US inflation jumped 7% in December as prices rise at rates unseen in decades - page 2.

fillippone

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Inflation is an awful tax, hitting poorer people the most.

I will try to go against the wind this time, and I will play being the contrarian, and I will try to figure out why next year inflation will be lower than today's

Pandemic will have a lesser impact on supply chains
” Base effect": Inflation measures the price variation over a fixed period of time. So if we move along in time, we will use higher prices as a starting point, then reducing the increase of inflation.
FED announced a series of hikes, beginning in March '22 and a more "hawkish" stance against inflation.
A series of "measures" has been announced to "modify" the inflation measurement. Be sure that not a single adjustment in history made inflation grow
Mid Term election: be sure that Joe Biden won't be happy to get to the mid-term election with inflation higher than 3%.

uneng

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Quote from: ven7net on January 14, 2022, 01:00:53 PM

What to do in this situation? I would recommend to study more information not from crypto analysts but from industrial analysts who may have a number of solutions in this situation. But if I had a question about maintaining my wealth, then I would probably distribute my funds into various assets, for example, some cryptocurrencies, gold, real estate, and possibly shares of some industrial companies.

To distribute wealth between bitcoin and productive physical pieces of lands containing sources of water would be a good alternative thinking on long run and on the worse scenarios. Meanwhile, it would be interesting to invest in turning the property into a sustainable one, able to provide you energy, food and water without depending on third party services.

Real estate is always very interesting, but I also think about the possibility the economical crisis becomes so deep that people won't have money to pay for the rent of the properties, so it means loss for the owner, as the taxes keep coming in, even though no one lives there. I'm really concerned about it, because the currently economical scenario looks unprecedented in the history of the world. So far governments have been just sowing the soil with their (bad) actions, manipulating the economy at its maximum, but once the reap starts, it will be catastrophic and inevitable, so everyone will suffer the consequences of what was done during so many decades of negligence and irresponsibility regards traditional fiat system.

kryptqnick

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The inflation rate is well above the goal of 5% per year, but there are still things that make people choose the USD. One of them is pride that they have such an old currency that, while loses value, is still perceived as an oasis of stability. Then there's also trust in the US government, and the trust of other countries in the USD as a stable reference point from which they measure how their own currencies are doing. And while Bitcoin can be a savior in the long-term prospect, it's not doing well nowadays, so people are reasonably more afraid of it than of a manageable decline of fiat. Maybe times will change, but for now, I don't think this news of unseen inflation is going to change many minds about the fiat vs crypto preferences.

ven7net

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It is surprising that people start talking about inflation as the collapse of the dollar when it is already happening, and not earlier, when many warned about it. But okay, this is not so important anymore, because the situation is much worse, which means that industrial inflation in the United States is already more than 25%, which leads to collapse. As for BTC as a replacement for the dollar, unfortunately there is no 100% guarantee that it can help you and others save your wealth, because there have already been cases when the price of BTC went down sharply and many lost a lot of money. Hence the conclusion that this may happen again. What to do in this situation? I would recommend to study more information not from crypto analysts but from industrial analysts who may have a number of solutions in this situation. But if I had a question about maintaining my wealth, then I would probably distribute my funds into various assets, for example, some cryptocurrencies, gold, real estate, and possibly shares of some industrial companies.

stompix

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Quote from: Wiwo on January 14, 2022, 04:46:54 AM

The effect of global warming is hitting hard on the economy of most countries and the US inflation rate is far less compared to those countries in the third world.

bitmover showed you that is not true all the time, and inflation is not just a measure of how well the country goes or how much money its printing.
Is Turkey's economy worse than Chad's? Is Japan not printing money?

In both cases it's a no, Japan is printing money but poeple don't spend it, there is no extra demand for goods so there is no inflation s there aren't price increases, Turkey is having problems with debt, low foreign reserves, and a virus that hit its main exports, Chad has little to care about it since is a subsistence economy where the demand for foreign things was low in the first place, just $965M for a year.

There are cases and cases, and also there is one more thing, counties don't get hit at the same time, and some that might get out of this unscratched will suffer after. This is not 2009, which was a financial crisis, this is right now is a production crisis.

Quote from: bitmover on January 14, 2022, 07:12:11 AM

7% is a pretty high inflation rate, even for a developing country.

Some of the consequences of arriving at the point of instructing poeple to cut t-shirts to make masks as you produce everything outside.

bitmover

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Quote from: Wiwo on January 14, 2022, 04:46:54 AM

The effect of global warming is hitting hard on the economy of most countries and the US inflation rate is far less compared to those countries in the third world.

This is not true anymore. There are many third world countries which had smaller inflation rates in 2021. Take a look here:

https://tradingeconomics.com/country-list/inflation-rate?continent=world

For example, look at those countries inflation rate:

Quote

South Africa   5.5
India   5.59
Colombia   5.62
Guatemala   3.07
China   1.5
Thailand   2.17
Peru   6.43
Chile   7.2

7% is a pretty high inflation rate, even for a developing country.

Leviathan.007

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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.

pinggoki

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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.

Wiwo

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Quote from: _act_ on January 12, 2022, 01:54:21 PM

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

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

That is what bitcoin is for, it will be good to hold bitcoin than keeping fiat. You are specifically talking about US but there are fiat that are far worse than US dollar, more inflation in such countries. The worst investment I have seen is the people that are convinced by banks to hold fiat in fixed deposit for years, the people may not know that their money will not have value like people, the value lost will be more than the interests they will be paid.

I guess the deception lies with the marketers of that bank who will try all means possible to convince new customers to get their money fixed in the bank and the most popular message, is how stable the capital will be in the fixed account not minding the revised effect of the inflation rate within the time speculation in the agreement of the fixed money.
The effect of global warming is hitting hard on the economy of most countries and the US inflation rate is far less compared to those countries in the third world.

sana54210

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Quote from: lixer on January 13, 2022, 04:42:18 AM

This time around I am making sure that a good amount of my money is being stored as Bitcoin or any other good cryptocurrency, but most especially I store my money with Bitcoin. This is very important, and over the years I have reaped the benefits of doing that.

Whenever I receive my monthly salary, a part of it goes into Bitcoin and I just keep it there as savings, and then the rest stays in my bank account, and that is where I do most of my expenses. Sometimes I can also decide to do a little bit of expenses from my amount that is stored in Bitcoin. I just try to balance everything, and it has been really helpful, if there happens to be inflation, I am not losing much.

I would guess that many people do it exactly for this purpose. I have the same logic, plus I do not trust the people who run fiat, it is the governments, central banks, basically humans all around, fair or not fair it is still people. Crypto has nobody at the top, we decide what will happen and that is why I believe that we are going to be fine.

So, if we keep this going, then we are talking about something much more valuable here, we are talking about the freedom to choose and no inflation, which is why people invest into bitcoin. It is not just you and me, not everyone is in this for getting rich, sometimes people are protecting their store of value.

Silberman

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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.

I noticed that as well, they are trying to shift away the blame to anything and anyone except themselves, now if the governments could not print their own money and do so whenever they wanted they may have a point as inflation in that case will be caused by third party, but when they have the money printing machine they cannot shirk away their responsibilities no matter how hard they try, and people are realizing this as the inflation is simply too high for people to ignore.

Gyfts

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Quote from: fiulpro on January 12, 2022, 11:58:04 AM

Inflation rates beyond 2-3% are not only harmful for the economy but for the people as well. Considering US they are not just facing this problem alone:
2. The cases of COVID-19 are rising drastically
3. People are leaving their jobs because of bad conditions at the workplace

In any developed world, and plenty of developed nations like India, a vaccine is available. The vaccine, by and large, prevents hospitalization and death.

The inflation caused by Covid was entirely preventable, and in essence, artificial. As I mentioned before, the entirety of inflation is based on the dollar losing its value due to supply and demand, not corporate greed. So people leaving their jobs due to Covid after a vaccine has been introduced is a byproduct of generous unemployment benefits with the federal government unwilling to let Covid go.

If you made the case that an economy should be shut down for 1.5 years back in March of 2020 when the world entered a lockdown period, people would have rightfully made the case that the economy would crash, supply chains would collapse, and inflation would run rampant. But somehow, there is a willingness to accept Covid restrictions even if that means withering away a strong economy because there are hundreds of thousands of cases of the sniffles.

Cases shouldn't dictate Covid policy, only hospitalization and deaths. The reason you're seeing people leave their jobs, aside from unemployment benefits, are because they're led to believe that Covid is a death sentence. It's far from it.

arallmuus

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Quote from: tygeade on January 13, 2022, 11:30:33 AM

I don’t even care about news like this. This is not the first time that they are always talking about the economy falling and inflation rising and all that, it's even becoming very annoying at this point.

Well you atleast should be aware of this kind of news. Inflation and economy failing means cash are going to flow into cryptocurrencies so its kind of a blessing for us that are already in crypto space.

Quote from: tygeade on January 13, 2022, 11:30:33 AM

All they do is talk about it and it still happens, they never bring any solution at all.

Its because there is no effective solution for inflation. Its always going to happen and the very least, all they can do is to reduce the inflation rate through various of method. Obviously shit happens and one of them is the pandemic which forced alot of countries inflation rate to skyrocket so its kinda expected that this would happen anytime soon

tygeade

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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.

I don’t even care about news like this. This is not the first time that they are always talking about the economy falling and inflation rising and all that, it's even becoming very annoying at this point. You would see economists and even government workers talking about inflation rising and all that, then you will be asking yourself why these people never do what they are meant to do or play their roles in making sure that there isn’t this inflation that is being talked about, and also ensure that things are going pretty well as they should.? All they do is talk about it and it still happens, they never bring any solution at all. I’m better off making sure that my money is being held tight in crypto.

teosanru

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Quote from: stompix on January 12, 2022, 01:50:51 PM

Quote from: teosanru on January 12, 2022, 01:30:29 PM

A surprising thing for me is how during 1929 great depression dollar became very strong, this is strange because generally more money is printed during depressions to create demand in economy and despite that dollar strengthen, can anyone explain this?

In short, there was no money printing during the Great Depression, which combined with people and businesses defaulting on loans and banks having a desperate need for cash, in their liquidation spree the prices simply couldn't keep up, lowering the value of assets and making with each step the dollar stronger. But as you can see, one good indicator doesn't mean everything is good, just as a full tank won't get you anywhere if you have an engine failure.

The moral of the story, be careful what you wish for Grin

Quote from: bitmover on January 12, 2022, 12:23:27 PM

If you had invested in 1965 $100 into SP500, you would have now $28,159.36, which is 28,059.36%, or 10.40% per year.
This huge! SP500 performance is amazing.

But, but ...but...everyone is saying you're going to lose money investing in the markets.
Of course, there is a difference between what poeple say and reality, just like you pointed out in the last line.

Oh yes I forgot that this indicator doesn't signify the strength of dollar but instead signifies the weakness of prices of commodities, great depression obviously brought down prices a lot, so obviously dollar purchasing power went up. But yes one indicator can't be a barometer of the whole economy. But if you see this indicator the most bullish times are indicating when dollar weakened the most.

davis196

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The high levels of inflation in the US were pretty much expected,after the massive money printing and the COVID stimulus checks.How is the time for the Federal Reserve to raise the interest rates and stop the money printing,quantitative easing and other policies.Unfortunately the federal government of the USA will have to cut a lot of the government costs and try to lower the ridiculous multi-trillion federal budget deficit,in order to fight the inflation.This is highly unlikely to happen.
The devaluation of the US dollar will continue,but the US dollar will remain as the strongest and most stable fiat currency in the world,which sounds absurd. Grin

lixer

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Quote from: _act_ on January 12, 2022, 01:54:21 PM

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

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

That is what bitcoin is for, it will be good to hold bitcoin than keeping fiat. You are specifically talking about US but there are fiat that are far worse than US dollar, more inflation in such countries. The worst investment I have seen is the people that are convinced by banks to hold fiat in fixed deposit for years, the people may not know that their money will not have value like people, the value lost will be more more than the interests they will be paid.

This time around I am making sure that a good amount of my money is being stored as Bitcoin or any other good cryptocurrency, but most especially I store my money with Bitcoin. This is very important, and over the years I have reaped the benefits of doing that.

Whenever I receive my monthly salary, a part of it goes into Bitcoin and I just keep it there as savings, and then the rest stays in my bank account, and that is where I do most of my expenses. Sometimes I can also decide to do a little bit of expenses from my amount that is stored in Bitcoin. I just try to balance everything, and it has been really helpful, if there happens to be inflation, I am not losing much.

magneto

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The transitory narrative is slowly ousting itself.

Even with the depressed CPI figures, it should be clear to anyone that the dollar is losing its purchasing power, and fast.

Certainly not a good look for the Fed who aren't even considering raising rates that seriously at the moment. Seems like Powell is more concerned about the stock market rather than inflation.

Poker Player

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

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

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

Damn right it's terrible--and not only inflation itself, but the availability of everyday items people need, as there's still some kind of supply chain chaos going on.

I would like to remind that this is not something that has just happened, as if a hurricane is coming, it is the result of policies that have caused this inflation.

Now the FED, seeing that inflation is getting out of control, seems to be going to act, and fast. It is not clear to me that they will end up being as tough as they have planned. If you want to take away the drug from a drug addict, the best thing to do is to reduce the doses little by little, if you take it away all at once he will have cold turkey.

Turning to the economy, if as a result of the Fed's policies to curb inflation, there is a crash in the stock market or if we go into a depression/recession, they are going to have to go back to supplying the junkie with drugs.

The Sceptical Chymist

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

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

Damn right it's terrible--and not only inflation itself, but the availability of everyday items people need, as there's still some kind of supply chain chaos going on. Good luck trying to buy cat food your cats will actually eat. You'd be better off starting a mouse farm at home, and I say that only half-jokingly. It'd be cruel to do so, but the economics would probably work out just fine.

Meanwhile, the headlines on every newspaper I see: "COVID cases spike". Every fucking day. It's as if the ship is sinking and the band is playing some horrible tune that isn't designed to secretly alert the crew that there's an impending disaster. I've never seen things as bleak as this in my life, nor people acting as irrationally as they are.

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.

Quote from: fiulpro on January 12, 2022, 11:58:04 AM

3. People are leaving their jobs because of bad conditions at the workplace

I'm curious about those "bad conditions" though I'm not arguing that people are refusing to work. I just saw an example of that tonight, where a store is closed because there wasn't enough staff to keep it open. What are those conditions, exactly? Being forced to wear masks? Other COVID-related BS?

Topic: US inflation jumped 7% in December as prices rise at rates unseen in decades - page 2. (Read 414 times)