Topic: Inflation hits USA (Read 639 times)

I believe that it is necessary to keep your money in other currencies. Today I wouldn't trust the dollar. I think that it will not be long before we see completely different topics here. Of course, they will touch the dollar but in a negative way. Inflation will rise and nothing will stop it in the near future. I wouldn't take the risk and keep my savings in dollars.

I hope hyperinflation doesn't hit the US, or the world's economy will be doomed for good. After all, the US Dollar is the world's reserve currency. Anything that happens with it, will directly affect other countries' economies. It's a good thing we have Bitcoin, or else we would've been toast. I'd say Bitcoin is ten times better than Fiat, but people still haven't recognized its true benefits yet.

With inflation hitting the USA, Bitcoin should've been worth at least $75k by now. Something is not right here. I assume inflation rates will continue to grow due to the uncertain times we're living into. As long as COVID-19 and the Russia-Ukraine conflict persists, there won't be signs of a recovery anytime soon. Who knows how long the US Dollar will last? Just my opinion

Inflation is a common thing in the economy, the role of the central bank is very important to control inflation, sometimes inflation is also useful because it increases or makes production better, but for us of course this is a big problem because it will make the cost of living automatically increase.

At that time, a reduction in bank interest rates could improve the inflation rate in America and the economy gradually recovered. But if you look at it from the past until now, America always seems to be able to escape from the economic difficulties they face. The key is maybe we don't know for sure. apart from they have reliable economists, America has an influence on the world economy, as if they feel like a leader

Bitcoin is backed by nothing. I don't think he can save us in a time of high inflation. I still think the best investment is gold. No one has come up with an even more valuable material for saving money. To save money from inflation, you only need to convert part of it into bitcoins. Not the biggest part of your money. It must be money that we are not afraid to lose.

What else can I say about inflation, it is becoming our daily companion. Recently such a bad situation, in the future there will be more hard times. In that case, investment is a good idea to keep yourself safe.

@Abiky, You have given a good solution. The problem is that not everyone can take the risk of investment. New method since Bitcoin. Yet most people are later in the era of gold and silver investment and feel comfortable in it. 

Again, in many countries, it is not allowed to use Bitcoin. How will they invest with Bitcoin? 

One more thing is that Gold can depreciate at any time if there is inflation, but Bitcoin is safe here.
But on the other hand, the price of gold and silver is always the same, profit is very low and time-dependent, whereas Bitcoin offers higher ROI in a short time. So in my opinion it is important to invest but in that case, you need to take the risk to know exactly which method you want to invest in.

I think USA has what it takes to end inflation in their country because they have professional economist that helped them to recover from inflation during the pandemic. I believe the government will still apply the same thing to end this inflation that is causing hardship all over the country which is not helping their citizens to feed well in the country. USA government will not allow this inflation to last longer before they will do everything possible to eliminate inflation and embrace deflation in the land for people to live well in the country.

The trend of inflation in the USA continues to increase, the dollar is experiencing pressure with a lot of world currencies, especially Euro and Yuan, it is time for the government to make regulations that make it easy for citizens to use crypto which is proven to overcome economic problems, especially inflation.

Inflation is increasing not only in the US but it is happening all over the world and the solution that everyone is applying is to work overtime to generate more income to deal with inflation. They forgot to note that investing in bitcoin will be the solution to help them avoid future inflation because bitcoin price will always increase over time.
Bitcoin is not the only anti-inflation solution, but it can be seen that currently bitcoin is the most profitable investment so it will be the best place for us to avoid inflation.

No matter how small the hope that is in bitcoin to prevent and reduce the effects of inflation then I agree it is still better than fiat. So far, fiat has lost its price because all basic needs have gone up while income/ salary has not increased. Obviously that will only make us poorer in the long term, but sooner or later this percentage of inflation will probably be reduced and corrected.

In my opinion, inflation does not only happen in the US, because it has happened in many countries. Hyperinflation, that's probably not going to happen anytime soon.

Inflation in the US is growing at alarming rates. We can blame the politicians for letting this happen. If only salaries went up, things would've been different. But rising prices without any increase in your pay, will only make you poorer in the long term. There's only one solution to this and that is Bitcoin.

I'd suggest anyone to invest some money into Bitcoin over time in order to reduce the negative effects of inflation. Bitcoin should've been worth a lot more in terms of Fiat (USD), but for some reason it isn't. Good things only comes to those who wait so I'm in no hurry of seeing higher prices on Bitcoin anytime soon. Just my opinion

The whole world leading the USA so they can take any time any decision for that reason they can do everything at any time so we can see their democracy and we can see their development in every sector.

The USA is a large and influential country in the world that often experiences economic problems, especially inflation, of course we still remember 2009 which caused a long recession in the US economy, and what the government did to deal with inflation was a good thing, namely by lowering bank interest rates.

My wife was like fuck bitcoin and crypto coins. Broke my balls in 2012,2013,2014,2015,2016.
But in 2017 she started to come around.
Now in 2022 she and I both agreed thank god I did this and pushed at it for years.

We would have become classic seniors over the next five years.
The ones that did not plan for inflation and saw their pensions and savings shrink til lower middle class status.

With the farms setup we have a good income stream and good power costs for years to come.

Its not fuck you I am a millionaire money , but it should be equal to our pensions for years to come.

Phil yep pretty much what I was talking about.  I haven't dug into how inflation numbers are developed but like any number it can be cherry picked depending on the needed narrative.  If they quote a percentage over 10 they might see that as a psychological panic number so they might to keep it in the single digits by design.  The food from stores as you stated has gone up significantly.  The worst is the dollar store around me just changed every price to $1.25 😭.  And 5 below is now 5 below...and $10.  Now minimum wage has gone up significantly for some jobs but not everyone.  Food is where I've been hit the hardest.  Like you I haven't seen much of a change in clothes but it's getting near impossible to take my family out to dinner. 😞

well food you have to eat. so i estimate food is up 33%.

I am diabetic so I have to skip a lot of cheap foods.

Strawberries work for me. A small basket used to be 1.99 to 2.99

Now 3.99 to 5.99

Heavy cream a pint 1.99

Now 4.99

So a safe desert went from 3.98 to 8.98

Meat I eat grass fed beef. Orders shipped to me are about 220

now 280.

Frozen veg on sale 5 for a dollar each
Now 3 for 4 dollars.

Eggs 1.79-1.99 a dozen
Now 2.99-3.69 a dozen.

I do not eat bread due to diabetes but it has gone up over 25%.

Cereal you have to find sales and it is a bad food for me as a diabetic.

Pork on sale a big loin could be 99 cents a pound now 2.49 a pound.

My food bill is 50% higher.
My gasoline price went from 1.99 to 4.09 a gallon
My electric  cost in winter was 13 cents now 14.5 cents.
Summer price will come next month we will see what that is.

I lucked out on cars but the lease will end in 26 months. we will see what I get hit on that.

Clothes have been fairly okay.

Homes my house is over 500k
was under 375 k march of 2020.

My neighbor paid 365k in 2016 Just sold for over 565k in 2022

I'm skeptical with the inflation numbers.  With my naked eye prices for the everyday things I buy have gone up significantly higher.  Will be interesting to see what the fed does next month when they meet.  Expecting a 50 point raise in the interest rates to help combat inflation.  Gonna kill mortgage rates, and stymy housing price rises.  Feeling very 2007-08.  Not that we have scammy lending practices but house prices can be upside down and foreclosure surging could happen just like it did.  Watching all this closely to see how it pans out.  Either way looks like we are gonna see some hard years ahead.

If the American economy continues to decline, then I'm afraid "hyperinflation" on the US Dollar will happen faster than you could've ever imagined. This will greatly affect the global economy, since the USD is the world's reserve currency. The pandemic combined with the Russia-Ukraine crisis will inevitable lead the US (and possibly the world) towards a recession. We must accumulate as much Bitcoin and Gold as possible in order to protect ourselves from the negative effects of inflation. These are bad times we're living in, as food and gas prices rise like there's no tomorrow.

The faster we can end the pandemic (and the Russia-Ukraine conflict), the better. Who knows how the US economy will look like by the end of the year? Just my thoughts

rights, European countries will be worse off considering their oil and gas supply has stopped, so that without fuel they will be disrupted in managing production, so this hampers the wheels of the economy which causes economic decline in that country, and coupled with rising inflation which can increase people's suffering. Until now, there is no consensus that the war will end, so western countries must look for alternative oil and gas supplies

In the United States inflation and food prices skyrocketed.  Although the Fed's recent decision to raise interest rates will help ease price pressures, Russia-Ukraine tensions and an outbreak of bird flu have boosted prices of many commodities in the US.  High inflation remains the main risk to the US economy, prompting the Fed to tighten monetary policy.

I think you are right. The US is still a great country and has enough internal resources and external influence not to fly into the abyss. But it is necessary to bring a fatter sacrifice to the altar of the dollar, and apparently old Europe has been chosen as the victim. I think there will be a surge of hyperinflation* in the US and the EU, and the waves from such a big surge will pass around the world and many weak small economies will be torn to shreds. The hangover from 10+ years of continuous quantitative easing will be brutal. These are big tectonic changes in the world economic landscape and they are not sometime in the future, but right now.

*Hyperinflation - inflation above 50%, it is better to ask Zimbabwe about the upper limit.

We see the beginning of a difficult time for the USA. If today's commodity crisis continues, it will threaten not only economic shocks, but also social unrest of the people and political instability. Unfortunately it doesn't bode well. But I think that now the European countries will be even worse. Who will really feel bad is them

It's called the "Putin price hike" according to the Joe Biden White House now.

https://tradingeconomics.com/united-states/inflation-cpi

The effects of the war would have not been immediately felt, of course, but how they are able to lie about the trajectory of inflation with impunity is beyond me. Upward trajectory since Biden got elected, nearly 1.5 years of data.

USD is worthless. The U.S. apparently believed spending 6 trillion dollars to artificially stimulate the economy over a COVID infection fatality rate of .1 percent was appropriate. Of course, they will never admit they were wrong about their risk calculation, they blame Putin instead.

It is not slowing down.

US inflation climbed to 8.5% in March, highest rate since 1981


Haven't that fucking retarded dovish bitch Powell said that inflation was "transitory"? Transitory like transitioning from high to higher? Is this what he understands from this word?

The FED has 2 choices in hand:

1- Kill the markets, save the dollar
2- Kill the dollar, save the markets

They can't save both the dollar and the markets.

And I agree, any fiat system will eventually fail given enough time, politicians always think they have mastered the ability of printing all the money they want with no repercussions, and they may get away with it for a while but not forever.

And it seems we are getting close to the day in which we will have to pay the price for their excesses, fortunately not everyone has to sink with the Titanic that is the fiat system and we can use something like bitcoin to protect ourselves from the collapse.

What happens is that the financial and world culture that has been implanted in many is that the USA is a country that maintains a hegemony of being "untouchable" at an economic level, and it is clear what you are saying, but it is of total alarm that in a country like the USA tolerate inflation that reaches at least 1%, because a country so complete in every way cannot afford this type of problem, so much so that it is evident that a country that lives off its own debt accelerates the debt in other countries, and since there is a hegemony of the dollar, it is obvious that it can be made up without realizing it, but it seems that they can no longer make up much, for me the inflation rates that they show are not correct, for me they are higher those who show.

Most of the economic problems for any country is inflation, in my country inflation can be higher than economic growth, but most ministers and government always cover it, many people find it difficult to buy necessities of life because the cost of living continues to increase, what happened to USA is a very bad thing. also happens in all countries.

Inflation was predicted after the covid pandemic and the world economy needed time to recover, but the war made inflation worse.
Yes, only when the war is over can the current problem be solved. It's not just Russia and Europe that are having terrible days, it's happening around the world, prices are climbing while people's incomes are still growing insignificantly.

Inflation is a serious problem for the country because it will make the economy chaotic and of course make many people not want to try directly because they are waiting for the economic situation to get better, and the most important thing is to find the cause of inflation, and most of the time it happens because of decreased production so that it makes demand continues to rise and prices also go up.

That's the definition of inflation indeed.


This is where the system designers were wrong. It wasn't supposed to work, not forever. It worked for a while though. The reason it worked because countries like Japan and China bought the US debt. The US monetized its debt just like how bitfinex issued tokens for their stolen USD reserves. It is the same thing. They thought they could fool everybody forever but suddenly nobody wants to buy any US debt. See the bond market. It is crashing.

An increase in the money supply, also known as inflation, is something we have experimented forever since the current system was implemented, however the system is supposed to work optimally with a 2% inflation.

Any inflation higher than that indicates there is something going on, an inflation of 10% is impossible to hide from the public and this can create huge resistance among the population as the inflation is not even and it affects some sectors more than others, like food, and right now we are already seeing some social issues and protests due to this at several countries around the world, and if the inflation continues then more countries will suffer from unrest as people take the streets to show the politicians how discontent they are about this.

In the United States it has lived so long without inflation, 40 years as the source reports seems like a long time. The difficult situation that the nation experienced facing the pandemic caused many economic losses and resources, now the war in Ukraine due to sanctions against the country of Russia caused the price of oil, gasoline, gas and derivatives to skyrocket.
Fortunately, the conflict could come to an end so that the economy recovers.
The United States is a powerful nation that can very well overcome these inflation rates, there are also important sectors that support bitcoin, filling us with expectations in knowing the progress they are making.

I do not understand why people think that this is an extra situation. I mean yes I do agree that this year was the highest inflation recorded in the past 20 or so years in many nations. However, we had it before, we had higher than this inflation in the world before and also we had lower but still stable inflation for many years that comes down to this situation as well.

This means that we have been living with inflation since we were born, why the shock now? Just because it was higher than normal? I mean if it was lower, like let's say 3%, then we would all be fine? No, we would be losing money by 3% instead of 7% or 10%. It wasn't fine then, it is not now. Focus on crypto because at the very least we will be doing better here.

Yes, inflation will continue to happen to alert the government is due to print more money  to reduce the inflation from the country. Many countries just recovered from the inflation covid-19 virus has caused in their land and also reduced their economy to zero level, but with the help of the government and Centra bank  that made the money available to reduced the inflation from the land. I believe the government has learned their lesson from the past inflation that shake many economy and their citizens, never to allow such long inflation to happen again to their citizens.

Inflation will continue to happen because the central bank and government will continue to issue new money, the absence of a clear measure will allow the government to be able and free to print new money, when the amount is very large, inflation will inevitably occur, the central bank should not only focus on issuing new money but must reduce the stock when inflation occurs so that it can be controlled and does not happen again.

Inflation was something inevitable, due to the negative impact of COVID-19 on the mainstream economy. Governments will be forced to "print" more money in order to try to keep their economies afloat. The US has seen an astronomical increase in prices for goods and services, due to the negative effects of COVID-19 and the Russia-Ukraine crisis. Since the US Dollar is the reserve currency of the world, inflation will not only affect the US but other countries as well. This should be good news for "hodlers" of Bitcoin since inflation tends to make scarce assets/commodities more valuable than before. But it will be bad news for people who only rely on Fiat for daily necessities.

Until the pandemic comes to an end, I don't think inflation in the US will stop anytime soon. Just my thoughts

Tomorrow Putin will start accepting only RUB for their oil and as far as I am aware, the EU said they won't be paying in RUB.

That means either EU or RU will have to back from their word. Either way it will be a very interesting day tomorrow.

This is going to make the inflation worse everywhere for everybody. Will the US oil be enough for EU? and for how long? 

The US has a huge strategical advantage due to the dollar being the currency of choice to conduct international trade, as you say they can export their inflation to other countries, however even with this advantage the inflation at the US is hitting record level.

So we may come to a point in which other countries begin to demand payment in something other than US dollars, and even if just a small percentage of transactions that were done in the past with dollars now are done with some other fiat currency then that would be enough to increase the inflation at the US even further.

Inflation is rampant not only in America but in almost every country in the world. Coronavirus epidemics have damaged the economies and businesses of almost every country in the world. On the other hand, due to the war crisis in the supply of various commodities, inflation is on the rise. Coronavirus, Various types of natural disasters and wars Instability in many countries of the world, and inadequacy of basic elements have increased the cost of living.

"Let us examine the record of the Federal Reserve after it was created in 1913 on the assurance there would be no more panics, depressions, inflation, or deflation. It is permitted a period of prosperity through 1919 during which great numbers of farmers borrowed to improve their homesteads. In 1920, however, the financiers caused a severe depression; and when the farmers could not make payments, their properties were confiscated. Hundreds of thousands lost everything."

"After several good years following 1922, the middle class of entrepreneurs increased greatly in numbers and resources; but this was not to continue, for in 1929-30 the financiers decreed the greatest depression in American history. The numerous class of small business people was virtually eliminated; money practically disappeared from the American scene. Millions of small entrepreneurs went bankrupt, and the financiers took possession for a mere pittance."

"In 1933 the Roosevelt administration took the country off the gold standard and required all citizens to turn in their gold coins, worth $35 per ounce, for $20 per ounce in Federal Reserve Notes. Such currency was redeemable for silver coins until the 1960's, when the promise was broken and the stage was set for unlimited inflation."

 "and the stage was set for unlimited inflation" ---- The removal of the limitations surrounding the fixed supply of precious metals as a medium of exchange is the underpinning of the most recent form of economic inflation. Once the paper money became debased as a currency no longer pegged to fixed stores of gold and silver debt could be issued in quantities never previously witnessed in history. 

"In the last decade or two, the financiers found a new way to keep hardworking producers struggling to make ends meet. They have increased prices, especially on real estate, to a point where these increase at a faster rate than do the incomes of wage and salaried workers."

Source:

OUR WORLD IN CONFLICT by Martin A. Larson (Spotlight August 24, 1992 - "Middle Class Squeezed")

It doesnt affect them all the tme but this time, its is so its a bit of a unfortunate events but for us living in the 3rd world got used to these already. I guess its a bit of a surprise for them and Joe Biden doesn't give a shit if gas hits $7/liter.

But the fact is that, the wolrd is affected by this inflation. We are all sanctioning our own while we are not really part of this Ukraine vs Russia war.

Inflation is happening in many countries even including my own...and generally speaking the government could not do anything concrete to stop this from happening. In USA, people are shocked because for many years the country has had been living in a more stable economy and as some people had been saying then USA was successful in exporting inflation with the dollar as the international medium of exchange but now this is already unstoppable. Of course, we in the cryptocurrency industry knew that this is coming and this is not anymore the problem of Zimbabwe or of Venezuela.

This is just something that has been repeated over and over again for a long time now and it has finally taken place. Before now there have been a lot of people saying that there will be an inflation and they kept warning people. Even the cryptocurrency community were warning a lot of people to start investing in Bitcoin when it was still early enough, but a lot of people that heard them thought that it was all a lie.

Now, it has taken place and there is inflation and people have seen it. A lot of things has gotten costly and Fiat is also losing its value. For those who never invested in any assets, they are probably going to be sorry for themselves this time around.

You have it backwards, the increase in the price of almost all products that we could buy is because of inflation, and inflation itself is caused most of the time by an increase in the money supply as governments print money.

Inflation can also be caused by the increase in the cost of key commodities like oil or the increase in the cost of a services like the transportation of goods, and as you may have noticed all of those things are happening at the same time, which is why inflation is so high all over the world.

Inflation will certainly continue not only in the USA, this is because stock items are difficult to plus while the central bank is free to print money, it causes a supply of money to continue to increase significantly, of course many factors that cause inflation but the most quickly felt is oil prices skyrocketed

It would be fine to agree to this as long as the war does not come to an end, after which it would become a major issue. Everything from food to gasoline is being sold at exorbitant prices. For a third-world country, as well as for those on a fixed income, this is a major problem because they cannot keep up with the rising cost of living. I am hoping that it will be resolved as soon as possible because, as a single parent, it is extremely difficult to budget our money when it comes to purchasing food, and it has a significant impact on those who earn the minimum wage, as well as me.

That's certainly true, mate. Unfortunately, not many people are aware of this. The mainstream media, bankers, governments, and powerful people (like Warren Buffet) have been spreading misinformation in order to scare away as much people from Bitcoin as possible. It's no wonder why most people think Bitcoin is a scam or a Ponzi scheme that will soon fade away into oblivion. For this and many other reasons, Bitcoin hasn't been unable to rise much higher in price.

Despite the setbacks, Bitcoin is still a better investment than Gold and other scarce commodities/assets. Some experts have been calling Bitcoin "Gold's successor", and let me tell you they are not wrong. Gold may never go away but Bitcoin's ever-increasing price will surely make an impact over investor's perception about it. Who knows if rising inflation in the US makes people flock into Bitcoin in mass?

Almost everything outperformed gold during the last decade. Right now gold price is at what it was at 10 years ago it is not really an accomplishment of bitcoin.

However, bitcoin has also outperformed nearly everything during the last decade so...

These are undoubtedly the best assets to hold in an era of inflation that threatens to become hyperinflationary in the near future.  Bitcoin and crypto have proven to be superior to fiat+ money printers over the past 10 years, so it deserves to be a top priority.  Inflation in the US had an ATH of 7.9%, the highest in 40 years, according to data released by the US Department of Labor.  It is clearly at a very alarming risk.
The impact of the war in Ukraine was just one outcome it had to come.

Crypto (especially Bitcoin) has been proven to be the best way to protect yourself against inflation. Bitcoin has even outperformed Gold with substantial increases in price over the past years. If you act quickly, you'll be able to protect your purchasing power no matter how much money the US government "prints" in the long run.

A small investment into Bitcoin, Gold, real estate, and other assets will lead you towards a stable financial future. The higher the inflation rate, the less valuable a US Dollar will be. Who knows if ever-increasing inflation leads us towards the dethroning of the US Dollar as the world's reserve currency? Just my thoughts

Inflation today is due to the increase in the cost of food, gasoline and energy carrier. And there will be no reduction in inflation for several months or more until the military conflict in Ukraine ends. Raising the key rate will not be a salvation. Let's see what happens in the near future. Perhaps if something goes wrong, they can always print money and it will be a doping for the economy. This is the usual procedure...

Saving in fiat when the scenario we are going through is of very high inflation with the possibility of seeing hyperinflation if nothing is done about it is a bad idea.

You are losing the purchasing power of the currency if you do that, so the correct thing to do is to move to assets that benefit from this scenario or to at least spend that money in stuff that you need right now, as the more time passes the less that money buys so you might as well use it now, however if the majority of people begins to do something like this then the money velocity is increased, taking us a step closer to the hyperinflation scenario that no one wants to see.

The reality of today's world is living with inflation. It is not just one nation that is having this, it is not about just the USA, or even Russia, its everywhere around the world and things are getting more expensive.

We should not be shocked to see a milk at 10 bucks, or one banana at over 5 bucks, that is going to happen and we gotta accept it. Adjust your earnings accordingly and try to ask for more salary if you can, or if you are living in a third world nation like me then it should not be a problem since dollar gets valued higher than your nations inflation and you will be fine, so earn dollars instead even though dollar has a high inflation.

What happens is that inflation is given or generated by the constant printing of banknotes, this removes the value, in addition, the dollar is not fully backed by gold, there is no well-established base, so its value degenerates little by little, the US government cares about is obtaining liquidity, and for more than 3 years a decline has been announced for the world economy, this includes the dollar and the Euro, China for its part has a much more prosperous economy, and what they want in many parts or in countries with high power is to end the hegemony of the dollar, let us not be surprised when the world economy bursts like a bubble and we see those crashes in the stock market.

Good choice. Crypto proven itself to be the best asset against high inflation. Gold made a little rally too lately but it is getting monkey hammered constantly so I wouldn't hold too much gold. Real estate seems to be a fine choice also. People will always need some place to live. Another option is land. Especially agricultural land. Food prices are soaring and farms will be on demand.

Inflation has been high before, but many did not notice this. Now, in connection with recent events, it is no longer possible to hide such a large inflation. The only right decision is to store savings in different places. I personally chose for myself bitcoin and a few altcoins, as well as several fiat currencies.
I think if the situation does not continue to move for the better, then inflation will rise.

According to marketwatch the inflation rate of wholesale has risen to 10, consequitivily in 2 months , the highest in the last 10 years. The cost of production of basic needs like grains etc, the reason is attached to cost of energy production, oil. ripple effect of the war in Russia is everywhere and more of them .

The USA is the world’s superpower, but I don’t really think that whatever happens to them really affects all the countries around the world.

There are also some countries that wouldn’t be affected. Sure there are those that will be affected, definitely so many, but I know for sure that there will also be those that won’t be affected by this.There are countries that are strongly building their economy by doing what they’re meant to do and I believe that would keep their economy flowing properly even at this time. So many countries has been hit by inflation as of recent which was as a result of the pandemic that took place since 2020 and the lockdown.

I think one of the major reason for inflation is excess printing of money that lead totoo much of money in circulation . This is one of the reason for the US inflation. The rate of inflation now is around 6% and 7% from barely around less than 2% 10 years ago from the time of Obama. I think that US in trying to be the watch of other countries probably have increased the founding of foreign budgets and international organization. Covid-19 also can contribute to this spending.

It's always best to have a Plan A, Plan B, and Plan C. You'll never know what will happen in the future as the global economy continues to dive towards new lows. Fiat is always subject to inflation, as central banks print more money over time. It's the person's responsibility to protect himself from inflation by investing into safe-haven assets like Gold and Bitcoin.

While I don't think the US will experience hyperinflation anytime soon, the current situation should be taken with a "grain of salt". No one can predict what will happen in the future, so Americans should be prepared for the worst. Just my thoughts

Inflation constantly accompanies the modern economic model and affects every country in the world, not just USA. This must be taken for granted. In times of crisis, as now, of course, inflation is even more pronounced. Perhaps we are just at the first stages of serious changes, including rising inflation. The consequences of current events may appear after some time and stretch for years. Only the deflationary model (Guess what I'm hinting at? ) of finance can resist inflation, although it will also be affected. Fortunately, to a lesser extent, compared with the traditional system.

This inflation is basically the reason why the stock market and cryptos are correcting. When inflation is this high the fed reserve has no reason than not to increase rates. Rates will increase but the question is how much.

Last month they were predicting 50bps rate increase however after this invasion and rallying gas prices they might move it back to 25 bps and most likely they will raise it every meeting until the end of the year.

If a recession starts then who knows what they will do then. Might have to reduce rates again and the cycle will keep repeating.

Haha I don't think you understand economics, the balance of payments, and balance of trades, actually you do need some real money to settle up the old debts if the government would remove taxes economy would run up into an hyperinflationary situation, inflation would run upto 50-60% and even worse it might become Zimbabwe or Venezuela like situation, Fiscal deficits look good only if they are there upto certain extent, think of it inflation is 5-6% when fiscal deficit is around 10%, with increase of every 5% in fiscal deficit inflation would grow up at almost double or triple the rate, your solution is practically impossible.

It's only a matter of time though, these things tend to spread. First the economic hardships and then the regulations needed to control both it and the unrest it will produce. At this point I just wish I have a farmstead in the middle of nowhere and live simply but not many of us city-dwellers are lucky to have that option.

Not all are losing money because not all use banks or fiat currencies but ever since bitcoin and cryptocurrencies came out, a lot of people have already transferred to it because they figured out its benefits. Inflation isn't a new thing, people should have been wiser before and found things that can help them before the rates increase more.

New rates can be referred to as a reset but it doesn't seem to be positive if this happens in terms of inflation and about the phrase that you mentioned, are they referring to bitcoin/cryptocurrencies? because we can't see it but it makes us happy. They make fun of cryptos but it's the crypto users that are now happy.

There was about 4 trillion dollars worth of money printing during the last 2 years or so. One came under Trump and one came from Biden. This is not "he is better he is better" thing, it is obvious that both of them did the same thing.

Biden did even less than what he promised, he promised 2k for everyone and instead gave 800 to combine with 1.2k given during Trump time for second time to make it 2k. So, that's like 1.2k missing from his point and that would have been at least another trillion added (along with other things given along with 1.2k to everyone). This is why I do not believe that either did a good job, and they both sucked big time.

Things are different in our country, we are still managing to survive. Our leader is a good hearted one and he really takes care of his people like his own children. It really is a big factor that the one leading your country is not a selfish bastard that is leeching people's money. Well who ever might that sucking leader will surely burn in hell. If inflation really get's our saved money worthless, then maybe it is time for us (my family) to go back to farming, I love the place where I grew up and there's no problem in me living there again. There is a bad news I have seen earlier, food products will be increasing 20% or more, I don't know if it is true but I think we should be starting to full those storage with food now.

They use all these as excuse to get more power, more than what they gained from all the "emergency" powers they got from the koof. More powers to regulate stuff, etc. Soon we'll all be just serfs that will be happy that they at least kept us alive.

The aftermath of Joe Biden's economic policies and his massive $1.9 trillion emergency plan have boosted consumer and business demand, despite the pandemic. Solving the problem can only depend on measures that are beyond the control of USA policymakers, such as ending the crisis in Ukraine or finding a way to immediately increase oil supplies both of which are measures that are difficult to implement and successful. And of course, China loves that.

We already know inflation had already spiked before the Ukraine war. The covid started inflation that every business is affected resulting in the raise prices but this war is just pushing the prices up because gas affects everything. This is not yet the worse I think. There really will be starvation not just in the US but everywhere around the world when Gas and oil and even wheat can't be imported. Europe might suffer more than the US actaully.

Not raising the rates will prevent S&P to make money. It's not just the middle class that gets poorer.

I don't understand... Why are they even still collecting taxes from the tax payers when they can print money and tax everybody with inflation? Why are they pretending? Just remove all the income taxes and print whenever you need any money.

They are already doing this but it kills the purpose of paying taxes. So... Why would anybody pay any taxes now?

Yea, I had watched that news that Inflation hitting the US. And this Inflation will not just be limited to the US. Since the EU imports oil and gas from Russia, it will affect all over the world. We can't imagine anything without power, and for the power we need Fuel. So automatically price if everything's will higher if oil and gas price become high. Seems US sanctions affecting themselves. And if the sanctions and the war do not stop lately, then there will be more Inflation. Any war isn't appreciated anyway, it affects the overall economy including Bitcoin.

Inflation is now made worse by the Russian invasion of Ukraine, particularly among oil and oil products. But even before this war, inflation has already been going full speed because of the pandemic. And not only in the US but all over the world. Other countries like Brazil, Argentina, Turkey, and some more are even facing double-figure inflation rates. Even the UK which has a milder inflation rate than the US has hit a 30-year high. From here in my developing country, a liter in gasoline is almost hitting $2 already.

This inflation is definitely not because of the war. Biden basically said today that Putin is the reason for this high inflation figure. However this war just started and didn’t affect the rate too much. It will affect the rate in the coming months. If this war continues then I can see inflation going to 10% and it’s crazy for getting that high.

Fed will need to raise rates however there is also a war going on? So what is there to do. Most likely there will be a recession in the near future due to all this mess. Inflation is very high and commodities are soaring and I wouldn’t be surprised if we are in a recession sometime in the next 6 months.

It started even before this war between Russia and Ukraine, that inflation is the result of printing more money during the pandemic season two years already, its just that the war made it more active and increase on its percentage.

Inflation is inevitable, and there’s a lot of things that needs to be consider here aside from supply and demand. You can also see the worlds debt and US debt, though I don’t think US will enter into a hyperinflation because if that happens, we can expect small countries to suffer a lot.

It gets even funnier when the Biden administration wants to blame inflation on the war in Ukraine and not irresponsible government spending and financial policy. They've already found their scapegoat. Setting aside that the effects of the war would not have factored in for this inflation report, I wouldn't have been surprised to see it hit 9-10 percent pre-war. Any coincidence that Biden signs an executive order invoking inquiries into crypto currencies? My prediction is they will use some excuse to tax crypto into the ground in order to prevent people from abandoning the sinking ship that is USD.

Remember just a few months ago when the Fed was saying inflation was transitory lol. And all Bitcoiners were laughing because it was obvious inflation would keep rising.

US monetary system is in a very tough position now in which it is not economically feasible to raise interest rates much but they have to in order to get inflation under control.

The way out: own bitcoin as you watch everyone else get screwed.

The inflation in US is not a surprise because what is happening in Ukraine has to touch more countries and I believe some countries have higher inflation now than before the war. US has a more data count and collection enough to know what is happening in her economy. If the economy in US is under inflation then more countries in EU should have higher inflation rate now compared to US because there is now unplanned population in EU in countries like Poland, Belarus, Germany etc.

It is only going to get worse from here unless something is done. Don't get me wrong, there is nothing wrong with one year of inflation, it will hurt you but if next year is 2% or thereabout, and then 5 years after that is still the same and there are no crisis no crashes no problems then we will be fine. However, in order to do that then something has to change.

At this point, I do not think even the wealthy people are responsible for the exploitation of poor people, even wealthy people are not really as "rich" as their counterparts 50-100 years ago. Right now, you can mock Elon musk, whereas nobody really did that to Carniege. So all in all, governments needs to figure out a way to take the nation to next stage, or these type of crashes and inflations will keep on happening all the time.

I heard someone say that the inflation was already evident but the government tried to hide it under the scarf of the Russian Sanctions, therefore am not really sure what happened and if the war is quite the reason but that's not it. The government was hiding many more things in place. I do think that this is not going to lower down as well since things are not improving and switching to greener alternatives would take days and months if not years, therefore this might be a bit of a bad time for the people in the US, but it's not just US alone other countries as well are affected by inflation, even in the UK the government is not able to control it. I do think that it's something that both COVID and the war brought.

What? that's still without the effect of what happened with Ukraine-Russia war? For sure, it will be higher when the record will be released. So, without the effect of the sanctions, they should think better on how to deal with the big inflation rate that has come to them. Actually, not just only to them but for most countries that are affected by this war. Well, they can make some way to decrease that and many countries are relying to US dollars so if they get a huge inflation, then many will also have it that are reliant to them.

Haha US is putting up sanctions on Russia not knowing how their taxpayers are going to suffer when it would come to footing the bill of all this. Moreover I even read yesterday US approved a $13 Billion budget for aid to Ukraine. This is like adding fuel to fire of budgetary deficit already going on in the U.S. I am more surprised to see how US is not ready to accept that it's economy is actually burning and when it comes to repayment of national debt they are going to suffer a lot.

I think inflation is not going to be the biggest issue, to be honest. Around 8% is high for the developed world, of course, but I've lived in a country where a 10-15% inflation is quite common (and yet we haven't jumped to hyperinflation), and I can tell you that while yes, you feel the impact, it's not critical by any measurements and not something that is impossible to overcome. But what can be affected a lot is prices for certain products, of course. So I believe it's best to stop Putin ASAP, so that the US and other countries can then re-establish their relationships with the new Russian government. It's in the best interests of the US to help Ukraine now as much as possible, so that the hit on its economy isn't getting higher. Sitting it out is not going to work with Putin, just like it didn't work for the previous two world wars for the US. But not sending their own people to die in the war is still a possibility if Ukraine's given much more military support (weapons) than it's receiving right now thanks to Biden being scared of Putin.
Also, a small note: it's the war of Russia against Ukraine, not the conflict in Ukraine with Russia (the latter downplays the aggressive act of invading a sovereign state which Russia committed).

Not sure about Bitcoin. It was always a risky asset and people normally invested money they could afford to loose. it might happen that current investors decide to drop their crypto and move their finds into a safer asset. It is a bit wrong only to compare inflation to crypto without checking what mechanisms fiat markets got for such issues.

In this time gold and bitcoin will be the safe haven for many investors. Some might buy bitcoin by seeing potential growth in the future. But there is no argument that the USD is falling and very soon the US economy will be shattered. I not sure what will happen after that but it's sure those who acquire gold and bitcoin in this hard time will be rewarded greatly.

Don't worry everyone will get used to it because that's how we actually made by the manipulators for very long time. Probably initially people will talk about it but later they will run mkre to earn more but they never realise that no matter how much money they make it ks not going to be enough because fiat always lose its value gradually or suddenly.

The inflation is highest in US since 40 years

US has witnessed this kind of inflation a long time ago like 40 years past. Apart from the war and it minor effect, retaliatory sanction from Russia to EU and US by cutting off gas supply is the major reason I believe. Comparing last year's inflation in US which was 4.7%, and that shows 3.2% rise just in first quarter of the year. There is possible increase in inflation in US and Europe this year and the cause being the effect of Russia sanction of the war in Ukraine and Russia cutting off supply of gas. I think EU and US should find alternative for gas as they approaching summer. Next winter IMO is going to be difficult if they don't resolve the situation in gas supply.

I'd like to point out that goldbugs are always screaming about inflation--whether there's any significant inflation or not--whereas bitcoiners tend to be a little less blindsided by their investment of choice.  Goldbugs are so in love with gold that they keep repeating the same mantra of it being an inflation hedge, that it's been around for millenia, etc., that they'll never talk about selling gold.  Ever.  I've seen this in action for the last decade on sites like coinflation.com and zerohedge, and I saw the same arguments being made in an old magazine from 1982 that I happened to pick up a few months ago....so it's just rhetoric for the goldbugs.

But yeah, I just heard the same 7.9% figure on the news this morning.  If I'm not mistaken, gasoline was included in the statistics (please correct me if I'm wrong), and I'd think that would heavily influence the reported inflation rate since unlike some of the other things in that "basket of goods" gas has skyrocketed.  Groceries and restaurant food have gone up quite a bit, but I don't think those prices have kept pace with what gasoline has been doing.  At my local gas station, it's up another 1% overnight.

Valid points. I think people should own both. You'll never know which one will come in handy. Without the internet and electricity gold and physical FIAT become more useful. When you have access to these things but don't want to carry anything physical because you are in an unfriendly territory, then crypto becomes a better choice.

One thing is for sure, FIAT is dying. You definitely don't want to be there with your life savings.

I have been hearing people to use a safe asset as asset which can be a bulwark against inflation, assets like bitcoin or gold, but gold adoption is too high, more value will be in bitcoin. The warning that inflation will hit United States have been when people have been talking about money printing which has been many months ago even if not more than a year ago. Even without the warning, people should know there is nothing good fiat will do than to be spent and to devalue. Gold can be hard to get, many other physical assets can be hard to get, but right from your home you can get bitcoin on your wallet, there is nothing bad to convert your fiat to bitcoin because this is not the end of inflation which is normal in all countries.

Well, if official inflation was 8% last year we can be sure that it was clearly above 10%, surely 15% or more.

But no matter how bad things are, I doubt that we will reach hyperinflation in most industrialized countries, not if maybe in Russia or other countries, but we must remember that hyperinflation is defined as an increase of the CPI of 50% per month.

It almost sounds like a great reset which I've read about so much. Some clown somewhere said "You'll own nothing and you'll be happy." few months ago. The picture you just drew don't look like happiness to me at all. I mean crashing, crushing whatever the world can't bring happiness... It like saying "I am going to kill you and you'll be grateful for it."

Yeah fuck man, inflation has been absolutely insane for the past year. 7.8/7.9 might be where we are at right now but there’s so many more things that have shot up much higher. It’s crazy because we are literally all losing money by keeping any of our monies in traditional bank accounts. This is going to crush so much of the world and really destroy people.

As a result of the post-pandemic time, it has destroyed almost every sector. It is sad to include the issue of war between Russia and Ukraine, which I am sure will increase in the coming quarters. As you mentioned, Fed may raise interest rates. Personally, from a macroeconomic perspective, the FED is always at the top in terms of money injection and recovery. This is really a bookie of this earth. 

Funny how some people on social media seems totally surprised by the announced inflation numbers, even though bitcoiners and goldbugs have been screaming on the top of their lungs about inflation for more than a year now.

Though a good amount of inflation is definitely here, I really wouldn't bet on hyperinflation though.

US inflation soared 7.9% in past year, a fresh 40-year high


Looks like the inflation will be even higher than this when the next quarter's numbers arrive. Probably double digits. I've also read that the FED might not now raise the rates because of the conflict in Ukraine with Russia. I guess hyperinflation is near.

edit: fixed a big typo. "...FED might not now raise..." Sorry about that.