Bitcoin Forum

A few leaders of OCDE countries are speaking wishfully about inflation, stating that this is just "a temporary peak". However this may or may not be the case. Even the people with best information (CEOs of large companies and perhaps some ministers) are unclear about how long do we have to endure inflation.

My translation for this is "we do not know if we can effectively pass the burden of all the money we printed onto the labour or the salaries will rise paving way for sustained high inflation in two years".

This really might not be a temporary rise in inflation. We have already been waiting for a global economic recession for a long time. And I believe that it will happen in the near future. And these might be little signs of it. As long as FED continues to print money like there is no tomorrow, it will cause dollar to lose in value a lot in time. And this will not affect only the USA of course.

In my country, there will be inflation, it is what has been happening when fiat was created and used as legal tender in countries. And as usual it is, later the fiat will be devalued in order to reduce the purchasing power parity while workers salaries will be increased but which has no significance as a result of reduction in purchasing power parity.

Inflation in terms of food can be *temporary*.
Inflation in terms of general products can be *temporary as well* for example:- toilet paper, the cost was very high therefore I do think that it can be both temporary and permanent.

- The permanent inflation can be for things like *healthcare*, *medicines*, *some products which are factory made*

It also depends on where we are analyzing the situation, if you do consider countries like UK and USA, they would be able to recover fast and the government might provide sustainable development for the people but we don't see that happening at the moment, but with countries like Afghanistan where due to Wars and everything, people are struggling everyday and they don't really have a good stable economy, they might never come out if this deep hole so fast. What's needed is, " support and recovery time for them*.

So this particular statement might have a lot of answers for a lot of situations and countries. Plus focusing on each and everyone is very necessary.

That's how inflation works, it will continue to rise. It's not a bad thing though as a normal inflation of around 2% is actually a sign of growth in the economy for some economists. We won't be able to stop them from printing because they need to replace the bills that's estimated to be lost every day or every year.

The infrastructure bill within the US aims to begin a spree of government expenses and absorb all of this newly printed money. It'll create the usual trickle down to local businesses, contractors and workers.

There is a potential case for launch of newer technologies and newer spending opportunities (some forced and some wishful) for the wage earners. Whether it is the en masse switch to electric cars or some form of AR/ VR based gadgets that end up becoming a source of expenditure. Considering such things, there can be a view that we are at the cusp of an explosion in growth as well as spending that will absorb all of this newly launched money.

The last pandemic we had gave rise to the Model T and the roaring 20s. The Great depression followed quickly and so did the wars. Yet, I think humanity has taken enough experience and the bad effects can be delayed this time around. Then there is the obvious trend of the crypto economy coming up and more and more people will be locking up funds in virtual properties. In short, it may not be as bad as it seems.

The inflation is the speed of decreasing the value of the currency. While the value will most probably never increase back, the speed of decreasing the value will slow down.. sooner or later, possibly after a complete crash and recovery of markets though.
When will that happen? Nobody knows. Not too soon, though. There are far too many variables and although the declarations go towards having low inflation, politicians have to spend in order to keep their voters happy.

About the salaries, the things go even more interesting: from time to time the syndicates decide to come back into the game and ask for salary rises, covering the inflation (sometimes better sometimes worse) for some of the workers. Of course, some others will suffer; of course, this can lead to even more inflation.. it's a cat and mouse game. And while it can slow down now and then, it won't stop.

Now, with all that printed money, with the pandemic far from end, the politicians are trapped by their exaggerated optimism in spending funds: they have to spend even more and don't know how to do that nicely. So for short and medium term the inflation is bound to rise.

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.

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

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.

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.

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

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.

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

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  ;D (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.

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  :D

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.

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.

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.

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 (https://energyindustryreview.com/marketplace/romania-europes-economic-growth-champion-in-q1-2021/), 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!

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).

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.

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.

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.

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.

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.

I don't think we will be seeing these high numbers permanently. Times are hard right now. The pandemic is still here. Economies are still very much affected by its presence. In other words, things are still unstable right now. We haven't really gone back to normal. We are beginning to recover, though. Some countries are now in transition to what's called the new normal, but we can also see how other countries such as Australia, New Zealand, and so on are still very much in the middle of the intense COVID-19 war.

But I'm expecting that when the COVID-19 smoke finally dies down, inflation will be tempered down as well.

precisely when the pandemic was taking place bitcoin became one of the best places to avoid inflation. this can happen because of many factors including a speculator who secures his wealth so that it can continue to increase even though the global economy is slumping, and finally cryptocurrency is his choice

High inflation may not be taking long but the mere fact that we were still going to dealt with a varying inflation from time to time then I guess we were forever dealing with it. But today, the inflation in my thought was considered as worst though to be honest here in my country inflation keep on rising even before the pandemic but this time it's different. Hurdles and high employment rate makes the life much worse and as what I have observe here in my country I think were still far from the fact of under control of the contagious infection of virus.

The government's policy in almost all countries during this pandemic is to print money, but the impact that is currently haunting us is inflation.  This inflation condition is seen in its severity.  I myself predict that my current country looks fine.  However, the condition of very high debt does not rule out the possibility of default.  There are as many instruments to deal with inflation as the US is currently doing in the tapering off.  Due to very high amount of money they limit QE.  We can only secure the assets we own by avoiding storing them in fiat.  Because if we all realize, fiat has no value at all in the future.

According to what I know so far that inflation is clearly the root cause of major problems in the economy. Thus, everything related to finance, whether in the form of wages, inputs and outputs, is also caused by the inflation factor in a country.

An example that I can mention is the country of Zimbabwe which makes us learn many things, starting with the land grabbing in 1992. Maybe you still remember that the country's inflation had reached around 230 million percent, and was followed by a 95% increase in unemployment. This makes the people there cannot feel the wages of their hard work, because the value of the currency is low while the prices of basic necessities are increasing.

Returning to the issue of permanent or temporary inflation, it depends on how a country can manage the available resources and make it a sovereign country and able to sustain the economy that other countries need its resources.

I believe inflation will still be inevitable these days. It even gets along with this pandemic seeing the mere fact that we always keep on struggling for money so we end up having our own economic crisis. Not just that, instead of seeing the market to be considerate in the prices of our basic commodities  because of the current pandemic, the market's prices are even getting worst and this high inflation is more observed right now particularly in our basic goods and services. This must be a never ending inflation and it will only be controlled if the government will consider their citizens' welfare and not their own pockets.

There is no denying that Covid has messed up all sorts of supply chains around the world and the effects of that would appear to be a bit delayed. There were a fair bit of stockpiles that sustained production for a while and consumers cut back in many areas which dampened demand. Now many people have lots of saved up money to spend on all sorts of goods, people are going back to work (oil demand shoots back up) and all the factories that suspended work due to lockdowns are taking a while to get back to speed. I think inflation will be higher than we have grown comfortable with in the past few years, but it will not be high beyond a year or two. However as you state, people trying to predict long term economics often get things very wrong.

I doubt that this would be a "temporary" situation as long as it is not fixed. The inflation rate is even higher than what the officials are saying, remember the whole watched as moody's gave high credit ratings to shit mortgages and how the whole world collapsed because of it. Do not care about the ratings and numbers official places give, inflation is much higher. The only way that could ever go up would be people having enough income to pay for stuff and business' not requiring too much price spikes to keep going.

This is not going to happen overnight and it is going to take maybe a decade of proper legislation to get it better. Which as we all know is not something we seen from politicians all that much, they rather keep everything as it is as much as possible.

US jobs report comes up short - https://www.cnbc.com/2021/10/08/september-jobs-report.html

Now the US is going through a stagflation period of slow economic growth and high inflation.

The federal reserve increased their inflation calculations to last until 2024, and GDP growth is only a fraction of what was initially calculated last year.

Keep in mind, there are open jobs in the US, but not enough man power to fill those jobs.

The clear effect? USD will absolutely start to tank, their economy cannot hold up for much longer.

When it comes to inflation, i don't really think or see it as a temporary situation. Yes, we may at some point experience temporary calm in the situation of things, but soon after inflation will become a topic again. It is safer to plan to seek out ways to earn more and be able to support your lifestyle, because inflation to me will always be constant.

Inflation is permanent as long as we have the fiat system is in practice because government is going to print more money for no reasons but the spike happened due to the emergency situation called covid 19. Some countries are not even revealing the real inflation rate but so far no country is doing good except China.

I believe that the highness of the inflation is definitely temporary, at least in my nation, but the inflation that is more than what it should be is permanent, I doubt it will ever be recovered. So, basically if it is 2% that should be the inflation that we could live with and healthy, and if it is 10%+ in some nations, I believe it will still drop, but not to 2%, it will drop to 5-6% which is still a lot, obviously most nations would be super happy about dropping to that level, which shows how horrible we are doing right now.

However at least it is a drop, even though it is not a good and ideal place it will drop. So, technically the super high inflation in some nations are temporary, but higher than what should be is permanent everywhere.

This doesn't mean we will continue to have inflation because when the CBN continues to inject money into the economy, this may be perhaps for the case of developed nations where everything is working properly but for the underdeveloped and developing countries have some many things bthay contribute to inflation. For example, low GDP, increase in industrial sector, low exportation and high importation (this will drastically kill and depreciate there currency) and political stability.
Inflation is subjective to country and it differs.

Inflation will always be a part in our daily living and its here permanently. But i agree on you that although inflation will be here always but its high rate might only be temporary. And it really saddened us that during this time of pandemic, the prices of basic commodities are now even surging, when they should have sink down so we can save a little. And thinking that this covid 19 pandemic will definitely won't stop by this year or the following year, then we might lived for it now and be used to it. After all, you can be protected from inflation if you know where to put your money in a more profitable way.

Inflation is built into the fiat economy.

The fact that countries have an inbuilt inflation target should be enough to prove that.

To think that inflation is just transitory is absolutely ridiculous. You might as well be saying to yourself that fiat is going to last forever even though all the fiat currencies that we have ever seen in history have gone down in flames irrespective of their country of origin.

Unless, of course, you save your wealth into decentralized crypto assets :)

This is definitely not going to be a temporary situation.

Inflation has been happening to fiat currency, representative currency, and any centrally issued currency since the dawn of time.

Why are people still surprised when they see inflation jump to 5% p.a.?

In fact, that's actually fairly good in the grander scheme of things. Historically we have seen 10% p.a.+ inflation in most countries, on average.

How do you even tell whether this is going to be temporary or permanent? In my country inflation has been a serious problem for years now, and it just keeps on increasing. So, I don’t really think that this is going to be it's temporary inflation, especially in countries where the government are not doing anything serious to solve the issues that the country is having.

So, if the government are not going to do anything to solve these issues, then how are they going to be able to fight inflation? Inflation is a result of issues that are affecting the economy of our country. So to stop it the government has to tackle these issues.

Just about the whole world experienced a recession in 2020 during the COVID lockdowns.  I don't know that we're "waiting" for another recession so much as still recovering from the one we just had.  The question is if inflation is going to make the economic recovery much harder than it needs to be, as stimulus is the obvious answer to economic recession, and stimulus is really dangerous when you're already undergoing inflation.

Inflation is inevitable. It is a fact that we must all accept. But from the highest structure of society, the people at the top are the ones who mainly worry about it because they are the ones who will be heavily affected by it. worth more than this, we can't stop it, it's even more interesting: sometimes organizations decide to get back into the game and ask for a raise, masking inflation "sometimes better than sometimes sometimes better sometimes worse" for some workers. so we will always face inflation in life no matter in any profession.

Nah, it's mostly the lower classes that feel inflation the most for two reasons.  1) The rich are insulated from inflation by investments that appreciate with inflation instead of holding cash and the fact that any inflationary effects are not a significant portion of their net worth.  2)  Lower classes mostly have cash-based assets and no investments that negate the impact of inflation, and any inflationary effects are a significant portion of what little assets they have.  As much bitching about inflation as the rich do, it's not nearly as impactful to them as the lower classes.

I would rather say that this inflation will gonna stay permanently. Although its not all the time that there will be rising inflation, but believe me inflation will never be gone as long as there is fiat that brings about inflation. And since the prices of basic commodities will continue to increase, then it will be those people who are facing poverty are mostly affected. Especially in this time of pandemic, the government should always be ready to assist those individuals who are mostly affected with this fast rising inflation, not as a form of cash, but maybe in giving livelihood projects that will help them to sustain their living.

Everyone knows that inflation is a regular part of monetary policy, by design, in fiat economies.  What people mean by temporary inflation in the current context is whether or not the elevated inflation we're currently experiencing is temporary or a new normal.  5% is much higher than we've experienced in a long time, 1990 in fact was the last time the annual inflation rate for the year was over 5% and it was only above 5% for that one year.  Prior to that was the high inflation environment that ran from 1973 to 1982, and sometimes saw inflation rate reach 10% in those years.  The economy is so vastly different now it may not even be a meaningful comparison, but that's how long it's been not a concern.

If what goes on today is the new normal, a year from now we will have another new normal rate. But yup it's still temporary because another year passes another new normal rate. It's an alarming rate. US will have to contain this otherwise the political instability will cause this administration to fall.
I think the FED had it in mind though that they are going to adopt BTC soon, they are just not making people panic for now but just let them live life stay at home and they get their money from the government the keeps printing.

The rest of the world notices the foreign exchange currencies. If our money today appreciates then we know US money depreciates so what gives other countries still have the confidence in this currency?

Inflation is the favourite tool of countries with high debt levels. Instead of looking for ways to save money or cut down on government spending, you can just make the current money less valuable through inflation. This makes your debt also less valuable and easier to be repayed in the future. An inflation target of 2% is a good way for countries to not end up in downward spiral of excess debt. But staying above this target for too long is not good for the investors and people with some form of savings. Eventually inflation has to come down again. I don't think we will see higher inflation in the next few years. The pressure is already rising on the government to start raising interest rates again. Also commodity prices tend to move in cycles, it's just a matter of time for energy prices to stabilise again.

For sure, all government needs to hold the seat belt and tight to face the inflation that may or may not come after this. After this pandemic ends, all governments need to work hard to prevent inflation or minimize it by cutting the budget on every post or rebalancing their funds to be spread in all aspects of their economy. But I am sure this inflation is just temporary and will end soon, especially if all companies can back to the business and earn money. The country will get revenue again and everything will be back normal but with a new change because this pandemic changes everything.

Money and items of trade and currency have this history of inflation since time immemorial. As commodities become more advance and scarce at the same time, it automatically counterbalances the value of the fiat currency it is supported of. This causes inflation which greatly affects the common folk as compared to people who are relatively well-off. That being said I don't think inflation will go away anytime soon unless an overhaul of the money system is made to defect from the things that cause money to lose value, or at least create a readily scarce variation of money that is deflationary at the same time. Bitcoin seems to be a good answer for this but the current volatility of the coin makes it unviable for such role. After the economy catches up at the upheaval of COVID-19 pandemic there will sure be chances that prices of commodities may rise, and the printing of money made by the Government may or may not affect the price itself once the economy catches up. I do not know what they are to do in order to counterbalance these detriments because if they wouldn't USD would become inferior which will not only affect the dollar but all of currencies that it supports, Bitcoin on the other hand, being decentralized and existing in a different platform than fiat, wouldn't be affected so many people will be expected to invest in bitcoin to save the value of their wealth.

I would say that it is definitely looking more and more permanent each day. We have so many crashes in the stock market and superb increase on inflation that people are acting as if that is normal each time it happens. The market "reset" has happened way too frequently in the recent decades and we need to realize it is not normal. I believe that if 2020's have another crash like this, then we are going to permanently damage the economy and fixing it will not be easy.

You have to realize those super rich people usually sell stuff to be rich, you think Elon Musk could keep getting richer if there are no people who can afford to buy new teslas? He can't just sell his rich friends and get richer, he needs to sell it to everyone. Hence I believe richer getting richer will have a cap on it and eventually everyone else will be poor enough to not be able to buy anything from these people who are rich and that will destroy the system we live in.

Well I definitely agree on what you're saying, it was inevitable when economies were practically shut down for more than a year. This year's tourism season for instance was great, last year's though was pretty awful for Greece, a country which almost solely depends on it.

The issue is that all goods have increased in price, so has fuel and electricity, while the average available income due to these increases has dramatically decreased.

Certainly this is about all of the countries in the world considering how covid changed the way economics works. Sometimes one country was above all during the covid while others were asking for financial help along with medical borrowing. This led some countries to earn good amount of royalty and they kept themselves a bit away from the financial crisis. However, covid worsen so much later in the time that even those countries started to go down the sink and needed more money to run their own economical circle. With global job outrage, it put more burden on the governments as taxes were dropping at alarming rate. However, I believe situation is far far in control and no one is gonna see inflation coming their way.

Inflation has been around for a long time, the Government knows how inflation will work and they have no way of cleaning it up or even marginal additions.  Previously, controlling inflation was risky but did not have much impact on the economy, they were carefree until the covid pandemic occurred.  It's just something that has to happen.  What did they measure with the CPI.  Inflation has become a chronic disease for the economy.  The harmful effects of increasing inflation are people's difficulties, when their wages are only enough to cover the rising cost of living, electricity, fuel, and food.  Lol

temporary or not inflation will still have an impact at least for people who are in the scope of the country or large companies that experience it.
and this is quite a very serious thing when it happens.
at least the word "temporary" still gives hope for some people to be able to continue what they should be doing in order to reduce the effects of inflation if it really happens.
but indeed until now the signs of inflation are even clearer and like it or not we must be ready and able to survive in this case.

A week ago, I watched "Squawk Box" of CNBC with the guest star was Paul Tudor Jones. When he told his opinion about inflation, he said the number one issue which is faced by investors is inflation and this is not transitory. There are some reasons why he said this will not transitory and his indicators such as:

1. the demand side of the equation,
2. the core personal consumption expenditures price index increased,
3. the supply chain disruption.

Personally, I agreed with his opinion. The Fed has a policy for facing inflation with tapering off. They have prepared to increase the interest rates in the 2nd semester of 2022. Then, my country has prepared if this policy will be implemented immediately. So, we have to find another alternative for saving our assets so didn't affect this issue.

https://www.cnbc.com/video/2021/10/20/paul-tudor-jones-inflation-is-the-number-one-issue-facing-investors.html

Another real way to curb inflation is to increase taxes paying more taxes reduces the disposable income of the people the total expenditure is reduced. People's purchasing power can be reduced by imposing new taxes and increasing the old tax rates when there is an excess demand for a product in the market and there is a huge shortage in the supply of the product along with it. That situation creates an opportunity for the manufacturer to increase the price of the product or service and price inflation occurs.

In many countries, tourism didn't really great. Mostly were stopped and shut down, flights were stopped and only available for the most important industries and logistic matters.

A lot of countries that were dependent on the tourism industry have almost died with that sector.

But the good thing about this year, everything has started to recover. Many country's economies have been slowly recovering but inflation cannot be stopped.

That's my main concern, how is inflation stopping? Okay, tourism was pretty decent this year, especially on Crete island, where I live. I'm not sure about the rest of European countries though.

Things have started getting out of hand, it was pretty usual for prices rising in the summer, since the demand is dramatically increased, however, the season is almost over, with prices being higher than they were in July-August.

Inflation is a normal occurrence in the economy of each country. Inflation is usually indicated by the price increase of the products and services offered in a country. The consumer price index specifically is the term called for it. The inflation can either be good or bad depending on where you currently belong, what your social status is, and your situation in life.

If you belong to a rich country, inflation is usually not a big deal to them. Hence you have a little to worry about unless you belong to the lower bracket of the society. First world countries usually handle it better because of course they are richer and more capable than those of blossoming countries just yet. If you are poor, you will severly feel the impact of inflation because it is very evident in our daily lives, most especially if it is soaring. The price in the market will increase, so are the services offered. If you have a fixed income, you will have a hard time adjusting. You have to have a tight and disciplined budgeting plans to survive and get by.

When it comes to situation, if inflation is higher you will benefit if you owe someone or the banks a money because the interest rate would be lower. If someone owes you a money, you will be at disadvantaged because the interest rate the borrower will pay you will be lower. It's really a matter of situation. Either you are winning or losing, benefiting or not, enjoying or suffering. Like what they say, a blessing for some might be a nightmare for some and vice-versa.

The government appoints such educated officials to speak on these economical topics and they can mould the information to ordinary audience that they can presume that what they are saying is correct and they start to have some delusionary faith in them.Like this the inflation is temporary is not at all correct depending on the current government policies and how they tackle it like by printing more and more notes.But yes i agree with them that inflation is temporary and next permanent phase will be hyperinflation as deflation is becoming obsolete these days.They will issue such statements again and again but we are smart enough to have a look ourself on the charts.

https://i.ibb.co/TbMjPhv/images-2.png (https://ibb.co/Nm2DWYV)

So you see the red marks rising all over the world map? These are not resources increasing or gdp growth but rising inflation at fast pace.There is also another thing that inflation is temporary is right in context to say if it's 3.5% then next year it will be 4% and if they mean this then it's okay.At last the burden is imposed on middle class and working class and they are are majority of the population but still they face such situations.

BTCitcoin is the only solution for this.

I think inflation is a permanent existence in society and influences people under the influence of the whole process.  How to combat that and the wear and tear of human labor that is losing practical value, bitcoin is a miracle to help people close this inflationary gap.  Fluctuating inflation rates increase the risk of an outbreak of hyperinflation.  Fuel, food will increase massively by the end of the year?  and always, my usual way of thinking is that it won't go away when we don't try to change to get over it.  The support of bitcoin is gaining meaning if more people take the risk to support it.

Although there are still some countries that are being hit by the covid-19 virus. Yet, the majority of the countries are trying to recover as much as they can.

Inflation, price increase, and salaries have been always the same. This is the situation of most people during this pandemic but we'll be optimistic that once this ended, many commodities will start to decrease its prices.

I do not know which country you live in, but in the country where I live, hardly have I seen any inflation that was temporary, most of them were permanent inflation. And the way I’m looking at this one it seems like it’s going to be permanent as well, although salaries have not been increased to match the level of inflation we have so far.

But, I am hoping that things get better and also that the inflation is not going to be something permanent but rather a temporary inflation that will soon come down and things will get back to normal as it used to be before now. It is also going to depend on the government to fix up their economy, because if the government are not doing anything about it then nothing is going to get fixed.

right, inflation will always continue to increase, so that fiat money seems to start to lose its value, and this is proven by the increasingly expensive prices of necessities, and of course it will increase the burden on the community to get a decent life. on the other hand bitcoin offers freedom from inflation, but the basic thing that is used as a reason for the government is because of its uncontrollable nature

Inflation is just a natural result of the economic policies pursued by central governments in most countries of the world. When it comes to inflation, I don't really think that it is just a temporary since after experiencing such situation, yes, we may be experiencing calm but sooner or later, inflation could be a topic again. But, in terms of food, and essential products inflation could be just temporary. However,  inflation maybe temporary or not will still have an impact and this is quite very serious thing when it happen, all we just need to do is to plan for us to survive.

I wonder how did they reach the conclusion that inflation in Russia shall be more than 45%. I think their economy is not doing great but at least they have plenty of raw materials and commodities and those tend to do well in inflation. Maybe I am just not used to this predictions.

I think I got my comment quite right, as I read recently on an UK outlet that


An let the hunger games begin. Money printing bill is once more footed by the working class in the shape of increased SS taxes and, on top, lower salaries. Mastermove.

As reopenings continue, congestion, hiring difficulties and other limiting factors could continue to limit the pace of supply adjustment, thereby increasing the likelihood that inflation could be higher and longer lasting. than we expected.
In other words, inflation is getting out of control for the government, and the economy seems to be doing more, it is possible to see that inflation will linger.
Federal Reserve Chairman Jerome Powell said that inflation looks much worse than before.
However, some financial experts have pointed out that they disagree with this view

I believe that if you ask most people now they’re going to tell you that they would prefer that this is not a permanent inflation, they would prefer that it is just a temporary if flashing that would go back two things being normal as it used to be before now. But, a lot of people have seen it really difficult and living their life at this time around, because of the hard work they have to put in their work and also how costly things are right now, they are not able to afford most things that they can see in the market just because there have been a rise in price.

Most products you see these days is either that the numbers of what you will get has been decreased or the price of the same amount has been increased, it’s just been like that and let’s hope that things get better or maybe the government will have to increase salaries for people to match the situation at hand.

I am not sure of that. Is there any source that backs up that opinion? My doubt is mainly that taxes reduce the disposable income for the families, but it increases the government spending by exactly the same amount. Government are usually ferocious spenders of anything that they get their hands in and even sometimes of that they do not even own. How would that work?

It's standard economic theory.

The government doesn't need to spend all of the tax revenue that it generates. At least in principle, tax collection and fiscal expenditure are two completely separate arms of fiscal policy.

So if you increase taxes, you could reign in spending without much government expenditure in reciprocal, if it is the government's plan to seriously curb inflation.

This is laughable. There is nothing like "temporary" inflation. Prices once gone up, stays there forever, or increases further. In my area, an acre of land went at around $10,000 two decades ago. Now the rate has increased to $1,000,000-$2,000,000. Everyone says that land has become expensive now. But people are still accumulating whenever they have an opportunity, because they know that the prices are not going to come down. The only commodity for which the prices actually decreased is crude oil. I remember crude going at $100-120 in 2010-13, but in 2020 the prices had come down to $40 per barrel.

Inflation will always be present at any time, price increases that are not followed by purchasing power make the economy difficult, the main increase is of course because the financial sector is difficult to grow so it is the duty of the government to be able to present a good economy so that the public can be productive and reduce the impact of inflation.

I am not sure either.

I think he is getting confused. Both taxation and money printing is what governments use to fund their spending. Money printing usually leads to inflation, while tax hikes do not, but it depends on other factors. For example, you raise taxes, but you keep printing and wages go up too? There will be inflation.

But he contradicts himself because first he says that by raising taxes you lower inflation and ends up saying:

I would say that inflation is the biggest problem over fiat right now.
As long as inflation stays, we are going to have a lot of future problems and there is really no way to fix it neither.

Super wealthy people like Jeff Bezos and Elon Musk will keep on gathering all the resources they want, and eventually they will reach to a point where we have no money and they have all the money in the world.

Since governments cannot allow that, they keep printing more and more money and allow us to get it by working hard by giving it to the companies, so we spend it back to companies and we have nothing left again and the cycle continues. It is impossible to break it unless you make the companies pay for it via hard taxes.

Whatever the FED chairman says, the truth is always the opposite. If he says we are good, then we are effed badly. If he says we are ruined, then it means we'll be fine tomorrow. So when he said the inflation transitory, I forgot how many months passed since then and the inflation is still here and higher than ever. What do we expect? They printed the 40% of the entire FED balance sheet in a year.

By "transitory" he probably wants to mean that after some time the prices won't be rising as much. He doesn't mean the prices will come down. Yes, the prices wouldn't be rising that fast if they stop printing new currency but we know that it is not going to happen.

What happens is that it is very difficult for the impact of inflation to decrease, most governments are the ones that want to obtain more liquidity and in return they do not mind devaluing a little to obtain what they need, obviously this is the case of many Latin American countries, but really the problem has worsened not only in Latin America, I know that in the USA they have liquidity problems and that one of the things that is impacting Americans the most is inflation, which although they have the dollar which is by nature In history, the one that maintains a global hegemony is falling more and more, this can trigger more economic problems not only there but also in the surrounding countries that depend on the debt they maintain.

In economics, inflation is not always a negative/bad thing as long as it is controlled around 2-3% in the country. If the inflation rate exceeds the desired amount, then that would disrupt the economy making prices higher while the value of fiat decreasing.

In the nature of cryptocurrencies (specifically BTC), inflation is bound to happen due to its limited supply in the market. To somehow counter this, forks happen which reduces the denomination of the rewards granted when mining. This is why every fork, prices of BTC increases in order for its 21 million supply to reach relatively slower.

Who says that?

Why would it be good even if it just 2%? 2% inflation means your FIAT will lose 2% of its purchasing power every year. Why would it be good? 2% or 22% it is all the same. FIAT will lose its purchasing power over time so it is better to buy something that doesn't lose its value no matter how old it gets.

If I'm not mistaken, I conclude indirectly that they will shrink even more because they are losing more and more over time, right?
does this mean it is only a matter of time before this destruction or will they no longer matter? Interesting to see what happens next.
on the other hand I agree with what you say, because if that's the case why are we in something that is sure to be destroyed, of course we are not too stupid to stay in that condition

USA is not printing enough money, that's the problem. They are "printing" in the sense that it is sent to their bank accounts so there is money floating around somewhere but the money in cash form is not in your hands, it's in check form and then in your bank account and then you pay your bills or buy something from amazon or whatever and money moves from bank account to bank account and majority of it is not in cash form.

Inflation happens when you start to reach a level where your cash reserves is not enough to cover the debit people have and that is the problem with banks right now. We all know how we can't all withdraw our money from banks all together, if we do then banks won't have enough cash and can't pay us and will bankrupt, but if a government does that then the financials of a whole nation drops like crazy. USA is having that problem right now.

It's actually easier to say than implementation, this is the major set back we have had in history. Inflation has started not today, it never start with us and will not end in our generation. It's a future thing that continues and happen as result of actions in economy.
You don't increase taxes any how because you want to halt inflation, beside you are putting more money into federal reserve pocket when they keep minting more currency at any house of Representatives passes bills. What do you think will be the end of your salary, just a penny.

i dont know if inflation just temporary, what i know inflation be permanent, and if it happen the country should make move about the economic.
agree, we dont know exact time, when we get this inflation, totally. money dont have value, in all the place, you cant use fiat, and maybe in that time, we change to other thing, like back to stone or upgraded to crypto (im not sure about this)