Topic: Inflation is always and everywhere a monetary phenomenon -- Milton Friedman (Read 315 times)

On a very low enough time-preference, this is true. I hope newbies understood that. Because of Bitcoin’s infamous high volatility, there will be market cycles that you might be HODLing with a loss, depending when the person has purchased his/her coins. When in doubt, ZOOM OUT.

Keep enough cash around for your needs and in the case of an emergency, however the rest of your money should always be invested in something that can outpace inflation, right now paper assets are still performing well, so it is fine to hold stocks and other similar instruments.

However when a crisis really strikes paper assets have the tendency to do the worst as people are looking for a safe haven that can preserve the value of their money, and in that case assets like bitcoin or gold will be in high demand, and with this in mind then it is better to invest in bitcoin right now before its price goes up even more.

I have dislike savings ever since my eyes was opened into financial world, savings is just like been a slavery to bank and other forms of banks.
Inflation is just something we cannot control but can be reduce to minimal by making sure that the economy is well perfectly executed in every segment of economy but when one part is affected, it will affected others and inflation will rise especially agricultural sector and importation.

The problem with this is that they are only delaying the inevitable, I understand your argument and it makes sense, however the more they delay a corrective crash that takes the economy to more realistic levels then the harder the fall will be when it happens.

At this point it should be obvious that a collapse of the fiat system is inevitable, it will not happen tomorrow of course and it may even take decades, but the longer this is delayed the bigger the impact will be when it happens, so it could be argued it could have been better to let the market crash at the time, change the economic system currently in place and begin the recovery already.

This week was indicative - the Bitcoin drawdown. What do you think - positive feelings were experienced by people who wanted to save money, but in 1 week they suddenly became 10% less. During the week. Assets in bitcoin ... It's good that the fall has stopped, but bearish trends are still ahead, how will you model the behavior of the holders? And what is very important - unlike you or me, they do not understand this market at all, and do not understand what to do. Most likely, the "panic sale" will be a reaction of the extras storing their meager reserves in bitcoin at the beginning of bearish trends ...

I do believe that inflation rate is a horrible thing in most nations, however USA is a bit different in that case. They increased it knowingly because they wanted to liven up the market once again during/after pandemic. Which meant they gave out a ton of money, and stopped the market from collapsing and that resulted with them being a lot better during this period. The alternative would have been preventing inflation and that would cause a lot of unemployment and a lot of people starving and a lot of rent not paid and many other horrible situations.

This is why I believe that we are definitely looking at something that could be done properly with inflation and then they could just reel it back into regular times next year without a problem. This isn't to say they should do it all the time, it just means that they did it once to help the nation and it did and now they can go back. The bad inflation is the one that happens unknowingly, this was calculated move.

Agree that current inflation is a direct result of their policies and weak governance. The mafia is strong enough to blackmail the government and its policies. Also, the weak policies factor cannot be neglected here. The problem is surely not the supply chain and in my opinion, underpaying the labor can be a key factor for the current inflation.  We need a balanced economic system that can regulate all these issues.

And this is what is slowing down the economy in a terrible way, after the pandemic most governments instead of understanding that businesses were affected massively by it and that they should reduce the taxes so the economy recovered they did the opposite.

So not only many of the businesses that closed their doors did not comeback but the creation of new businesses to take their place went down as well, so with their greed they are suffocating the economy while at the same time the politicians sell themselves as the ones with the solution, when they are one of the sources of the economic problems we are facing.

Inflation is a normal thing in each country. Every country experiences this, and it's a part of the flow of an economy. However, what isn't normal is the sudden rise of inflation rate in a short span of time. Inflation is always there whatever the status is of a country. Even the richest country faces inflation but with a minimal rate only because they know how to utilize their resources and maintain the stability of their economy which some countries fail to do so. Hence, it results to rapid increase of inflation rate which is very alarming most especially on the consumer's side since the consumers are usually the first ones being affected whenever arise of inflation happens. The next impacted people would be those small and local business owners which have a very small capital and profit. Whenever inflation raises, they are negatively affected because their goods sales decline due to low purchasing power of their local currency, which makes the people to buy less. Most of the time, people would rather buy items that are imported internationally because it has cheaper prices. In result, small and local business owners suffer losses. There were even times that they would have to beg for their products to be sold just to get their capital back. I am speaking only from my observation here in our country. This might now happen to those big countries, but it really exists mostly in developing and third world countries.

Now, given the pandemic, inflation was pushed to the brink due to mishandling of the public servants that instead of doing their very own job, prioritized first their self-interest and gains. Which caused a very big trouble since people are dying and suffering, then another problem just added up. It just felt so burdensome. Greedy politicians should have no place in power and position because they just keep on doing what favor them every single time. The cash aids intended for the poorest of the poor during this pandemic was corrupted. They even made a business out of the pandemic. They keep on saying that there's no more money left and they have to borrow funds for the betterment of the country, but the truth is they are pocketing the taxes of the citizens instead of using it for the country's welfare. The government would say that there is low supply and demand, when in fact they are just manipulating it so that the prices would go up, and then they would have larger profits (because basically, they own a business or two about those products they told you that are low in supply. Eg: facemask, faceshield, PPE's).

I just hope our country's situation differs so much from what your country is currently in. Hopefully we'll all find the right ones in position to keep us all moving towards the right direction instead of abusing and taking us for granted because they just can. Inflation is a normal phenomenon; the problem is the government who is handling it without caution.

How much would be a good college education for the students next to our generation? It would be so unaffordable, that students will indebted heavily with student loans by the time of graduation. OR, go to a low-rated college, and find it very difficult to get a good job to pay for the student loan.

The United States of America alone has increased its prices up to 5% in this year alone and it is the highest increase in inflation since 2018.

Source: https://spn.org/blog/what-is-inflation/?gclid=CjwKCAiAnO2MBhApEiwA8q0HYZ-gjA--yr1NolePkIerP_Ir6--Pofj-Klv66B8_XGJI3zSWA-qIExoCOZsQAvD_BwE

Inflation rate isn't normal, it is indeed a phenomenon caused by the government itself alone to adjust their debt and won't rely on other sources anymore, also the USA has the biggest yearly budget on Defense alone, where would they get that budget? Inflation and taxes ofcourse. However, they will deny that accusations because they know more than anyone and they are just saying that inflation is caused by the increased demand of supply than services or goods being produced.

We have the same thing here as well. However that is getting lower and lower because people are turning it into crypto right away instead of other fiats. It does make sense, why would you want to keep something in fiat that will devalue insanely quickly, most people in other nations that have stable fiats can't even imagine it.

Imagine a world where what you buy for 100 dollars today will be 150 dollars in a year, yes 50% inflation and that is real all around the world. Unfortunately most money is collected in Europe and USA for retail investors (Asia has rich people but not rich population usually) and that means they do not understand the point of bitcoin as well as we do.

I keep my money in crypto so that in 10 years when our money is devalued and bitcoin increased that would mean that I will be an insanely rich person. Not because I made some super smart investment but because fiat always gets devalued around here.

In times of high or galloping inflation, people are looking for options as quickly as possible to convert the hourly depreciating paper into a stable currency or other financial instrument. I watched the period of inflation in our country in the 90s. The first thing everyone did after receiving their wages was to convert everything into dollars, German marks, British pounds. Those who had more money bought gold in banks and other similar assets. The poorest - yes, they bought canned food, crackers, cereals, pasta, salt, sugar ... After a couple of years, when everything stabilized, the first two groups had highly liquid savings, and the poor went to throw out tons of expired canned food and moldy cereals ...

Living in this or that state, we are forced to accept the "rules of the game" of this state. This is not good, this is not bad, it just cannot be otherwise. The state is obliged to try to give everyone a minimum sufficient standard of living, some kind of social security, pensions, etc. at the same time, there are still many mandatory criteria for the existence of a country. Yes, sometimes the state has to print money, not entirely provided with goods and services, but otherwise it will not be able to fulfill its obligations. The printing press is one of the government's management tools. You just need to accept that there is inflation, inflation cannot be avoided, it is good if it is predictable and stable enough. Therefore, normal inflation is the same common entity as a strong sun or cold in winter - you just have to accept this and when managing your finances, take it into account, inflation, take into account

That's true that inflation is caused by the wrong economic policy. But such factors as lack of supply accelerate inflation so all factors influence on it. So as not to suffer from inflation too much, we need to invest but not jsut save. What is more, it will give us an additional source of money, so we will become financial free a bit more then.

Well know and quite true. Inflation is just a way of saying that the trading pair between "stuff" (goods and services) and currency is going in favour of "stuff". How can this be possible? Very clearly when there is too much money in comparison with the available "stuff", so it is a self evident truth that it has to be an effect deriving from a monetary policy and, being honest, of the "quantitative easing" which is how they call now printing money.

Corruption is the reason why money goes to nothing at all. Everyone believes that they are paying taxes when earning but everyone forgets that they are paying taxes when buying as well. Most nations have your earning taxed at least 70%, sure there could be less in some nations but majority charges 70%+ of your earning as tax.

Technically speaking ALL of the money is constantly getting taxed, all the earnings, and all the spending of those earnings, when you sell one apple you earn and pay tax for it, but also the buyer pays tax to buy it as well, and then you buy another apple to sell while paying taxes and the seller taxes you and then you sell it again and get taxed and your buyer gets taxed as well. It is all big taxing scheme by governments basically, greatest business in the world. Then what do we get? Few hospitals and couple of miles long roads and ton of promises, nothing else.

trudat.

https://youtu.be/xvxV95WcoSw?t=1615

watch the whole video if you can.

Maybe there are many views of friends here with the increasingly worrying economic conditions.  Inflation that is said to have been handled well does not produce as good a result as they claim.  In fact, there are many college graduates every year but it is difficult to get a good job because of low absorption.  It would be more interesting if the story about the funny people's representatives, who sat with extraordinary positions and facilities with the mandate to think about the people, actually forgot their responsibilities. 

The government job is regarded as no man's job especially in African and technologically less developed countries. The government pay huge salaries but the country get little service from the task payers money.

The worse is the taskforces and monitoring team that is suppose  to oversee the ethics of work and make sure employees do their bit of the agreement with government but they pick bribes instead of punishment. This type of attitude won't encourage sincerity in government at all levels.

The workers are suppose to work where the government pays hugely but the reverse is the case.