Topic: Permanent inflation or "just temporary" - page 2. (Read 558 times)

Although there are still some countries that are being hit by the covid-19 virus. Yet, the majority of the countries are trying to recover as much as they can.

Inflation, price increase, and salaries have been always the same. This is the situation of most people during this pandemic but we'll be optimistic that once this ended, many commodities will start to decrease its prices.

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.

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.



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.

Inflation is a normal occurrence in the economy of each country. Inflation is usually indicated by the price increase of the products and services offered in a country. The consumer price index specifically is the term called for it. The inflation can either be good or bad depending on where you currently belong, what your social status is, and your situation in life.

If you belong to a rich country, inflation is usually not a big deal to them. Hence you have a little to worry about unless you belong to the lower bracket of the society. First world countries usually handle it better because of course they are richer and more capable than those of blossoming countries just yet. If you are poor, you will severly feel the impact of inflation because it is very evident in our daily lives, most especially if it is soaring. The price in the market will increase, so are the services offered. If you have a fixed income, you will have a hard time adjusting. You have to have a tight and disciplined budgeting plans to survive and get by.

When it comes to situation, if inflation is higher you will benefit if you owe someone or the banks a money because the interest rate would be lower. If someone owes you a money, you will be at disadvantaged because the interest rate the borrower will pay you will be lower. It's really a matter of situation. Either you are winning or losing, benefiting or not, enjoying or suffering. Like what they say, a blessing for some might be a nightmare for some and vice-versa.

That's my main concern, how is inflation stopping? Okay, tourism was pretty decent this year, especially on Crete island, where I live. I'm not sure about the rest of European countries though.

Things have started getting out of hand, it was pretty usual for prices rising in the summer, since the demand is dramatically increased, however, the season is almost over, with prices being higher than they were in July-August.

In many countries, tourism didn't really great. Mostly were stopped and shut down, flights were stopped and only available for the most important industries and logistic matters.

A lot of countries that were dependent on the tourism industry have almost died with that sector.

But the good thing about this year, everything has started to recover. Many country's economies have been slowly recovering but inflation cannot be stopped.

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.

A week ago, I watched "Squawk Box" of CNBC with the guest star was Paul Tudor Jones. When he told his opinion about inflation, he said the number one issue which is faced by investors is inflation and this is not transitory. There are some reasons why he said this will not transitory and his indicators such as:

1. the demand side of the equation,
2. the core personal consumption expenditures price index increased,
3. the supply chain disruption.

Personally, I agreed with his opinion. The Fed has a policy for facing inflation with tapering off. They have prepared to increase the interest rates in the 2nd semester of 2022. Then, my country has prepared if this policy will be implemented immediately. So, we have to find another alternative for saving our assets so didn't affect this issue.

https://www.cnbc.com/video/2021/10/20/paul-tudor-jones-inflation-is-the-number-one-issue-facing-investors.html

temporary or not inflation will still have an impact at least for people who are in the scope of the country or large companies that experience it.
and this is quite a very serious thing when it happens.
at least the word "temporary" still gives hope for some people to be able to continue what they should be doing in order to reduce the effects of inflation if it really happens.
but indeed until now the signs of inflation are even clearer and like it or not we must be ready and able to survive in this case.

Inflation has been around for a long time, the Government knows how inflation will work and they have no way of cleaning it up or even marginal additions.  Previously, controlling inflation was risky but did not have much impact on the economy, they were carefree until the covid pandemic occurred.  It's just something that has to happen.  What did they measure with the CPI.  Inflation has become a chronic disease for the economy.  The harmful effects of increasing inflation are people's difficulties, when their wages are only enough to cover the rising cost of living, electricity, fuel, and food.  Lol

Certainly this is about all of the countries in the world considering how covid changed the way economics works. Sometimes one country was above all during the covid while others were asking for financial help along with medical borrowing. This led some countries to earn good amount of royalty and they kept themselves a bit away from the financial crisis. However, covid worsen so much later in the time that even those countries started to go down the sink and needed more money to run their own economical circle. With global job outrage, it put more burden on the governments as taxes were dropping at alarming rate. However, I believe situation is far far in control and no one is gonna see inflation coming their way.

Well I definitely agree on what you're saying, it was inevitable when economies were practically shut down for more than a year. This year's tourism season for instance was great, last year's though was pretty awful for Greece, a country which almost solely depends on it.

The issue is that all goods have increased in price, so has fuel and electricity, while the average available income due to these increases has dramatically decreased.

I would say that it is definitely looking more and more permanent each day. We have so many crashes in the stock market and superb increase on inflation that people are acting as if that is normal each time it happens. The market "reset" has happened way too frequently in the recent decades and we need to realize it is not normal. I believe that if 2020's have another crash like this, then we are going to permanently damage the economy and fixing it will not be easy.

You have to realize those super rich people usually sell stuff to be rich, you think Elon Musk could keep getting richer if there are no people who can afford to buy new teslas? He can't just sell his rich friends and get richer, he needs to sell it to everyone. Hence I believe richer getting richer will have a cap on it and eventually everyone else will be poor enough to not be able to buy anything from these people who are rich and that will destroy the system we live in.

Money and items of trade and currency have this history of inflation since time immemorial. As commodities become more advance and scarce at the same time, it automatically counterbalances the value of the fiat currency it is supported of. This causes inflation which greatly affects the common folk as compared to people who are relatively well-off. That being said I don't think inflation will go away anytime soon unless an overhaul of the money system is made to defect from the things that cause money to lose value, or at least create a readily scarce variation of money that is deflationary at the same time. Bitcoin seems to be a good answer for this but the current volatility of the coin makes it unviable for such role. After the economy catches up at the upheaval of COVID-19 pandemic there will sure be chances that prices of commodities may rise, and the printing of money made by the Government may or may not affect the price itself once the economy catches up. I do not know what they are to do in order to counterbalance these detriments because if they wouldn't USD would become inferior which will not only affect the dollar but all of currencies that it supports, Bitcoin on the other hand, being decentralized and existing in a different platform than fiat, wouldn't be affected so many people will be expected to invest in bitcoin to save the value of their wealth.

For sure, all government needs to hold the seat belt and tight to face the inflation that may or may not come after this. After this pandemic ends, all governments need to work hard to prevent inflation or minimize it by cutting the budget on every post or rebalancing their funds to be spread in all aspects of their economy. But I am sure this inflation is just temporary and will end soon, especially if all companies can back to the business and earn money. The country will get revenue again and everything will be back normal but with a new change because this pandemic changes everything.

Inflation is the favourite tool of countries with high debt levels. Instead of looking for ways to save money or cut down on government spending, you can just make the current money less valuable through inflation. This makes your debt also less valuable and easier to be repayed in the future. An inflation target of 2% is a good way for countries to not end up in downward spiral of excess debt. But staying above this target for too long is not good for the investors and people with some form of savings. Eventually inflation has to come down again. I don't think we will see higher inflation in the next few years. The pressure is already rising on the government to start raising interest rates again. Also commodity prices tend to move in cycles, it's just a matter of time for energy prices to stabilise again.

If what goes on today is the new normal, a year from now we will have another new normal rate. But yup it's still temporary because another year passes another new normal rate. It's an alarming rate. US will have to contain this otherwise the political instability will cause this administration to fall.
I think the FED had it in mind though that they are going to adopt BTC soon, they are just not making people panic for now but just let them live life stay at home and they get their money from the government the keeps printing.

The rest of the world notices the foreign exchange currencies. If our money today appreciates then we know US money depreciates so what gives other countries still have the confidence in this currency?

Everyone knows that inflation is a regular part of monetary policy, by design, in fiat economies.  What people mean by temporary inflation in the current context is whether or not the elevated inflation we're currently experiencing is temporary or a new normal.  5% is much higher than we've experienced in a long time, 1990 in fact was the last time the annual inflation rate for the year was over 5% and it was only above 5% for that one year.  Prior to that was the high inflation environment that ran from 1973 to 1982, and sometimes saw inflation rate reach 10% in those years.  The economy is so vastly different now it may not even be a meaningful comparison, but that's how long it's been not a concern.

I would rather say that this inflation will gonna stay permanently. Although its not all the time that there will be rising inflation, but believe me inflation will never be gone as long as there is fiat that brings about inflation. And since the prices of basic commodities will continue to increase, then it will be those people who are facing poverty are mostly affected. Especially in this time of pandemic, the government should always be ready to assist those individuals who are mostly affected with this fast rising inflation, not as a form of cash, but maybe in giving livelihood projects that will help them to sustain their living.

Nah, it's mostly the lower classes that feel inflation the most for two reasons.  1) The rich are insulated from inflation by investments that appreciate with inflation instead of holding cash and the fact that any inflationary effects are not a significant portion of their net worth.  2)  Lower classes mostly have cash-based assets and no investments that negate the impact of inflation, and any inflationary effects are a significant portion of what little assets they have.  As much bitching about inflation as the rich do, it's not nearly as impactful to them as the lower classes.