Bitcoin Forum

Economy => Economics => Topic started by: 325btc on June 26, 2022, 10:33:09 AM



Title: Things are easy to understood now
Post by: 325btc on June 26, 2022, 10:33:09 AM
Its easy yes now the prices are up but if central banks and fed dont start printing MONEY again then all will fall down.
All those real estate unreal prices are so high only becouse big money been printed this was holding as the legs of the high prices but if they dont print asap all will fall also people need cash to pay their fuel energy and food prices those who got extra real estate some extra cars in family or gold stocks or crypto to get cash off course you sell some asssets but whos gona buy ? Off course prices going lower.

Long story short current economy is on the massive ammount of printed money it was holding all this up but now central banks dont print anymore and rate hikes so if we dont hear the news they will step in and print then we all know what happens.


Title: Re: Things are easy to understood now
Post by: _act_ on June 26, 2022, 10:41:18 AM
I will see how bitcoin will fall if it is bull time that people are buying bitcoin, that would be when you will realize that fiat are just assets that only devalues as time goes on, which will make you m realize that bitcoin is an asset that increase in value over time.

Government will have no option to keep the economy working, because of this, fiat will always be devalued as usual. What fiat can buy in the last five years, it can no more buy it presently.


Title: Re: Things are easy to understood now
Post by: 325btc on June 26, 2022, 10:56:40 AM
I will see how bitcoin will fall if it is bull time that people are buying bitcoin, that would be when you will realize that fiat are just assets that only devalues as time goes on, which will make you m realize that bitcoin is an asset that increase in value over time.

Government will have no option to keep the economy working, because of this, fiat will always be devalued as usual. What fiat can buy in the last five years, it can no more buy it presently.

So will they anmounce soon they are going to print again paper ?


Title: Re: Things are easy to understood now
Post by: Alisha-k on June 26, 2022, 11:47:27 AM
Printing more fiat is a call for rapid inflation. Real estate value and other commodities will skyrocket shooting towards the moon. Printing more money will make the general supply higher than its available demands and devaluating the printed currency in the foreign exchange market. The government should instead adopt Bitcoin and save the economy from future hikes and instability


Title: Re: Things are easy to understood now
Post by: SyndicateLabs on June 26, 2022, 12:09:22 PM
Some of the things I see about the process of printing money and injecting it into the markets to stimulate growth, but ultimately they are all collected by the bank through other valuable assets. Perhaps a common problem, but the fitness that controls the global economy has always worked that way. Things happen I never see them as random or as if they were pre-arranged and prepared.


Title: Re: Things are easy to understood now
Post by: palle11 on June 26, 2022, 12:52:57 PM
In real economy analysis somehow you see the injection of new money into the system as a factor that increases development and that pushes up the value of estates if the injected money is used for infrastructure and capital projects. Such money that is injected is either printed or borrowed, it is just like an evil that can't be avoided likewise capital projects. Take away capital projects then real estate will have no value. Borrowing and printing of money will be done but if used well then inflation will be controlled.


Title: Re: Things are easy to understood now
Post by: teosanru on June 26, 2022, 01:50:26 PM
Its easy yes now the prices are up but if central banks and fed dont start printing MONEY again then all will fall down.
All those real estate unreal prices are so high only becouse big money been printed this was holding as the legs of the high prices but if they dont print asap all will fall also people need cash to pay their fuel energy and food prices those who got extra real estate some extra cars in family or gold stocks or crypto to get cash off course you sell some asssets but whos gona buy ? Off course prices going lower.

Long story short current economy is on the massive ammount of printed money it was holding all this up but now central banks dont print anymore and rate hikes so if we dont hear the news they will step in and print then we all know what happens.
See it will never be that central banks will go into a deflationary stage which means money supply will never go into negative it will always increase only. Excess money printing might get held for sometime in case of crisis but eventually it will resume once again. Prices therefore might get settled for once but they will not fall because of this instead they will fall due to lack of demand because of some other FUD.


Title: Re: Things are easy to understood now
Post by: hugeblack on June 26, 2022, 02:13:50 PM
Personally, I see that generalizing the problem leads to incorrect solutions because inflation (high prices are caused by several factors) and printing money may be one of its reasons, but the story is currently greater than that. You have high inflation due to fuel, inflation due to supply chains and inflation due to climate changes and other factors that Make the tightening of one monetary policy lead to more problems.

Therefore, the best solution for now is to keep as much liquidity as you can and try not to sell your investments and buy real shares / assets if you have excess money.


Title: Re: Things are easy to understood now
Post by: 325btc on June 26, 2022, 02:28:57 PM
Its easy yes now the prices are up but if central banks and fed dont start printing MONEY again then all will fall down.
All those real estate unreal prices are so high only becouse big money been printed this was holding as the legs of the high prices but if they dont print asap all will fall also people need cash to pay their fuel energy and food prices those who got extra real estate some extra cars in family or gold stocks or crypto to get cash off course you sell some asssets but whos gona buy ? Off course prices going lower.

Long story short current economy is on the massive ammount of printed money it was holding all this up but now central banks dont print anymore and rate hikes so if we dont hear the news they will step in and print then we all know what happens.
See it will never be that central banks will go into a deflationary stage which means money supply will never go into negative it will always increase only. Excess money printing might get held for sometime in case of crisis but eventually it will resume once again. Prices therefore might get settled for once but they will not fall because of this instead they will fall due to lack of demand because of some other FUD.

Thts good question how low they let go and how long.
But right now no info like they will start printing money anytime soon.


Title: Re: Things are easy to understood now
Post by: so98nn on June 26, 2022, 02:32:46 PM
and the whole story began when every country started giving away stimulus packages and to full fill everyone’s need they required to print more money than ever before. However they forgot one thing, peeps were loosing their jobs, companies were not doing well, supply chain stopped so as to inward of money and taxes thereafter. Central banks required to print even more money but it was above the income of government through taxes and businesses. So it was but obvious to have higher costs and in short followed inflation.


Title: Re: Things are easy to understood now
Post by: TheNineClub on June 26, 2022, 03:45:29 PM
Its easy yes now the prices are up but if central banks and fed dont start printing MONEY again then all will fall down.
All those real estate unreal prices are so high only becouse big money been printed this was holding as the legs of the high prices but if they dont print asap all will fall also people need cash to pay their fuel energy and food prices those who got extra real estate some extra cars in family or gold stocks or crypto to get cash off course you sell some asssets but whos gona buy ? Off course prices going lower.

Long story short current economy is on the massive ammount of printed money it was holding all this up but now central banks dont print anymore and rate hikes so if we dont hear the news they will step in and print then we all know what happens.

Nothing about the economy is easy to understand. At this point it's far to complex, to many vested interests, globalisation, power and social shifts... You can't really sum it up in 2 or 3 words and think that everything is figured out. The economy is so intertwined with the rest that everything is dependant on something else and everything reacts to something else.


Title: Re: Things are easy to understood now
Post by: 325btc on June 26, 2022, 03:49:57 PM
Its easy yes now the prices are up but if central banks and fed dont start printing MONEY again then all will fall down.
All those real estate unreal prices are so high only becouse big money been printed this was holding as the legs of the high prices but if they dont print asap all will fall also people need cash to pay their fuel energy and food prices those who got extra real estate some extra cars in family or gold stocks or crypto to get cash off course you sell some asssets but whos gona buy ? Off course prices going lower.

Long story short current economy is on the massive ammount of printed money it was holding all this up but now central banks dont print anymore and rate hikes so if we dont hear the news they will step in and print then we all know what happens.

Nothing about the economy is easy to understand. At this point it's far to complex, to many vested interests, globalisation, power and social shifts... You can't really sum it up in 2 or 3 words and think that everything is figured out. The economy is so intertwined with the rest that everything is dependant on something else and everything reacts to something else.


It is  printing on ....ecinomy up inflation up.
Printing off economy down inflation lower.
So we either print or not right now we dont print money.


Title: Re: Things are easy to understood now
Post by: Awwal08 on June 26, 2022, 04:08:46 PM
We are no longer in the analogue period; rather, we are now in the digital era, which is the era of technology. The development of technology has made it simple to transmit any information. Nowadays, it's simple to find out the value of any coin, notably bitcoin.


Title: Re: Things are easy to understood now
Post by: kryptqnick on June 26, 2022, 04:30:03 PM
It's not easy, actually. While you seem to say that if fed stops printing money, the prices will go down, some believe that it's actually the negative effects of overprinting (among which is high inflation) that drove the prices down in the first place (if we're talking about the prices of cryptos, that is). In reality, both things are possible. In one scenario, inflation is rising, people are feeling unsure about the economy and engage in panic selling. In another, they turn to cryptos to save their wealth because cryptos aren't susceptible to hyperinflation. Moods can differ and cause different results for the overall market


Title: Re: Things are easy to understood now
Post by: Fivestar4everMVP on June 26, 2022, 06:54:27 PM
It's not easy, actually. While you seem to say that if fed stops printing money, the prices will go down, some believe that it's actually the negative effects of overprinting (among which is high inflation) that drove the prices down in the first place (if we're talking about the prices of cryptos, that is). In reality, both things are possible. In one scenario, inflation is rising, people are feeling unsure about the economy and engage in panic selling. In another, they turn to cryptos to save their wealth because cryptos aren't susceptible to hyperinflation. Moods can differ and cause different results for the overall market
Rightly said mate, and to add to the OPs assumptions, the matter of fed printing more money and how it leads to bitcoin pumping in price is a two way thing
In the first way, fed or Central Banks printing more money does not guarantee that the price of bitcoin would rise, though it's likely to drive the price of bitcoin higher because printing more money means  there will be more paper money in circulation for investors to throw into Bitcoins and cryptocurrencies in general.
On the second way, it's already known that printing more money causes devaluation to the fiat currency, and devaluation of paper currency causes the price of commodities to go up, and when the price of goods go up, this can lead to bitcoin crashing as a result of people selling it to keep up with life most especially when their day job no longer afford them enough money to keep up with their daily expenses.


Title: Re: Things are easy to understood now
Post by: RealMalatesta on June 26, 2022, 08:26:08 PM
Printing more fiat is a call for rapid inflation. Real estate value and other commodities will skyrocket shooting towards the moon. Printing more money will make the general supply higher than its available demands and devaluating the printed currency in the foreign exchange market. The government should instead adopt Bitcoin and save the economy from future hikes and instability
Even though you are right, there isn't any people who will stop doing that, and all governments will keep on doing that whenever they have to. Of course it is not going to be something simple, and of course it is going to impact the world, and inflation will go up, but printing is something nations have done forever and they will keep doing that.

Maybe not as radical as they did during the pandemic period because during those periods we had a situation where nobody really worked, no people, no companies, only a few places, and the governments had to print money and distribute that, which caused inflation but at the same time it wasn't really that much of a problem since that was the only way out. Hope that won't be repeated again.


Title: Re: Things are easy to understood now
Post by: jossiel on June 26, 2022, 08:58:47 PM
They won't print this time.

They'll just apply the increase to the interest rates and as I can see (not an economist), the value of dollar is getting stronger against most of the other currencies worldwide.

The government should instead adopt Bitcoin and save the economy from future hikes and instability
Not gonna happen, if it's the US government that we're talking in here, they won't do that. But they're open on it and didn't have any banning applied so they're good on it.

As for other countries that will adopt bitcoin, many already adopted it, some are informal and without any rule to ban and stop people from using it.


Title: Re: Things are easy to understood now
Post by: fiulpro on June 27, 2022, 05:41:04 PM
They are not going to print more money, they have already made that extremely clear since at the end of the day they do have to essentially go through the inflation and they have already set the investment price up to lure investors in the banks, they would print normally but they won't go crazy and start printing like how they did in the beginning of the COVID.

Fed already stated that they are trying to make things right and therefore this time I think US people might not be getting covid relief, not trump there any more, also remember that they are trying to hold off the jobs, Which can turn out really bad and send more people to poverty, all in short it's a disaster.


Title: Re: Things are easy to understood now
Post by: 325btc on June 27, 2022, 07:07:42 PM
They are not going to print more money, they have already made that extremely clear since at the end of the day they do have to essentially go through the inflation and they have already set the investment price up to lure investors in the banks, they would print normally but they won't go crazy and start printing like how they did in the beginning of the COVID.

Fed already stated that they are trying to make things right and therefore this time I think US people might not be getting covid relief, not trump there any more, also remember that they are trying to hold off the jobs, Which can turn out really bad and send more people to poverty, all in short it's a disaster.

Okay so no more printing it means big collapse


Title: Re: Things are easy to understood now
Post by: KingsDen on June 27, 2022, 09:39:17 PM
In real economy analysis somehow you see the injection of new money into the system as a factor that increases development and that pushes up the value of estates if the injected money is used for infrastructure and capital projects. Such money that is injected is either printed or borrowed, it is just like an evil that can't be avoided likewise capital projects. Take away capital projects then real estate will have no value. Borrowing and printing of money will be done but if used well then inflation will be controlled.
Who are those that injects this money into the system? Who borrows and from whom do they borrow? Who prints fiat? Who sets budget to deficit or surplus and then sell money or buy money to maintain the acclaimed balance? Who controls or decides that it is OK to not print more fiat? Who detects when to print more fiat? Then, after printing these fiat, who hoards them at the expense of the poor? Who are the real real estate investors.
The answer circles around the government and the politicians. They own the system, they control it and milk from it also. They designed it to remain relevant to them and make us believe they have our interest at heart. They shouldn't bother, bitcoin is coming with full force to shame them all.


Title: Re: Things are easy to understood now
Post by: Theones on July 05, 2022, 12:05:42 AM
In real economy analysis somehow you see the injection of new money into the system as a factor that increases development and that pushes up the value of estates if the injected money is used for infrastructure and capital projects. Such money that is injected is either printed or borrowed, it is just like an evil that can't be avoided likewise capital projects. Take away capital projects then real estate will have no value. Borrowing and printing of money will be done but if used well then inflation will be controlled.
Who are those that injects this money into the system? Who borrows and from whom do they borrow? Who prints fiat? Who sets budget to deficit or surplus and then sell money or buy money to maintain the acclaimed balance? Who controls or decides that it is OK to not print more fiat? Who detects when to print more fiat? Then, after printing these fiat, who hoards them at the expense of the poor? Who are the real real estate investors.
The answer circles around the government and the politicians. They own the system, they control it and milk from it also. They designed it to remain relevant to them and make us believe they have our interest at heart. They shouldn't bother, bitcoin is coming with full force to shame them all.
The only solution to this is financial freedom.
Try to earn as much as you can - dont gamble if you think you will lose money. And try to invest where you get good return - dont look up to anyone for the help.


Title: Re: Things are easy to understood now
Post by: yhiaali3 on July 05, 2022, 01:52:46 AM
Yes, things have become easier to understand now, the government prints more money, the value of money decreases, inflation increases, the government stops printing, spending and debt difficulties arise, and the need for new resources arises. This is a real economic cycle that needs a radical solution to get out of it. The problems of the economy are very complex and it is not possible to come up with an easy solution because everything is linked to each other, but is it possible that Bitcoin is the solution? Bitcoin is a very good solution to the problem of fiat currency inflation and maintaining its value, but it is not a solution to other economic problems resulting from lack of resources and high fuel prices as a result of high global demand.


Title: Re: Things are easy to understood now
Post by: Hamphser on July 05, 2022, 10:40:02 PM
In real economy analysis somehow you see the injection of new money into the system as a factor that increases development and that pushes up the value of estates if the injected money is used for infrastructure and capital projects. Such money that is injected is either printed or borrowed, it is just like an evil that can't be avoided likewise capital projects. Take away capital projects then real estate will have no value. Borrowing and printing of money will be done but if used well then inflation will be controlled.
Who are those that injects this money into the system? Who borrows and from whom do they borrow? Who prints fiat? Who sets budget to deficit or surplus and then sell money or buy money to maintain the acclaimed balance? Who controls or decides that it is OK to not print more fiat? Who detects when to print more fiat? Then, after printing these fiat, who hoards them at the expense of the poor? Who are the real real estate investors.
The answer circles around the government and the politicians. They own the system, they control it and milk from it also. They designed it to remain relevant to them and make us believe they have our interest at heart. They shouldn't bother, bitcoin is coming with full force to shame them all.
The only solution to this is financial freedom.
Try to earn as much as you can - dont gamble if you think you will lose money. And try to invest where you get good return - dont look up to anyone for the help.
Not really that bad to call for some help or to snip out some ideas from others basing on their real experiences but you wont really be able to copy it 100% considering that there are still factors which could affect

the entire outcome even if you do tend to follow or do the same steps which does basically means that it is really depending on you whether you would really be that serious on achieving your goals through your
own hard work and analysis and not all does have the same level of patience and perseverance on dealing up with something.

We do almost have on the same target or prospects in life which is to have financial freedom and that means having various sources of income and investment which would
make yourself financially sustainable and capable.


Title: Re: Things are easy to understood now
Post by: Hydrogen on July 05, 2022, 11:35:08 PM
prices going lower.


One solution to diminishing prices that I like.

Is an increase of production.

Whatever scarcity and inflation can produce, an overabundance might overturn. Scaling up production can also decrease production costs. Corporate profit margins in sectors like oil have done well for themselves. Now we can encourage an expansion of production. Or find alternate means. Perhaps biodiesel can make a comeback. Or ethanol production can be expanded. There are youtube clips of people making their own biodiesel and ethanol. The technology may be viable and openly accessible on an entry level scale.

Rampant consumerism we have all seen and lived through. Credit and installment buying. Amazon free shipping. Social media ads targeting text message and microphone keywords.

Now is a time for rampant productionism.


Title: Re: Things are easy to understood now
Post by: Darker45 on July 06, 2022, 02:03:39 AM
It was an urgent measure to print more money during the height of the pandemic. Hard times demand hard decisions. Something had to be done to keep the economy afloat with all the lockdowns, quarantines, closed businesses. The pandemic crippled employment, supply chains, and the entire business sector.

But now that the economy is on the road to recovery, measures had to be done to deflate the circulating supply of money. Interest rates had to be increased. The devaluation of money had to be addressed. Fiat has to recover its purchasing power.


Title: Re: Things are easy to understood now
Post by: Minecache on July 06, 2022, 03:19:19 AM
Yes, things have become easier to understand now, the government prints more money, the value of money decreases, inflation increases, the government stops printing, spending and debt difficulties arise, and the need for new resources arises. This is a real economic cycle that needs a radical solution to get out of it. The problems of the economy are very complex and it is not possible to come up with an easy solution because everything is linked to each other, but is it possible that Bitcoin is the solution? Bitcoin is a very good solution to the problem of fiat currency inflation and maintaining its value, but it is not a solution to other economic problems resulting from lack of resources and high fuel prices as a result of high global demand.

While bitcoin can be seen as a solution to fight inflation due to its fixed supply, it is not the right now to call bitcoin a suitable asset class for reducing inflation. Bitcoin's volatility makes it a high-risk asset, so bitcoin would not be suitable as a de-inflationary asset in the current inflationary era.

If you can hold bitcoin for as long as 5 years to 10 years then bitcoin can be a very effective deflationary asset because over time bitcoin will have a new ATH and the price will go very high and fiat is dying.


Title: Re: Things are easy to understood now
Post by: Anonylz on July 06, 2022, 04:14:18 AM
and the whole story began when every country started giving away stimulus packages and to full fill everyone’s need they required to print more money than ever before. However they forgot one thing, peeps were loosing their jobs, companies were not doing well, supply chain stopped so as to inward of money and taxes thereafter. Central banks required to print even more money but it was above the income of government through taxes and businesses. So it was but obvious to have higher costs and in short followed inflation.

If they didn't print new money to support the stimulus package idea where wouod they have gotten the money to address that situation as it raises! The money has to come somehow. The real issue now is making supply meet up with demand. Since the pandemic the economy is struggling and supply chain is behind. Printing more money into the system won't solve the inflation problem except those monies are directed to improve the supply chain radically.


Title: Re: Things are easy to understood now
Post by: South Park on July 06, 2022, 04:45:02 AM
and the whole story began when every country started giving away stimulus packages and to full fill everyone’s need they required to print more money than ever before. However they forgot one thing, peeps were loosing their jobs, companies were not doing well, supply chain stopped so as to inward of money and taxes thereafter. Central banks required to print even more money but it was above the income of government through taxes and businesses. So it was but obvious to have higher costs and in short followed inflation.

If they didn't print new money to support the stimulus package idea where wouod they have gotten the money to address that situation as it raises! The money has to come somehow. The real issue now is making supply meet up with demand. Since the pandemic the economy is struggling and supply chain is behind. Printing more money into the system won't solve the inflation problem except those monies are directed to improve the supply chain radically.
Yes, it is impossible to solve a crisis caused by printing too much money too fast by printing even more money, at this point people are realizing the economies of the world are in real trouble and it does not help that a war started out of nowhere, and now Europe is facing huge problems to the point the euro is about to reach dollar parity not long from now, so while I hope the economy somehow stabilizes itself I am not sure this will happen at all.


Title: Re: Things are easy to understood now
Post by: gunhell16 on July 06, 2022, 09:57:08 AM
Its easy yes now the prices are up but if central banks and fed dont start printing MONEY again then all will fall down.
All those real estate unreal prices are so high only becouse big money been printed this was holding as the legs of the high prices but if they dont print asap all will fall also people need cash to pay their fuel energy and food prices those who got extra real estate some extra cars in family or gold stocks or crypto to get cash off course you sell some asssets but whos gona buy ? Off course prices going lower.

Long story short current economy is on the massive ammount of printed money it was holding all this up but now central banks dont print anymore and rate hikes so if we dont hear the news they will step in and print then we all know what happens.
I'm not really sure, if I understand it correctly. Based on my assessment, for what is happening now in the entire world, almost all countries are facing inflation problems, where majority of the commodities are getting increased, especially the war between Russia ang Ukraine the gasoline was also increase particularly in the asian country, and a lot of the citizens are affected by this inflation as well.

So, the economy of each country now are affected by this circumstances, where the government can't able to stop, that is why from time to time they've been thinking a solutions for this matter also.


Title: Re: Things are easy to understood now
Post by: boyptc on July 06, 2022, 06:16:06 PM
I do not think that everyone will afford the effect of printing more money by the FED. As you can see, despite the recovery, there goes the high inflation due to the issue of the war.

And if another printing happens, this adds up to the current percentage that every country that's affected by the war like the shortage of food through wheat and even with oil.


Title: Re: Things are easy to understood now
Post by: Theones on July 07, 2022, 07:25:59 PM
I do not think that everyone will afford the effect of printing more money by the FED. As you can see, despite the recovery, there goes the high inflation due to the issue of the war.

And if another printing happens, this adds up to the current percentage that every country that's affected by the war like the shortage of food through wheat and even with oil.
that is correct printing money is not always a choice and what is going behind the closed door and who controls the power game - noone knows and no-one can guess.
But what we can control is our financial freedom so that we are happy and contented and live like a king.


Title: Re: Things are easy to understood now
Post by: fullhdpixel on July 09, 2022, 12:25:29 PM
Its easy yes now the prices are up but if central banks and fed dont start printing MONEY again then all will fall down.
All those real estate unreal prices are so high only becouse big money been printed this was holding as the legs of the high prices but if they dont print asap all will fall also people need cash to pay their fuel energy and food prices those who got extra real estate some extra cars in family or gold stocks or crypto to get cash off course you sell some asssets but whos gona buy ? Off course prices going lower.

Long story short current economy is on the massive ammount of printed money it was holding all this up but now central banks dont print anymore and rate hikes so if we dont hear the news they will step in and print then we all know what happens.
I'm not really sure, if I understand it correctly. Based on my assessment, for what is happening now in the entire world, almost all countries are facing inflation problems, where majority of the commodities are getting increased, especially the war between Russia ang Ukraine the gasoline was also increase particularly in the asian country, and a lot of the citizens are affected by this inflation as well.

So, the economy of each country now are affected by this circumstances, where the government can't able to stop, that is why from time to time they've been thinking a solutions for this matter also.
Inflation "was" a problem and it is still a problem, but on top of that now we are facing recession to stop inflation as well. We will have less and less inflation, the prices will probably stay at this level for a long time, and then we are going to end up with recession instead.

What does that mean? If the money is withdrawn from the markets, and there are less jobs available, less money available, and less income going around, everyone will live a worse life, and won't be able to earn enough to survive. This is why recession is even worse situation we are in right now. Hopefully it will all get fixed soon and we will be doing much better.


Title: Re: Things are easy to understood now
Post by: Theones on July 11, 2022, 03:30:09 PM

Inflation "was" a problem and it is still a problem, but on top of that now we are facing recession to stop inflation as well. We will have less and less inflation, the prices will probably stay at this level for a long time, and then we are going to end up with recession instead.

What does that mean? If the money is withdrawn from the markets, and there are less jobs available, less money available, and less income going around, everyone will live a worse life, and won't be able to earn enough to survive. This is why recession is even worse situation we are in right now. Hopefully it will all get fixed soon and we will be doing much better.
That is correct - the country I live in - is experiencing highest rate of inflation in past 50 years.
The poor segment of the society is most affected by - but having said that the rich people are also not much comfortable with their finances.


Title: Re: Things are easy to understood now
Post by: ChrisPop on July 11, 2022, 07:38:47 PM
One solution to diminishing prices that I like.

Is an increase of production.

Whatever scarcity and inflation can produce, an overabundance might overturn. Scaling up production can also decrease production costs. Corporate profit margins in sectors like oil have done well for themselves. Now we can encourage an expansion of production. Or find alternate means. Perhaps biodiesel can make a comeback. Or ethanol production can be expanded. There are youtube clips of people making their own biodiesel and ethanol. The technology may be viable and openly accessible on an entry level scale.

Rampant consumerism we have all seen and lived through. Credit and installment buying. Amazon free shipping. Social media ads targeting text message and microphone keywords.

Now is a time for rampant productionism.

Easy to say, but hard to implement. Productivity raises in a linear fashion, while economic cycles are much faster/violent.

https://assets.website-files.com/5ecdd237c500a046bb64fa47/5ed4b55d4b317b398f7fded6_5ea1054ee2ce996ffc4abdc0_0*ndAVq8pho4_Meem9.png
Source: Ray Dalio debt curve (https://www.nofilter.media/posts/ray-dalios-economic-machine-12-minute-summary)

Under the current financial system all we can do is to hope that the state will apply the correct monetary and fiscal policies while we reduce the credit in the economy.