Risk of Inflation in Economy. - page 3.

jaysabi

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Quote from: hugeblack on May 20, 2021, 05:24:07 AM

If the country is run by a good government that is far from corruption, then inflation rates are not supposed to reach insane levels or constitute a crisis between individuals.

The inflation crisis shows the strength of the government's financial position. Unfortunately, the poor are the ones who pay the cost because they do not have sufficient financial tools to fight inflation.

The solution to this problem lies in obtaining more tools to fight inflation, Bitcoin may be one of those tools.

In developed nations, corruption has nothing to do with it. In poorer nations, corruption is probably not the cause of inflation either. There is a correlation between corrupt leaders in developing nations and high rates of inflation, but not because of the corruption itself. The cause of inflation is the monetary policy, full stop.

horrifiedx1

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Quote from: Vishnu.Reang on July 11, 2021, 07:37:21 AM

Quote from: boumalo on July 10, 2021, 02:29:24 PM

There are so many evidences of inflation at the moment, starting with the official CPI in the US.

https://www.bls.gov/cpi/ 0,6% in May 2021

The release of the June number is July 13th

Normally I don't go by these numbers, because they are generalized numbers combining a number of different assets. For ordinary people, it is inflation in the petroleum, food, medical and transport sectors which matter the most. And from what I can see, the the prices in these sectors have gone up by much more than 0.6%. The crude oil prices have almost doubled over the last 12 months, and this will act like a chain reaction, increasing the prices in other sectors (by pushing up the cost of transporting goods).

right, with the increase in oil prices, of course, the transportation sector will be the most affected, while everything related to the distribution of goods uses transportation, so this will trigger an increase in all prices. unless, for example, electrical energy that has been developed can replace it, so that it can replace the role of oil

Vishnu.Reang

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Quote from: boumalo on July 10, 2021, 02:29:24 PM

There are so many evidences of inflation at the moment, starting with the official CPI in the US.

https://www.bls.gov/cpi/ 0,6% in May 2021

The release of the June number is July 13th

Normally I don't go by these numbers, because they are generalized numbers combining a number of different assets. For ordinary people, it is inflation in the petroleum, food, medical and transport sectors which matter the most. And from what I can see, the the prices in these sectors have gone up by much more than 0.6%. The crude oil prices have almost doubled over the last 12 months, and this will act like a chain reaction, increasing the prices in other sectors (by pushing up the cost of transporting goods).

boumalo

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There are so many evidences of inflation at the moment, starting with the official CPI in the US.

https://www.bls.gov/cpi/ 0,6% in May 2021

The release of the June number is July 13th

Coroline

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Quote from: sapnu on June 27, 2021, 11:49:29 AM

Quote from: Iphomme on May 18, 2021, 09:19:07 PM

Our economy change drastically and very tangible of the eyed of everyone. We can not control the economics cycling in out of the world. More people suffer that can not afford to buy due of high demand of the prices the situation of the poor status it's getting vulnerable so it is really hard when we're in point of the high inflation more risk we can experience.

The crisis that the world is about to face with regards to economy is invetable specially now that Covid 19 happened. Lots of business were shutdown forcibly as they face bankrupt which further leads to an economical breakdown. High inflation will happen no matter how much we would like to stop it, the prices will go way too expensive and famine will take place as well as war between countries due to fighting over territories and natural resources. That is why it is much important that you are doing something now that prepares you in the future so you wouldn't struggle when the time comes or atleast lessen it.

Inflation will erode the value of money over time, including investment. Therefore, investors should buy investment products with a rate of return that is greater or at least equal to the rate of inflation. Thus, inflation will not have a negative impact on investment. On the other hand, if the rate of return on investment is lower than the rate of inflation, the real return on investment will be minus.

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Quote from: Iphomme on May 18, 2021, 09:19:07 PM

Our economy change drastically and very tangible of the eyed of everyone. We can not control the economics cycling in out of the world. More people suffer that can not afford to buy due of high demand of the prices the situation of the poor status it's getting vulnerable so it is really hard when we're in point of the high inflation more risk we can experience.

The crisis that the world is about to face with regards to economy is invetable specially now that Covid 19 happened. Lots of business were shutdown forcibly as they face bankrupt which further leads to an economical breakdown. High inflation will happen no matter how much we would like to stop it, the prices will go way too expensive and famine will take place as well as war between countries due to fighting over territories and natural resources. That is why it is much important that you are doing something now that prepares you in the future so you wouldn't struggle when the time comes or atleast lessen it.

boumalo

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Quote from: Vishnu.Reang on June 14, 2021, 06:07:49 AM

Quote from: boumalo on June 13, 2021, 06:59:32 PM

0,6 in May 2021

Un-adjusted 12 month ended May 2021 5%

Annual rythm in 2021 so far : 6,7%

It is very high numbers.

From what I heard, the M1 monetary supply within the United States increased by 100% plus. So it is natural to have higher inflation numbers. Actually I am surprised to see such low numbers. I would expect the inflation rate to be in double digits by now. Perhaps the impact of the higher monetary supply takes a while to be reflected in the market. But I am sure about one thing. With Democrats in power until 2025 January, the inflation is not going to get any lower now. Within the next 4 years, I expect an annual inflation in double digits and federal debt of around $50 trillion.

With less money creation, the prices would have gone down so the difference in purchasing power between the situation we have and what we would have with sound money is huge and the loss of purchasing power is big too.

Having assets offset a lot of the price increases and innovation push the prices lower so the inflation phenomena is not simple one-sided event.

ChiBitCTy

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Inflation certainly is a major issues right now that I believe the vast majority of people are not prepared for. Where I work, we currently offer a fixed account with a rate of 2.53%, which is VERY good for todays standards ( the best fixed rate you can get at a bank is currently around .5%). That being said, with inflation around 3%+ on average right now, technically you're losing money sitting in that account "earning" 2.53%. Here is a great article I just read about the Fed Reserve and skyrocketing interest rates- https://www.cnbc.com/2021/06/16/fed-holds-rates-steady-but-raises-inflation-expectations-sharply-and-makes-no-mention-of-taper.html

"Though the Fed raised its headline inflation expectation to 3.4%, a full percentage point higher than the March projection, the post-meeting statement stood by its position that inflation pressures are “transitory.” The raised expectations come amid the biggest rise in consumer prices in about 13 years".

Dread Pirate Roberts

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Quote from: Iphomme on May 18, 2021, 09:19:07 PM

Our economy change drastically and very tangible of the eyed of everyone. We can not control the economics cycling in out of the world. More people suffer that can not afford to buy due of high demand of the prices the situation of the poor status it's getting vulnerable so it is really hard when we're in point of the high inflation more risk we can experience.

Thats true inflation will effect economy, money value will lower and everything will more expensive. there is many type investment that will save people from inflation such gold, property and now for digital investment is crypto.

carter34

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Quote from: crwth on May 22, 2021, 11:28:46 AM

Quote from: carter34 on May 22, 2021, 11:19:37 AM

Even putting money into bitcoin won't solve the situation because you are part of the country or system and when you make withdrawal of the coins or converted form, you still use it to buy in an inflated system, the worth of what you are getting will be lower if it was not inflation. Inflation is a big challenge to every economy.

Are you sure about what you are talking about? Yeah, it is like that but no matter what the situation is, it's always going to be better for your capital to have more in USD or in BTC. The way that you can not be affected by the inflation of USD is by not letting your money stay in USD. In that way, you lessen the effects. Taking advantage of the current volatility of your assets as well.

You have to realise that volatility is in two ways, either for bullish or for bearish. When you hodl or invest at wrong time, your investment drops and may worth less even when converted to fiat. Except you have to change into stable coin to retain its value. Inflation affect the crypto except if the bull season resume.

Koro-Sensei

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There are several factors that Government could do to fight against inflation. They could use wages to lessen the growing inflation and if necessary reducing the printing of money in a year. The problem is that some governments are incompetent enough to sought these things and some are blinded with money. These are the reasons why most countries are suffering inflation.

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Quote from: secretgirl on June 14, 2021, 01:48:10 PM

it's true what you say, more and more people are suffering especially people who don't have wealth because the inflation rate is getting higher. purchasing power is decreasing, for example a few years ago we could buy an item but we need a lot of money to buy the same goods a few years later when inflation increases. inflation will be very detrimental to people who keep their wealth in cash, because cash will lose its value. the worst thing due to higher inflation is that it can make the standard of living go down and the economy to get worse, because the prices of goods are out of reach. so that the general public find it difficult to get the goods they want.

It is the middle class that get disproportionately affected from inflation. The lower class doesn't usually have any savings and so they don't really bother about inflation. The rich also have most of their assets in the form of real estate or bullion, which are protected against inflation. It is the middle class who keep their savings in the form of bank deposits and the purchasing power of these assets decrease with rising inflation levels. To make matters worse, the salary never increases on par with inflation.

secretgirl

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Quote from: Iphomme on May 18, 2021, 09:19:07 PM

Our economy change drastically and very tangible of the eyed of everyone. We can not control the economics cycling in out of the world. More people suffer that can not afford to buy due of high demand of the prices the situation of the poor status it's getting vulnerable so it is really hard when we're in point of the high inflation more risk we can experience.

it's true what you say, more and more people are suffering especially people who don't have wealth because the inflation rate is getting higher. purchasing power is decreasing, for example a few years ago we could buy an item but we need a lot of money to buy the same goods a few years later when inflation increases. inflation will be very detrimental to people who keep their wealth in cash, because cash will lose its value. the worst thing due to higher inflation is that it can make the standard of living go down and the economy to get worse, because the prices of goods are out of reach. so that the general public find it difficult to get the goods they want.

AndySt

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Quote from: Vishnu.Reang on June 14, 2021, 06:07:49 AM

Quote from: boumalo on June 13, 2021, 06:59:32 PM

0,6 in May 2021
Un-adjusted 12 month ended May 2021 5%
Annual rythm in 2021 so far : 6,7%
It is very high numbers.

From what I heard, the M1 monetary supply within the United States increased by 100% plus. So it is natural to have higher inflation numbers. Actually I am surprised to see such low numbers. I would expect the inflation rate to be in double digits by now. Perhaps the impact of the higher monetary supply takes a while to be reflected in the market. But I am sure about one thing. With Democrats in power until 2025 January, the inflation is not going to get any lower now. Within the next 4 years, I expect an annual inflation in double digits and federal debt of around $50 trillion.

It's just that not all this money is splashing out on the commodity market and the crazy growth of bitcoin and Tesla shares are events of the same order. In any case, the state was left with no other such affordable and easy choice than the policy of monetary stimulation of the economy. We can only speculate on the extent to which this should have been done, but it is the direction of economic policy that neither the Democratic Party nor the Republican Party has raised any questions. Even Janet Yellen, who was not an ardent supporter of the policy of quantitative easing, now talks in the style of if you can print, then why not.

Vishnu.Reang

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Quote from: boumalo on June 13, 2021, 06:59:32 PM

0,6 in May 2021

Un-adjusted 12 month ended May 2021 5%

Annual rythm in 2021 so far : 6,7%

It is very high numbers.

From what I heard, the M1 monetary supply within the United States increased by 100% plus. So it is natural to have higher inflation numbers. Actually I am surprised to see such low numbers. I would expect the inflation rate to be in double digits by now. Perhaps the impact of the higher monetary supply takes a while to be reflected in the market. But I am sure about one thing. With Democrats in power until 2025 January, the inflation is not going to get any lower now. Within the next 4 years, I expect an annual inflation in double digits and federal debt of around $50 trillion.

uneng

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Quote from: FanEagle on June 10, 2021, 01:59:58 PM

Of course you do not have to have anything close to that in order to screw the nation, even regular people getting just a bit while wealthy get most of it is still bad, and at the end of the day that is going to result with economical crisis because companies need us to keep buying and if we do not have money then we can't buy and they won't profit, in that case we should get more to spend more right? Well they just pay companies bail out money instead...

Interesting you mentioned that, because I noticed a side effect of inflation that is the decreasement in quality of the products we buy daily, including food. There are new brands appearing on the supermarket stands and even new products I didn't see before. These brands are cheaper, but when you consume the product the difference is easily perceived. They are decreasing the quality of the raw materials used to manufacture the products in order to keep the prices somehow stable (anyway they are each day more expensive).

The condensed milk, for an example, is featured by these new brands in a new format: now it's not made from pure milk anymore, but from the serum of the milk. The final product is much less tasteful and its consistency is more liquid. It won't take too long until food totally loses its taste in order to balance prices and keep people consuming.

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Quote from: fillippone on June 08, 2021, 08:57:51 AM

Quote from: boumalo on June 07, 2021, 09:10:52 PM

Inflation USA
0,82 in April 2021 (4,16% for 2021)

Thursday, June 10, 2021 08:30 AM we will get the Consumer Price Index for May 2021

https://www.usinflationcalculator.com/inflation/current-inflation-rates/

If you want more infos on the way the official CPI is calculated : https://www.bls.gov/cpi/news.htm

At the moment the market is expecting a 0.4% increase MoM, and a 4.7% increase YoY.

So things are accelerating.

0,6 in May 2021

Un-adjusted 12 month ended May 2021 5%

Annual rythm in 2021 so far : 6,7%

It is very high numbers.

Sithara007

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Quote from: fillippone on June 11, 2021, 05:18:34 PM

Inflation fears do not make the FED step out of the brrr pedal!

Do you really think that they will stop printing crazy amounts of banknotes anytime now, since now they have got the perfect excuse (COVID 19)? The M1 monetary supply for the US Dollar has gone up by more than 100% ever since the pandemic started. That is, almost $4 trillion worth of new banknotes coming in to existence in the last 15 months. Other fiat currencies such as GBP and EURO are also showing a similar growth. And this was one of the reasons why El Salvador made BTC as one of the legal tenders in such a haste.

electronicash

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no matter how the economy is whether it's getting better the poor will always suffer. is always the poor that gets affected the most. when they receive stimulus checks, they spend it for their basic needs while the rich receive money they invest this money.

and now the poor who only receives money doesn't want to work anymore because they receive money even when they are just laying down. well, maybe not all the poor. but everyone might just get used to it.

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Quote from: inoes on June 11, 2021, 06:45:41 PM

There is definitely a risk, therefore, bitcoin appears as a solution to the rejection of inflation, but the main problem is the high level of fluctuation. inflation . fluctuation . so actually bitcoin is a solution but it also causes some problems.

the characteristics of bitcoin do have a negative side as well as a positive side, here of course we do have to learn about it to deal with various problems that can indeed occur,
actually.. the positive side of the fluctuations can be exploited. Crypto/Bitcoin can indeed be a solution, especially if the government is already familiar with crypto/bitcoin, it can provide jobs related to crypto/bitcoin.

Topic: Risk of Inflation in Economy. - page 3. (Read 1634 times)