Why is Inflation Happening All Over the World At Once? - page 5.

Ayers

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Quote from: serveria.com on March 06, 2023, 05:45:55 PM

Quote from: Davidvictorson on March 06, 2023, 11:58:55 AM

Why does inflation in one country or continent affect the others. Why does it seem like the whole world is experiencing a global economic downturn all at once despite having different economies, different policies, different politics? Here's what I mean from these news headline

- Major fears are sweeping into Israel’s economy

- Stubborn inflation will remain at a very high level, German central bank president says

- Saudi Arabia drops $5 billion in Turkey’s central bank to help its struggling economy

- U.S. inflation is likely ‘far stickier’ and could last a decade, Bill Smead says

- Inflation resurges to 21.82 % over rising food prices

- Sky-high prices burn Indians’ pockets, drag savings to 30-year low amid K-shaped recovery

Mostly due to Russo-Ukrainian war I guess. Germany has issues due to increasing energy prices, US has issues because it's spending billions on military support of Ukraine. Turkey's economy was ruined even before the pandemic started. Can't comment on Israel and India I have no idea what's going on there. Grin

Inflation is also a part of the world economy, and it has been repeated many times in the past and will continue to happen in the future. I believe that if there is no pandemic, no inflation war, inflation will still happen. Pandemics and wars are just catalysts for inflation to come faster and hit harder. Today's world is an interconnected chain that needs to rely on each other to coexist and develop, so if supply and demand are disrupted, it will cause chaos throughout the chain. Inflation is inevitable, we need to be better prepared for the next inflationary period.

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The answer is simple, every country printed lot of money in 2020 to keep their economy alive while there is worldwide lockdown so now the results are coming due to that excess money in the circulation. Also another reason is war between Russia and Ukraine affected the economy all around the world, increased the cost of fuel so people lost their spending power now feeling the loss to the value for the money they own.

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Inflation can be devastating to any economy. It also affects everyone differently and occurs for many different reasons. For example, an increase in unemployment might cause inflation because as companies lay off workers, they have to increase wages so they can stay competitive.

For an economy to collapse, many things have to go wrong at once. Communications between people and banks are crucial as information needs to travel quickly. It's true that what goes on in one country or continent affects the others and it's also true that when one economy collapses, everything follows suit.

Despite all of this, it's important to remember that a weak economy doesn't necessarily mean a significantly weaker dollar. The U.S. may be going through tough economic times right now, but that doesn't automatically mean the dollar's value is going to suffer as a result—we could very well see inflation here in the States while a country like China experiences deflation. Ultimately, it's tough to predict what will happen with the U.S. dollar at any given time.

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Quote from: EFS on March 08, 2023, 05:34:06 PM

Quote from: Sithara007 on March 08, 2023, 12:10:28 AM

I am actually wondering why the inflation is still within tolerable limits. Here in India, it is still in single digits. If you remember, back in 2020-21 during the COVID period, a lot of countries used that excuse to print unlimited amounts of banknotes. The M1 monetary supply suddenly went up by 3x or 4x in most of the countries. Given this, I was expecting inflation to shot up to at least in double digits. But somehow the excess supply of money seems to have vanished from the economy. I don't know where it went, but inflation seems to be under control now.

That looks acceptable to me. Do you trust sources for these numbers? I ask this because in Türkiye there is a general belief that official sources explain inflation low. That's why independent companies do their own research and the inflation rate is actually much higher. Last year there was inflation in the 3-digit numbers. Although there is inflation all over the world, Türkiye has one of the highest inflation rates. This is something that can't be explained by the pandemic alone, the effect of bad economic policies on this is huge. There will also be an election this year. I'm curious about the results and the effect on the economy.

The non independent companies are often influenced in their analysis and journalism. The government media is the government and they collaborate to feed you with filtered and altered information that will control your emotion and mindset.
When the inflation is in 3 digits and information is released that it's in 1 digit. You wouldn't know, while you will feel the impact of 3 digits, you will feel 1 digit. That is the power of manipulation.

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Quote from: EFS on March 08, 2023, 05:34:06 PM

That looks acceptable to me. Do you trust sources for these numbers? I ask this because in Türkiye there is a general belief that official sources explain inflation low. That's why independent companies do their own research and the inflation rate is actually much higher. Last year there was inflation in the 3-digit numbers. Although there is inflation all over the world, Türkiye has one of the highest inflation rates. This is something that can't be explained by the pandemic alone, the effect of bad economic policies on this is huge. There will also be an election this year. I'm curious about the results and the effect on the economy.

Regarding the trustworthiness of the monetary supply, I would rather consider them as reliable, as the numbers are published by the central banks. And regarding inflation, whatever data the government publishes seems to match with what I am witnessing at ground level. As per official data, inflation rate here in India right now is somewhere between 6% and 7%. And it looks accurate, when I cross-match the price levels of various commodities and services. That said, I don't have any information on how reliable the official numbers are for countries such as Türkiye.

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Quote from: Iroh on March 08, 2023, 12:25:32 AM

I quite agree with you. Today, countries of the earth are closely aligned with and dependent on each other for either resources and or energy. And when one major supplier of this energy or resources goes into a crisis, the countries heavily dependent on it would also go into a crisis.

In short, its world trade. Each other has the other countries' back for their trade. That's about goods and even in services, there's a world trade on it and that's why the rotation goes on for each country's economy.

Quote from: Iroh on March 08, 2023, 12:25:32 AM

Also, poor economic policies of a lot of countries would in the long run add to the economic problems rocking the country. The government response to the aftermath of the covid pandemic too probably has a part to play as to increase spending, more money needed to be printed and more money in circulation in the economy equals high inflation.

It was a domino effect and when small and poor countries saw what the USA did about printing money, they've also come up with that idea that they should also print money and will just deal with the effect of it afterwards and that's what we're dealing with now, inflation.

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Quote from: Sithara007 on March 08, 2023, 12:10:28 AM

I am actually wondering why the inflation is still within tolerable limits. Here in India, it is still in single digits. If you remember, back in 2020-21 during the COVID period, a lot of countries used that excuse to print unlimited amounts of banknotes. The M1 monetary supply suddenly went up by 3x or 4x in most of the countries. Given this, I was expecting inflation to shot up to at least in double digits. But somehow the excess supply of money seems to have vanished from the economy. I don't know where it went, but inflation seems to be under control now.

That looks acceptable to me. Do you trust sources for these numbers? I ask this because in Türkiye there is a general belief that official sources explain inflation low. That's why independent companies do their own research and the inflation rate is actually much higher. Last year there was inflation in the 3-digit numbers. Although there is inflation all over the world, Türkiye has one of the highest inflation rates. This is something that can't be explained by the pandemic alone, the effect of bad economic policies on this is huge. There will also be an election this year. I'm curious about the results and the effect on the economy.

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Quote from: Smartprofit on March 07, 2023, 03:53:14 PM

Humanity has colonized the entire planet Earth. This led to the fact that the whole world became one. This is called globalization.

Meanwhile, this was not always the case.

For example, in 1933 there was the Great Depression in the USA, the closure of factories and industries, mass unemployment. In the USSR at the same time there was an economic boom. The five-year plan for the development of the country was successfully implemented (moreover, the plan was completed ahead of schedule - in three years).

The modern world economy is based on a deflationary US dollar and interest on loans.

Under these conditions, high world inflation is inevitable.

The modern world economy is based on a deflationary? US dollar? I am sure you meant to say the opposite, but anyway yes you are right that the hyper connected world is impacted when a crisis happens in one of the global centers for finance and trade or in a place where the world is dependent on for sufficient supplies in resources (Ukraine + Russia).

But there are still countries that manage to keep their inflation under control through smart monetary rules and policies. But there are also circumstances that due to its nature can either be more or less influenced by the government. Whenever it comes to monetary unions, as soon as the central bank makes mistakes or conducts bad policies, the entire union is inevitably affected automatically. The difference in the impact then results from the level of national debt and that is indeed a factor that distinguishes countries from one another in the European Union for example.

Trade and logistics have a major impact as well. If logistics are interrupted or even fully discontinued temporarily, prices for goods that do not reach their destination will go up as they become scarce due to external events.

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Quote from: Sithara007 on March 08, 2023, 12:10:28 AM

I am actually wondering why the inflation is still within tolerable limits. Here in India, it is still in single digits. If you remember, back in 2020-21 during the COVID period, a lot of countries used that excuse to print unlimited amounts of banknotes. The M1 monetary supply suddenly went up by 3x or 4x in most of the countries. Given this, I was expecting inflation to shot up to at least in double digits. But somehow the excess supply of money seems to have vanished from the economy. I don't know where it went, but inflation seems to be under control now.

In some countries, first world countries, I've seen the numbers of their inflation to be in double digits and that's not really surprising at all. And for those countries that has managed to keep it on a single digit then it only shows and good to assume that something good is happening lies in their economy. It's hard to tell if those numbers are being projected by the government itself. In the coming months, I'm also expecting that the inflation rate is going to be lesser and I guess we've just came from its all time high and managed to survived it. Still, I do get a lot of goods noticeably skyrocketed on its price and that had made my pocket so tight.

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From the headlines, I think most of these countries are closely affected by the Russian/Ukraine war ongoing. Food shortage and low export/import rate has been the news coming out of that region. There is also the talks of the cost of gas across that region. No wonder other sectors and nation's around are suddenly affected by trying to adjust their prices.
Although, some countries are taking advantage or trying out new policies to see how best to checkmate prices and balance with their deficit from budgets.
All these talk of inflation even started after the COVID -19 elapsed. It is more as a result of the rippling effect of world curfew.

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Quote from: hatshepsut93 on March 06, 2023, 05:10:06 PM

Because today countries are much more tied to each other through trade than they were in the past. If one major country is in the crisis, it can't buy as much goods from other countries, so they enter a crisis too. Plus we're still living in post-covid times, and all governments responded to covid by increasing spending, which is one of the biggest causes of inflation.

I quite agree with you. Today, countries of the earth are closely aligned with and dependent on each other for either resources and or energy. And when one major supplier of this energy or resources goes into a crisis, the countries heavily dependent on it would also go into a crisis.

Also, poor economic policies of a lot of countries would in the long run add to the economic problems rocking the country. The government response to the aftermath of the covid pandemic too probably has a part to play as to increase spending, more money needed to be printed and more money in circulation in the economy equals high inflation.

Sithara007

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I am actually wondering why the inflation is still within tolerable limits. Here in India, it is still in single digits. If you remember, back in 2020-21 during the COVID period, a lot of countries used that excuse to print unlimited amounts of banknotes. The M1 monetary supply suddenly went up by 3x or 4x in most of the countries. Given this, I was expecting inflation to shot up to at least in double digits. But somehow the excess supply of money seems to have vanished from the economy. I don't know where it went, but inflation seems to be under control now.

Smartprofit

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Humanity has colonized the entire planet Earth. This led to the fact that the whole world became one. This is called globalization.

Meanwhile, this was not always the case.

For example, in 1933 there was the Great Depression in the USA, the closure of factories and industries, mass unemployment. In the USSR at the same time there was an economic boom. The five-year plan for the development of the country was successfully implemented (moreover, the plan was completed ahead of schedule - in three years).

The modern world economy is based on a deflationary US dollar and interest on loans.

Under these conditions, high world inflation is inevitable.

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Quote from: Broly46 on March 06, 2023, 10:23:27 PM

the inflation today is much scarier, people no longer worry about having job security, they are worry about food security all over the place, you would not believe folk are quiting job voluntarily, we were once taught having no job is very poor indicator of economy, but we have never seem the full picture yet.

The whole inflation emernated from the effect of Covid19 and till today, that is what we are still fighting even if we don't see the disease around. During that time, there were lots of zero Jobs, no food, no proper medications and all lock down, what do we expect after all that, it will definitely be economic lapses and any country who is not strong will suffer the cause after that, look at it today, US is also feeling the heat and my West African countries who are inexperience are all crying of the same inflation, no country is left out from this inflation and shortage of food supply.

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Quote from: Davidvictorson on March 06, 2023, 11:58:55 AM

Why does inflation in one country or continent affect the others. Why does it seem like the whole world is experiencing a global economic downturn all at once despite having different economies, different policies, different politics? Here's what I mean from these news headline

This is happening because the US decided to print a lot of dollars in a very small amount of time, most countries have their reserves on US dollars, so the moment the US did that they lost a great deal of their savings and they became victims as well, not only that, such move weakened the US dollar and gave it a competitive advantage over other currencies which meant more exports and less imports for the US, so those countries faced a choice, to accept this or to inflate their currencies as well in order to combat those effects, and you should know what path they took.

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Quote from: Davidvictorson on March 06, 2023, 11:58:55 AM

Why does inflation in one country or continent affect the others. Why does it seem like the whole world is experiencing a global economic downturn all at once despite having different economies, different policies, different politics?

Covid-19 pandemic was globally and there was lock down,which lead to lack of production and depreciation of economy world wide. People were only feeding from what they had and so many people lost their jobs, the government was caring for its citizens which lead to the idea of printing money by the government, thinking that it will be a solution to the problem,without having the knowledge that printing money will increase inflation. Secondly,the ongoing war between Russia and Ukraine is eaten up the economy and causing inflation. If you think that you are not part of the war, but you are partaking in the hardship that the war is causing. This is hitting hard on the third world country who have corrupt leaders and whose citizens can't fight for their right

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Quote from: slapper on March 07, 2023, 12:57:49 AM

Why does it feel like the global economy is going through a downturn? Maybe due to the inaptitude of leaders and misguided policies! It's outrageous how narrow-minded decisions can have such extensive consequences. Rather than prioritizing the long-term well-being of their economies, leaders are too often focused on short-term gains and political maneuvering.

The worst part is that average citizens suffer the most. Inflation has a greater impact on the poorest, and soaring food prices and low savings rates can lead to significant difficulties. It's high time for leaders to set aside their egos and work for the benefit of their people, before it's too late. And I never trust the government will do that. I will buy bitcoin instead

It's not only about how bad or good their leaders are because why the problem happens in all countries and not just on the countries that has a bad leaders? An economic downturn might only be a natural problem. It could not be 100% avoided but there are measures that can do in order to survive it.

For inflations, I know that Bitcoin is one of the best solutions for this. There are some leaders who are not patient enough and they focus on the short-term ideas first but I think once they proved that it wasn't really beneficial, that would be the time that they will change their approach and try long-term plans this time. We should be calm and wait for it.

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Why would not it affect all of them at once? The whole world depends on each other. Whether it is internet cable running under water to grain getting exported and imported from one country to other, everything is connected and will affect each other now and then. When it comes to the inflation it is but obvious that one country will raise the costs and thus depending on that the receiving country would have to update the costs in their country as well. This applies to almost every country because now and then some country is connected to other with multiple trade and investment strategies.

Developed nations always comes first in line because they hold most of the important powers in their hands and then slowly the chain reaction happens throughout developing and under developed nations. Though the time is pretty same, the reverse recovery is also true and happens in the same manner.

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Quote from: bitmover on March 06, 2023, 12:25:31 PM

The main reason are the economic policies most countries around the world adopted.

The idea was basically to increase spending (and money printing) during lockdowns so they could avoid a recession. So they did, and now the bill is coming.

More money in circulation = more inflation

https://www.reddit.com/r/CryptoCurrency/comments/kdpc24/35_of_all_us_dollars_in_existence_have_been/

Couldn't be better with this reason!

Inflation is dominating the global economy, in fact there are many reasons leading to high inflation and I agree that the high level of money printing abuse is a good reason that it has accompanied every year, The energy and food market scenario is just a revelation and a seasoning for money printing to become serious, increasing global inflation. That caused a slowdown in the economy.

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Quote from: odolvlobo on March 06, 2023, 05:13:54 PM

I think the main reason is that most nations followed the U.S. in creating huge amounts of their currencies during the pandemic.

Yep, that's absolutely true, if you look at it historically, a lot of new money has been created to deal with the Covid-19 pandemic, such as buying anti-viral clothing, medicine, vaccines and providing free assistance to the community, in terms of polarization it is indeed the same in this case, and this was accompanied by economic congestion due to restrictions on economic movement to stop the spread of the virus, and then continued by the Ukrainian and Russian wars, I think this is still relevant for most western countries.
In my country, the main cause of inflation is printing too much money and distributing it to the public for free.

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