Topic: Inflation overpowers the value of money - page 7. (Read 1001 times)

You are right Poker Player,the high cost of gasoline and electricity will have a big role on inflation and the price of other commodity will be affected too,even the rich will also be affected indirectly when this happens. Take example of my country Nigeria, the new administrative have opened the door of hyper inflation on the citizens by removing fuel subsidy. Ever since that time everything in the country price has shoot up rapidly and the hardship has increased by the poor can no longer fend for themselves neither can they go out to look for their daily bread because of high cost of transport and high cost of living. This has made the Nigeria Labour Congress to embark on a protest to make sure that the new administrative does something to ease the suffering that the removal of fuel subsidy has caused in the country. Inflation is bound to be part of any economy because fiat currency depreciates as time passes on. Hyper inflation is caused by some actions taken by the government.

You left out a very important one: high energy prices, which affect everything. If gasoline and electricity prices go up, you not only pay more to fill up the tank and for the electricity in your house, you will also pay more for groceries, for example.

In fact, the inflation we have been experiencing for a couple of years now is mainly due to energy prices and massive post-covid printing. Then it was exacerbated by the Ukrainian war, but it started earlier.

To begin with, inflation is not a discrepancy. Inflation is an integral part of the current economic system. Echoing franky1, it's there by design. It's intentional. It's there on purpose. It isn't something that takes place because of incompetence or failure on the part of the government or because of something beyond the control of economic managers. That the prices of goods and services will continuously increase and that the purchasing power of money will continuously weaken-- albeit in a moderate and controlled manner-- are part and parcel of what is considered a great economic design.

fiat money by default is always inflationary by design
fiat money by default is always loses value by design

its not a concept of "inflation overpowers the value of money"
its instead simply: "inflation powers the devaluation of money"

the rich/elites know money devalues. which is why they hoard soo much instead of spending it. because they know if they hoard enough then even after long periods of devaluation they will still have enough to live/retire on.. they do not fear higher inflation periods becasue they can afford it

when the rich/elite tell the world media to tell consumers that a high inflation event has to occur. its not a event of the rich relinquishing control of their hoards in trickle down economics. its instead inventing alot more money, putting a large % into hoarded riches for the elites to hide away, and then give out small % to the little people and then blame the event on the cause to need to "hyper inflate" meaning the little people should spend that money to energise and grow the economy and circulate that money.. which we all know means little people need to relinquish their savings and lose their homes so the rich can hoard more (trickle up economics)

the main reason a country does the invention of new money is not ever to benefit the little guy. its instead to fake the GDP stats of money per capita to stay high in the rankings..
recent events are that china really went big on their money creation to create support packages for covid(build hospitals). which raised their GDP and so in 2020 china was going to become the worlds super power in stats.. so other high ranking countries needed to jump start faking GDP stats to stronghold their positions before china took over the top rank

none of which helped the little guy long term. its just to keep the rich/elite in power and control of the hoards

Lack of purchasing power which is caused by inflation is encouraging economic uncertainty, and this is because many nations has been found wanting in production capacity, instead they encourage importation of consumable goods from other countries, the country involved will therefore put up a policy, that will compel the consumer country to exchange there currency to the currency of the country, they are purchasing from, this will further weaken and stagnate there currency to trigger high inflation rate.

The causes of high inflation can be attributed to the following:
1. Excessive Government borrowing
2. Unwanted and unstable domestic policy
3. Unsatisfiable or lack of domestic production

1. Excessive Government borrowing: the government of many nations has seen borrowing as a norm, there accumulated debts requires generation to come, to service, this is common in African countries where the government borrow funds not for establishing an asset or building an institution that can generate generate revenue, for them to either service existing debts and build more infrastructures, they prefer borrowing funds for either embezzling it or using it for things that are not accounted for.
They do this without minding the consequences that may be accompanied with this act, at the end countries like this dips in high level of inflation and valueless currency.

2. Unwanted and unstable government policy: the government policy most times are unfriendly and it is repeatedly done, just for example allowing the importation of already existing good to there country, instead of boosting the production of such goods to meet it's citizens consumption.

3.lack of domestic production: government of many countries practically don't have anything to offer, the keep on wasting the little resources available to their reach, failing to encourage local production, the government should look into locally made goods, this will avail them the opportunity to do business with countries that are interested in the product and services, as the case may be, they should make it their priority to lure local investor, reach a compromise with them, allow them to produce at a minimal taxing rate, this will enhance the domestic needs of the country, No doubt we need each to survive but not in everything.