Inflation expected as high as 4% in Apr in USA - page 2.

bryant.coleman

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Quote from: zanezane on June 15, 2021, 08:25:21 AM

Isn't storing precious metals expensive? In my country, when you buy a gold or something in the realm, the store or banks keep them for safekeeping and you are forced to pay for safekeeping. But you are right that fiat is much worse to be stored compared to other alternatives. Also, the 4 percent is a normal number for inflation and in fact some economists are saying that the number 4 is the perfect number in terms of inflation.

You can go for gold ETF, which can be stored using a demat account. I have invested in various gold ETFs for the last 15 years, and never faced any difficulty with them. They can be purchased and sold with relative ease, unlike the case with physical gold. But obviously you need to go for the most trusted issuers and even then there is a very small chance that the fund may be confiscated or the issuer may go bankrupt. So you need to decide whether you want to go for physical gold (and the risks related to it), or to go for paper gold (with another set of risks associated with it).

zanezane

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Quote from: yhiaali3 on June 15, 2021, 03:34:20 AM

Indeed, storing bitcoin and precious metals would be a much better option than storing fiat, fiat loses its value over time and with the growth of inflation and its purchasing value becomes almost non-existent, so the best option is to buy bitcoin and precious metals and keep them not only as a store of value but also in order to multiply investments and profits because their value increases With time unlike Fiat.

Isn't storing precious metals expensive? In my country, when you buy a gold or something in the realm, the store or banks keep them for safekeeping and you are forced to pay for safekeeping. But you are right that fiat is much worse to be stored compared to other alternatives. Also, the 4 percent is a normal number for inflation and in fact some economists are saying that the number 4 is the perfect number in terms of inflation.

crwth

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Isn't it always have been 4%? Usually, it's 7%, but with all the fees and tax, right? If many people have a lot of extra money to have, they would probably invest in something else, which could be to buy more cryptocurrency. Not affect the only Bitcoin but everything to put the economy back in its rightful place.

Vishnu.Reang

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Quote from: Leviathan.007 on June 15, 2021, 04:22:21 AM

Not sure how they did this 4 percent prediction, because I expect it even much more than this. As I can see, the inflation rate is rising each year and government tries promises to control it and they will usually try to decrease the rate by unfortunately using federal reserve dollars and printing too much money to increase the funds while they will make a bigger mistake by providing too much money supply which can be the reason for decreasing the value of dollar against gold and other assets.

I guess it takes some time to get reflected in the market. The influx of fiat money during 2020-21 is something unparalleled. The M1 money supply increased by more than $5 trillion during this period in the United States, and by similar amounts in the other countries. Such a huge increase in monetary supply is unheard of, and has never happened in the past. Once the pandemic is contained and the economic growth resumes, the inflation rate is just going to explode. I won't be surprised even if it gets to 20% or more.

ven7net

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Quote from: paxmao on June 14, 2021, 07:02:29 PM

This is the figure for April, yet still quite a figure to be dealt with for those who live on salaries, that tend to go after the inflation, and great news for those who have a mortgage or own money, since they are on the winning side for now - until interest rates catch up.

How is this going to affect bitcoin? If we make an analogy with commodities and particularly those used on the industrial processes, it will have a lift effect in price, sometimes much higher that what could normally be for other assets. I think is a good moment to stockpile bitcoin, copper... even tin, although is a bit expensive already.

To understand what will happen and what to do, you need to know exactly what is happening and why it is happening. In the US, inflation will reach 4%, even if this is so, and I think that everything is much worse there, then you need to understand why this happened. The US dollar as a global reserve currency has outlived its usefulness, it is also called the international financial system, so inflation is the depreciation of money, but did anyone doubt that there would be no inflation when printing trillions of dollars? Yes, there are those who believe in eternal dollars, but unfortunately everything is not as we are told, but everything is much worse. Is there a solution? Probably, this solution exists for the United States itself, this is Bitcoin and other cryptocurrencies. But how all this will happen and where in the end all this will lead, we will very soon be able to see. But we can already say for sure that inflation in the United States is a signal for the decline of the dollar as an international reserve system.

Leviathan.007

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Not sure how they did this 4 percent prediction, because I expect it even much more than this. As I can see, the inflation rate is rising each year and government tries promises to control it and they will usually try to decrease the rate by unfortunately using federal reserve dollars and printing too much money to increase the funds while they will make a bigger mistake by providing too much money supply which can be the reason for decreasing the value of dollar against gold and other assets.

yhiaali3

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Indeed, storing bitcoin and precious metals would be a much better option than storing fiat, fiat loses its value over time and with the growth of inflation and its purchasing value becomes almost non-existent, so the best option is to buy bitcoin and precious metals and keep them not only as a store of value but also in order to multiply investments and profits because their value increases With time unlike Fiat.

NeuroticFish

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Quote from: Kittygalore on June 15, 2021, 01:52:17 AM

They aren't used to it because it slowly adjusts a little each year so it's not that noticeable plus if people are noticing it then it can induce panic and unnecessary anxiety.

In my country inflation came under 10% only ~16 years ago and now 2-4% is normal. And these are the official numbers, I believe that the reality is a tad worse.

Quote from: Kittygalore on June 15, 2021, 01:52:17 AM

Raw materials get expensive because production is getting smaller or limited.

That's what I wanted to point out. Yes, the production and transportation got more expensive, especially since that ship was stuck for a while in the Suez channel.

Kittygalore

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Quote from: NeuroticFish on June 15, 2021, 01:28:02 AM

Yeah, US citizens are no longer used with inflation. Well, things will change now.
On the other hand, I've heard somewhere that various materials for industries (including steel and construction materials too) have become more expensive worldwide lately (start of spring 2021).

They aren't used to it because it slowly adjusts a little each year so it's not that noticeable plus if people are noticing it then it can induce panic and unnecessary anxiety. Raw materials get expensive because production is getting smaller or limited.

NeuroticFish

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Yeah, US citizens are no longer used with inflation. Well, things will change now.
On the other hand, I've heard somewhere that various materials for industries (including steel and construction materials too) have become more expensive worldwide lately (start of spring 2021).

Poker Player

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Inflation as calculated in the CPI is one thing; actual inflation is another. If the official data show 4%, the real inflation is surely much more, which means that they cannot hide it as much as they would like to.

In theory, this is going to flow money into Bitcoin and other assets. It doesn't have to be a today-to-tomorrow thing, but in the next few months for sure.

Darker45

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Winning on the side of having a mortgage cannot make up with losing on the side of having to confront with rising prices or devalued savings. The former is but a minor consolation for a generally unpleasant situation.

Anyway, the fact alone that fiat depreciates in value over time makes Bitcoin more interesting and attractive. The higher the inflation goes, the more attractive Bitcoin becomes. Anything whose value is appreciating or remains constant is much better than fiat. So stocking up copper, tin, and so on is way much better than keeping a fiat savings account.

cabron

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Bitcoin will be a better option. Its volatility will always make money to someone who trades it. As inflation goes high every month, the savers and the ones who live on salaries will have their money but the purchasing power will decline as inflation stays. This is the reason why hedge fund managers are so bullish that they are adding Bitcoin to their balance sheets.

paxmao

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This is the figure for April, yet still quite a figure to be dealt with for those who live on salaries, that tend to go after the inflation, and great news for those who have a mortgage or own money, since they are on the winning side for now - until interest rates catch up.

How is this going to affect bitcoin? If we make an analogy with commodities and particularly those used on the industrial processes, it will have a lift effect in price, sometimes much higher that what could normally be for other assets. I think is a good moment to stockpile bitcoin, copper... even tin, although is a bit expensive already.

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