Topic: Is Inflation Necessary - page 6. (Read 1373 times)

I think you got the highlighted one wrong. Inflation primarily affects the value of money. The goods are going to be the same but the money wouldn’t. Which explains why you’ll have to pay more money to purchase the same goods or you pay the same money but get fewer goods. Outside the government, the other thing I know to cause inflation would be a global economic crisis. For instance COVID did affect a lot of things. But it is mainly the government, so it isn’t as if they are wrongly accused. Lastly, what Bitcoin has is volatility, there’s a difference from inflation.

People who tout the gold standard simply don't understand it. It had a purpose and fulfilled that purpose at one point in history, a time when things were much simpler than they are now. However it would be unfit for that purpose today because there is too much transaction activity. It's the same problem with bitcoin - it can fill a niche, but is not a direct competitor to things like credit card transaction networks that can keep track of much higher volumes of activity in a much more efficient way. It's nice having a decentralized currency but it is restricted in certain ways.

Inflation may not be necessary but it inevitable, countries have gone through inflation, some are still on it and that's it, you just just defined inflation in your own way which is also applicable, inflation happen most times because of the inability of countries to produce in large quantity of what they can consume, this triggers this countries to go for importation of those items that they dont have, the effect of this their act to their currency will result to inflation.
What makes a country currency to lose value is because of the dependent of that country on other nations for survival, sufficient production should be the major priority of every nation that want to lessen inflation, different country currency can not be at the same level because these countries are not in the same level I terms of wealth, knowledge and what they call offer to the global society.

What you find hard to understand is that inflation doesn't affect the money but affects the goods, so blaming the government is not the right thing to do. because inflation can be useful and, at the same time, might be useless. because inflation is just for the purpose of increasing the economy of a country, while at the same time, if it doesn't work well, it will affect the economy of the country, so the maintenance of the inflation depends on the central bank of the country, so the government is not to be at fault at this.
 
Again, comparing bitcoin and banks is not the solution. Because even bitcoin has its own inflation, people find it hard to understand. because if it dumps and rises again, many will have the wish to invest more in it, so inflation is a source of scarcity that will arouse the interest of many other people to join in and benefit from.

This inflation is out of control and a sign of bad economic policies. Market intervention by the government? Maybe try to stop the tide. Bitcoin is more than internet money; it's a new currency paradigm. No banks, no dirty politicians in charge. It's limited, so they can't print more whenever they want. Its value comes from that, not government promises.

Dependent on foreign currency? A temporary repair, not a solution. Bitcoin is truly revolutionary because it redefines money and how it operates. The shift to digital money? That's inevitable, but we must do it well. Using Bitcoin isn't a fad; it's about avoiding the same bad practices in a new digital format. We need genuine financial power to determine the value of our money, not Bitcoin vs. banks.

The problem is the fact that it is physical cash but is that it is continuously being printed. If there was a fixed amount that was printed once and for all (of course that’s not possible as paper money is prone to destruction), it wouldn’t reduce in value. Also, if Bitcoin could magically start increasing in total supply, irrespective of it being cashless and digital, it’ll reduce in value.

Inflation can not be decided by people circumstances make inflation happen and with the carelessness of our government. And it is even getting worst to maintain the value of a currency. It's dependency does not is not in out power and in a free market even the government find it difficult to make certain decisions. And the printing of money excessively have made some countries lose there value in term of currency.

The more the scarcity of money the more value it gets and if not that some countries are really on other currencies in there foreign reserve then it would have been worst. Bitcoin would have been the best and the solution to devaluation of currency. And instead of printing countries should adopt cashless policies, and those are part of trying to maintain the value of currency.

I also agree with you. The way to stop inflation is to abandon fiat and replace it with gold or bitcoin because fiat can be printed whenever they want. Now inflation will increase as time goes by and we as a society cannot only improve our finances in the same way but we must also look for ways to get better finances. because inflation in the future is likely to get bigger, we could be lied to so we have to be more alert and smart in managing our finances.

What I have observed is that humans are now truly modern slaves and today's children are finding it increasingly difficult to have a home. Many people save but are not rich. It felt like being completely fooled. Behind inflation there is a mafia who uses it to enrich themselves, including the country.

The impact on the lower classes and ordinary people is truly extraordinary if inflation hits a country. In my opinion, what small and medium communities have to do is generate additional income so that we don't fall when inflation comes. Yes, because the system has been moved or changed from gold to fiat, and fiat is no longer backed up with gold. This is where this game started in 1971, played by Nixon, who was controlled by the elite family there. Since it was legalized in the Nixon era, money printing has continued and this means that every money printed will produce double the dollar, this is what causes inflation. So even though the dollar is exposed to inflation, the dollar remains strong because it is a currency that pays credit through foreign debt.

Inflation being "needed" is about 2 percent or so, not 10 or more. There were a lot of nations, even as strong as USA who had super high inflation compared to past, and that wasn't what they needed. Don't get me wrong, if you have a nation with 2% inflation and 3% interest or investment whatever, it is a small and steady growth that they will be very happy about and if a nation can do that for like 50 years, that nation will become one of the richest nations in the world and best to live in.

You have to be in Zimbabwe or something to not be a great nation with that type of consistent good growth for 50 years. But if you look around, you will see that during pandemic period most nations had about 10%+ inflation rate for a very long time and that is the biggest problem in the world.

yep it would be great to escape it. but we as citizens cant exactly request those governing us to change. they own and control and set the limits of the monetary system we are slaves to and our 4-year vote doesnt really give us much voice over change.. just a 4 year vote on the management people that manage us

The biggest reason behind inflation in many countries is the baking system that was developed on the basis on interest back in the history by Jews. This system is such a thing that the world bank and IMF will get benefit from it but the people and the deprived ones will face the repercussions.

We need to get out of this system that's the only solution we can propose to the inflation we are facing. If we continue to live under these situations we will never get the benefit of living a wealthy and healthy life.

nooo
your getting your chickens and eggs in the wrong order..
look at the topic question
i gave an example of it being necessary(when its controlled)

the separate question of excessive inflation is when its not necessary(not helpful, not beneficial, not needed)

the printing of money does not happen at the same time as the population growth so there is always an over supply of money before it trickles out to the population need. and peoples needs expand as technology and products get invented. so the amount of money needed expands
(its cyclical)

in a controlled system these increases would be small. .. but still necessary

EG markets will compete for peoples money and markets then need to pay people for the work so they can then spend to consume those products
(everyone always want more in the fiat system)

(chicken)
EG a couple about to have a kid know their household income would need to increase so they need a pay rise. getting a pay rise incurs extra costs on their employer.. which means although parent is less productive than their younger selves(age slows people down) their income:productivity rate changes where they need more income for less production

 so their employer needs to raise price of goods before the families child grows up to become an independent productive member of society, earning their own income and consuming from that separate from the parent,
so for many years of adolescence. the parents will need more income for each parent. meaning each parents employer will need to pay each parent more which means the price of goods goes up but the productivity does not
and with more money needed in these child developing years(population growth) there is a need for more money in society until the child becomes a productive member of society to then circulate the money increase to stabilise the inflation..

but with that years later(egg)
EG the amount of money a young single adult needs to live on whilst living in parents house with no kids of their own is less for the young adults than the amount a middle-aged parents needs who has a family where parents income needs to be higher to cater to his growing family,

by which time the cycle starts again with the young adult then starting a family

do you now see the whole picture...

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yes in a different universe that was not FIAT based.. inflation is not needed and we would live in a deflationary system where each year our average savings/income would be worth more produce per unit, so would spend less units per product..

but the reality of the real world we actually live in, of the real world systems of fiat which does exist outside of our dreams/outside the crypto communities.. inflation is needed to keep the fiat system running.
we as individuals do not own the fiat system, we are the slaves to it. but its the system that is most active amongst populations so we have to admit its existence and relevance to the greater population utility

we may not like being slaves to the fiat system, hence things like bitcoin are an genius asset that was created for those who want something better. but bitcoin is not the system used by the legal systems and government of the lands we live on
and in the world of admitting fiat exists and is used by the majority, that fiat system needs inflation to operate. however the amount of inflation can change from good(necessary) to bad depending on the amount of inflation

the fiat system would crash if it was 0% inflation and humans would notice financial issues affecting their lives if it was 0%

That would justify circulating supply but NOT the inflation. Inflation happens when there is more supply (of fiat) than demand and it only happens when they print more money than they should. Otherwise population growth is only a small contributing factor to the demand for more fiat in circulation (still not for inflation).

in several countries in the world, there are some who have managed to maintain their inflation rate and even make it minus, but the problem is that when inflation becomes minus it will become deflation which will affect the price of goods which will decrease and that makes many people lose money and delay their purchases. this will also affect domestic investment, because the decline in a company's income will make investors think about investing in that country. and many other risks if inflation does not occur.

therefore, inflation needs to exist in a country, but positive inflation, for example 1 or 2 percent a year. with this, it will be able to keep the country's economy from declining and impacting many national sectors.

It's not good at all,it just sweeps us all from all our plans leaving us with no other option but been helpless.Just so unfair to us,and its inevitable,iit just comes from nowhere and strikes someone so hard with damages and repairs.
Inflation as economists have it,triggers more production to meet that demand;as they say it does.Some economist also pointed out that
Inflation plays a better role to the economy than the effects of its counterpart 'deflation'.
We're all in this together and it seems there's no solution yet for inflation,its a really hard method and economical system for people to survive.

Are you sure and can you explain better how things would work by simply using assets with limited supply like gold or bitcoin as currency, inflation would disappear completely? And as I know, or you can also refer to @Zaguru12's explanation of inflation mentioned above, inflation is not only caused by the government printing money but there are many causes of inflation.

So what solution can you offer for the sudden increase in goods due to the large gap between supply and demand? Because this is also the reason that will cause commodity prices to increase and inflation will also start from there. Don't blame fiat or governments when we don't even understand how this world economy works.

Inflation is not optional where you can choose or not choose it based on its necessity. The reason why we can’t keep the currency at the same value is that we can’t. How do you keep printing money and expect it to maintain its value? Imagine if Bitcoin wasn’t capped at 21M, do you think it wouldn’t be reducing in value? It definitely wouldn’t go as far as it did. A cup of coffee will someday be sold for $20. Why? They keep printing money and making it worth less (not worthless )

Gold goes through inflation too, as every bit of gold that is mined is gold that was not on circulation before, and the same is true for bitcoin, as new bitcoin gets mined every single day, it is just that when it comes to gold or bitcoin there are some natural or artificial limits set in place which do not allow for the inflation to be very high, however no such thing exist in fiat, which allows central banks to print as much money as they want and then cause the massive amounts of inflation we have seen in some countries over the previous decades.

Inflation is inevitable for sure and probably necessary but high inflation I think is surely going to be a problem when the economy cannot keep up anymore with the inflation. Its a part of the system already and there was nothing we could do to remove inflation because its already part of the fiat system, with the right increase in inflation I think it is going to be manageable with the growing economy of a country, but the problem for sure is the government can just print and print money whenever they wanted do leaving this whole fiat system to a whole pyramid scheme if your gonna ask me, we are working full-time jobs just to earn money, then just ended up with this kind of system is just unfair to everyone.

Still, the main point is there was nothing that we could do about it, the only thing we could do was to adjust to it, The main advice here is to invest your money in order to fight inflation, one of the common things that we advise for sure is investing on Bitcoin, because of the decentralized structure of it, with a limited supply it's the complete opposite of what a fiat money is. Or else put it on other investments like real estate, passive incomes, businesses, etc. main point is don't hold much fiat money because its decreases its value overtime.