Topic: Now UK is facing inflation so choose the best for you.. (Read 455 times)

And that is the best case scenario, when this happen then governments have the brilliant idea of raising the salaries of everyone and now companies have to pay more for the same labor and many small companies cannot do this so they begin to fire employees and ask more of the ones that are left, also they may try price controls that as we know the only thing they do is to create black markets making the economic situation even worse than what it was before they began applying those measures.

LOL.. what sort of logic is this? When the cost of living goes up and the salary remains constant, then we definitely need to think about it, right? To some extent you can be prepared against it, by investing in assets that are protected against inflation (such as gold, platinum and Bitcoin). But what you will do when the salary doesn't increase? The net amount that can be saved every month will decrease. And also, you may need to cut down on your expenses and chose the more affordable options.

It's actually good you point out things when it's getting bad than wait a die minute when things become so hard to control and out of hand, everyone contribution may not stop the inflation but surely we all learn from every one experiences with different years in increased in price of goods and how to handle them without government help.

Inflation is indeed a cancer to fiat and monetary policy.

The issue is that even if inflation is still within manageable levels we need to wonder how long is this going to be the case? The pandemic accelerated the natural decline of the economy, however things can take a turn for the worse really quickly and when that happens you do not want to be holding huge amounts of fiat, you want to be already invested in something solid and without a doubt bitcoin is one of the best hedges that we can use to protect ourselves against this.

I suppose this is pretty much a global tendency and the reason for it is if the United States is printing money like crazy and some other country decides to not do this then this means the products coming from the US have a competitive advantage because now they are relatively cheaper, while for the country which is not printing money in the same manner they will realize now their products have a competitive disadvantage because now their currency is getting stronger and people of the US will prefer to buy products coming from other countries, so if they wish to maintain the level of goods they are exporting to the US and other countries they have no option but to print their currency at the same rate.

Here in our country as well, but I believe Venezuela is really suffering from hyperinflation, which has rendered their currency worthless. I heard they're using crypto as a payment method to combat hyperinflation, but I'm not sure what they're doing. Almost every third-world country is suffering, including ours, where the price of all foods has doubled, gas is also extremely expensive, and the unemployment rate is extremely high. Despite opening our economy by 50%, we are still unable to cope with our losses.

This makes me wonder how much else of the world is currently experiencing super high influxes of inflation.  Here in the United States we're around the 4-5% mark, which is up big time from the past decade which has seen inflation at under a % each year.  Some project this to last for years ..scary times ahead in that sense.

Why you guys think Bitcoin went up by 20% in the last few days? The governments around the world have gone on a Bitcoin printing spree, and a lot of people are now concerned about the inflation that may result from it. Surprisingly gold has remained more or less stable during the last two years. New deposits are being developed around the world and investors think that there will be a stable equilibrium between the supply and demand as far as gold is concerned. That is not the case with Bitcoin, and therefore the prices are moving northward.

Inflation happens in every country but the span of time of its increase rate is indeed alarming. Inflation is the nemesis of the lower and middle classes. Whenever the inflation rate rises, those people who belong beyond the poverty line and the middle class are the usual affected ones. The government must do ways to manage the inflation rate from increasing furthermore or else the working class will suffer. However, despite doing things to prevent inflation from happening, what the government tends to do is to address other concerns that aren't really that urgent and print excessive money to counter the inflation, as if it would help it. So people have no other choice but to rely upon themselves since the government can hardly do anything to solve inflation, hyperinflation, and shrinkflation.

As early as now, I hope people find bitcoin of great help to safeguard their funds from being devalued now that this kind of problem continuously arises. Storing your funds in lesser prone to inflation would be a power move. If you'll do it now, you'll thank yourself later in the future. Although of course, still do your own research and only invest what you can afford to lose because despite being lesser prone to inflation, we all know the 'weak spot' (depending on the situation. can either be good or bad) of bitcoin which is volatility. So, choose wisely where to store your funds to guarantee you will still get the best of it after a few years. Bitcoin isn't the only platform, you can check others as well such as stocks, real estate, etc. Do what you think suits you best.

Either it will be gold or bitcoin standard or there will be hyperinflation. Look how much USD the FED printed last year and this year. FIAT is coming to an end and it is not just the USD because when USD fails it will take down every other FIAT with it, and yes that includes GBP and EUR too.

Hard money is not coming back then you must be prepared for hyperinflation. Either way, the future is not bright.

Yeah well... agree on the basics, capitalism creates a divide and that divide can get quite strong in countries such as the UK - besides the fact that the concept of "classes" and "station in life" are concepts that are historically well imbricated in the collective conscience of the Brits. Sometimes I think they just feel confused when they cannot put someone or something into a class or category so that they know how to deal with it. Short of animals classing others as food, threat or symbiont.

However, the energy industry does make losses from time to time. Like commodities, energy is quite cyclical in its nature and there are times in which gas, oil, carbon and other fuel producing companies go under due to excess offer.

One of the best situations for energy sector is the fact that even in pandemic, even in a hyperinfliation, even in a world war type of situation, there will always be people who will need electricity and that is why energy sector will always make profit. Just last year Texas had a very long outage and electricity was hard to get, it was limited and that is why energy companies started to charge 1000 times more than what they normally do, just because it was difficult to get it and you would need that to survive

All those people who were too old and got cold, all the people who needed to keep their medicine in a cold storage like fridges, all those hospitals and so forth basically people who are in need required to pay insanely higher amounts and went into debt just to survive and not die. It is a horrible situation that shows how horrible capitalism could become, but it also means energy sector always makes a profit no matter what.

Governments are going to resist this to the best of their abilities, after all they know the incredible power they get with their fiat currencies, personally I think that if we were to see a collapse of the fiat system while regular people will adopt hard currencies like bitcoin or gold the governments most likely will try to impose a world currency, which will obviously be fiat in nature, and only if bitcoin can beat that fiat it could have a potential of becoming legal tender on most countries around the world.

Just some corrections:
1. Developed countries are the ones who print the most money.2
2. USA is developed country, not developing one.

Idk if it sounds curious for someone but Russia isn't developed country too and at the moment it's developing one, in transition.

Btw it's at some point funny how different North/West Europe / USA is from the rest of the world. There is a small inflation and boom, newspapers, etc are all fired. Have you guys seen post soviet countries? There is a huge inflation, in Georgia their national currency lost 2x value (If something was worth 2, in 8 years it become 4) and people in these countries don't even complain what's happening. Bonus, it's importer country. Inflation rises but wages are the same.

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Some people may blame me but if we want everyone to live a steady life, what about the implement the German taxation but with different levels? What about to tax rich people higher? You print tons of money, there are people who have tons of money too, enormous amounts that they can't use and will never be able to fully use. Isn't it manual inflation? Imagine, business is making profit and profit, the pocket of people is going empty and empty and we print money to fill their pockets and then say that there is an inflation, any logic here? Or am I very wrong?

So you believe that in the future we wont be measuring goods against the dollar, there is no way we are going to a gold standard or a virtual currency which is highly volatile. Fiat currency living its last moments means that the country is going into hyper inflation and UK is not the only country suffering from inflation as there are many European countries suffering for the past two years and the price of goods are rising and it is a global phenomenon and i am not living in a dream world where i see every country accepting the gold standard or accepting any currency which is highly volatile.

Just because the inflation rate has increased doesn't mean that the UK will become a doomsday dystopia with hyperinflation.

An inflation rate of 2% per year is aimed for as it stimulates the economy by disincentivizing money from being idle in bank accounts without rapidly jacking up the price level beyond incomes like in the cases of Weimar Germany or Venezuela.

Deflation is not always good news as if price levels constantly fall, the economy wouldn't work anymore.

This is because as prices for goods and services fall, consumers are less likely to spend their currency now as they wait for prices to fall further. This fall in spending leads to a decline in money available for firms to survive. This leads to a rise in unemployment as workers are laid off, further depressing prices and resulting in a recession.

There is one factor that needs to be considered while investing in stocks. A lot of talk is currently going on, to make capital gains tax equal to that of ordinary income tax. This may not have a big impact for the lower-middle class, but for the upper middle class the tax bill may move up (because their income tax slab may be higher). Add in the state-level taxes and the total returns after tax cut may be lower than the net inflation. I would rather prefer gold, as it can be kept for very-long term (10-20 years). So unless the government comes up with tax on unrealized capital gains, gold is going to have an advantage over the stocks.

The government got an major excuse due to Covid to cover their mistakes and whole and solely hide them in the name of virus like shortages and disruption in economy.The food and chain supply lags the proper policy implementation due to which these inflation rises and who all are bearing it's cost? The tax payers mostly from the working and middle class but they have an option not the vision to adopt bitcoin.

There is even more from the supply chain point of view. Governor Andrew from UK stated that it was the supply chain shock which added more baffling economic outbreak when the pandemic was on its peak level. They even calculated the pre-pandemic inflation and all the bank stated that the inflation could reach as high as 4%. So one thing is clear that UK was prepared for this outbreak but they did not think it would be as early as this one. It also worth noting that UK inflation dropped to 2.1% after they started the inflation with 2.4% and upwards.

To overcome this financial stress banks are planning on high interest rates and debt recoveries. This is obviously worst decision for the public but thats gonna be worst recovery ever; statement by Jeremey Warner in Sunday Telegraph.
Good article to read: Inflation, shortages and the end of furlough: ‘hard yards’ ahead for the UK economy

This is not so simple. 3.2% might be a lot for fiat, but it's completely negligible in comparison with Bitcoin. It can easily lose or gain more within a course of a day, which makes it way riskier than fiat. You might win from it, but the volatility can also be very stressful, and long periods of the bearish market aren't unheard of. With fiat, you know you're losing, but you also aren't losing that much (unless we're talking about weak collapsing fiat currencies, but the GBP is not one of them). With Bitcoin, you're taking a big risk that might leave you better off, but can also be devastating short-term.