This really might not be a temporary rise in inflation. We have already been waiting for a global economic recession for a long time. And I believe that it will happen in the near future. And these might be little signs of it. As long as FED continues to print money like there is no tomorrow, it will cause dollar to lose in value a lot in time. And this will not affect only the USA of course.
agree, we dont know exact time, when we get this inflation, totally. money dont have value, in all the place, you cant use fiat, and maybe in that time, we change to other thing, like back to stone or upgraded to crypto (im not sure about this) 
Topic: Permanent inflation or "just temporary" (Read 531 times)
i dont know if inflation just temporary, what i know inflation be permanent, and if it happen the country should make move about the economic.
Another real way to curb inflation is to increase taxes paying more taxes reduces the disposable income of the people the total expenditure is reduced. People's purchasing power can be reduced by imposing new taxes and increasing the old tax rates when there is an excess demand for a product in the market and there is a huge shortage in the supply of the product along with it. That situation creates an opportunity for the manufacturer to increase the price of the product or service and price inflation occurs.
It's actually easier to say than implementation, this is the major set back we have had in history. Inflation has started not today, it never start with us and will not end in our generation. It's a future thing that continues and happen as result of actions in economy.
You don't increase taxes any how because you want to halt inflation, beside you are putting more money into federal reserve pocket when they keep minting more currency at any house of Representatives passes bills. What do you think will be the end of your salary, just a penny.
What happens is that it is very difficult for the impact of inflation to decrease, most governments are the ones that want to obtain more liquidity and in return they do not mind devaluing a little to obtain what they need, obviously this is the case of many Latin American countries, but really the problem has worsened not only in Latin America, I know that in the USA they have liquidity problems and that one of the things that is impacting Americans the most is inflation, which although they have the dollar which is by nature In history, the one that maintains a global hegemony is falling more and more, this can trigger more economic problems not only there but also in the surrounding countries that depend on the debt they maintain.
USA is not printing enough money, that's the problem. They are "printing" in the sense that it is sent to their bank accounts so there is money floating around somewhere but the money in cash form is not in your hands, it's in check form and then in your bank account and then you pay your bills or buy something from amazon or whatever and money moves from bank account to bank account and majority of it is not in cash form.Inflation happens when you start to reach a level where your cash reserves is not enough to cover the debit people have and that is the problem with banks right now. We all know how we can't all withdraw our money from banks all together, if we do then banks won't have enough cash and can't pay us and will bankrupt, but if a government does that then the financials of a whole nation drops like crazy. USA is having that problem right now.
In economics, inflation is not always a negative/bad thing as long as it is controlled around 2-3% in the country.
Who says that?
Why would it be good even if it just 2%? 2% inflation means your FIAT will lose 2% of its purchasing power every year. Why would it be good? 2% or 22% it is all the same. FIAT will lose its purchasing power over time so it is better to buy something that doesn't lose its value no matter how old it gets.
does this mean it is only a matter of time before this destruction or will they no longer matter? Interesting to see what happens next.
on the other hand I agree with what you say, because if that's the case why are we in something that is sure to be destroyed, of course we are not too stupid to stay in that condition
In economics, inflation is not always a negative/bad thing as long as it is controlled around 2-3% in the country.
Who says that?
Why would it be good even if it just 2%? 2% inflation means your FIAT will lose 2% of its purchasing power every year. Why would it be good? 2% or 22% it is all the same. FIAT will lose its purchasing power over time so it is better to buy something that doesn't lose its value no matter how old it gets.
I think inflation is a permanent existence in society and influences people under the influence of the whole process. How to combat that and the wear and tear of human labor that is losing practical value, bitcoin is a miracle to help people close this inflationary gap. Fluctuating inflation rates increase the risk of an outbreak of hyperinflation. Fuel, food will increase massively by the end of the year? and always, my usual way of thinking is that it won't go away when we don't try to change to get over it. The support of bitcoin is gaining meaning if more people take the risk to support it.
right, inflation will always continue to increase, so that fiat money seems to start to lose its value, and this is proven by the increasingly expensive prices of necessities, and of course it will increase the burden on the community to get a decent life. on the other hand bitcoin offers freedom from inflation, but the basic thing that is used as a reason for the government is because of its uncontrollable nature In economics, inflation is not always a negative/bad thing as long as it is controlled around 2-3% in the country. If the inflation rate exceeds the desired amount, then that would disrupt the economy making prices higher while the value of fiat decreasing.
In the nature of cryptocurrencies (specifically BTC), inflation is bound to happen due to its limited supply in the market. To somehow counter this, forks happen which reduces the denomination of the rewards granted when mining. This is why every fork, prices of BTC increases in order for its 21 million supply to reach relatively slower.
Inflation will always be present at any time, price increases that are not followed by purchasing power make the economy difficult, the main increase is of course because the financial sector is difficult to grow so it is the duty of the government to be able to present a good economy so that the public can be productive and reduce the impact of inflation.
What happens is that it is very difficult for the impact of inflation to decrease, most governments are the ones that want to obtain more liquidity and in return they do not mind devaluing a little to obtain what they need, obviously this is the case of many Latin American countries, but really the problem has worsened not only in Latin America, I know that in the USA they have liquidity problems and that one of the things that is impacting Americans the most is inflation, which although they have the dollar which is by nature In history, the one that maintains a global hegemony is falling more and more, this can trigger more economic problems not only there but also in the surrounding countries that depend on the debt they maintain.
A few leaders of OCDE countries are speaking wishfully about inflation, stating that this is just "a temporary peak". However this may or may not be the case. Even the people with best information (CEOs of large companies and perhaps some ministers) are unclear about how long do we have to endure inflation.
My translation for this is "we do not know if we can effectively pass the burden of all the money we printed onto the labour or the salaries will rise paving way for sustained high inflation in two years".
My translation for this is "we do not know if we can effectively pass the burden of all the money we printed onto the labour or the salaries will rise paving way for sustained high inflation in two years".
Whatever the FED chairman says, the truth is always the opposite. If he says we are good, then we are effed badly. If he says we are ruined, then it means we'll be fine tomorrow. So when he said the inflation transitory, I forgot how many months passed since then and the inflation is still here and higher than ever. What do we expect? They printed the 40% of the entire FED balance sheet in a year.
By "transitory" he probably wants to mean that after some time the prices won't be rising as much. He doesn't mean the prices will come down. Yes, the prices wouldn't be rising that fast if they stop printing new currency but we know that it is not going to happen.
I would say that inflation is the biggest problem over fiat right now.
As long as inflation stays, we are going to have a lot of future problems and there is really no way to fix it neither.
Super wealthy people like Jeff Bezos and Elon Musk will keep on gathering all the resources they want, and eventually they will reach to a point where we have no money and they have all the money in the world.
Since governments cannot allow that, they keep printing more and more money and allow us to get it by working hard by giving it to the companies, so we spend it back to companies and we have nothing left again and the cycle continues. It is impossible to break it unless you make the companies pay for it via hard taxes.
As long as inflation stays, we are going to have a lot of future problems and there is really no way to fix it neither.
Super wealthy people like Jeff Bezos and Elon Musk will keep on gathering all the resources they want, and eventually they will reach to a point where we have no money and they have all the money in the world.
Since governments cannot allow that, they keep printing more and more money and allow us to get it by working hard by giving it to the companies, so we spend it back to companies and we have nothing left again and the cycle continues. It is impossible to break it unless you make the companies pay for it via hard taxes.
I am not sure of that. Is there any source that backs up that opinion? My doubt is mainly that taxes reduce the disposable income for the families, but it increases the government spending by exactly the same amount. Government are usually ferocious spenders of anything that they get their hands in and even sometimes of that they do not even own. How would that work?
I am not sure either.
I think he is getting confused. Both taxation and money printing is what governments use to fund their spending. Money printing usually leads to inflation, while tax hikes do not, but it depends on other factors. For example, you raise taxes, but you keep printing and wages go up too? There will be inflation.
But he contradicts himself because first he says that by raising taxes you lower inflation and ends up saying:
That situation creates an opportunity for the manufacturer to increase the price of the product or service and price inflation occurs.
Inflation will always be present at any time, price increases that are not followed by purchasing power make the economy difficult, the main increase is of course because the financial sector is difficult to grow so it is the duty of the government to be able to present a good economy so that the public can be productive and reduce the impact of inflation.
This is laughable. There is nothing like "temporary" inflation. Prices once gone up, stays there forever, or increases further. In my area, an acre of land went at around $10,000 two decades ago. Now the rate has increased to $1,000,000-$2,000,000. Everyone says that land has become expensive now. But people are still accumulating whenever they have an opportunity, because they know that the prices are not going to come down. The only commodity for which the prices actually decreased is crude oil. I remember crude going at $100-120 in 2010-13, but in 2020 the prices had come down to $40 per barrel.
Another real way to curb inflation is to increase taxes paying more taxes reduces the disposable income of the people the total expenditure is reduced. People's purchasing power can be reduced by imposing new taxes and increasing the old tax rates when there is an excess demand for a product in the market and there is a huge shortage in the supply of the product along with it. That situation creates an opportunity for the manufacturer to increase the price of the product or service and price inflation occurs.
I am not sure of that. Is there any source that backs up that opinion? My doubt is mainly that taxes reduce the disposable income for the families, but it increases the government spending by exactly the same amount. Government are usually ferocious spenders of anything that they get their hands in and even sometimes of that they do not even own. How would that work?
It's standard economic theory.
The government doesn't need to spend all of the tax revenue that it generates. At least in principle, tax collection and fiscal expenditure are two completely separate arms of fiscal policy.
So if you increase taxes, you could reign in spending without much government expenditure in reciprocal, if it is the government's plan to seriously curb inflation.
Another real way to curb inflation is to increase taxes paying more taxes reduces the disposable income of the people the total expenditure is reduced. People's purchasing power can be reduced by imposing new taxes and increasing the old tax rates when there is an excess demand for a product in the market and there is a huge shortage in the supply of the product along with it. That situation creates an opportunity for the manufacturer to increase the price of the product or service and price inflation occurs.
I am not sure of that. Is there any source that backs up that opinion? My doubt is mainly that taxes reduce the disposable income for the families, but it increases the government spending by exactly the same amount. Government are usually ferocious spenders of anything that they get their hands in and even sometimes of that they do not even own. How would that work?
I believe that if you ask most people now they’re going to tell you that they would prefer that this is not a permanent inflation, they would prefer that it is just a temporary if flashing that would go back two things being normal as it used to be before now. But, a lot of people have seen it really difficult and living their life at this time around, because of the hard work they have to put in their work and also how costly things are right now, they are not able to afford most things that they can see in the market just because there have been a rise in price.
Most products you see these days is either that the numbers of what you will get has been decreased or the price of the same amount has been increased, it’s just been like that and let’s hope that things get better or maybe the government will have to increase salaries for people to match the situation at hand.
Most products you see these days is either that the numbers of what you will get has been decreased or the price of the same amount has been increased, it’s just been like that and let’s hope that things get better or maybe the government will have to increase salaries for people to match the situation at hand.
As reopenings continue, congestion, hiring difficulties and other limiting factors could continue to limit the pace of supply adjustment, thereby increasing the likelihood that inflation could be higher and longer lasting. than we expected.
In other words, inflation is getting out of control for the government, and the economy seems to be doing more, it is possible to see that inflation will linger.
Federal Reserve Chairman Jerome Powell said that inflation looks much worse than before.
However, some financial experts have pointed out that they disagree with this view
In other words, inflation is getting out of control for the government, and the economy seems to be doing more, it is possible to see that inflation will linger.
Federal Reserve Chairman Jerome Powell said that inflation looks much worse than before.
However, some financial experts have pointed out that they disagree with this view
A few leaders of OCDE countries are speaking wishfully about inflation, stating that this is just "a temporary peak". However this may or may not be the case. Even the people with best information (CEOs of large companies and perhaps some ministers) are unclear about how long do we have to endure inflation.
My translation for this is "we do not know if we can effectively pass the burden of all the money we printed onto the labour or the salaries will rise paving way for sustained high inflation in two years".
The government appoints such educated officials to speak on these economical topics and they can mould the information to ordinary audience that they can presume that what they are saying is correct and they start to have some delusionary faith in them.Like this the inflation is temporary is not at all correct depending on the current government policies and how they tackle it like by printing more and more notes.But yes i agree with them that inflation is temporary and next permanent phase will be hyperinflation as deflation is becoming obsolete these days.They will issue such statements again and again but we are smart enough to have a look ourself on the charts.My translation for this is "we do not know if we can effectively pass the burden of all the money we printed onto the labour or the salaries will rise paving way for sustained high inflation in two years".
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So you see the red marks rising all over the world map? These are not resources increasing or gdp growth but rising inflation at fast pace.There is also another thing that inflation is temporary is right in context to say if it's 3.5% then next year it will be 4% and if they mean this then it's okay.At last the burden is imposed on middle class and working class and they are are majority of the population but still they face such situations.
BTCitcoin is the only solution for this.
I wonder how did they reach the conclusion that inflation in Russia shall be more than 45%. I think their economy is not doing great but at least they have plenty of raw materials and commodities and those tend to do well in inflation. Maybe I am just not used to this predictions.
I think I got my comment quite right, as I read recently on an UK outlet that
Quote
Minister refuses to commit to above-inflation public sector pay rise
An let the hunger games begin. Money printing bill is once more footed by the working class in the shape of increased SS taxes and, on top, lower salaries. Mastermove.
A few leaders of OCDE countries are speaking wishfully about inflation, stating that this is just "a temporary peak". However this may or may not be the case. Even the people with best information (CEOs of large companies and perhaps some ministers) are unclear about how long do we have to endure inflation.
My translation for this is "we do not know if we can effectively pass the burden of all the money we printed onto the labour or the salaries will rise paving way for sustained high inflation in two years".
Inflation is just a natural result of the economic policies pursued by central governments in most countries of the world. When it comes to inflation, I don't really think that it is just a temporary since after experiencing such situation, yes, we may be experiencing calm but sooner or later, inflation could be a topic again. But, in terms of food, and essential products inflation could be just temporary. However, inflation maybe temporary or not will still have an impact and this is quite very serious thing when it happen, all we just need to do is to plan for us to survive. My translation for this is "we do not know if we can effectively pass the burden of all the money we printed onto the labour or the salaries will rise paving way for sustained high inflation in two years".
I think inflation is a permanent existence in society and influences people under the influence of the whole process. How to combat that and the wear and tear of human labor that is losing practical value, bitcoin is a miracle to help people close this inflationary gap. Fluctuating inflation rates increase the risk of an outbreak of hyperinflation. Fuel, food will increase massively by the end of the year? and always, my usual way of thinking is that it won't go away when we don't try to change to get over it. The support of bitcoin is gaining meaning if more people take the risk to support it.
right, inflation will always continue to increase, so that fiat money seems to start to lose its value, and this is proven by the increasingly expensive prices of necessities, and of course it will increase the burden on the community to get a decent life. on the other hand bitcoin offers freedom from inflation, but the basic thing that is used as a reason for the government is because of its uncontrollable nature A few leaders of OCDE countries are speaking wishfully about inflation, stating that this is just "a temporary peak". However this may or may not be the case. Even the people with best information (CEOs of large companies and perhaps some ministers) are unclear about how long do we have to endure inflation.
My translation for this is "we do not know if we can effectively pass the burden of all the money we printed onto the labour or the salaries will rise paving way for sustained high inflation in two years".
I do not know which country you live in, but in the country where I live, hardly have I seen any inflation that was temporary, most of them were permanent inflation. And the way I’m looking at this one it seems like it’s going to be permanent as well, although salaries have not been increased to match the level of inflation we have so far. My translation for this is "we do not know if we can effectively pass the burden of all the money we printed onto the labour or the salaries will rise paving way for sustained high inflation in two years".
But, I am hoping that things get better and also that the inflation is not going to be something permanent but rather a temporary inflation that will soon come down and things will get back to normal as it used to be before now. It is also going to depend on the government to fix up their economy, because if the government are not doing anything about it then nothing is going to get fixed.
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