Topic: Permanent inflation or "just temporary" - page 4. (Read 558 times)

I don't think that inflation is going to go away anytime soon so I think that it's most likely that it's a permanent thing, I mean we will eventually find a solution about it anyways so I don't think that we're going to worry about it, unless the government doesn't do anything to stop it then probably we'll not be able to do anything about it besides protecting ourselves from that inflation.

The problem with inflation is that is a temporary solution but has a draw back that will last for ages, and economist are always use it because they don't care about the far future they care about fixing the problems that they are facing, especially with the pandemic that lasted for 2 years and we are still seeing it economical draw backs to this day, and there is no solution to it except printing more money according to experts, so the best way to battle it right now is to use store of values investment like bitcoin.

Many criticized bitcoin's deflationary model over the years.

They claimed debt based finance / economics were the ideal scenario that everyone should endorse and embrace. That debt was essential to society and civilization continuuing to function. With deflationary or gold backed standards being too limiting or restrictive to allow for growth.

I would be curious to know how those critics view the current day economy, with inflation having a noticeable negative impact. Is bitcoin's deflationary model still "flawed"? Do debt based financial and economic models still represent the utopian arrangement that the entire world should follow?

The funny thing about current day inflation is, few bother to learn the basic fundamentals on it. Which means that even if an inflationary economic disaster hit. The same scenario could repeat again 5 to 10 years in the future. Simply due to the public not knowing what the real problems are.

Nice, but I do not understand how they link the unemployment to inflation, unless they are assuming that less people working means less money circulation or lower speed. Or perhaps they are thinking that too low of unemployment may result in salaries rising, but in that case they are double counting when considering the Labour Cost Index.

Interesting, although limited to US.

• Unemployment rate by age
• Labor Cost Index (NAICS
• Consumer Price Index
• Producer Price Index
• US Import Price Index
• Average hourly earnings in the US

Inflation is the natural result of the economic policies pursued by central governments in most countries of the world. Most of these governments, even those that have a strong economy, think that printing more useless paper money is the temporary solution to their economic problems, but this temporary solution will be the biggest problem they face in the future and will turn into a monster that devours their economy without being able to do anything.

They always find ways to make the numbers look good. Each and every government always find some things to not be declared until the next government takes it over.
The inflation is visible at the supermarket, you know... much better than from the official numbers. And with electricity, methane, petrol all getting way more expensive, a new avalanche of price increases is just starting.

However, I was talking "historically", since unlike other countries, here there's always something that goes wrong (in the ways the money is spent and the inflation grows).

Interestingly it doesn't look in official numbers at least that Romania and Bulgaria are experiencing this year the highest inflation rates, although I'm not sure how good how accurate those numbers reported by each country are so for once you might escape this. Also, I'm unaware of any real money printing or airdrop checks in that part of the EU, if I recall correctly nothing even remotely on the scale of what the US did happen so if somehow in the hour your leaders get their shit together it's still possible to get out of this far better.

Random events can lead to random results, just as Poland was affected first in the last recession first and got out of it nearly unscratched only to bleed afterward it wouldn't be amazing to see something like this again, although...I  bet there are a lot of weird things in that growth.
Theoretically at this point growth would outpace inflation, to be honest, I don't even know what to make of a situation like this, all would point to a growth in manufacturing and exports, so who knows, despite everything the exact lack of measures will be the best measure.

It's going to be a really interesting year this 2022 when all the consequences will show up and at least economically we can quantify and analyze the results, it's way too early right now, and ...winter is coming!  


Tell that to Japan!

I don't think inflation will ever be temporary. As long as we have the fiat currency system there will be inflation IMO.
Not only that but the inflation will keep rising every year and we will face recessions and economic turbulence in regular intervals.
As people become more aware of the situation more people will find an alternative and move to advanced financial systems like cryptocurrnecy.
This is one of the major reason why I have faith on cryptocurrency to pave the way for suitable financial conditions in the future.

Inflation is permanent, the opposite is going to be disastrous for the econ because that means that the value of the currency and the economy is going down. Inflation is a good thing if the government knows how to control it to the point where they can keep it around 2 or 3 percent, that's probably the time that we won't be complaining about inflation.

Look at the US federal reserve chart of liabilities they've taken on in the past.

https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm

I point to this as irrefutable evidence of inflation being persistent because the biggest currency in the world cannot take on an unlimited number of liabilities and inject cash into the total money supply without ramifications. This debt does not just disappear. The fed tried to play games with quantitative easing, and it has not worked because the predictable side effect is high inflationary period that last ages.

Inflation isn't transitory anymore, this will last for years, probably for the next 4. And that's current predictions, keep in mind things could take a larger nose dive.

Although it's a bit off-topic, I know too well what you mean. Sadly.
The gap between educated and uneducated is too wide. Too many people are left without information or with mostly fake news, people who rely on the priest and maybe the mayor for "educated news". Too many others, with access to news and education think that they know better..., going from attempting shortcuts (in this case even black market covid certificates) to believing all the conspiracy theories, many of them handed over generously by main television channels too... I don't want to fill pages with everything.
But imho this stands for basically the whole Balkans area (I hope I'm wrong!!), so... the group may increase, especially as the politicians (Europeans and Romanians alike) don't know nor care much of how to handle this.


Maybe the... particularities... of my country are the reasons I see so well all the mechanics behind the (ever) increasing inflation 

That money printing is not the main driving factor for inflation right now.

You can look at lumber prices and oil prices, all skyrocketed without the welfare checks and in totally different times and fashions.
Right now what's driving up the price of good is the continuous chaos in logistic chains where some manufactures can and other can't secure everything from raw materials to spare parts to manpower. Europe, for example, is barely out of the virus madness, slowly but surely everything starts going back to normal, it will take a bit before everything is put back in place, poeple come back to all their jobs, entire chains all over the globe are no longer affected by lockdowns or anything else.
It's not that we have much more money printed in the economy, it's the problem with the scarcity of goods.

Probably the first drop in this will happen right after Christmas and before the Chinese new year, that's a period of reset ith low activity which can be used to patch whatever is left to patch of this global commerce.


Well, for some of us the pandemic is nearly over, but looking at the numbers of the furious two  (Romania and Bulgaria) I don't understand why always those two must be special when it comes to statistics, good or bad, at least one of those countries must be in a league of its own compared to the rest of the EU.
Not that it's your fault or anything like that, but every single time something happens extreme examples from both the top and the bottom show how fractured this union still is, even after so many years, and it's not something that looks to be fixed anytime soon.

50 Years Ago Nixon ‘Temporarily’ Took the Dollar Off the Gold Standard

Difficult to say. The current upward price spiral is clearly caused by limited goods and still partly interrupted supply chains. Just look at how many industries are now affected by the shortage of semiconductors. If one can believe different sources, then this condition will continue at least 1-1.5 years. Whether the upward price trend will continue after the bottleneck has been overcome also depends on whether the central banks get the tappering implemented or continue as before. If they continue as they are, inflation could be significantly higher in the longer term.

Inflation of staple foods increases annually ,even news in Turkey is said to have opened 1000 new markets to stem the inflation rate which has increased by 20% ,Meanwhile in my country see news also the highest inflation rate occurred in the electricity gas clean water sectors at 3.57% and the construction sector at 3.45% only temporary

I believe that the inflation can be stopped successfully,if the US Federal reserve stops with the money printing,but the people,who are in charge of the Federal Reserve are concerned that this move might lead to slower recovery of the US economy after the pandemic and a future stagnation.
The other big factor,which pumps the inflation are the oil and natural gas prices.The demand for oil and gas increased pretty fast,while the production and supply is growing slowly.At some point the oil and gas supply will reach it's peak and the market will be balanced.Natural gas prices in Europe in Asia are crazy right now,but this is only the price on the short term spot markets.

Well currently the world is overseeing the situation right now. Due to COVID everyone is focused on the emergency situations and in the process big stuff like tourism, airlines, leisure, and thus businesses which depended on them also went down along with it.

This sounds sick but this is one of many reason where economic crisis started and it’s pretty logical.
When everyone sits at home the worlds gonna ruin isn’t it. Lolz.

So now coming back to the question of yours whether it’s temporary or not that entirely depends on many factors such as whether world is gonna start to work back with the same speed or not? Whether businesses will reset to the same level of operations as they used to or not ?

However in my opinion we overcame worst crashes in the history so this will pass too.

Inflation caused by scarcity of good quality things is likely a possibility and will be permanent. I however think that good quality could be replaced by substandard poor quality alternatives to mitigate serious inflation. To maintain the system the people controlled by it will consume poor quality... they will likely not know, understand or remember what good quality used to be. *Lands of forgetfulness

Inflation is inevitable.

It's the reality that everyone of us has to take. But from the top structure of society, the top are the ones that's mostly worried about it because they're the ones that will be badly affected by it.

But from the lower middle up to the lowest classification in the society, there's not that much to think of it as they're not coping up with the inflation but barely feel if there's an increase and mostly feel it when it hits.