US inflation jumped 7% in December as prices rise at rates unseen in decades

RealMalatesta

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Quote from: SirLancelot on January 19, 2022, 03:38:05 AM

I am not surprised about this case, because when something becomes a trend and there is a high demand for it, there is also the possibility that the price or the value will increase, higher than it was before. So, lithium has now increased in value and that is because of the demand for it has also increased. Before when there was nothing like EV, and no one really cared much about lithium, the price was low and that was because the demand wasn’t much.

But, since the demand now is getting much and there are lots of companies now jumping on the production of EV, then you should also see the value increase as well to match the level of demand that there is. That is just the case here, and it would still go further.

I believe that this new increase is mainly due to the fact that 2020 and 2021 had a big problem with people going out, which in return meant oil prices dropped, at one point I remember something like negative, like literally pay to hold it let alone can earn from it. So now that we are back on track and now that we are working again and everything is nearly back to normal (even though covid is not done, it is getting better), that resulted with people using more and more oil.

So, oil companies went from "we need to halt all oil production because it worths nothing now!" to "we need to find more oil!!" in a single year, and that resulted with lack of oil, and obviously the price skyrocketed. Eventually the production and the demand will see eye to eye and that is when everything will be normally priced again, will take a while but it will surely happen.

suzanne5223

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Quote from: Sithara007 on January 18, 2022, 09:28:54 PM

Just checked the live crude oil prices and they are edging up towards the $100 per barrel mark.

You need to check the price again because there's a decline in the price of the Crude oil price at the time of writing this message.

Quote from: Sithara007 on January 18, 2022, 09:28:54 PM

If breached, this will be a very important psychological level. Three digit prices were last seen in 2014.

Are you sure the Crude oil price will maintain the 3 digit price when the FEDs were still planning to print more money and there's still an increase in cases of Covid-19/Omicron?

Quote from: Sithara007 on January 18, 2022, 09:28:54 PM

Now they can't even attempt to replace gasoline-run vehicles with EVs, as Lithium prices have rocketed upwards. EVs are now unaffordable for the vast majority of the population. I won't be surprised if the inflation rate hits double digits later this year.

The inflation definitely increases this year if the government still follows the same old strategy but I think some people also play a role in this issue because they also want to make more profit and this is what I believe that influenced Lithium price skyrocket.

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Quote from: bitmover on January 12, 2022, 10:01:59 AM

Central banks money printing strategy, public spending all those strategies are costing a lot to us, individuals. Our savings are shrinking due to high inflation all over the world.

I believe bitcoin was designed for this situation. Lets see how will it react.

Inflation is really something else these days, and anyone who doesn’t have one way or the other that they can be able to beat inflation, then they are making a really huge mistake. You can’t just between a simple job, relying on the US dollar every month, and at the same time inflation is increasing.

As time goes on you would say that you have nothing common because prices for everything would have gone up, and life would be quite difficult for you. So, this is why it is good to invest in Bitcoin, because it is moving a different direction from the US dollar, and every other currency there is. While other currencies are losing their value due to inflation, Bitcoin continues to gain more value.

SirLancelot

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Quote from: Sithara007 on January 18, 2022, 09:28:54 PM

Just checked the live crude oil prices and they are edging up towards the $100 per barrel mark. If breached, this will be a very important psychological level. Three digit prices were last seen in 2014. And this would translate to disaster for oil consuming countries such as USA, China, India and Japan, by further pushing up the inflation rate and trade deficit. Now they can't even attempt to replace gasoline-run vehicles with EVs, as Lithium prices have rocketed upwards. EVs are now unaffordable for the vast majority of the population. I won't be surprised if the inflation rate hits double digits later this year.

I am not surprised about this case, because when something becomes a trend and there is a high demand for it, there is also the possibility that the price or the value will increase, higher than it was before. So, lithium has now increased in value and that is because of the demand for it has also increased. Before when there was nothing like EV, and no one really cared much about lithium, the price was low and that was because the demand wasn’t much.

But, since the demand now is getting much and there are lots of companies now jumping on the production of EV, then you should also see the value increase as well to match the level of demand that there is. That is just the case here, and it would still go further.

Sithara007

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Just checked the live crude oil prices and they are edging up towards the $100 per barrel mark. If breached, this will be a very important psychological level. Three digit prices were last seen in 2014. And this would translate to disaster for oil consuming countries such as USA, China, India and Japan, by further pushing up the inflation rate and trade deficit. Now they can't even attempt to replace gasoline-run vehicles with EVs, as Lithium prices have rocketed upwards. EVs are now unaffordable for the vast majority of the population. I won't be surprised if the inflation rate hits double digits later this year.

darewaller

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Quote from: laredo7mm on January 18, 2022, 04:56:46 AM

The USA is having a supply chain issue and shopping malls are empty. People can't even buy bread, milk, and toilet paper. This happens because Many people store huge amounts of goods for the winter due to the omicron outbreak. Many people blame the federal government and shipping companies for this situation. Nearly 58% of Americans think shipping company is behind this supply shortage and supply chain bottleneck that happens. And I think this is true because many companies and factories shut down or reduce their production because of their workers being sick or locked down in their resident. That's why shipping company cut off their schedule by predicting a drop in demands for raw materials.

There is also a situation with the trucking community where they are blackmailing the whole nation to let them not be vaccinated. That is a fact, many truckers refuse to follow orders to places that mandates vaccination. As I have said before, pay the vaccinated ones insanely high amount and fire the ones who refuses it. This is not really about vaccination or anything else at the moment, it is about one sector having the power to not follow rules set by the government. If everyone has to follow the orders then everyone has to follow them, if nobody follows them then nobody follows them.

We can't have a scenario where everyone has a mandate on ANYTHING whereas truckers are allowed to bypass it. Either truckers follow this rule too, or nobody does, that is the important part. I mean this could be about anything, vaccination is just example here for me, it is either for all or for none, we can't have for all except one.

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Quote from: fillippone on January 15, 2022, 01:30:35 AM

Lol!
Apparently ZH disagrees with me:

ZH disagrees with everything that still has a beating heart on this planet, we've already gone through 10 extinctions, 1000 crises, and 10 nuclear wars according to them, all perfectly predicted in advance by 10 years.

The container freight issue can't be solved that easily, and of course, not in a month where demand is extreme during a holiday in the western world, more containers flocking to US and EU and nothing coming out, plus the huge amount of time need for a round trip, two months and even more, if we speak Shanghai > Houston.

But things will go back to normal as demand dwindles and slowly but surely capacity is increased and the new year comes in China which is usually a period of manufacturing shutdown. Things will go back to normal just as you've said in the first message, the only place where it's not going to happen is over at ZH.

Oh btw:
https://www.zerohedge.com/news/2018-07-13/worlds-largest-shipping-company-collapses-trade-war-reality-strikes
(of course deleted but caching helps)

Quote

While US equity markets (well a few mega-cap tech stocks anyway) have remained resilient in the context of rising protectionist fears, theworld’s largest shipping company is seeing its stock eviscerated as investor anxiety over trade wars finds an outlet that makes rational sense.

Maersk shares are up 4x from the date of the article. Grin

laredo7mm

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Quote from: Gyfts on January 12, 2022, 10:53:24 AM

I've noticed the shift from anger towards government adding to inflation by reckless spending and supply chain issues move to the corporations. As if the corporations are responsible for supply chain issues, that they are merely raising the price for their own corporate greed and not because fiat currency is losing its value. Anything to keep people occupied -- can't hold the government responsible if the people don't know who's to blame for inflation. And with most things, demonize the capitalist system, the private businesses, in order to sell the idea that it is more government that can fix inflation. Meanwhile, they want to spend even more money in fighting Covid as well as a social spending spree to the tune of trillions.

Yes, I saw that on news. The USA is having a supply chain issue and shopping malls are empty. People can't even buy bread, milk, and toilet paper. This happens because Many people store huge amounts of goods for the winter due to the omicron outbreak. Many people blame the federal government and shipping companies for this situation. Nearly 58% of Americans think shipping company is behind this supply shortage and supply chain bottleneck that happens. And I think this is true because many companies and factories shut down or reduce their production because of their workers being sick or locked down in their resident. That's why shipping company cut off their schedule by predicting a drop in demands for raw materials.

Experts believe that this supply chain issue is not going to fix easily. It could take 7 to 9 months for things being normal. As soon as we vaccinated more people situation could improve more quickly because data shows the vaccine is working against new variants of the corona virus.

_act_

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Quote from: The Sceptical Chymist on January 12, 2022, 05:32:17 PM

Inflation is just the beginning. Not sure if bitcoin is going to be the solution or not, but I'm hoping there is a solution, period.

Bitcoiners can be bear than bull this year, nobody know if this year will be bullish but bitcoin price prediction in a short time guess can be inaccurate and if there are more bears this year, the price of bitcoin may fall to or below $30000. We have seen how bitcoin price can be disappointing sometimes, this makes short term guess not to be accurate even if correct. It is good to have long term prediction which will be profitable because bitcoin price will still surpass $69000.

Quote from: pinggoki on January 14, 2022, 05:06:10 AM

Now, more people are going to look for ways to combat inflation that's outside the fiat system, in my opinion, this is probably high time that we would see more people in the US buy bitcoin in hopes that it might hedge themselves from the inflation that only steadily grows by year. I have one question though, will a deflation help US? Because 7% is pretty high for an annual inflation which should be around 2% or less.

Bitcoin will help not for people that hold bitcoin for short time but people that keep their bitcoin for long will make profit from it. Some people will buy other ones like Gold too.

Deflation has disadvantages too, countries prefer to go for inflation because of some reasons, they do not like to go for deflation. But if a country will want to go for deflation, this should because they are producing more products in the country than they import or need from another country. Some countries can later have increase work force and production but they still have inflation because government can not do without inflation, only that the inflation will be lessen.

Silberman

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Quote from: pinggoki on January 14, 2022, 05:06:10 AM

Now, more people are going to look for ways to combat inflation that's outside the fiat system, in my opinion, this is probably high time that we would see more people in the US buy bitcoin in hopes that it might hedge themselves from the inflation that only steadily grows by year. I have one question though, will a deflation help US? Because 7% is pretty high for an annual inflation which should be around 2% or less.

The truth is that they cannot longer hide how high is the inflation which is why they are admitting that it is at 7%, however any person that stopped for a moment and did the math on some of the articles they are buying will quickly realize that inflation is way higher than that, however I still think that even if people know that bitcoin could be a hedge against inflation many will decide to not invest in it, as if there is something that many people hate is the volatility of his market.

RealMalatesta

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Quote from: Fortify on January 15, 2022, 04:24:56 AM

It looks like most of the purchasing power was lost up to the 1980's, at which point the decline almost becomes flat - that means the dollar has held it's value relatively well since that time and it would be a whole different graph if you focused on recent history. The fact that inflation was near all time lows before an unforeseen crisis of a global scale hit is actually a positive thing for the US dollar and any similarly effected currency. It means it is stable. Just look at Bitcoin over the last couple years, at times it has gone up 100% in the space of months and also dropped 40% since the all time highs. It doesn't have traditional inflation, but it is so volatile that the average user struggles to understand the value of it at times, that seems much more dangerous.

Something going and down is not called inflation. That is investment and things go up and down in value when you invest them. Just because apple stock goes up and down, doesn't make it "inflation" because it makes no sense right, or gold going up and down doesn't mean it is "inflation", you do not use that word for that purposes. You use it for understanding the price of things going up and USA has sucked for a while.

Just because it has been flat doesn't mean that it was actually flat, look at school prices in the 80's and look at it today, look at hospital visits and look at it today. You will see that most stuff went up, most stuff that people needed but not daily stuff. You do not go to hospital every day, or you just go to college once or none (rarely few times), so they do not considered in the inflation but obvious. Just because milk prices stayed relatively same, doesn't mean inflation was fine.

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Quote from: Leviathan.007 on January 14, 2022, 05:35:10 AM

They said it's 7 percent and we all know the real inflation is much more than that and we can easily understand it when we see the people's purchasing power and compare it the last years during the last years as far I know people had less problem with buying the essential goods and stuff such as food and cloth this situation is worse in the US however inflation is increasing in all over the world, by the way in 2021 and US was facing many economic problems this inflation rate was not unexpected at all for many people.

That is ALWAYS like that, it is not just about high ones, even the low ones were always fake and it was higher, still lower than today of course but higher than what they said. Governments can't accept the fact that they screwed up financially, and ruined the whole nation, so they always pressure these statistic places to show something that is lower than what it is, in order to calm the people down and say it is not that bad.

I believe it is at least 10%+, how higher than 10 is beyond me to understand. In my nation inflation is beyond control, I can't live with double the money I used to make, thank god I earn in dollars otherwise I would be screwed right now.

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Quote from: Haunebu on January 15, 2022, 04:55:54 AM

Nonsense. Biden's net approval ratings are bad, but they aren't that bad. They are closer to -9.1 points currently. He is performing badly, but still better than Trump whose approval ratings sunk into the 30s.

Also, polls aren't always reliable. Best example is the Hillary vs Trump polls. The democrats and the republicans are locked in a neck and neck battle as usual.

When was the last time a Democrat president had his approval ratings in early 30s? Democrats are supposed to have a 3-4 percentage edge over Republicans in nationwide polling, because there are deep-blue states like California, New York and New Jersey which are among the most populous states. On the other hand, deep-red states like Alabama and Oklahoma are sparsely populated. Even if the GOP and the Dems receive the same number of votes, GOP is going to win by a big margin. So these polls should be alarming for the leftwing.

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Quote from: Sithara007 on January 14, 2022, 10:55:12 PM

LOL.. net disapproval ratings in the -15% to -20% range and most of the polls are showing a fair advantage for Republicans in the 2022 Generic Congressional Vote (even if the GOP and Dems receive the same amount of vote, it is going to be a Red landslide because of concentration of Dem vote in the inner city areas). With or without inflation, it is going to be a wipeout for Biden/Kamala during the Senate/House elections later this year. And as far as the senate is concerned, the GOP is going to regain some of the swing states such as Pennsylvania and New Hampshire, and probably Arizona and Nevada as well.

Nonsense. Biden's net approval ratings are bad, but they aren't that bad. They are closer to -9.1 points currently. He is performing badly, but still better than Trump whose approval ratings sunk into the 30s.

Also, polls aren't always reliable. Best example is the Hillary vs Trump polls. The democrats and the republicans are locked in a neck and neck battle as usual.

Fortify

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Quote from: bitmover on January 12, 2022, 10:01:59 AM

Quote

US inflation jumped 7% in December as prices rise at rates unseen in decades

The price of goods and services in the US continue to rise at rates unseen in decades, jumping 7% in December compared to the same month last year – the seventh consecutive month in which inflation has topped 5%.

The news represents a blow to the Biden administration and the Federal Reserve, which until recently have characterized soaring prices as a “transitory” phenomenon brought about by supply chain issues triggered by the pandemic.

On Wednesday, the labor department said the consumer price index (CPI) – which measures what consumers pay for a wide range of goods – rose 0.5% last month compared with November and 7% compared with December 2020.

https://www.theguardian.com/business/2022/jan/12/us-inflation-rate-december-2021

United States is losing control over inflation. 7% is something similar to Brazil inflation, which was 10% last year. That is terrible.

I saw this chart today, showing how much purchasing power USD lost since 1912:

source: https://www.instagram.com/p/CYohEjmLE6q/ (Made by a Brazilian economist)

100 USD would have the same purchasing power as 3,53 USD did in 1912.

Central banks money printing strategy, public spending all those strategies are costing a lot to us, individuals. Our savings are shrinking due to high inflation all over the world.

I believe bitcoin was designed for this situation. Lets see how will it react.

It looks like most of the purchasing power was lost up to the 1980's, at which point the decline almost becomes flat - that means the dollar has held it's value relatively well since that time and it would be a whole different graph if you focused on recent history. The fact that inflation was near all time lows before an unforeseen crisis of a global scale hit is actually a positive thing for the US dollar and any similarly effected currency. It means it is stable. Just look at Bitcoin over the last couple years, at times it has gone up 100% in the space of months and also dropped 40% since the all time highs. It doesn't have traditional inflation, but it is so volatile that the average user struggles to understand the value of it at times, that seems much more dangerous.

fillippone

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Quote from: fillippone on January 14, 2022, 05:39:22 PM

Pandemic will have a lesser impact on supply chains

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Lol!
Apparently ZH disagrees with me:

Shangai China Containerized Freight Index measure the cost between Various routes Between China and the resto fo the world (a China local version of the Baltic Dry Index). The higher the index, the higher the cost for shipping the same teu's (Container's unit measure).

So apparently, sullpy chain as disrupted as they were.

adaseb

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I think one reason why its so high is due to the used car market which is one measure how the CPI is calculated. I've been in the market for a newer vehicle and let me tell you its crazy out there. Basically if you are looking at any vehicle over 2-3 years old, you are going to be paying the same or more than that vehicle was priced when it was new. And it doesn't end there. There is hardly any supply. You can't be picky about color or mileage or options.

Its pretty bad for people who end up getting their vehicle stolen, crashed or broken down. They got no choice. And since they are overpriced by 25%, you need to pretty much have a down payment for that 25% if you want to finance. Since banks know the car will depreciate very fast when supply ramps up. Hence this is one reason why we are seeing a 7% inflation value.

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Quote from: fillippone on January 14, 2022, 05:39:22 PM

Mid Term election: be sure that Joe Biden won't be happy to get to the mid-term election with inflation higher than 3%.

LOL.. net disapproval ratings in the -15% to -20% range and most of the polls are showing a fair advantage for Republicans in the 2022 Generic Congressional Vote (even if the GOP and Dems receive the same amount of vote, it is going to be a Red landslide because of concentration of Dem vote in the inner city areas). With or without inflation, it is going to be a wipeout for Biden/Kamala during the Senate/House elections later this year. And as far as the senate is concerned, the GOP is going to regain some of the swing states such as Pennsylvania and New Hampshire, and probably Arizona and Nevada as well.

timerland

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Quote from: Haunebu on January 14, 2022, 06:09:25 PM

I feel like some of these companies are exaggerating the repurcessions of rising inflation rates in the USA to be honest. USA isn't a small country that would need to depend on BTC thanks to rising inflation.

They probably have multiple plans in place in order to overcome these issues just like they have done so many times in the past.

This is exactly why inflation is so dangerous.

Not a lot of people actually think that it's going to be serious, including the Federal Reserve, meaning that they actually don't take action against what is happening (which should be raising interest rates).

You should hold BTC as a hedge REGARDLESS of whether or not you think the country which issues the currency is "too big to fail". There is simply no such thing in the fiat space - no exceptions, all fiat have gone to zero.

Haunebu

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I feel like some of these companies are exaggerating the repurcessions of rising inflation rates in the USA to be honest. USA isn't a small country that would need to depend on BTC thanks to rising inflation.

They probably have multiple plans in place in order to overcome these issues just like they have done so many times in the past.

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