to impose taxes that are not represented. Inflation is a big obstacle for monetary policy keeping inflation in check could force the economy to withdraw support which could push the economy back into recession.

Inflation in the United States may cause a global economic crisis, but rainbows often appear after storms. As the epidemic continues to develop, Bitcoin’s position will be consolidated. When people panic and worry, I think this is also a great historical opportunity. Heroes often appear in troubled times. Hold the Bitcoin in your hand. Don't wait for the storm to return to calm, but you have nothing to do with the arrival of the digital world.

Well I guess it's now official if the Wall Street Journal said it.  Lol. 

Not that I doubt what they're saying in the least, because I and many others on this forum have been expecting a ramp-up in inflation for quite some time now.  We all knew there were going to be consequences for the money printers going brrrrr, all the unemployment assistance, the stimulus checks, the out-of-control spending, etc.  There's no way we weren't going to see chronic inflation.  And who's going to be the real victims of all this?  Our kids and grandkids.  I don't need the WSJ to tell me that they're fucked and are going to have to clean up the mess made by the politicians of this generation.

My advice?  Get out of cash and into some investments or at least something that hedges against inflation.  I'm not sure if precious metals are worth looking into, but bitcoin is certainly an option--even with its notorious volatility.  With all the institutional buying that's been going on, and the price being relatively stable despite its drop from the ATH, I'd bet it's poised to go much higher than it's at right now.  Spend that cash you have, and save only enough to get you through an emergency.  Any excess cash should be converted to other things IMO.

But that is because most of that money went to the markets and did not went to actually buy goods and services, this is why the inflation has not shown its ugly head yet but it will, this is very similar to what happened to Germany during WWI, the German government printed a lot of money and the price of goods went down even with the huge scarcity they had and this was because people were keeping their money under their beds, but when the war ended and they wanted to spend that money and it entered the economy the price of everything went up and something similar could happen here.

You do realize that even if higher inflation exists, the "real" prices of general goods are actually going down or is the same for the consumers, which means that the long term affect of high inflation is actually neutral? Pre pandemic, we had  a low inflation (the good inflation) which was actually more than perfect. Right now we have a high inflation which is mainly due to the spending for economic reliefs such as stimulus and equivalents which has somewhat increased the money supply. This should just be a short term effect.

Yeah, the same bullshit excuse, it's because of the things the US does, the evil US, not because of the morons in charge
If the US was that evil why was Venezuela selling them oil till 2019 and never stopped doing so before the US said no?
If the US was so bad why was the national petroleum company of Venezuela owning refineries and gas stations (CitGo) in the US all the time?


Mexico has oil, Russia has oil, Nigeria has oil, Brazil has oil! I don't see people flocking there to live in those countries.
On the other side, we in Europe have barely any oil, yet...


Of course they will do better because socialism means ruin and poverty for everyone immediately after you run out of the money you have confiscated. Just how many times must this happen over and over to finally understand there is no way to have a rich and socialist country.
Do you know a rich socialist country? And no, Denmark is not socialist, nor is any of the Scandinavian countries!


Back in 1990 two of those African countries were above Romania and Bulgaria, while others were just 2-3 times poorer, now they are 10x, if you're going to tell me colonization has left that deep scars 40 years after independence then...how did others manage to do it?
https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?end=1970&locations=GH-NG-BW-KE-GA-KR&start=1960
Just slide it to current days 

I believe the reason why those nations do not get proper improvement is the fact that USA ends up doing covert coup all the time. They could literally just say "pick this guy or you will starve to death" in a secret way, like just do it, and then they could end up with the one that will do the best for them.

Venezuela is a very very oil rich nation, why do you think they are facing all these troubles when all the other oil rich nations have amazing power? Simply because they have/had president that doesn't want to bow down to USA and that's it, that is the whole reason why they are doing worse right now. Put a person who loves capitalism and USA, suddenly they will do better. So, what you have to ask yourself in their situation is this; should I let USA take over the control and live a better life? Or should have my independence and starve to death? Most of the times, not a tough question to answer.

What country do you live in? you might find some data that circulates on the internet that includes information about your country's inflation rate. If you don't believe the stat that has been provided, you can always look for a better source on the web that can give you a satisfying answer that might give you close and accurate details. But the truth whether they've released that it's only 3%, 4%, or 5%. Inflation is there to stay and it will increase no matter what the situation gets you in your country. It's a good decision that you've chosen bitcoin to beat inflation but there are also other investments that have the same purpose as bitcoin.

It would subside if governments stopped printing money but they do not so and as such it is going to continue, also it can end in two ways, the first one is already mentioned above and that is the best case scenario, the other path is that governments keep printing money and the hyperinflation keeps growing to the point their currency becomes useless and people decide to use a foreign currency or the government needs to create a new currency and do things right by not printing their currency like there is not tomorrow.

There's truth in that.
Official numbers, be it level of employment or inflation, is quite often below reality.

The monetary system of government and central policy design has an immense effect which has birth inflation since the inception of money/fiat system as means of exchange.
It has been neglected for so long which I think even if they plan to provide a solution, it may lead to collapsed as I don't think FED can go without printing of $$ to survive the economy. We all see that during the pandemic when Trump fingers were showering money through pandemic release.
The last brrr has affect a common commodity you find out today. My question now is, what's the solution to cure this problem?

The problem is with the way they calculate inflation. They don't usually give a sector-wise breakup of inflation. So obviously some of the assets that are less prone to inflation (electronics, foodgrains.etc) are grouped together with assets that are prone to inflation (such as crude oil, fruits/vegetables.etc). On top of that, real estate, bullion.etc are also added in, and in times of difficult economic conditions these assets will have a negative inflation. So in general, the inflation remains at 4% or 5%, eventhough groceries and other essentials may have gone up by >20%.

Actually I can't believe inflation data that provided by government of my country. In my country, if I am not wrong the inflation is not 2% but 3% and even experts said that the inflation is 5% few years ago. I didn't check the inflation update yet but I hope the percentage is decrease. Inflation is my biggest reason to invest in bitcoin and other cryptocurrencies, I just want to safe my wealth. For me inflation is little bit like a silent killer.

save bitcoin and sell it when the bullrun occurs, I think it can avoid the inflation that is happening right now, but if we let it go I think it's still profitable. we can see in the last 10 years, the value of bitcoin is free from inflation, although high fluctuations exist in the nature of bitcoin. but if most countries accept it, I don't think the fluctuation is as big as it is now

I slightly disagree. An asset needs to have a value that doesn't go down drastically in the long term to be used as a store of value. If the value goes up in the long-term, then it is not an issue. And I don't think that stability and predictability needs to be there. If that is the case, then even gold can't be termed as a store of value. Because during the 2011-16 period, gold prices went down by 40%. If you talk about US treasury bonds, then in fiat terms the value is stable. But the returns are only around 1.1%-1.2% per year, while the current inflation rate is in the 5%-6% range.