Title: Is Inflation Necessary Post by: alastantiger on April 25, 2024, 08:31:49 PM The bitcointalk forum is comprised of diverse people from all over the world. Our countries' must have gone through inflation as a nation at least once or more since its history. As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings?
Title: Re: Is Inflation Necessary Post by: _act_ on April 25, 2024, 08:36:34 PM But is inflation needed? Why can't we just keep the currency at the same value? The government will not want their foreign reserve to deplete and finish. That is why they will prefer to manipulate and devalue their own local currency. And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. It can not affect gold because the government do not have control over gold price.Is inflation a ploy that the government uses so people don't get rich off of savings? Yes, people should know that fiat do not have value. The value in fiat is when you use it for something like business or investment.Title: Re: Is Inflation Necessary Post by: Stepstowealth on April 25, 2024, 08:42:13 PM But is inflation needed? Why can't we just keep the currency at the same value? Maybe the government are trying but keeping the inflation away may just be unavoidable. Some policies may sound good, but on implementation may not provide the required results. Title: Re: Is Inflation Necessary Post by: _act_ on April 25, 2024, 08:52:39 PM Maybe the government are trying but keeping the inflation away may just be unavoidable. Some policies may sound good, but on implementation may not provide the required results. For a country not to have inflation is not good, it is people that should know that they should not save money in fiat because government will always devalue it for their own benefit. It is not mandatory to have your money in fiat. You can invest it or use it for business. If a country do not want to have inflation, the economy of the country may collapse.Title: Re: Is Inflation Necessary Post by: goaldigger on April 25, 2024, 09:12:03 PM The bitcointalk forum is comprised of diverse people from all over the world. Our countries' must have gone through inflation as a nation at least once or more since its history. As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings? Inflation is the basis for the value of money of one country and I think due to economic competition, inflation was made to serve its purpose and let those big countries remain in the power. Probably, this is where every nations agrees just like the Washington conference where we are forced to used USD as the basis of all trade this can also relates to inflation. We cannot live without this anymore and if there’s no inflation, your money will become weaker against other currency and that can be another problem. Title: Re: Is Inflation Necessary Post by: Hyphen(-) on April 25, 2024, 09:12:28 PM But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings? I think price of things goes up when the demand is high and supply is low; and lower supply can be caused by so many factors which includes production costs and others. And mostly, goods that are not been produced in our countries are the once going very high with huge inflation which can be caused by cost of currency exchanges, transportation and so on.Inflation is a general something that happens worldwide but some people suffer it more because of their improper economic management, but provided your country depend on any good that is been imported from other countries, then inflation is likely to occur. Title: Re: Is Inflation Necessary Post by: Zaguru12 on April 25, 2024, 09:24:53 PM As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Inflation doesn’t necessarily mean that the country currency is devaluing but also comes in such a way that the demand for a product or service is way higher than the demand and such people pay higher to get the product. There are other reasons for inflation. Now concerning your the devaluation rate of money as a cause of inflation I think the government can easily afford to make their currency stronger by either reducing the supply of the currency printing or even increase the production and exportation of goods outside the country using the currency as an exchange currency. Title: Re: Is Inflation Necessary Post by: AVE5 on April 25, 2024, 09:28:32 PM Inflation I'd as a disease or an anti progress for a national economy growths because they masses would be put to stranded and frustrated in as much they can't be able to afford valuables and essential needs with the value of funds at hands and most especially Poor and average citizens do suffers it most so at it all there's no good remark about inflations unless we should say only those who're the national influencers and the politicians are beneficial to it because it on the other way increases financial revenues to the accounts of the government but it's of no good accounted that it's for th good of the public but only those who're the inner cacus.
Until we realizes that the Fiats are also volatile which can be inflated by economy detriments, then we'd find every necessity to have our unplanned to be used funds saved in bitcoin with being aware that it can also be inflated to face depreciation of value as your fiats would also do but right while you've your funds in the bitcoin, you're assumed a potential Investor who had invested your funds on a sector that it'd bring you profit which otherwise you can do away with the frowning emotions of when your fiat funds could be values less during a national economy inflations. Title: Re: Is Inflation Necessary Post by: bestcoins1 on April 25, 2024, 10:01:38 PM The bitcointalk forum is comprised of diverse people from all over the world. Our countries' must have gone through inflation as a nation at least once or more since its history. As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings? On the one hand, I don't think that inflation is a tactic by the government to prevent people from becoming rich, because the high price of certain goods or most goods can be caused by three things now. The first is because there is a lot of interest in the item and the second is because there is a lot of interest but the supply of the item is limited. And the third is because of war which can involve chaos in the economic sector for most countries so that it can cause an increase in the price of goods as it is now. Maintaining the value of the currency is actually not easy for every country because it also involves importing and exporting goods in a country so that it can adjust the value of its currency to foreign exchange. So if we examine it in depth, we actually don't need inflation because everyone can feel the bad effects of inflation which sometimes makes it more difficult for poor people. This is due to their low income and the increasing circulation of money so that the government is starting to find it difficult to maintain the value of the currency itself. Meanwhile, gold is a precious metal which generally has quite a large number of enthusiasts and not all countries have large levels of gold in their soil, although we don't know the limit of gold itself. But when everyone in the world starts to like having gold, of course the price will tend to be more expensive and the value itself can also continue to remain at a better figure. However, if gold is really agreed to be used as currency, I think there will be several countries that will not agree with that because there may not be a large supply of gold in their own country. Title: Re: Is Inflation Necessary Post by: Alphakilo on April 25, 2024, 10:19:06 PM I think inflation is needed in a debt based economy since the financial system is based on fiat currency (https://www.ig.com/uk/glossary-trading-terms/fiat-currency-definition) and not Gold the inflation is at the core of the system since fiat currencies are driven by debt monetization hence the rapid increase in debt in the economy. So debt is the cause of inflation spiraling out of control because fiat currency has unlimited supply unlike Gold. This is why governments becoming bigger and thus leading to bigger budget deficits and rapid currency devaluation
Title: Re: Is Inflation Necessary Post by: batang_bitcoin on April 25, 2024, 10:20:26 PM So based on some quick information from wikipedia, it all started on 16th century. I'd say that it is not necessary at all if we have the power to remove it but it has now a global matter and each country's economy can't be reset as much as we want to delete inflation. It is there and will stay there and even if we're already dead, inflation will remain and going to keep on rising. This is where the world is heading unless there are a lot of rich people that will provided everything for us which is most unlikely but I've heard that Elon want to do that for everyone.
Title: Re: Is Inflation Necessary Post by: EluguHcman on April 25, 2024, 10:28:52 PM As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Inflation doesn’t necessarily mean that the country currency is devaluing but also comes in such a way that the demand for a product or service is way higher than the demand and such people pay higher to get the product. There are other reasons for inflation. Now concerning your the devaluation rate of money as a cause of inflation I think the government can easily afford to make their currency stronger by either reducing the supply of the currency printing or even increase the production and exportation of goods outside the country using the currency as an exchange currency. So it is the insight that the higher the demands is the higher the price and also less productions on speculations. It can also be an effect of the fiat where there was much prints which could get it on the junks and has it losses values for exchange. Let me just say disasterous occurances such as crisis and governance sentiments is also capable to cause inflations. Title: Re: Is Inflation Necessary Post by: Agbamoni on April 25, 2024, 11:03:49 PM For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings? What i have come to understand is that inflation doesn't affects assets specifically. Of course, the price of Gold, Silver, Bitcoin and other profitable assets won't be affected when there is inflation. Inflation is phenomenon that affects our purchasing power in our individual countries. When you sell you r gold or Bitcoin into fiats that is when inflation starts affecting the value of that your assets in fiat. If we look at it in your point of view then it is certain that i will agree with you that the government has a hand in manipulating the economy of a nation. But i dont think it works that way, yes the system is being manipulated a little since the governemtn has central authority over it but i feel the main cause of inflation is scarcity. When there is scarcity of food, raw materials, local produce, goods and services the value of these things tend to increase drastically causing those who have them to use the opportunity to extort money. Title: Re: Is Inflation Necessary Post by: danherbias07 on April 25, 2024, 11:22:51 PM There's so much to consider and I think the government is always looking at those things before they implement it.
I can still remember how much the price of an apple was when I was still young and now it's tripled in price. I've also experienced a lot of changes in my salary just to equal the inflation that is happening and yet it is still not enough to pay for everything especially if you bought a house in a 30-year payment. Is it necessary? I don't think that's the right question for this. Inflation just happens because a country might crumble if they use the reserves to even what is happening. In the long term, the market will react so inflation is like a short-term cure for people to spend their money and let the cycle continue. Sadly, after inflation, necessities won't go back to their former price and what they will do is try to just increase the salaries of the people. This has happened in our country many times and I cannot even remember how many. Title: Re: Is Inflation Necessary Post by: franky1 on April 25, 2024, 11:41:49 PM yes, proper well managed inflation is necessary for fiat currencies
2 reasons a. population increase if more currency didnt get printed, generation growth would happen but each person would have less cash each b. world economics when other countries grow economically a competing country needs to also economically to stay in the same ranks so yes inflation is needed.. .. BUT when inflation outpaces population growth, and printing occurs outside of real growth of production economics. thats when inflation turns bad in short printing for the sake of printing where each new money lump print does not benefit the general populous but gets lost in the upper echelons of the elite, done just to fake boost the rankings without the funds being used to boost the utility/productivity of the population.. its bad Title: Re: Is Inflation Necessary Post by: Catenaccio on April 26, 2024, 03:02:47 AM But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings? Inflation naturally exists in societies and all nations because governments fail to control all sectors and things in their countries. When economy is down, governments must ask central banks to print more money and distribute it to citizens and societies to increase purchasing power from their citizens. They have to do it because if they don't, companies will collapse.Later as consequences of money printing, they will try to tighten their money policy but it won't resolve inflation and money circulated in societies never return 100% to banks. The cycle repeats and with time, with many cycles, we have bigger and bigger inflation. An example Purchasing Power of the U.S. Dollar Over Time (https://www.visualcapitalist.com/purchasing-power-of-the-u-s-dollar-over-time/) Title: Re: Is Inflation Necessary Post by: pooya87 on April 26, 2024, 03:19:58 AM Why can't we just keep the currency at the same value? And why does it only happen to money? Because money does not exist. We only have Bitcoin that has the potential of being money some day but for now all we have is currency. (currency is medium of exchange and money is a currency that is also store of value).Why is it like this? Because economy as a science is wrong. What they teach kids in schools, universities, etc. is wrong. Which means the economy that rules the world is built on top of flawed sciences hence it works like this, where the so called "experts" believe that inflation is a good thing. a. population increase You are confusing supply and demand with inflation.if more currency didnt get printed, generation growth would happen but each person would have less cash each Printing money (increasing fiat supply) doesn't automatically mean inflation. Where that printed money goes can lead to inflation. They also don't print it based on population, they print money (or should print money) based on demand which could be simply referred to as the "production capacity". But in reality they print money to cover their budget deficits which doesn't go into production so it causes inflation. For example US doesn't print $1 trillion every 100 days because US population is suddenly growing, or the US economy is growing. Neither one of these are happening. What is happening is a massive budget deficit that they have to cover by printing that much money. Title: Re: Is Inflation Necessary Post by: Poker Player on April 26, 2024, 03:57:10 AM It is not whether it is necessary or not. Good inflation indicates economic growth but what we have today is high inflation due to the devaluation of the currency and the indebtedness of the states.
For example, the same wouldn't happen if we used gold as a currency instead. This is false. Already since Roman times the rulers found a way to devalue the currency by introducing copper alloys and other metals, but people soon realized it and prices went up. Title: Re: Is Inflation Necessary Post by: adaseb on April 26, 2024, 04:28:29 AM When I was young I also found this odd. I also found it odd how every year the same food kept getting more and more expensive. And peoples wages would increase every year and the price of services would increase.
Why it happens is simple. Basically the government is in debt and needs to print money to pay for it and other things. Hence there is more money out there and eventually things get more and more expensive. It’s horrible for savers and doesn’t really benefit anyone. Title: Re: Is Inflation Necessary Post by: Porfirii on April 26, 2024, 05:11:16 AM In economics it is said that inflation is necessary for the economy to grow, as it generates more movement in the market, and a signal of a healthy environment, in contrast to deflation, which is linked to recession and financial crisis, when people don't have much money to spend and those who have it prefer to save it.
But I don't think inflation at the current high levels is a good thing, not to talk about the great devaluation and subsequent loss of purchasing power in some countries like Venezuela. Some say that inflation is a tax on savings. They are not wrong either. Title: Re: Is Inflation Necessary Post by: peter0425 on April 26, 2024, 05:19:09 AM But is inflation needed? Why can't we just keep the currency at the same value? If inflation does not happen, then the economy will actually spiral even more. Inflation even though seen as something always negative can actually be used to stimulate economic growth. We can’t keep the value of money the same because prices of goods increase due to many different factors. Quote And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. That is because of the difference in supply. Gold is limited even though we don’t know how much of it is left out there compared to money where we can easily print out a few or more. Title: Re: Is Inflation Necessary Post by: Apocollapse on April 26, 2024, 05:26:02 AM Why is it like this? Because economy as a science is wrong. What they teach kids in schools, universities, etc. is wrong. Which means the economy that rules the world is built on top of flawed sciences hence it works like this, where the so called "experts" believe that inflation is a good thing. They say inflation is a good thing because the more people believe it, the more money they i.e. government can earn.Banks makes money from lending, custodian and fees, they need to print new money in order their lending service can work. In other hands, they offer custodian service i.e. savings, many people think they can get benefit over banks protect their money and they will earn from that small % APY. But actually the inflation rate is way more higher than the interest rate, which make them in loss instead of profit. So, either you ask a loan or save your money, you're in loss. Title: Re: Is Inflation Necessary Post by: Learn Bitcoin on April 26, 2024, 05:47:27 AM No matter if we want it or not, inflation will be there. You should not question if it's necessary or not. Haven't you heard about countries like Zimbabwe and the worst decisions of their country? Their Prime minister thought they would print money they will pay the debt to all the countries and build the country by printing money. A county must follow some rules when they print money. They have to think about their foreign reserves as well. It depends on many other things that I am not aware of.
Title: Re: Is Inflation Necessary Post by: Alpha Marine on April 26, 2024, 06:06:48 AM Saying inflation is a manipulation from the government is not entirely true. In a free market, demand and supply determines price. If the demand is high, the price will increase. Also the cost of production also determines the price.
Inflation is not totally a bad thing, it's when the inflation becomes too much that becomes a problem. It doesn't totally mean the value of the currency becomes useless. Inflation becomes a problem when the rate of inflation is high within a period. For example, if inflation in a country increases by 3% within a year it becomes a problem, but if it increases by 3% within 5 years then it can be favourable for the economy. When there's a 2-3% inflation in 5 years, it beneficial to the economy in the sense that the producer's profit will increase. This can also affect the investment returns of investors because their returns will increase. There will also be higher production and to do that businesses may need more employees which would then improve employment. The lack of inflation in Japan was a problem (don't know if it still is). I read a report sometime that people wouldn't buy a product if there was a $2 increase in Japan and this took its toll on the economy. Title: Re: Is Inflation Necessary Post by: davis196 on April 26, 2024, 06:38:31 AM The bitcointalk forum is comprised of diverse people from all over the world. Our countries' must have gone through inflation as a nation at least once or more since its history. As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings? The richest countries around the world have the biggest national debts. They have to print more money(dollars, euro, etc.) to pay their debts. Imagine what will happen if the richest countries stop with the money printing and they don't have enough money to pay their debts. A global default would most likely put and end to inflation, but it will cause a new Great Depression, with massive waves of companies and banks going bankrupt and millions of people losing their jobs. With that being said, I think that inflation has become kinda necessary for the rich countries. Title: Re: Is Inflation Necessary Post by: jrrsparkles on April 26, 2024, 07:09:58 AM The bitcointalk forum is comprised of diverse people from all over the world. Our countries' must have gone through inflation as a nation at least once or more since its history. As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings? The actual reason for inflation is when government prints more money so the purchasing power of your fiat depletes thus resulting in value of goods and services increase. Rich people says inflation is good because they're the one borrow the most and when inflation hits harder it gives opportunity for them to pay the debt easier. We moved from gold based monetary system a long way back and there is no point of comparing it now. Title: Re: Is Inflation Necessary Post by: Iranus on April 26, 2024, 08:16:25 AM As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Inflation doesn’t necessarily mean that the country currency is devaluing but also comes in such a way that the demand for a product or service is way higher than the demand and such people pay higher to get the product. There are other reasons for inflation. Now concerning your the devaluation rate of money as a cause of inflation I think the government can easily afford to make their currency stronger by either reducing the supply of the currency printing or even increase the production and exportation of goods outside the country using the currency as an exchange currency. Title: Re: Is Inflation Necessary Post by: Uhwuchukwu53 on April 26, 2024, 08:30:51 AM The bitcointalk forum is comprised of diverse people from all over the world. Our countries' must have gone through inflation as a nation at least once or more since its history. As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings? I don't naturally see this as result of government trying to mortgage it's citizens or control citizens with the use of inflation but as long as demand and supply remains inflation must be unquantifiable situation, the facts remain that the more the government introduce or adopt New currency as legal tender the more it create some issue value fall if the the current currency previously adopted. Title: Re: Is Inflation Necessary Post by: franky1 on April 26, 2024, 08:35:10 AM a. population increase You are confusing supply and demand with inflation.if more currency didnt get printed, generation growth would happen but each person would have less cash each Printing money (increasing fiat supply) doesn't automatically mean inflation. Where that printed money goes can lead to inflation. They also don't print it based on population, they print money (or should print money) based on demand which could be simply referred to as the "production capacity". But in reality they print money to cover their budget deficits which doesn't go into production so it causes inflation. For example US doesn't print $1 trillion every 100 days because US population is suddenly growing, or the US economy is growing. Neither one of these are happening. What is happening is a massive budget deficit that they have to cover by printing that much money. you got things completely the wrong way round populations grow first and naturally so this then causes demand which needs a supply to meet demand (even before productivity) good inflation would stay at 2% IF money printing matched population growth and its economic productivity rate however when they aimlessly over print more than the rate of population+REAL productivity.. that then makes businesses see an influx of too much cash so they raise their price and thats when inflation turns bad Title: Re: Is Inflation Necessary Post by: Gozie51 on April 26, 2024, 12:33:55 PM There is one common and agreeable necessity of inflation in the economy. By simple explanation, inflation is when the value of money is lesser than the cost of product and that can lead to increase in demand. Therefore, one benefit of inflation is that it can lead to increase in production if properly planned and that means there should be employment because of the production and manufacturing purposes.
Another benefit is that it can be used to control the circulation of money in the system. An economy that is experiencing inflation means they have low value of money in the system or the money is not used irrationally as everyone goes to money management. Title: Re: Is Inflation Necessary Post by: DeathAngel on April 26, 2024, 01:44:52 PM Inflation is necessary to maintain a healthy & stable economy. It encourages spending & investment by reducing the value of money over time. This stimulates economic growth & prevents stagnation. Inflation also allows for adjustments in wages & prices ensuring that they remain in line with changing market conditions. A moderate level of inflation can help to reduce the burden of debt & encourage borrowing which can be beneficial for individuals & businesses. Excessive inflation though can be detrimental leading to uncertainty & erosion of purchasing power. It’s important to strike a balance & maintain controlled inflation. We are here on a Bitcoin forum though, we know the antidote for inflation & loss of purchasing power, i.e. buy Bitcoin.
Title: Re: Is Inflation Necessary Post by: Catenaccio on April 26, 2024, 02:40:35 PM Inflation is necessary to maintain a healthy & stable economy. It encourages spending & investment by reducing the value of money over time. This stimulates economic growth & prevents stagnation. Inflation also allows for adjustments in wages & prices ensuring that they remain in line with changing market conditions. Creating inflation is like opening a Pandora box that is non stop and I agree with you that it stimulate spendings, economic growth, prevent stagnation but I disagree with you that it creates healthy and stable economy.It has opposite effects and negative ones are creating chaos in their economy and many banks, companies can collapse as consequence of inflation and policy changes from governments and central banks. If inflation is helpful for a healthy and stable economy, no one will worry and be fearful about inflation. Title: Re: Is Inflation Necessary Post by: kryptqnick on April 26, 2024, 02:44:11 PM Inflation being important is more of a hypothesis, from what I understand, and it's based on the idea that a gradual loss of value of fiat is supposed to motivate people to spend it instead of hoarding it. Too much inflation, is of course, a bad thing, because it often means that your purchasing power gets lower. Major growth in value, I believe, can also be a bad thing, because, as we see with Bitcoin, when something's growing, people treat it more as an asset than as a currency.
But I think that zero inflation should be okay, as well as minor annual deflation. I mean, Japan has been doing pretty well with decades of mild deflation. Title: Re: Is Inflation Necessary Post by: martinex on April 26, 2024, 02:58:46 PM I look more at the smallest object, inflations makes many people whose economy is the lower middle class suffer, especially those who live a day of work only enough for a day's needs even if it goes well. But from their point of view business people are good and inflation drives economic growth in normal quotes.
About why it should go to fiat instead of gold, I think in naming and instrument, it is different, especially if we look at the value factor and why it often happens, only one reason they always convey to the public, maintain price stability and achieve balanced economic growth and the government always wins. Title: Re: Is Inflation Necessary Post by: Woodie on April 26, 2024, 04:21:52 PM Quote Re: Is Inflation Necessary In a normal world I don't think we can say it's necessary...Otherwise you know how they say one man's food is another man's poison...I guess the same theory can apply here because when consumer's are complaining about how money has lost its value, the manufacturer and merchants here will be the main beneficiaries as even the old stock that was valued for less will gain without any value addition which shows there is a winner in this after all. Title: Re: Is Inflation Necessary Post by: Ultegra134 on April 26, 2024, 07:13:57 PM Inflation is necessary to maintain a healthy & stable economy. It encourages spending & investment by reducing the value of money over time. This stimulates economic growth & prevents stagnation. Inflation also allows for adjustments in wages & prices ensuring that they remain in line with changing market conditions. A moderate level of inflation can help to reduce the burden of debt & encourage borrowing which can be beneficial for individuals & businesses. Excessive inflation though can be detrimental leading to uncertainty & erosion of purchasing power. It’s important to strike a balance & maintain controlled inflation. We are here on a Bitcoin forum though, we know the antidote for inflation & loss of purchasing power, i.e. buy Bitcoin. I think this is the best definition given in this thread so far! As someone who has studied economics and the principles of inflation, I can confirm that a minor increase of 1% to 2% per year is healthy and contributes to the economy, showing signs of growth. People, including the OP in this case, are often portraying inflation as something negative; this is true when it gets out of hand. The economy became stagnant during COVID-19 due to quarantine measures and was then abruptly met with increasing energy prices that occurred before the Ukrainian-RRussian war broke out. It quickly became a vicious cycle, and inflation has now tremendously increased while salaries have seen no major improvement. Title: Re: Is Inflation Necessary Post by: Cryptoprincess101 on April 26, 2024, 07:30:39 PM The bitcointalk forum is comprised of diverse people from all over the world. Our countries' must have gone through inflation as a nation at least once or more since its history. As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings? Almost every country experiences inflation at some time then later on they bounce back but it mostly happens to countries that have good economic system just that at some point due to mismanagement of the country's Treasury by a particular government and continuous importation of foreign products may lead to inflation because as they are patronizing foreign products that's how they are giving more value to that country's currency. Just like the question you asked, it has always been the problem because sometimes a country's currency depreciates and also appreciates can't this currencies just be at a stabilize value? This is the more reason why we should embrace Bitcoin because it will be the end to inflation. Title: Re: Is Inflation Necessary Post by: Y3shot on April 26, 2024, 08:15:16 PM The bitcointalk forum is comprised of diverse people from all over the world. Our countries' must have gone through inflation as a nation at least once or more since its history. As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings? Inflation will always be their as far as a country depends on other countries in one way or the other. Their will be nothing like inflation if every have everything and nothing like trading with other countries. Even if your country is a country that has everything you still need to trade the products that your country has and completion in the market can also lead to inflation too. Their are so many factors that the cause of inflation. I think inflation is part of humanity that we can't do without. Every country having a different economy is also a reason why inflation exist.Title: Re: Is Inflation Necessary Post by: Mame89 on April 26, 2024, 08:19:53 PM The bitcointalk forum is comprised of diverse people from all over the world. Our countries' must have gone through inflation as a nation at least once or more since its history. As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings? In my opinion, yes. Because inflation is the government's way of taking our money, because with every inflation our money decreases in value. As long as there are countries or anything that owes money to the IMF/World Bank, inflation will continue to exist until it reaches its worst point, now the debt of all countries in the world is very large and impossible to pay off.The situation will improve if the world bank will forgive the debts of all countries or there will be a major reset and maybe there will be a new currency that replaces paper money. The whole world has been trapped in this chaotic system and will not be able to get out, and some of the rich people in this world are just a speck of dust compared to the people behind this system, because they can create a future world crisis in just a matter of hours which results in inflation. Title: Re: Is Inflation Necessary Post by: Nwada001 on April 26, 2024, 09:32:15 PM a. population increase You are confusing supply and demand with inflation.if more currency didnt get printed, generation growth would happen but each person would have less cash each Printing money (increasing fiat supply) doesn't automatically mean inflation. Where that printed money goes can lead to inflation. They also don't print it based on population, they print money (or should print money) based on demand which could be simply referred to as the "production capacity". But in reality they print money to cover their budget deficits which doesn't go into production so it causes inflation. For example US doesn't print $1 trillion every 100 days because US population is suddenly growing, or the US economy is growing. Neither one of these are happening. What is happening is a massive budget deficit that they have to cover by printing that much money. you got things completely the wrong way round populations grow first and naturally so this then causes demand which needs a supply to meet demand (even before productivity) good inflation would stay at 2% IF money printing matched population growth and its economic productivity rate however when they aimlessly over print more than the rate of population+REAL productivity.. that then makes businesses see an influx of too much cash so they raise their price and thats when inflation turns bad One of the things I believe contributes to the high inflation we are facing in the world economy today is the nonstop printing of local currency by the various central banks of each country. They are gradually devaluing the currency through that action. When the currency in the market is higher than what the citizens demand, it will only result in a high price of goods, which means using more money to buy goods you could get with less currency before due to the low value each of those currencies possesses. Title: Re: Is Inflation Necessary Post by: serjent05 on April 26, 2024, 09:52:53 PM Low inflation is necessary because it makes the economy move. Just like the earlier reply stated, without inflation the economy will become stagnant. Low inflation can make a country more stable because they can take advantage of the positive impact such as:
Quote from: https://www.toppr.com/guides/fundamentals-of-economics-and-management/money/impacts-of-inflation/ Answer: Inflation favourably impacts the economy in the following ways: Higher Profits since producers can sell at higher prices Better Investment Returns since investors and entrepreneurs receive incentives for investing in productive activities Increase in Production More Employment and Better Income Shareholders can earn a good income since companies book more profits and tend to share it with their shareholders via dividends Benefits to Borrowers – The real value of the money returned is less than that of the money borrowed High inflation is not necessary because it can destroy the economy of a country and forces the government to print more money due to the shortage of resources to pay for the ever-increasing price of the material for government projects. Even though this high inflation is not necessary, it often occurs due to lax monetary policy[1]. [1] https://www.imf.org/en/Publications/fandd/issues/Series/Back-to-Basics/Inflation Title: Re: Is Inflation Necessary Post by: Moreno233 on April 26, 2024, 10:21:36 PM The bitcointalk forum is comprised of diverse people from all over the world. Our countries' must have gone through inflation as a nation at least once or more since its history. As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings? The only way to stop inflation is if we can abolish the use of paper money and return to something real and valuable like gold or Bitcoin. Inflation simply exposes the weakness of paper money and will always happen as long as fiat is in operation because the governments will keep printing unlimited quantity of fiat whose value will diminish over time. Government might device different terms as the causes of inflation but the reality is that inflation is inherent in the fiat system, therefore we can say it is compulsory.Title: Re: Is Inflation Necessary Post by: Asuspawer09 on April 26, 2024, 10:37:54 PM The bitcointalk forum is comprised of diverse people from all over the world. Our countries' must have gone through inflation as a nation at least once or more since its history. As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings? Inflation is inevitable for sure and probably necessary but high inflation I think is surely going to be a problem when the economy cannot keep up anymore with the inflation. Its a part of the system already and there was nothing we could do to remove inflation because its already part of the fiat system, with the right increase in inflation I think it is going to be manageable with the growing economy of a country, but the problem for sure is the government can just print and print money whenever they wanted do leaving this whole fiat system to a whole pyramid scheme if your gonna ask me, we are working full-time jobs just to earn money, then just ended up with this kind of system is just unfair to everyone. Still, the main point is there was nothing that we could do about it, the only thing we could do was to adjust to it, The main advice here is to invest your money in order to fight inflation, one of the common things that we advise for sure is investing on Bitcoin, because of the decentralized structure of it, with a limited supply it's the complete opposite of what a fiat money is. Or else put it on other investments like real estate, passive incomes, businesses, etc. main point is don't hold much fiat money because its decreases its value overtime. Title: Re: Is Inflation Necessary Post by: South Park on April 26, 2024, 10:56:52 PM The bitcointalk forum is comprised of diverse people from all over the world. Our countries' must have gone through inflation as a nation at least once or more since its history. As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings? Gold goes through inflation too, as every bit of gold that is mined is gold that was not on circulation before, and the same is true for bitcoin, as new bitcoin gets mined every single day, it is just that when it comes to gold or bitcoin there are some natural or artificial limits set in place which do not allow for the inflation to be very high, however no such thing exist in fiat, which allows central banks to print as much money as they want and then cause the massive amounts of inflation we have seen in some countries over the previous decades.Title: Re: Is Inflation Necessary Post by: oktana on April 26, 2024, 11:06:48 PM Inflation is not optional where you can choose or not choose it based on its necessity. The reason why we can’t keep the currency at the same value is that we can’t. How do you keep printing money and expect it to maintain its value? Imagine if Bitcoin wasn’t capped at 21M, do you think it wouldn’t be reducing in value? It definitely wouldn’t go as far as it did. A cup of coffee will someday be sold for $20. Why? They keep printing money and making it worth less (not worthless ;D)
Title: Re: Is Inflation Necessary Post by: Iranus on April 27, 2024, 03:44:11 AM The bitcointalk forum is comprised of diverse people from all over the world. Our countries' must have gone through inflation as a nation at least once or more since its history. As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings? The only way to stop inflation is if we can abolish the use of paper money and return to something real and valuable like gold or Bitcoin. Inflation simply exposes the weakness of paper money and will always happen as long as fiat is in operation because the governments will keep printing unlimited quantity of fiat whose value will diminish over time. Government might device different terms as the causes of inflation but the reality is that inflation is inherent in the fiat system, therefore we can say it is compulsory.So what solution can you offer for the sudden increase in goods due to the large gap between supply and demand? Because this is also the reason that will cause commodity prices to increase and inflation will also start from there. Don't blame fiat or governments when we don't even understand how this world economy works. Title: Re: Is Inflation Necessary Post by: harapan on April 27, 2024, 04:09:59 AM But is inflation needed? Why can't we just keep the currency at the same value? Maybe the government are trying but keeping the inflation away may just be unavoidable. Some policies may sound good, but on implementation may not provide the required results. It's not good at all,it just sweeps us all from all our plans leaving us with no other option but been helpless.Just so unfair to us,and its inevitable,iit just comes from nowhere and strikes someone so hard with damages and repairs. Inflation as economists have it,triggers more production to meet that demand;as they say it does.Some economist also pointed out that Inflation plays a better role to the economy than the effects of its counterpart 'deflation'. We're all in this together and it seems there's no solution yet for inflation,its a really hard method and economical system for people to survive. Title: Re: Is Inflation Necessary Post by: moneystery on April 27, 2024, 04:17:45 AM in several countries in the world, there are some who have managed to maintain their inflation rate and even make it minus, but the problem is that when inflation becomes minus it will become deflation which will affect the price of goods which will decrease and that makes many people lose money and delay their purchases. this will also affect domestic investment, because the decline in a company's income will make investors think about investing in that country. and many other risks if inflation does not occur.
therefore, inflation needs to exist in a country, but positive inflation, for example 1 or 2 percent a year. with this, it will be able to keep the country's economy from declining and impacting many national sectors. Title: Re: Is Inflation Necessary Post by: pooya87 on April 27, 2024, 05:40:29 AM populations grow first and naturally so That would justify circulating supply but NOT the inflation. Inflation happens when there is more supply (of fiat) than demand and it only happens when they print more money than they should. Otherwise population growth is only a small contributing factor to the demand for more fiat in circulation (still not for inflation).this then causes demand which needs a supply to meet demand (even before productivity) good inflation would stay at 2% IF money printing matched population growth and its economic productivity rate Title: Re: Is Inflation Necessary Post by: franky1 on April 27, 2024, 08:27:23 AM populations grow first and naturally so That would justify circulating supply but NOT the inflation. Inflation happens when there is more supply (of fiat) than demand and it only happens when they print more money than they should. Otherwise population growth is only a small contributing factor to the demand for more fiat in circulation (still not for inflation).this then causes demand which needs a supply to meet demand (even before productivity) good inflation would stay at 2% IF money printing matched population growth and its economic productivity rate nooo your getting your chickens and eggs in the wrong order.. look at the topic question i gave an example of it being necessary(when its controlled) the separate question of excessive inflation is when its not necessary(not helpful, not beneficial, not needed) the printing of money does not happen at the same time as the population growth so there is always an over supply of money before it trickles out to the population need. and peoples needs expand as technology and products get invented. so the amount of money needed expands (its cyclical) in a controlled system these increases would be small. .. but still necessary EG markets will compete for peoples money and markets then need to pay people for the work so they can then spend to consume those products (everyone always want more in the fiat system) (chicken) EG a couple about to have a kid know their household income would need to increase so they need a pay rise. getting a pay rise incurs extra costs on their employer.. which means although parent is less productive than their younger selves(age slows people down) their income:productivity rate changes where they need more income for less production so their employer needs to raise price of goods before the families child grows up to become an independent productive member of society, earning their own income and consuming from that separate from the parent, so for many years of adolescence. the parents will need more income for each parent. meaning each parents employer will need to pay each parent more which means the price of goods goes up but the productivity does not and with more money needed in these child developing years(population growth) there is a need for more money in society until the child becomes a productive member of society to then circulate the money increase to stabilise the inflation.. but with that years later(egg) EG the amount of money a young single adult needs to live on whilst living in parents house with no kids of their own is less for the young adults than the amount a middle-aged parents needs who has a family where parents income needs to be higher to cater to his growing family, by which time the cycle starts again with the young adult then starting a family do you now see the whole picture... yes in a different universe that was not FIAT based.. inflation is not needed and we would live in a deflationary system where each year our average savings/income would be worth more produce per unit, so would spend less units per product.. but the reality of the real world we actually live in, of the real world systems of fiat which does exist outside of our dreams/outside the crypto communities.. inflation is needed to keep the fiat system running. we as individuals do not own the fiat system, we are the slaves to it. but its the system that is most active amongst populations so we have to admit its existence and relevance to the greater population utility we may not like being slaves to the fiat system, hence things like bitcoin are an genius asset that was created for those who want something better. but bitcoin is not the system used by the legal systems and government of the lands we live on and in the world of admitting fiat exists and is used by the majority, that fiat system needs inflation to operate. however the amount of inflation can change from good(necessary) to bad depending on the amount of inflation the fiat system would crash if it was 0% inflation and humans would notice financial issues affecting their lives if it was 0% Title: Re: Is Inflation Necessary Post by: God bless u on April 27, 2024, 08:57:26 AM The bitcointalk forum is comprised of diverse people from all over the world. Our countries' must have gone through inflation as a nation at least once or more since its history. As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings? The biggest reason behind inflation in many countries is the baking system that was developed on the basis on interest back in the history by Jews. This system is such a thing that the world bank and IMF will get benefit from it but the people and the deprived ones will face the repercussions. We need to get out of this system that's the only solution we can propose to the inflation we are facing. If we continue to live under these situations we will never get the benefit of living a wealthy and healthy life. Title: Re: Is Inflation Necessary Post by: franky1 on April 27, 2024, 09:10:11 AM We need to get out of this system that's the only solution we can propose to the inflation we are facing. If we continue to live under these situations we will never get the benefit of living a wealthy and healthy life. yep it would be great to escape it. but we as citizens cant exactly request those governing us to change. they own and control and set the limits of the monetary system we are slaves to and our 4-year vote doesnt really give us much voice over change.. just a 4 year vote on the management people that manage us Title: Re: Is Inflation Necessary Post by: justdimin on April 27, 2024, 11:44:32 AM Inflation is necessary to maintain a healthy & stable economy. It encourages spending & investment by reducing the value of money over time. This stimulates economic growth & prevents stagnation. Inflation also allows for adjustments in wages & prices ensuring that they remain in line with changing market conditions. A moderate level of inflation can help to reduce the burden of debt & encourage borrowing which can be beneficial for individuals & businesses. Excessive inflation though can be detrimental leading to uncertainty & erosion of purchasing power. It’s important to strike a balance & maintain controlled inflation. We are here on a Bitcoin forum though, we know the antidote for inflation & loss of purchasing power, i.e. buy Bitcoin. Inflation being "needed" is about 2 percent or so, not 10 or more. There were a lot of nations, even as strong as USA who had super high inflation compared to past, and that wasn't what they needed. Don't get me wrong, if you have a nation with 2% inflation and 3% interest or investment whatever, it is a small and steady growth that they will be very happy about and if a nation can do that for like 50 years, that nation will become one of the richest nations in the world and best to live in.You have to be in Zimbabwe or something to not be a great nation with that type of consistent good growth for 50 years. But if you look around, you will see that during pandemic period most nations had about 10%+ inflation rate for a very long time and that is the biggest problem in the world. Title: Re: Is Inflation Necessary Post by: Gaza13 on April 27, 2024, 12:33:57 PM I look more at the smallest object, inflations makes many people whose economy is the lower middle class suffer, especially those who live a day of work only enough for a day's needs even if it goes well. But from their point of view business people are good and inflation drives economic growth in normal quotes. The impact on the lower classes and ordinary people is truly extraordinary if inflation hits a country. In my opinion, what small and medium communities have to do is generate additional income so that we don't fall when inflation comes. Yes, because the system has been moved or changed from gold to fiat, and fiat is no longer backed up with gold. This is where this game started in 1971, played by Nixon, who was controlled by the elite family there. Since it was legalized in the Nixon era, money printing has continued and this means that every money printed will produce double the dollar, this is what causes inflation. So even though the dollar is exposed to inflation, the dollar remains strong because it is a currency that pays credit through foreign debt.About why it should go to fiat instead of gold, I think in naming and instrument, it is different, especially if we look at the value factor and why it often happens, only one reason they always convey to the public, maintain price stability and achieve balanced economic growth and the government always wins. Title: Re: Is Inflation Necessary Post by: ndutndut on April 27, 2024, 01:28:47 PM The only way to stop inflation is if we can abolish the use of paper money and return to something real and valuable like gold or Bitcoin. Inflation simply exposes the weakness of paper money and will always happen as long as fiat is in operation because the governments will keep printing unlimited quantity of fiat whose value will diminish over time. Government might device different terms as the causes of inflation but the reality is that inflation is inherent in the fiat system, therefore we can say it is compulsory. I also agree with you. The way to stop inflation is to abandon fiat and replace it with gold or bitcoin because fiat can be printed whenever they want. Now inflation will increase as time goes by and we as a society cannot only improve our finances in the same way but we must also look for ways to get better finances. because inflation in the future is likely to get bigger, we could be lied to so we have to be more alert and smart in managing our finances.What I have observed is that humans are now truly modern slaves and today's children are finding it increasingly difficult to have a home. Many people save but are not rich. It felt like being completely fooled. Behind inflation there is a mafia who uses it to enrich themselves, including the country. Title: Re: Is Inflation Necessary Post by: RockBell on April 27, 2024, 06:25:44 PM Inflation is not optional where you can choose or not choose it based on its necessity. The reason why we can’t keep the currency at the same value is that we can’t. How do you keep printing money and expect it to maintain its value? Imagine if Bitcoin wasn’t capped at 21M, do you think it wouldn’t be reducing in value? It definitely wouldn’t go as far as it did. A cup of coffee will someday be sold for $20. Why? They keep printing money and making it worth less (not worthless ;D) Inflation can not be decided by people circumstances make inflation happen and with the carelessness of our government. And it is even getting worst to maintain the value of a currency. It's dependency does not is not in out power and in a free market even the government find it difficult to make certain decisions. And the printing of money excessively have made some countries lose there value in term of currency. The more the scarcity of money the more value it gets and if not that some countries are really on other currencies in there foreign reserve then it would have been worst. Bitcoin would have been the best and the solution to devaluation of currency. And instead of printing countries should adopt cashless policies, and those are part of trying to maintain the value of currency. Title: Re: Is Inflation Necessary Post by: oktana on April 27, 2024, 07:59:29 PM Inflation is not optional where you can choose or not choose it based on its necessity. The reason why we can’t keep the currency at the same value is that we can’t. How do you keep printing money and expect it to maintain its value? Imagine if Bitcoin wasn’t capped at 21M, do you think it wouldn’t be reducing in value? It definitely wouldn’t go as far as it did. A cup of coffee will someday be sold for $20. Why? They keep printing money and making it worth less (not worthless ;D) Inflation can not be decided by people circumstances make inflation happen and with the carelessness of our government. And it is even getting worst to maintain the value of a currency. It's dependency does not is not in out power and in a free market even the government find it difficult to make certain decisions. And the printing of money excessively have made some countries lose there value in term of currency. The more the scarcity of money the more value it gets and if not that some countries are really on other currencies in there foreign reserve then it would have been worst. Bitcoin would have been the best and the solution to devaluation of currency. And instead of printing countries should adopt cashless policies, and those are part of trying to maintain the value of currency. The problem is the fact that it is physical cash but is that it is continuously being printed. If there was a fixed amount that was printed once and for all (of course that’s not possible as paper money is prone to destruction), it wouldn’t reduce in value. Also, if Bitcoin could magically start increasing in total supply, irrespective of it being cashless and digital, it’ll reduce in value. Title: Re: Is Inflation Necessary Post by: slapper on April 28, 2024, 04:04:10 PM Inflation is not optional where you can choose or not choose it based on its necessity. The reason why we can’t keep the currency at the same value is that we can’t. How do you keep printing money and expect it to maintain its value? Imagine if Bitcoin wasn’t capped at 21M, do you think it wouldn’t be reducing in value? It definitely wouldn’t go as far as it did. A cup of coffee will someday be sold for $20. Why? They keep printing money and making it worth less (not worthless ;D) Inflation can not be decided by people circumstances make inflation happen and with the carelessness of our government. And it is even getting worst to maintain the value of a currency. It's dependency does not is not in out power and in a free market even the government find it difficult to make certain decisions. And the printing of money excessively have made some countries lose there value in term of currency. The more the scarcity of money the more value it gets and if not that some countries are really on other currencies in there foreign reserve then it would have been worst. Bitcoin would have been the best and the solution to devaluation of currency. And instead of printing countries should adopt cashless policies, and those are part of trying to maintain the value of currency. Dependent on foreign currency? A temporary repair, not a solution. Bitcoin is truly revolutionary because it redefines money and how it operates. The shift to digital money? That's inevitable, but we must do it well. Using Bitcoin isn't a fad; it's about avoiding the same bad practices in a new digital format. We need genuine financial power to determine the value of our money, not Bitcoin vs. banks. Title: Re: Is Inflation Necessary Post by: Egii Nna on April 28, 2024, 09:06:08 PM Inflation is not optional where you can choose or not choose it based on its necessity. The reason why we can’t keep the currency at the same value is that we can’t. How do you keep printing money and expect it to maintain its value? Imagine if Bitcoin wasn’t capped at 21M, do you think it wouldn’t be reducing in value? It definitely wouldn’t go as far as it did. A cup of coffee will someday be sold for $20. Why? They keep printing money and making it worth less (not worthless ;D) Inflation can not be decided by people circumstances make inflation happen and with the carelessness of our government. And it is even getting worst to maintain the value of a currency. It's dependency does not is not in out power and in a free market even the government find it difficult to make certain decisions. And the printing of money excessively have made some countries lose there value in term of currency. The more the scarcity of money the more value it gets and if not that some countries are really on other currencies in there foreign reserve then it would have been worst. Bitcoin would have been the best and the solution to devaluation of currency. And instead of printing countries should adopt cashless policies, and those are part of trying to maintain the value of currency. What you find hard to understand is that inflation doesn't affect the money but affects the goods, so blaming the government is not the right thing to do. because inflation can be useful and, at the same time, might be useless. because inflation is just for the purpose of increasing the economy of a country, while at the same time, if it doesn't work well, it will affect the economy of the country, so the maintenance of the inflation depends on the central bank of the country, so the government is not to be at fault at this. Again, comparing bitcoin and banks is not the solution. Because even bitcoin has its own inflation, people find it hard to understand. because if it dumps and rises again, many will have the wish to invest more in it, so inflation is a source of scarcity that will arouse the interest of many other people to join in and benefit from. Title: Re: Is Inflation Necessary Post by: mvdheuvel1983 on April 30, 2024, 05:46:53 PM The bitcointalk forum is comprised of diverse people from all over the world. Our countries' must have gone through inflation as a nation at least once or more since its history. As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings? Inflation may not be necessary but it inevitable, countries have gone through inflation, some are still on it and that's it, you just just defined inflation in your own way which is also applicable, inflation happen most times because of the inability of countries to produce in large quantity of what they can consume, this triggers this countries to go for importation of those items that they dont have, the effect of this their act to their currency will result to inflation. What makes a country currency to lose value is because of the dependent of that country on other nations for survival, sufficient production should be the major priority of every nation that want to lessen inflation, different country currency can not be at the same level because these countries are not in the same level I terms of wealth, knowledge and what they call offer to the global society. Title: Re: Is Inflation Necessary Post by: Fortify on April 30, 2024, 08:13:07 PM The bitcointalk forum is comprised of diverse people from all over the world. Our countries' must have gone through inflation as a nation at least once or more since its history. As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings? People who tout the gold standard simply don't understand it. It had a purpose and fulfilled that purpose at one point in history, a time when things were much simpler than they are now. However it would be unfit for that purpose today because there is too much transaction activity. It's the same problem with bitcoin - it can fill a niche, but is not a direct competitor to things like credit card transaction networks that can keep track of much higher volumes of activity in a much more efficient way. It's nice having a decentralized currency but it is restricted in certain ways. Title: Re: Is Inflation Necessary Post by: oktana on April 30, 2024, 08:22:12 PM Inflation is not optional where you can choose or not choose it based on its necessity. The reason why we can’t keep the currency at the same value is that we can’t. How do you keep printing money and expect it to maintain its value? Imagine if Bitcoin wasn’t capped at 21M, do you think it wouldn’t be reducing in value? It definitely wouldn’t go as far as it did. A cup of coffee will someday be sold for $20. Why? They keep printing money and making it worth less (not worthless ;D) Inflation can not be decided by people circumstances make inflation happen and with the carelessness of our government. And it is even getting worst to maintain the value of a currency. It's dependency does not is not in out power and in a free market even the government find it difficult to make certain decisions. And the printing of money excessively have made some countries lose there value in term of currency. The more the scarcity of money the more value it gets and if not that some countries are really on other currencies in there foreign reserve then it would have been worst. Bitcoin would have been the best and the solution to devaluation of currency. And instead of printing countries should adopt cashless policies, and those are part of trying to maintain the value of currency. What you find hard to understand is that inflation doesn't affect the money but affects the goods, so blaming the government is not the right thing to do. because inflation can be useful and, at the same time, might be useless. because inflation is just for the purpose of increasing the economy of a country, while at the same time, if it doesn't work well, it will affect the economy of the country, so the maintenance of the inflation depends on the central bank of the country, so the government is not to be at fault at this. Again, comparing bitcoin and banks is not the solution. Because even bitcoin has its own inflation, people find it hard to understand. because if it dumps and rises again, many will have the wish to invest more in it, so inflation is a source of scarcity that will arouse the interest of many other people to join in and benefit from. I think you got the highlighted one wrong. Inflation primarily affects the value of money. The goods are going to be the same but the money wouldn’t. Which explains why you’ll have to pay more money to purchase the same goods or you pay the same money but get fewer goods. Outside the government, the other thing I know to cause inflation would be a global economic crisis. For instance COVID did affect a lot of things. But it is mainly the government, so it isn’t as if they are wrongly accused. Lastly, what Bitcoin has is volatility, there’s a difference from inflation. Title: Re: Is Inflation Necessary Post by: Hamza2424 on April 30, 2024, 09:25:33 PM <snip> The hike in the inflation rates started to go up more from the time of COVID-19 Well the answer to your question is that dear saving is fiat one should save his/her amount in the form of assets there your savings will return you profits instead of decreasing value of your savings Although we all have seen some people stick to save till the long time so that he/she can use his money in the age when they gets old so what happens that saved fiat money loses its value and in results they would not be able to enjoy their savings. That is why I think one should save his/her amount in the form of Assets, these assets can be land, these assets can be gold, Digital currencies, or whatever idea one has... One should implement/adopt a good idea so that they can make a good amount of money at the end of the day when needed. Title: Re: Is Inflation Necessary Post by: btc78 on May 01, 2024, 12:54:56 AM What you find hard to understand is that inflation doesn't affect the money but affects the goods, You might perceive it that way because the money is used to purchase goods and you feel like the goods are becoming more expensive when in reality it’s the value of the currency that is decreasing. Its purchasing power is lowering which means we can buy lesser stuff with it. Since money is devalued, economic activity is not driven since investors or just people in general aren’t interested in any kind of economic activity. Title: Re: Is Inflation Necessary Post by: Oasisman on May 01, 2024, 01:28:17 AM What you find hard to understand is that inflation doesn't affect the money but affects the goods, You might perceive it that way because the money is used to purchase goods and you feel like the goods are becoming more expensive when in reality it’s the value of the currency that is decreasing. Its purchasing power is lowering which means we can buy lesser stuff with it. Since money is devalued, economic activity is not driven since investors or just people in general aren’t interested in any kind of economic activity. Exactly! This has always been the misconception that a lot of people thought It was the product and goods were becoming expensive due to several factors with the leading cause as the inflation. There were actually this so called healthy inflation that encourages people to invest their money rather than keeping it in a bank. It will also bring positive impact to the economy that could benefit people from all different sector. However, what we usually experience of todays are nothing but hyperinflation, which means too much inflation causing our fiat value losing it's purchasing power rapidly that we never felt it was beneficial to the economy but it'll only bring chaos to our financial stability. Title: Re: Is Inflation Necessary Post by: Volimack on May 01, 2024, 02:54:06 AM The government may be trying hard to control inflation but it will not be possible. Inflation can have both positive and negative effects on economic growth a moderate level of inflation can encourage spending and investment as people are more inclined to use or invest their money rather than hold it. High or unpredictable inflation can lead to economic instability and reduced consumer confidence which can hamper growth. Ultimately balancing inflation is important for sustained economic growth.
Title: Re: Is Inflation Necessary Post by: BALIK on May 01, 2024, 03:32:24 AM What you find hard to understand is that inflation doesn't affect the money but affects the goods, You might perceive it that way because the money is used to purchase goods and you feel like the goods are becoming more expensive when in reality it’s the value of the currency that is decreasing. Its purchasing power is lowering which means we can buy lesser stuff with it. Since money is devalued, economic activity is not driven since investors or just people in general aren’t interested in any kind of economic activity. Exactly! This has always been the misconception that a lot of people thought It was the product and goods were becoming expensive due to several factors with the leading cause as the inflation. There were actually this so called healthy inflation that encourages people to invest their money rather than keeping it in a bank. It will also bring positive impact to the economy that could benefit people from all different sector. However, what we usually experience of todays are nothing but hyperinflation, which means too much inflation causing our fiat value losing it's purchasing power rapidly that we never felt it was beneficial to the economy but it'll only bring chaos to our financial stability. That depends on each item, there are still some goods whose prices have skyrocketed, not because money is devalued, but because the gap between supply and demand is too large. The gap between supply and demand is also the cause of rising commodity prices, don't just blame the currency for losing value every time commodity prices increase. Investing is better than depositing money in the bank, but not everyone likes that because there is no guarantee that the investment will definitely bring profits. Storing money in the bank for a short period of time is not a bad thing because it can help us handle emergencies or when our investments lose money. Title: Re: Is Inflation Necessary Post by: Bitwave01 on May 01, 2024, 04:10:55 AM To me inflation is a negative word so I consider it to be harmful. But in other hand we were thought in school that a creeping inflation can help drive economic growth.
The soul aim of inflation is decreasing purchasing power or devaluation of it currency in relation to price of goods which make is hard for the common man to survive. A times the government manipulate the economy inflation to keep the people in poverty, for instance, a government worker might be earning #50,000 and the cost of his living is #40,000 the day the government increase his salary to #70,000 you'll see that his cost of living will increase to #60,000 immediately and i began to wonder while the value of money remains the same but it purchasing power fall drastically. So I don't really think inflation is necessary, because it is a big disadvantage to the common man. Title: Re: Is Inflation Necessary Post by: MissNonFall9 on May 01, 2024, 05:17:04 AM Yes I believe that life or health of anything needs ups and downs like blood circulation for survival. In order to normalize the economic situation of any country the value of money is sometimes increased and sometimes reduced. Again to maintain the economic condition of the country, the reserve of the country has to be controlled, in view of which the currency value of the country is increased or decreased. Inflation can also be a necessary step to maintain the flow of goods and services within the country.
Title: Re: Is Inflation Necessary Post by: Kriptogram14 on May 01, 2024, 02:04:49 PM Yes I believe that life or health of anything needs ups and downs like blood circulation for survival. In order to normalize the economic situation of any country the value of money is sometimes increased and sometimes reduced. Again to maintain the economic condition of the country, the reserve of the country has to be controlled, in view of which the currency value of the country is increased or decreased. Inflation can also be a necessary step to maintain the flow of goods and services within the country. Inflation is needed in the economy because there is an increase in the economy, although it is not good, inflation is really needed, but the inflation rate should not be too high which is not good, it must be at a stable number to be called good, with inflation stabilizing the economy when prices are no longer reasonable, Sometimes inflation is evil when the numbers start to rise too high, making the economy unstable.However, what is unfortunate is that in lower middle class society, when the inflation rate rises too high, it will make people scream. With high inflation, the prices of basic necessities are unstable and will also rise, therefore the inflation rate must be stable so that people do not scream about all goods going up, because they are low economic communities below average. Title: Re: Is Inflation Necessary Post by: d5000 on May 02, 2024, 01:11:11 AM Would love actually some in-depth discussion of this topic, because it's crucial to the question: how would a economy with Bitcoin as a leading world currency would look like?
Inflation is necessary to maintain a healthy & stable economy. It encourages spending & investment by reducing the value of money over time. This stimulates economic growth & prevents stagnation. Yep, that's the traditional Monetarist explanation supported by major schools of Economics. But is it correct?@kryptqnick has mentioned the case of Japan, which has had often zero inflation or even deflation during long time stretches [1], and that despite of having invented the Quantitative Easing "money printing" method which is now used across the world. And they're doing quite well: while economic growth is not exorbitant the country is also not in a permanent depression, and is often seen as a technology leader. [2] That brings us to the question: would a Bitcoin world currency, deflationary by nature, bring us to such an almost steady-state, low-growth economy like Japan? By simple logic we could think that a deflationary economy could boost productivity and thus better incentives to increase wealth, because to make profits you can't rely on inflation as "helper" but instead need to be a "productivity leader" in your market. As consumers would not accept higher prices like in an inflationary economy (where companies often try to find creative ways to justify price increases) your only chance to compete is to reduce costs, and thus increase productivity and lower resource usage. It's interesting that while we could thus imply that Japan's near-zero-inflation economy could lead to a high productivity this is actually not true -- Japan has the lowest labour productivity of the G7 nations. [3] There seems however also to be related to a rigid culture in some sectors like services, while manufacturing productivity seems to be growing at a good pace. [4] So this particular problem is perhaps not related to Japan's zero inflation rate. I also found this interesting Investopedia article about deflation in Switzerland [5] with this conclusion: Quote from: Investopedia [...] good deflation occurs when the aggregate supply of goods outstrips aggregate demand. This can be the result of advances in technology or improved productivity. Bad deflation occurs when aggregate demand falls faster than any growth in aggregate supply. So I can imagine that basically "good deflation" can happen in a "Bitcoin world" if the economic actors manage to keep productivity growing. [1] They had actually some years with moderate inflation rates, mostly below 1% but with a few peaks between 2-3%, but on the whole we can say that the average rate since ca. 1999 is close to zero, as you can see here (https://www.macrotrends.net/global-metrics/countries/JPN/japan/inflation-rate-cpi). [2] As you see here (https://www.macrotrends.net/global-metrics/countries/JPN/japan/economic-growth-rate), Japan's economic growth is mostly positive - the average is in the low single digits but there were peaks of up to 9% as recently as 2009. [3] See here (https://www.nippon.com/en/japan-data/h01196/) for 2020 data. [4] See [https://medium.com/@kiyoshimatsumoto/japans-low-economic-productivity-1e41d1f7ca29]here[/url]. [5] See Can Deflation be good? (https://www.investopedia.com/articles/markets/111715/can-deflation-be-good.asp) Title: Re: Is Inflation Necessary Post by: MissNonFall9 on May 03, 2024, 04:42:56 PM Yes I believe that life or health of anything needs ups and downs like blood circulation for survival. In order to normalize the economic situation of any country the value of money is sometimes increased and sometimes reduced. Again to maintain the economic condition of the country, the reserve of the country has to be controlled, in view of which the currency value of the country is increased or decreased. Inflation can also be a necessary step to maintain the flow of goods and services within the country. Inflation is needed in the economy because there is an increase in the economy, although it is not good, inflation is really needed, but the inflation rate should not be too high which is not good, it must be at a stable number to be called good, with inflation stabilizing the economy when prices are no longer reasonable, Sometimes inflation is evil when the numbers start to rise too high, making the economy unstable.However, what is unfortunate is that in lower middle class society, when the inflation rate rises too high, it will make people scream. With high inflation, the prices of basic necessities are unstable and will also rise, therefore the inflation rate must be stable so that people do not scream about all goods going up, because they are low economic communities below average. Title: Re: Is Inflation Necessary Post by: Ever-young on May 04, 2024, 02:47:45 AM The government may be trying hard to control inflation but it will not be possible. Inflation can have both positive and negative effects on economic growth a moderate level of inflation can encourage spending and investment as people are more inclined to use or invest their money rather than hold it. High or unpredictable inflation can lead to economic instability and reduced consumer confidence which can hamper growth. Ultimately balancing inflation is important for sustained economic growth. Controlling inflation isn't an easy task and it can be really challenging even for the governments, you need to also understand that inflation isn't totally a bad thing because when inflation is moderate in a particular economy, it'll have positive effects on that economy because it'll encourage people to spend and also to invest too, because when prices are gradually rising in a moderate way, people would be forced to either spend their money or invest them to grow them rather than holding on to them. Money is meant to be circulated, so holding on to it would stop the circulation thereby leading to devaluation.Title: Re: Is Inflation Necessary Post by: blckhawk on May 04, 2024, 03:04:10 AM For me, I don't think so, it's just that I don't see how inflation can benefit any of us right? Raising the prices of goods is just the reason why stocks are a profitable thing, because without inflation, their market value would stay the same and they would have the same amount of money in terms of value with everyone and rich people don't want that to happen. Imagine if there's a fixed price on everything consumable, it would be a paradise for us normal working people because our salary would be enough to buy ourselves the basic needs that we desperately need during the times when inflation was non-existent. It might also be argued that inflation (if controlled) is a sign of economic growth in a country but the only reason that you'd want the country to grow is to gain influence over other countries, you've got more money means that you can buy more bigger favors.
Title: Re: Is Inflation Necessary Post by: CryptopreneurBrainboss on May 04, 2024, 08:42:52 PM Inflation is needed in the economy because there is an increase in the economy, although it is not good, inflation is really needed, but the inflation rate should not be too high which is not good, it must be at a stable number to be called good, with inflation stabilizing the economy when prices are no longer reasonable, Sometimes inflation is evil when the numbers start to rise too high, making the economy unstable. Inflation is important and needed in the economy at a minimum rate but high inflation destroy the economy of the country. Imagine a country without inflation, that country would have a stabilized economy and nothing will be moving forward but stagnant. What happens when there's price stability, security will be granted and everyone will be relaxed which will not be healthy for the growth of the economy. Inflation encourage spending and that's way a little inflation is important. Without inflation, people will be saving instead of putting their money to work and helping the economy grow. Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings? Exactly, if the currency was stable, saving will be the easiest way to wealth accumulation as it was in the days of gold but since the currency we're using isn't backed it becomes difficult to keep the currency stable. The government keeps printing new money knowing fully well it'll only lead to more inflation but they won't stop. They're creating a problem knowingly and they spend more money trying to resolve a problem that they know is irresolvable with the current currency system. Title: Re: Is Inflation Necessary Post by: slapper on May 05, 2024, 01:23:32 PM To me inflation is a negative word so I consider it to be harmful. But in other hand we were thought in school that a creeping inflation can help drive economic growth. Inflation stinks. Your money is stolen by this invisible tax. It feels like you're trying hard to stay put. But inflation isn't that evil. It's part of the crazy economy. And no one person controls it. Globalization, supply and demand, and spending habits all factor in. Yes, stagnant wages are awful. It's much more complicated than government reform. What companies do with costs, foreign trade, etc. It causes this chain reaction beyond those in charge. So, don't get mad. Be smarter. Discover how this system works. No blame, just facts and links. We must master inflation's movements to winThe soul aim of inflation is decreasing purchasing power or devaluation of it currency in relation to price of goods which make is hard for the common man to survive. A times the government manipulate the economy inflation to keep the people in poverty, for instance, a government worker might be earning #50,000 and the cost of his living is #40,000 the day the government increase his salary to #70,000 you'll see that his cost of living will increase to #60,000 immediately and i began to wonder while the value of money remains the same but it purchasing power fall drastically. So I don't really think inflation is necessary, because it is a big disadvantage to the common man. Title: Re: Is Inflation Necessary Post by: MissNonFall9 on May 06, 2024, 04:55:42 PM For me, I don't think so, it's just that I don't see how inflation can benefit any of us right? Raising the prices of goods is just the reason why stocks are a profitable thing, because without inflation, their market value would stay the same and they would have the same amount of money in terms of value with everyone and rich people don't want that to happen. Imagine if there's a fixed price on everything consumable, it would be a paradise for us normal working people because our salary would be enough to buy ourselves the basic needs that we desperately need during the times when inflation was non-existent. It might also be argued that inflation (if controlled) is a sign of economic growth in a country but the only reason that you'd want the country to grow is to gain influence over other countries, you've got more money means that you can buy more bigger favors. When we hear about inflation, it seems to us that the economy of that country is weak. That's not the case at all. A country's exports increase during inflation. This creates additional demand and requires additional manpower. At that time employment opportunities were created for many unemployed people in the country which is a very good thing. The foreign exchange reserves of the country increase a lot through exports. However, low inflation can lead to economic recession and is more common in developing countries.Title: Re: Is Inflation Necessary Post by: Dunamisx on May 06, 2024, 05:38:59 PM Inflation may be something necessary with the way of operations and use of fiat currency and economy but i don't think its a good idea on the crypto currency network, with the use of inflation, government generate on how their interest rate increases as well and the market economy increases at the expense of the masses while the centralized government are making profits from the people and this bring about the devaluation of the worth of their currency they have in fiat, the whole of this doesn't applies with crypto.
Title: Re: Is Inflation Necessary Post by: m2017 on May 06, 2024, 05:54:41 PM Our countries' must have gone through inflation as a nation at least once or more since its history. Inflation is a constant process that occurs in all countries of the world without exception. The only difference is that the inflation rate differs depending on the economic state of the country. In developed countries it is less, in developing countries it is more.As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. It is not the price of goods and services that increases, but the purchasing power of money that decreases. That is, the same unit of money can buy fewer goods and services. This would not happen if the amount of money in circulation were constant, but new money is printed almost every day, therefore, its value decreases.But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? Inflation is not a removable part of the modern world economy. Because only money has no limit to its creation.For example, the same wouldn't happen if we used gold as a currency instead. Gold was used as a currency up to a certain point, but this prevented the world economy from developing more intensively (due to lending with unsecured money).Is inflation a ploy that the government uses so people don't get rich off of savings? Governments have no alternatives other than the existing economic model.There is such a thing as an "inflation tax", so in a sense, governments benefit from this situation (by making citizens' money cheaper and printing money out of thin air as much as they want). Title: Re: Is Inflation Necessary Post by: |MINER| on May 07, 2024, 07:03:05 PM Inflation has happened in almost every country. It usually happens after a natural disaster. Currently, most of the underdeveloped countries that have inflation are also affected by corona. The countries that could not recover from the shock of corona are now the victims of inflation. Moreover, countries that are dependent on other countries for various products and grain products are also affected by inflation very quickly. Because when the import of goods is stopped, the demand increases and when the supply is less, the price of goods increases and the money man decreases.
Title: Re: Is Inflation Necessary Post by: sunsilk on May 07, 2024, 09:41:11 PM Inflation has happened in almost every country. It usually happens after a natural disaster. Not only every time there's a natural disaster. Actually, it happens yearly and for most, it happens monthly. The world is in interconnected to each other mostly to the countries that import their products.But to those that have their own sustainable way of living and they don't need products outside their country then, they're the ones that likely won't get that much inflation. Currently, most of the underdeveloped countries that have inflation are also affected by corona. The countries that could not recover from the shock of corona are now the victims of inflation. Every country, affected or not by the covid-19 virus got their own rates of inflation.Title: Re: Is Inflation Necessary Post by: MissNonFall9 on May 12, 2024, 05:47:32 PM Inflation has happened in almost every country. It usually happens after a natural disaster. Currently, most of the underdeveloped countries that have inflation are also affected by corona. The countries that could not recover from the shock of corona are now the victims of inflation. Moreover, countries that are dependent on other countries for various products and grain products are also affected by inflation very quickly. Because when the import of goods is stopped, the demand increases and when the supply is less, the price of goods increases and the money man decreases. A high level of expenditure or inflation plays an important role in maintaining the economic growth or progress of any country. That is why after any type of disaster, the disaster-affected countries use inflation as a strategic objective to boost their economy. Incremental and limited price increases keep any business profitable because inflation prevents any buyer from waiting to buy at a lower price. So the economy of the country where the business institutions and companies gradually improve becomes stronger.Title: Re: Is Inflation Necessary Post by: Freeesta on May 12, 2024, 06:01:05 PM It is difficult to say whether it is good or bad if a country has a high level of inflation. With inflation, economic growth occurs, and this means the expansion of production, the introduction of new technologies in production, the formation of savings for subsequent investments. However, at this time, people’s incomes decrease, the key interest rate on loans increases, and purchasing power decreases. Which of the following is a good process? This is a phenomenon that is difficult to control.
Title: Re: Is Inflation Necessary Post by: JMBitcointernational on May 13, 2024, 04:41:32 AM The bitcointalk forum is comprised of diverse people from all over the world. Our countries' must have gone through inflation as a nation at least once or more since its history. As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings? just like you earlier stated that inflation occurs when the price of goods and services are high people cannot be able to afford their needs, inflation occurs as a result of economic crunch, when there is economic crisis which the rapid of good and services. it usually affects money because money is legal tender and inflation usually anything that is used as a medium of exchange because people solely depend on the legal tender in other to meet their desired needs in terms of buying and selling of goods and services. note that inflation is driven by too much demand relatively to supply. when the prices of goods and services increases rapidly thereby making it very unable for people to meet their needs. For me inflation is not necessary, but it depends on the government policy because every ruling government has their reasons for inflation, maybe because of subsidy removal, increase or decrease in the oil demands and many more other reasons that they can give. inflation actually cause more harm than good to the poor masses . Title: Re: Is Inflation Necessary Post by: dezoel on May 14, 2024, 05:02:04 PM It is difficult to say whether it is good or bad if a country has a high level of inflation. With inflation, economic growth occurs, and this means the expansion of production, the introduction of new technologies in production, the formation of savings for subsequent investments. However, at this time, people’s incomes decrease, the key interest rate on loans increases, and purchasing power decreases. Which of the following is a good process? This is a phenomenon that is difficult to control. I think inflation has never been good and the higher its rates the worst because this means that the price of the goods are at their all-time high and if not, it was also the value of the currencies are the ones who are declining. People losing jobs are I think part of it and as well as the deterioration of an economy, so IDK know what you are talking about there or where did you get that info when you are saying the opposite of what I've said.Even if there are no inflations or economic problems, there are just abusers around us and this makes our situation in life worse but we still can do something like ignore them, or much better if we will report them to the higher authorities. Title: Re: Is Inflation Necessary Post by: Zoomic on May 14, 2024, 08:57:07 PM It is difficult to say whether it is good or bad if a country has a high level of inflation. With inflation, economic growth occurs, and this means the expansion of production, the introduction of new technologies in production, the formation of savings for subsequent investments. However, at this time, people’s incomes decrease, the key interest rate on loans increases, and purchasing power decreases. Which of the following is a good process? This is a phenomenon that is difficult to control. Only creeping inflation where the prices of goods rise slowly can be said to be beneficial to the economic growth of a country, anything aside this has no benefit and should be controlled seriously. Currently we have crossed our boundaries as far as inflation is concerned, we have passed that stage where we see inflation as a solution to our economic issues because there are lots of abnormalities in the prices of commodities and services which has resulted in high costs of living and unfavourable standards of living for most people. Maybe some political leaders often benefit from hyper inflation in their countries because most of the decisions they make which are supposed to be for the good of the people often end in more economic hardships for thesame people. Title: Re: Is Inflation Necessary Post by: tabas on May 14, 2024, 11:14:00 PM For me inflation is not necessary It's based from our opinion that inflation isn't necessary but we have to admit and accept the fact that it is necessary and it is never going away.but it depends on the government policy because every ruling government has their reasons for inflation, maybe because of subsidy removal, increase or decrease in the oil demands and many more other reasons that they can give. inflation actually cause more harm than good to the poor masses . Nope, it won't be depending to government policies but somehow it has a connection to it but entirely going to be dependent on it. The entirety of the inflation will depend on how your country's economy is doing. If you're performing worse, your GDP drops down and every politician isn't doing good. Then, you have to accept the reality that this is going to be a major thing that you won't be able to skip it. Whether we like it or not, that's the reality of inflation that we have no control over it. The government can make such policies but it won't utterly stop it.Title: Re: Is Inflation Necessary Post by: Yudhisthir on May 14, 2024, 11:41:53 PM The bitcointalk forum is comprised of diverse people from all over the world. Our countries' must have gone through inflation as a nation at least once or more since its history. As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings? Economics is quite complicated and I'm not an expert but inflation is the result of ever increasing demand. Like the interest rates on loans in bank increases when the demand for loan is high and in high loan demand, the interest on saving increases too. When the demand for product and services increases, the price for it increases as more people would want to acquire the limited product and service and as the price increase, the business of producing that product and services looks profitable and more people are involved in production in anticipation of demand. Natural inflation is increase in demand. Title: Re: Is Inflation Necessary Post by: xmonkeyx on May 15, 2024, 06:12:29 AM I think inflation has never been good and the higher its rates the worst because this means that the price of the goods are at their all-time high and if not, it was also the value of the currencies are the ones who are declining. People losing jobs are I think part of it and as well as the deterioration of an economy, so IDK know what you are talking about there or where did you get that info when you are saying the opposite of what I've said. Even if there are no inflations or economic problems, there are just abusers around us and this makes our situation in life worse but we still can do something like ignore them, or much better if we will report them to the higher authorities. Not necessarily inflation is all bad, along with increasing inflation, salaries or wages and income also tend to increase, although purchasing power may not increase significantly but a nominal increase in income can give people a feeling of being more financially capable. This has the potential to increase confidence in spending and investment, all of this also depends on government policies in seeking to increase people's economic growth, of course, by increasing targeted desector subsidies. Title: Re: Is Inflation Necessary Post by: Berry2d on May 26, 2024, 07:27:56 AM To me I think inflation is necessary.
Firstly inflation helps to control the movement of goods in a country. Secondly, I see inflation as a means of determining the strength of a currency of a particular country. It's also a means of controlling an excessive money in circulation in a particular economy or country. So I think inflation is necessary. Title: Re: Is Inflation Necessary Post by: Stablexcoin on May 26, 2024, 10:25:51 AM To me I think inflation is necessary. You have no solid reason why inflation is necessary. Even if it is necessary, the rate at which it increases is what is annoying. And the most painful part is that workers' salaries are not increasing just like how inflation increases in the world. Firstly inflation helps to control the movement of goods in a country. Secondly, I see inflation as a means of determining the strength of a currency of a particular country. It's also a means of controlling an excessive money in circulation in a particular economy or country. So I think inflation is necessary. Inflation doesn't determine the strength of a currency, you are very wrong on that statement. Even the current with the highest currency face challenges that other countries face. For instance, in the US, there are difficulties in real estate and apartment which came as a result of inflation, these same problems occur in other countries as well. Title: Re: Is Inflation Necessary Post by: Freddie Boyer on May 26, 2024, 11:38:36 AM Currently, most of the underdeveloped countries that have inflation are also affected by corona. The countries that could not recover from the shock of corona are now the victims of inflation. Every country, affected or not by the covid-19 virus got their own rates of inflation.Yes and that's true even though we know that the impact of the last pandemic was quite significant in ravaging the economy because all state funds were used for handling and recovering from the pandemic at that time. And now perhaps inflation can be said to be more painful than the pandemic. Everyone experiences how money is no longer valuable when they shop for basic necessities. I think the government needs to step in and immediately calm all this chaos. Title: Re: Is Inflation Necessary Post by: Marvell1 on May 26, 2024, 12:51:12 PM Currently, most of the underdeveloped countries that have inflation are also affected by corona. The countries that could not recover from the shock of corona are now the victims of inflation. Every country, affected or not by the covid-19 virus got their own rates of inflation.Yes and that's true even though we know that the impact of the last pandemic was quite significant in ravaging the economy because all state funds were used for handling and recovering from the pandemic at that time. And now perhaps inflation can be said to be more painful than the pandemic. Everyone experiences how money is no longer valuable when they shop for basic necessities. I think the government needs to step in and immediately calm all this chaos. The government is still trying to reduce inflation and raising interest rates is one of their many efforts. But the problem of controlling inflation is not as easy as we think, we don't just need to stop printing money and inflation will disappear, things are not that easy. Title: Re: Is Inflation Necessary Post by: arufox on May 26, 2024, 01:33:40 PM In my opinion, every country experiences inflation, but inflation is not too high. What the country doesn't want is deflation because deflation has a terrible effect on the market so that there is no economic growth for the country.
Title: Re: Is Inflation Necessary Post by: odunybiz on May 26, 2024, 03:48:55 PM Currently, most of the underdeveloped countries that have inflation are also affected by corona. The countries that could not recover from the shock of corona are now the victims of inflation. Every country, affected or not by the covid-19 virus got their own rates of inflation.Yes and that's true even though we know that the impact of the last pandemic was quite significant in ravaging the economy because all state funds were used for handling and recovering from the pandemic at that time. And now perhaps inflation can be said to be more painful than the pandemic. Everyone experiences how money is no longer valuable when they shop for basic necessities. I think the government needs to step in and immediately calm all this chaos. The government is still trying to reduce inflation and raising interest rates is one of their many efforts. But the problem of controlling inflation is not as easy as we think, we don't just need to stop printing money and inflation will disappear, things are not that easy. Inflation isn't a news anymore in all part of the world. Most countries has planned to reduce this by stopping to print more money because it is believed that inflation is as a result of too much money chasing inadequate goods in the economy. And this is the main reason why it's difficult for this country to stop inflation because their government only focus on one side of the coin. Why can't they try to improve the economy? Why can they try to improve on creating more goods to meet up with the available money. Although both inflation and deflation has significant effect on the economy as well as the community. So the government should try and make a significant balance between the two for a better economic growth. Title: Re: Is Inflation Necessary Post by: slapper on May 26, 2024, 04:40:05 PM Currently, most of the underdeveloped countries that have inflation are also affected by corona. The countries that could not recover from the shock of corona are now the victims of inflation. Every country, affected or not by the covid-19 virus got their own rates of inflation.Yes and that's true even though we know that the impact of the last pandemic was quite significant in ravaging the economy because all state funds were used for handling and recovering from the pandemic at that time. And now perhaps inflation can be said to be more painful than the pandemic. Everyone experiences how money is no longer valuable when they shop for basic necessities. I think the government needs to step in and immediately calm all this chaos. The government is still trying to reduce inflation and raising interest rates is one of their many efforts. But the problem of controlling inflation is not as easy as we think, we don't just need to stop printing money and inflation will disappear, things are not that easy. Interest rate hikes aren't magic. Numerous unforeseen effects can result. Business expansion, innovation, and job creation are hindered by higher rates. Layoffs, budget cuts, and a distinct economic slump can result. A precise balance is needed, and interest rates are just one factor. Our economy needs long-term solutions like structural reforms that make it more resilient to shocks and an educated populace Title: Re: Is Inflation Necessary Post by: electronicash on May 26, 2024, 05:03:44 PM Currently, most of the underdeveloped countries that have inflation are also affected by corona. The countries that could not recover from the shock of corona are now the victims of inflation. Every country, affected or not by the covid-19 virus got their own rates of inflation.Yes and that's true even though we know that the impact of the last pandemic was quite significant in ravaging the economy because all state funds were used for handling and recovering from the pandemic at that time. And now perhaps inflation can be said to be more painful than the pandemic. Everyone experiences how money is no longer valuable when they shop for basic necessities. I think the government needs to step in and immediately calm all this chaos. The government is still trying to reduce inflation and raising interest rates is one of their many efforts. But the problem of controlling inflation is not as easy as we think, we don't just need to stop printing money and inflation will disappear, things are not that easy. Interest rate hikes aren't magic. Numerous unforeseen effects can result. Business expansion, innovation, and job creation are hindered by higher rates. Layoffs, budget cuts, and a distinct economic slump can result. A precise balance is needed, and interest rates are just one factor. Our economy needs long-term solutions like structural reforms that make it more resilient to shocks and an educated populace i think it's okay for a country to hike interest rates and gradually kill the demand to balance the economy. but if it is the US that does this hike in interest rates, it affects every country in the world for they own the currency reserves. this 2024 i think it's not just inflation that is affecting lives because companies are doing some layoffs and employing AIs already which is not going to hire people anymore but robots. well, at least there are many of us going down together. Title: Re: Is Inflation Necessary Post by: 0t3p0t on May 26, 2024, 05:18:48 PM The bitcointalk forum is comprised of diverse people from all over the world. Our countries' must have gone through inflation as a nation at least once or more since its history. As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings? Fiat money is just a piece of paper or steel alloy that has a way much lesser value than those precious metals like gold and silver the only thing that keep us holding and using it is the trust the government has put into it so we can use it as a store of value. I don't know much about inflation but I think the best thing to do to prepare for it is to hodl assets that are inflation proof like cryptocurrency, precious metals and I think real estate is good as well. Title: Re: Is Inflation Necessary Post by: Marvell1 on May 27, 2024, 07:46:16 AM Currently, most of the underdeveloped countries that have inflation are also affected by corona. The countries that could not recover from the shock of corona are now the victims of inflation. Every country, affected or not by the covid-19 virus got their own rates of inflation.Yes and that's true even though we know that the impact of the last pandemic was quite significant in ravaging the economy because all state funds were used for handling and recovering from the pandemic at that time. And now perhaps inflation can be said to be more painful than the pandemic. Everyone experiences how money is no longer valuable when they shop for basic necessities. I think the government needs to step in and immediately calm all this chaos. The government is still trying to reduce inflation and raising interest rates is one of their many efforts. But the problem of controlling inflation is not as easy as we think, we don't just need to stop printing money and inflation will disappear, things are not that easy. Interest rate hikes aren't magic. Numerous unforeseen effects can result. Business expansion, innovation, and job creation are hindered by higher rates. Layoffs, budget cuts, and a distinct economic slump can result. A precise balance is needed, and interest rates are just one factor. Our economy needs long-term solutions like structural reforms that make it more resilient to shocks and an educated populace I agree, increasing interest rates is like a double-edged sword. It can help control inflation, but if we overuse it or do not make appropriate adjustments, it can easily cause the economy to fall into recession. But the problem is that besides raising interest rates, do we have any more perfect solution to curb inflation? I am not an economic advisor and do not have much knowledge about economics, I've tried researching but haven't really found any other effective solution. I really want someone who can come up with serious solutions to discuss together. Title: Re: Is Inflation Necessary Post by: Kriptogram14 on May 27, 2024, 08:28:31 AM Fiat money is just a piece of paper or steel alloy that has a way much lesser value than those precious metals like gold and silver the only thing that keep us holding and using it is the trust the government has put into it so we can use it as a store of value. I don't know much about inflation but I think the best thing to do to prepare for it is to hodl assets that are inflation proof like cryptocurrency, precious metals and I think real estate is good as well. I agree with what you said, it's better to save a lot of assets in currencies that can withstand inflation, increase assets in precious metals, gold jewelry and have assets in crypto, because now fiat money is very low in price, just 100 thousand is now no longer meaningful, Now that prices continue to rise, our economy is increasingly screaming about inflation, so from now on we have to save lots of assets in the form of precious metals and crypto assets which later when we need them we can exchange them for fiat money or rupiah.Title: Re: Is Inflation Necessary Post by: poodle63 on May 27, 2024, 09:17:21 AM In my opinion, every country experiences inflation, but inflation is not too high. What the country doesn't want is deflation because deflation has a terrible effect on the market so that there is no economic growth for the country. everything has advantage and disadvantage I guess with deflation it also strengthen conversion rate but as you said might have bad effect also.its good if salary increase also align with the inflation so that the money can be inflating but our purchasing power won't gone in vain. since our economic entirely depends on the circulation of the money, hopefully such thing can happen. otherwise with the reduced purchasing power for middle class and the lower class people based on income rate, then the poverty gap will be even higher than it is right now. definitely not an easy way to solve but there should be an effort to be put into solving this. Title: Re: Is Inflation Necessary Post by: highalch on May 27, 2024, 12:04:34 PM Fun fact: in order to keep inflation 0%, governments would still need to keep printing money.
Deflation is the base state of all economies, given that technological advance results in more produce year by year. Title: Re: Is Inflation Necessary Post by: Moeda on May 27, 2024, 01:07:48 PM The bitcointalk forum is comprised of diverse people from all over the world. Our countries' must have gone through inflation as a nation at least once or more since its history. As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings? The only currencies that have never lost their value since 1400 years ago are the dinar and dirham. Apart from dinars and dirhams, their value will also be lost, including dollars. Because money made of paper does not have the same intrinsic value as currency.1 dollar in 2000 might have bought a carton of mineral water, but if you buy it now you can only buy one bottle. This kind of thing causes inflation to occur, and the government in any country cannot stop this problem except those that use dinars and dirhams. I think the government is stuck with the agreements with the central bank when the paper currency was formed and accepted it as the country's official currency. Because before the existence of paper currency, only securities were used as a transaction tool. As I understand it, the details can be studied further. Title: Re: Is Inflation Necessary Post by: Casdinyard on May 27, 2024, 03:20:07 PM The bitcointalk forum is comprised of diverse people from all over the world. Our countries' must have gone through inflation as a nation at least once or more since its history. As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings? I don't think it's a necessary thing, cause the only thing that it benefits towards are those that are already too big to fail financially, the 1 percenters per se. Plus it fades the divide between the rich and the poor, and not in a good way too, it makes everyone that are not on the extreme upper class of society (the manufacturers, the bankers, the owners and the stakeholders) susceptible to financial loss, given the fact that it makes everything so expensive saving money is just a stupid thing to do cause by the time you already have enough money to buy what you want or need to buy, the shit you're looking to own's already more expensive than what it was initially. It's not a necessary thing, but it's the natural course of action since every working economy on the planet right now works on a capitalist/quasi-capitalist system. And honestly, until we get a better system of economy I think I can live with this type of setup, not that I have a choice anyway lol. As the meme guys on tiktok put it, we just have to thug this shit out cause we can't do anything about it anyway. We're just the cogs in the wheel, the consumers in a world ran by producers. Title: Re: Is Inflation Necessary Post by: Abiky on May 28, 2024, 12:00:49 PM The only currencies that have never lost their value since 1400 years ago are the dinar and dirham. Apart from dinars and dirhams, their value will also be lost, including dollars. Because money made of paper does not have the same intrinsic value as currency. 1 dollar in 2000 might have bought a carton of mineral water, but if you buy it now you can only buy one bottle. This kind of thing causes inflation to occur, and the government in any country cannot stop this problem except those that use dinars and dirhams. I think the government is stuck with the agreements with the central bank when the paper currency was formed and accepted it as the country's official currency. Because before the existence of paper currency, only securities were used as a transaction tool. As I understand it, the details can be studied further. Each Fiat currency is backed by debt. In other words, they're backed by nothing. Back then, the USD was backed by Gold. But the US government had to change this to benefit itself. Inflation only makes the rich, richer and the poor, poorer. Central banks can print as much money as they want without affecting them whatsoever. They're the ones who make the rules of the game. And there's nothing we can do about it. If you ask me, I'd say inflation is only necessary to encourage spending of Fiat currencies. Making them deflationary will encourage people to hold them more than they would ever spend it. Just like what's been happening with Bitcoin today. Everything done in moderation is good. Inflation only becomes a problem when it's too high. Keeping levels steady will ensure a smooth running of the economy. Hopefully, central banks will fix high inflation rates before it's too late. :( Title: Re: Is Inflation Necessary Post by: Davian144 on May 28, 2024, 12:34:23 PM Fun fact: in order to keep inflation 0%, governments would still need to keep printing money. Deflation is the base state of all economies, given that technological advance results in more produce year by year. Printing money and fighting inflation are actually not the same and must be done differently by the government, because if too much money circulates in the market without control by the government it will not be very good for a country. Moreover, every citizen has to face inflation, which sometimes makes the citizens suffer a little if the prices of basic goods continue to rise and the value of the currency itself continues to decline. Meanwhile, the progress of technology itself needs to be encouraged by each country in terms of its development because the presence of technology in the economic sphere can also make it easier for most people who run certain businesses and can also complete their work very well without having to sacrifice more physical energy. And this can also give more people the opportunity to work and open up opportunities for certain businesses by relying on technology that already exists today. Title: Re: Is Inflation Necessary Post by: Velemir Sava on May 30, 2024, 03:08:27 PM Of course, there is quite a variety here from various corners of the world with different levels of problems if we relate it to inflation. If asked whether it is useful, of course there are pluses and minuses, but the biggest minus is that people scream because the price is no longer commensurate with the value of the money they spend.
To maintain the value of the government's authority, the public is only the user because the price of goods/services is determined within their authority. There is no time to use gold or anything else unless it has been legalized and legislated by the government. The last point I think not. Title: Re: Is Inflation Necessary Post by: slapper on May 30, 2024, 03:10:46 PM The only currencies that have never lost their value since 1400 years ago are the dinar and dirham. Apart from dinars and dirhams, their value will also be lost, including dollars. Because money made of paper does not have the same intrinsic value as currency. 1 dollar in 2000 might have bought a carton of mineral water, but if you buy it now you can only buy one bottle. This kind of thing causes inflation to occur, and the government in any country cannot stop this problem except those that use dinars and dirhams. I think the government is stuck with the agreements with the central bank when the paper currency was formed and accepted it as the country's official currency. Because before the existence of paper currency, only securities were used as a transaction tool. As I understand it, the details can be studied further. Each Fiat currency is backed by debt. In other words, they're backed by nothing. Back then, the USD was backed by Gold. But the US government had to change this to benefit itself. Inflation only makes the rich, richer and the poor, poorer. Central banks can print as much money as they want without affecting them whatsoever. They're the ones who make the rules of the game. And there's nothing we can do about it. If you ask me, I'd say inflation is only necessary to encourage spending of Fiat currencies. Making them deflationary will encourage people to hold them more than they would ever spend it. Just like what's been happening with Bitcoin today. Everything done in moderation is good. Inflation only becomes a problem when it's too high. Keeping levels steady will ensure a smooth running of the economy. Hopefully, central banks will fix high inflation rates before it's too late. :( Bitcoin's valuation as a safe haven, like digital gold, makes it deflationary, not merely its supply. What happens when no one spends and everyone holds? Stagnation. More than keeping assets, the economy thrives on transactions. What if we could create a stable currency that encourages spending without depreciation? This demands monetary policy innovation, not merely acceptance of inflation manipulation Title: Re: Is Inflation Necessary Post by: Awak Bambi on May 31, 2024, 03:32:51 AM Fun fact: in order to keep inflation 0%, governments would still need to keep printing money. If we look closely, both have advantages in inflation and deflation, but we must first look at the state of the country so that we can carry out inflation, because if the country's economy is not good then the people will be miserable because they will experience inflation. unable to meet daily needs.Deflation is the base state of all economies, given that technological advance results in more produce year by year. Inflation is actually good, but if the economic condition of society is not good it will have fatal consequences for the country, so in this case if the country wants to create inflation it must be prepared for what will happen because this inflation will bring many risks even though in the future there will be many beneficial things that can be learned. Title: Re: Is Inflation Necessary Post by: jrrsparkles on May 31, 2024, 06:33:40 PM Fun fact: in order to keep inflation 0%, governments would still need to keep printing money. If we look closely, both have advantages in inflation and deflation, but we must first look at the state of the country so that we can carry out inflation, because if the country's economy is not good then the people will be miserable because they will experience inflation. unable to meet daily needs.Deflation is the base state of all economies, given that technological advance results in more produce year by year. Inflation is actually good, but if the economic condition of society is not good it will have fatal consequences for the country, so in this case if the country wants to create inflation it must be prepared for what will happen because this inflation will bring many risks even though in the future there will be many beneficial things that can be learned. Inflation does nothing but reduces the value of our money that is what held in possession by middle class in their savings so higher inflation will curb the life of middle class and force them to work more to meet their needs which gives opportunities for the rich people to exploit the human resources apart from that inflation makes rich people richer cause they hold their assets in anything like gold, bonds, real estate, luxury items so if inflation hits they are the one will be benefited. Title: Re: Is Inflation Necessary Post by: boty on June 01, 2024, 03:37:48 AM Inflation does nothing but reduces the value of our money that is what held in possession by middle class in their savings so higher inflation will curb the life of middle class and force them to work more to meet their needs which gives opportunities for the rich people to exploit the human resources apart from that inflation makes rich people richer cause they hold their assets in anything like gold, bonds, real estate, luxury items so if inflation hits they are the one will be benefited. What you say is very true, those whose economic conditions are in the middle class certainly have difficulty meeting their needs because the wages they get from their work will have difficulty meeting their needs, so it is important for us to be able to prepare savings for ourselves. before inflation occurs in order to survive in this inflationary situation.When inflation occurs, there are some people who can take advantage of this situation to increase their wealth, as you mentioned, those who have saved real assets will certainly be able to benefit from it. Title: Re: Is Inflation Necessary Post by: jrrsparkles on June 01, 2024, 07:04:05 AM Inflation does nothing but reduces the value of our money that is what held in possession by middle class in their savings so higher inflation will curb the life of middle class and force them to work more to meet their needs which gives opportunities for the rich people to exploit the human resources apart from that inflation makes rich people richer cause they hold their assets in anything like gold, bonds, real estate, luxury items so if inflation hits they are the one will be benefited. What you say is very true, those whose economic conditions are in the middle class certainly have difficulty meeting their needs because the wages they get from their work will have difficulty meeting their needs, so it is important for us to be able to prepare savings for ourselves. before inflation occurs in order to survive in this inflationary situation.When inflation occurs, there are some people who can take advantage of this situation to increase their wealth, as you mentioned, those who have saved real assets will certainly be able to benefit from it. The fact is they can't do anything that is why they belong to the middle class they have to go along with whatever the condition becomes, but thinking about future at the present itself can give us an escape if we are skillful enough and how to channel our savings into investments instead of just keeping it as money even though its easy to say but in reality it's hard though to keep up with inflation and also save for future and it must be exhausting. Title: Re: Is Inflation Necessary Post by: beerlover on June 01, 2024, 05:24:32 PM Central banks can influence money supply, but it doesn't mean they don't affect themselves. The value of their fiat currency influences their worldwide economic dominance and stability. Every money printing venture risks inflation. Moderate inflation boosts expenditure, keeping the economy going. What's the true issue? Why are the rich growing richer? Printing money isn't enough; the typical citizen lacks access to financial instruments and markets that leverage inflation Central banks will be held accountable for any mistakes that they do, which is their problem to be fair. If a central bank doesn't solve the issue, it would be responsible towards the citizens directly because in most nations they are independent, meaning that it doesn't matter to elections because people are aware that it's a different organization. President can't just go and print more money, sure there are some nations like that but in most democracies they are two different places.Bitcoin's valuation as a safe haven, like digital gold, makes it deflationary, not merely its supply. What happens when no one spends and everyone holds? Stagnation. More than keeping assets, the economy thrives on transactions. What if we could create a stable currency that encourages spending without depreciation? This demands monetary policy innovation, not merely acceptance of inflation manipulation So, central banks will face pressure and firing and even worse, which means that they have to do their job quite well, and not really ruin a countries economy completely. And to be fair, there aren't that many nations that got worse JUST because central banks, maybe central banks were a part of the problem, but it wasn't the only one. Title: Re: Is Inflation Necessary Post by: MissNonFall9 on June 02, 2024, 04:22:13 PM Central banks can influence money supply, but it doesn't mean they don't affect themselves. The value of their fiat currency influences their worldwide economic dominance and stability. Every money printing venture risks inflation. Moderate inflation boosts expenditure, keeping the economy going. What's the true issue? Why are the rich growing richer? Printing money isn't enough; the typical citizen lacks access to financial instruments and markets that leverage inflation Central banks will be held accountable for any mistakes that they do, which is their problem to be fair. If a central bank doesn't solve the issue, it would be responsible towards the citizens directly because in most nations they are independent, meaning that it doesn't matter to elections because people are aware that it's a different organization. President can't just go and print more money, sure there are some nations like that but in most democracies they are two different places.Bitcoin's valuation as a safe haven, like digital gold, makes it deflationary, not merely its supply. What happens when no one spends and everyone holds? Stagnation. More than keeping assets, the economy thrives on transactions. What if we could create a stable currency that encourages spending without depreciation? This demands monetary policy innovation, not merely acceptance of inflation manipulation So, central banks will face pressure and firing and even worse, which means that they have to do their job quite well, and not really ruin a countries economy completely. And to be fair, there aren't that many nations that got worse JUST because central banks, maybe central banks were a part of the problem, but it wasn't the only one. Title: Re: Is Inflation Necessary Post by: Wakate on June 02, 2024, 04:58:33 PM The bitcointalk forum is comprised of diverse people from all over the world. Our countries' must have gone through inflation as a nation at least once or more since its history. As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings? Virtually all countries of the world are facing inflation and we should just see it like it is only happening in just our country. Even the most richest and industrial countries are also facing inflation which is something that the government have the power to control. We might need seeing more inflation because things are getting tough everyday. People are losing their jobs due to the invention of artificial intelligence which is still going to dominate and take most people's job and their would not be need to hire people against. Things are really getting out of hand and it's important we take precautions to prevent us from getting frustrated.Title: Re: Is Inflation Necessary Post by: dezoel on June 04, 2024, 09:15:23 AM The fact is they can't do anything that is why they belong to the middle class they have to go along with whatever the condition becomes, but thinking about future at the present itself can give us an escape if we are skillful enough and how to channel our savings into investments instead of just keeping it as money even though its easy to say but in reality it's hard though to keep up with inflation and also save for future and it must be exhausting. Walking a mile in someone's shoes is the best way to truly understand their experiences and challenges. No amount of observation or speculation can replace firsthand knowledge. We should only speak from our own experiences and avoid assumptions or generalizations about others' lives. By doing so, we foster a culture of understanding, compassion, and genuine connection.How easy it is to say that they can't do something, but it's very difficult to think and understand why they can't do something. Not to progress but the opportunities that high-class people get never get to the middle-class people, the difficulties and problems that the middle-class families face, the upper-level families don't even have an idea about them. Saving and thinking about the future is like running a marathon for hand-to-mouth people. Title: Re: Is Inflation Necessary Post by: junmisakiro on June 04, 2024, 11:23:02 AM The bitcointalk forum is comprised of diverse people from all over the world. Our countries' must have gone through inflation as a nation at least once or more since its history. As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings? Virtually all countries of the world are facing inflation and we should just see it like it is only happening in just our country. Even the most richest and industrial countries are also facing inflation which is something that the government have the power to control. We might need seeing more inflation because things are getting tough everyday. People are losing their jobs due to the invention of artificial intelligence which is still going to dominate and take most people's job and their would not be need to hire people against. Things are really getting out of hand and it's important we take precautions to prevent us from getting frustrated.It is true that we are currently feeling the impact of inflation that has hit all countries, but it all depends on how a country responds to it. It should be noted that inflation is a natural phenomenon in the economy that occurs when the prices of goods and services generally increase over time. So in my opinion the state must overcome this in various ways, one of which is by providing targeted and effective subsidies, increasing production and increasing wages for services, increasing salaries for private and government employees, this has a big impact on increasing purchasing power. Title: Re: Is Inflation Necessary Post by: Abiky on June 04, 2024, 11:03:23 PM Virtually all countries of the world are facing inflation and we should just see it like it is only happening in just our country. Even the most richest and industrial countries are also facing inflation which is something that the government have the power to control. We might need seeing more inflation because things are getting tough everyday. People are losing their jobs due to the invention of artificial intelligence which is still going to dominate and take most people's job and their would not be need to hire people against. Things are really getting out of hand and it's important we take precautions to prevent us from getting frustrated. And you want to know why this is happening? It's because the USD is the world's reserve currency. Thus, if the USD experiences inflation, so will other countries' currencies. After all, most countries' economies are tied to the American economy. Rising geopolitical tensions will only make matters worse. Unless things go back to normal (end of wars between Russia-Ukraine and Israel-Hamas, end of COVID-19, etc), don't expect inflation to ease off anytime soon. It will keep rising until it's out of control. That said, I believe Bitcoin is the answer to all of our problems. Unfortunately, governments won't allow BTC to take over the economy. Especially when it's decentralized. If they can't control it, they will reject it (or regulate it). The only reason why most governments are legalizing Bitcoin is because of the tax benefits it provides. But they'll regulate it heavily to restrict people's freedom as much as possible. It's an uncertain future, so we can only hope for the best. Title: Re: Is Inflation Necessary Post by: STT on June 04, 2024, 11:49:25 PM Gold has natural deflation because the supply of gold is less then the world population growth. Thats despite the great advances in mining power and technology made in the last century, even after that population growth of the world is greater then the supply of gold. We cannot change the content of the earths crust for gold, its mostly a constant and well distributed across the globe. Platinum and other metals are not quite the same as that.
FIAT money has no proper controls on it, its mostly politics that decides just how quickly its destroyed and it never lasts is the lesson from history. Inflation equates to liquidity for some, gold has been used as money and the economy did well during that time so its not absolutely necessary. Some will argue inflation delays the possibility of recessions but we are trying to balance giant amounts of debt and this is likely the real reason. Title: Re: Is Inflation Necessary Post by: Xampeuu on June 05, 2024, 04:08:31 AM The bitcointalk forum is comprised of diverse people from all over the world. Our countries' must have gone through inflation as a nation at least once or more since its history. As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings? Virtually all countries of the world are facing inflation and we should just see it like it is only happening in just our country. Even the most richest and industrial countries are also facing inflation which is something that the government have the power to control. We might need seeing more inflation because things are getting tough everyday. People are losing their jobs due to the invention of artificial intelligence which is still going to dominate and take most people's job and their would not be need to hire people against. Things are really getting out of hand and it's important we take precautions to prevent us from getting frustrated.It is true that we are currently feeling the impact of inflation that has hit all countries, but it all depends on how a country responds to it. It should be noted that inflation is a natural phenomenon in the economy that occurs when the prices of goods and services generally increase over time. So in my opinion the state must overcome this in various ways, one of which is by providing targeted and effective subsidies, increasing production and increasing wages for services, increasing salaries for private and government employees, this has a big impact on increasing purchasing power. Title: Re: Is Inflation Necessary Post by: sekalitas on June 05, 2024, 04:45:43 AM But is inflation needed? A little bit of inflation, like around 2%, is actually a good thing for the economy. It nudges people to spend and invest their money because they know it won't be worth as much later. This spending spree helps the economy grow.But if there's no inflation, or worse, deflation (where prices drop), it's bad news. People start hoarding their cash, hoping it'll be worth more down the line. Nobody's spending, so businesses suffer and the economy stalls or even shrinks. Why can't we just keep the currency at the same value? Inflation isn't always a simple thing to control. It can be triggered by a few different things, like if everyone suddenly wants to buy the same stuff, or if it costs more to make things. Even the government's decisions about money can play a role. And it's not just about what's happening within a country's borders either. The world economy is all linked together, so something like a change in oil prices or trade rules in another country can actually mess with inflation back home.And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Think of money like a tool we use to buy things. When inflation happens, it's the value of that tool that takes a hit. Other stuff, like gold, can also go up or down in value, but not in the same way as our regular money.Gold has been used as money in the past because it's rare and valuable in itself. But it's not perfect. There's only so much of it, and it's not exactly practical for small transaction. Is inflation a ploy that the government uses so people don't get rich off of savings? Inflation isn't a great way to tax people, it's more like a last-ditch effort when a government's really desperate for cash.Now, there can be some short-term perks to inflation. It might actually give the economy a little boost for a while. But in the long run, if you pump more money into the system, prices will just rise to match. So, it's not like governments are intentionally trying to mess with people's savings through inflation. High inflation is actually bad for everyone, so they usually try to keep it at a manageable level. Reference
Title: Re: Is Inflation Necessary Post by: DYOR+BTC on June 05, 2024, 06:15:20 PM Even though people do not always get well with inflation because of how coat of living is high at inflation period. Inflation is still necessary because it also has it own role in every economy. When there is too much money in circulation in any economy, inflation is use as a means of reducing excessive circulation of money in an economy. It is one of the measures used in control the way money goes in and out in an economy. So inflation is necessary.
Title: Re: Is Inflation Necessary Post by: livingfree on June 05, 2024, 06:50:14 PM we can complain but somehow life must go on, so we as private employees have to change our mindset, where we have to work harder, and look for additional income to cover current living needs, we can feel the cultural shift happening around us, where for example in the past Many people work together to help one of the residents, but nowadays it rarely happens and the few times we ask for help from other people, it will be calculated with money as a reward. While the rich getting richer and they can earn money easily because of inflation. We as employees need to do double time of effort and work and even has to do side hustles for us to be able to survive with the current state of the world and economy with inflation.We should plan our retirement as well because inflation will hit us by that time and when we're older, we can no longer work but if we're able to save up for investments and income generating business, we'd be able to survive that time. While we've got some things needed to sustain being an old guy, there won't be any problem that we have to deal with that. Title: Re: Is Inflation Necessary Post by: bettercrypto on June 05, 2024, 10:18:10 PM As far as I know, inflation in a country has pros and cons. In pros, if the government of each country sees that the inflation level is low or moderate, it can help investors to invest, and when that happens, it can contribute to the country's economy.
When it comes to the cons, when inflation rates increase, the usual thing that happens is that the value of money decreases. where the consumers buy fewer goods. And business people might hesitate to invest for awhile because the cost is high. And when this is the case, it can hinder the growth of the economy. Title: Re: Is Inflation Necessary Post by: Chilwell on June 06, 2024, 05:13:58 AM But is inflation needed? Why can't we just keep the currency at the same value? Maybe the government are trying but keeping the inflation away may just be unavoidable. Some policies may sound good, but on implementation may not provide the required results. I think currency can not be the same as you think because those countries that are productive wouldn't have the advantage of their products and while it will be in favour of consumer because they will have access to the products very easy and cheap, in our country inflation is our major challenge because we are not productive so everything we used are all import that why we are battling with inflation, our currency keep losing value everyday and our government are just watching all this to happen because the said they are helpless, my country are blessed with many minerals resources which alone can be used to stabilise our currency but unfortunately this foreigner have cage us to the extent that even to breath we need to seek permission from them, they always came to advise us on the economy as if they are not battling there. I don't think governments can't do anything to take away inflation because they are not the one controlling it. Title: Re: Is Inflation Necessary Post by: adaseb on June 06, 2024, 05:23:24 AM Inflation at 2% doesn’t cause people to stimulate the economy and help it grow. In certain countries like Swiss or Japan they had negative interest rates in the past where you are being charged interest to hold it in the bank. That is a way to get people to spend it, not low inflation numbers.
We cannot deal life without inflation. Governments need to issue bonds to pay for the country to run and as a result that money comes from money being printed out of thin air. It’s impossible for a country like the US to function without raising money from selling bonds, they hold too much debt. Title: Re: Is Inflation Necessary Post by: lizarder on June 06, 2024, 08:08:19 AM But is inflation needed? It is not necessary because it will cause problems for society and often inflation makes everything more complicated and in the end society bears the risk.Why can't we just keep the currency at the same value? The value of fiat currency will continue to devalue that's why we are advised to take it to a more productive place. Like trying to do business or invest because saving money will not provide added value for the future.And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings? Gold is different from fiat currency, the strength of gold can be seen when the economy is in trouble and gold can be stable to maintain its value. Directly the government also does not want inflation to occur because it can affect the stability of the country, but all policies that are implemented are sometimes not implemented properly.If inflation is used as a tactic, then many countries will experience problems, unless a country tries to have an economic impact on other countries. They will try to suppress the currency of a particular country with existing policies and if a country's currency weakens then it will be quite risky. Title: Re: Is Inflation Necessary Post by: Rasa nanas on June 06, 2024, 12:14:34 PM In general inflation is caused by too much fiat money circulating in society, and this causes the value of the currency to fall. However, there are other factors that can cause inflation, such as national debt. I think using gold as a transaction tool is not a smart solution to avoid inflation because gold is not a transaction tool but tends to be an investment.
Title: Re: Is Inflation Necessary Post by: martinex on June 06, 2024, 01:43:38 PM Even though people do not always get well with inflation because of how coat of living is high at inflation period. Inflation is still necessary because it also has it own role in every economy. When there is too much money in circulation in any economy, inflation is use as a means of reducing excessive circulation of money in an economy. It is one of the measures used in control the way money goes in and out in an economy. So inflation is necessary. The pluses and minuses are always there, if that's what the government wants I think it's less efficient, what needs to be improved is how to create new jobs with standard salaries so that when inflation comes, people no longer shout and grumble about the prices of basic goods getting more expensive and will be covered by the money from the salary. I like the country of Brunei Darussalam until now the people have no problems and they live normally and calmly. Title: Re: Is Inflation Necessary Post by: MissNonFall9 on June 07, 2024, 02:12:22 AM Even though people do not always get well with inflation because of how coat of living is high at inflation period. Inflation is still necessary because it also has it own role in every economy. When there is too much money in circulation in any economy, inflation is use as a means of reducing excessive circulation of money in an economy. It is one of the measures used in control the way money goes in and out in an economy. So inflation is necessary. Inflation is not always good and meaningful for a country's economy. It depends on the money flow in the market. Inflation can have both positive and negative effects on a country's economy. For example inflation reduces the opportunity cost of cash in the country and makes people more inclined to spend instead of saving and feel comfortable. Those who work for a fixed salary find it difficult to live as the cost of living increases. On the other hand as the supply of cash in the market is high, individuals or businessmen show interest in doing business. As a result of this new employment is created in the market as well as new entrepreneurs are developed in the country. So inflation means living differently for people with different incomes. That is why the government sometimes uses inflation to deal with economic emergencies but it should be done at a controlled level. If it is not controlled then the country will fall into hyperinflation which will definitely weaken the economic infrastructure of the country.Title: Re: Is Inflation Necessary Post by: pinggoki on June 07, 2024, 02:44:03 AM If it's the controlled kind of inflation and the wages of the workers are keeping up with it then yes in theory, it's a necessary thing but with how things are, I don't believe in the necessity of inflation because we're paying too much for it with the low wages and not being able to live our lives because we're all too busy working to keep up with the rent money, grocery, electric bills, gas bills, and water bills, basically almost everyone in the world would be grateful if inflation isn't a thing and that we can all be happy that we can afford with our minimum wage, all the stuff that's so expensive because of inflation. Hedge fund managers won't have anything to do anymore and all of the parasitic groups/companies are going to be going down thus lessening the real parasites like them.
Title: Re: Is Inflation Necessary Post by: Abiky on June 07, 2024, 11:25:05 AM Gold has natural deflation because the supply of gold is less then the world population growth. Thats despite the great advances in mining power and technology made in the last century, even after that population growth of the world is greater then the supply of gold. We cannot change the content of the earths crust for gold, its mostly a constant and well distributed across the globe. Platinum and other metals are not quite the same as that. FIAT money has no proper controls on it, its mostly politics that decides just how quickly its destroyed and it never lasts is the lesson from history. Inflation equates to liquidity for some, gold has been used as money and the economy did well during that time so its not absolutely necessary. Some will argue inflation delays the possibility of recessions but we are trying to balance giant amounts of debt and this is likely the real reason. Inflation is inevitable. Especially when banks are in control of monetary supply. They can manipulate the economy to their benefit. Ultimately, the rich get richer, while the poor get poorer. It's up to you to make a plan that will help you beat inflation in the long term. Investing in Gold, Silver, Bitcoin, and even Real Estate can help you grow your wealth as much as possible. Just spend less than what you earn, and there should be nothing worry about. Who knows how high will inflation rates go? Title: Re: Is Inflation Necessary Post by: uswa56 on June 07, 2024, 11:37:26 AM As far as I know, inflation in a country has pros and cons. In pros, if the government of each country sees that the inflation level is low or moderate, it can help investors to invest, and when that happens, it can contribute to the country's economy. As you said, it is true that if inflation occurs there will definitely be positive and negative impacts, of course we have to think about the negative impacts first because in a country we will definitely first explore the economic level experienced by our society, regarding the financial situation experienced by the community If we are not good then this inflation will make it very difficult for people to meet their basic needs, of course.When it comes to the cons, when inflation rates increase, the usual thing that happens is that the value of money decreases. where the consumers buy fewer goods. And business people might hesitate to invest for awhile because the cost is high. And when this is the case, it can hinder the growth of the economy. So in this case, many countries do not dare to take the decision to carry out inflation, because the condition of society is financially unstable so that inflation cannot be carried out. Title: Re: Is Inflation Necessary Post by: bitgolden on June 10, 2024, 02:44:22 AM Gold has natural deflation because the supply of gold is less then the world population growth. Thats despite the great advances in mining power and technology made in the last century, even after that population growth of the world is greater then the supply of gold. We cannot change the content of the earths crust for gold, its mostly a constant and well distributed across the globe. Platinum and other metals are not quite the same as that. Inflation is inevitable. Especially when banks are in control of monetary supply. They can manipulate the economy to their benefit. Ultimately, the rich get richer, while the poor get poorer. FIAT money has no proper controls on it, its mostly politics that decides just how quickly its destroyed and it never lasts is the lesson from history. Inflation equates to liquidity for some, gold has been used as money and the economy did well during that time so its not absolutely necessary. Some will argue inflation delays the possibility of recessions but we are trying to balance giant amounts of debt and this is likely the real reason. It's up to you to make a plan that will help you beat inflation in the long term. Investing in Gold, Silver, Bitcoin, and even Real Estate can help you grow your wealth as much as possible. Just spend less than what you earn, and there should be nothing worry about. Who knows how high will inflation rates go? This of course depends on how we could grow better and bigger, so in that case we are going to just do something that is not going to be all that complicated. Just realize that things are tough when you are not careful. Title: Re: Is Inflation Necessary Post by: wiss19 on June 10, 2024, 08:25:02 AM If inflation is used as a tactic, then many countries will experience problems, unless a country tries to have an economic impact on other countries. They will try to suppress the currency of a particular country with existing policies and if a country's currency weakens then it will be quite risky. It is needed, it doesn't create problem for the society at a small level, you need to think of high inflation. If you have it at 20% then yeah it's a problem, if you have it something more than that (which some nations do) then it's even a bigger issue, but if we are talking about 2-3% then we are talking about something that is good for the growth and you should have it.Zero inflation means that there is no growth and that would mean that the nation has a stagnant economy and that would not help anyone, big companies would just earn more money and everyone else would lose. Growth is needed so that big companies would get that growth, and you would get a little bit as well, and everyone would profit from that situation. Title: Re: Is Inflation Necessary Post by: lizarder on June 12, 2024, 11:35:44 AM It is needed, it doesn't create problem for the society at a small level, you need to think of high inflation. If you have it at 20% then yeah it's a problem, if you have it something more than that (which some nations do) then it's even a bigger issue, but if we are talking about 2-3% then we are talking about something that is good for the growth and you should have it. If a country experiences stagnation regarding the economic growth of a country then it has a big impact on people's lives because there will be an imbalance that occurs. So that the public sector which is usually a step to support people's lives will have problems, such as food problems and so on. The state has a responsibility for the economic growth cycle and they have ranks to control the prices of goods in the market. What happens is that they do not side with the people and consider more the problems of companies and the problems of the country's economy.Zero inflation means that there is no growth and that would mean that the nation has a stagnant economy and that would not help anyone, big companies would just earn more money and everyone else would lose. Growth is needed so that big companies would get that growth, and you would get a little bit as well, and everyone would profit from that situation. Usually this happens because the government is corrupt and has no vision in managing the country and although in certain cases all countries experience the impact of inflation or recession at an uncalculated stage because certain problems occur. Economic growth is very important because it speaks of a wide scope and if there is no principle to control then the problem will arise bigger. Title: Re: Is Inflation Necessary Post by: trendcoin on June 12, 2024, 05:00:26 PM Imagine you are a king in the Middle Ages, constantly making new conquests. The gold you have access to is limited and after a certain point you cannot access new gold supplies. What do you do to persuade your army to make new conquests? Do you have any other choice but to add silver to the gold coinage? Today, instead of making new conquests, we are building up our countries to join the ranks of developed countries. We don't have unlimited gold mines, and worse, we are not even in a position to put silver into gold coins like a middle age king, so we use paper money, which is the only thing we can do, and we solve all problems with inflationary strategies...
I am accumulating gold, silver and Bitcoin, which are in limited supply, but these are the harsh realities of life and I cannot ignore them... Title: Re: Is Inflation Necessary Post by: jaberwock on June 12, 2024, 05:53:53 PM If a country experiences stagnation regarding the economic growth of a country then it has a big impact on people's lives because there will be an imbalance that occurs. So that the public sector which is usually a step to support people's lives will have problems, such as food problems and so on. The state has a responsibility for the economic growth cycle and they have ranks to control the prices of goods in the market. What happens is that they do not side with the people and consider more the problems of companies and the problems of the country's economy. I would guess that you are right that stagnation would result with big companies keep taking money, while smaller investor or just regular people not growing with it, so all the big companies would take all the money. But when we are talking about stagnation, we should not just take it face value, we can't just say this is why it is bad, we should compare it to make sure that it is bad.Usually this happens because the government is corrupt and has no vision in managing the country and although in certain cases all countries experience the impact of inflation or recession at an uncalculated stage because certain problems occur. Economic growth is very important because it speaks of a wide scope and if there is no principle to control then the problem will arise bigger. So, when you compare stagnation to inflation, which one seems worse to you? I would say a very very high inflation could be much worse, of course a 5% inflation would be fine, that is not too much, I think people can live with that, anything under is perfect, but what if you had like those famous 100%+ ones? Argentina had one, Zimbabwe certainly had a lot more, and Türkiye recently had one I believe. Those are much worse than stagnation. Title: Re: Is Inflation Necessary Post by: lizarder on June 13, 2024, 02:29:31 PM I would guess that you are right that stagnation would result with big companies keep taking money, while smaller investor or just regular people not growing with it, so all the big companies would take all the money. But when we are talking about stagnation, we should not just take it face value, we can't just say this is why it is bad, we should compare it to make sure that it is bad. When stagnation happens then the whole sector gets worse and the ones who benefit are the ones who have the big capabilities like the companies. Meanwhile, economic growth in the lower middle class will be hit so hard and they will even have to close all businesses that have been built for a long time. I don't look far because that happened when Covid hit and hundreds of small and medium businesses had to close all their businesses because they could from the stagnation of economic growth.So, when you compare stagnation to inflation, which one seems worse to you? I would say a very very high inflation could be much worse, of course a 5% inflation would be fine, that is not too much, I think people can live with that, anything under is perfect, but what if you had like those famous 100%+ ones? Argentina had one, Zimbabwe certainly had a lot more, and Türkiye recently had one I believe. Those are much worse than stagnation. Both are much worse because they have the same role in killing economic growth. Like some of the countries you mentioned and maybe even many more who feel the impact of all that. The broader solution is that the government must have a way to overcome it and each individual also tries to prevent inflation so that it can be restored simultaneously. Title: Re: Is Inflation Necessary Post by: CageMabok on June 13, 2024, 02:58:43 PM In general inflation is caused by too much fiat money circulating in society, and this causes the value of the currency to fall. However, there are other factors that can cause inflation, such as national debt. I think using gold as a transaction tool is not a smart solution to avoid inflation because gold is not a transaction tool but tends to be an investment. In fact, it is not a matter of whether or not gold can be used as a transaction tool at this time in order to avoid inflation itself which is still rife nowadays. But it is more difficult for all countries to implement it at one time because developed countries can still avoid inflation with their own efforts so that the impact of the decline in the value of their own currency is not too much. So this is also still being considered by countries that are not developed in an effort to ensure that inflation can continue to decrease every year.Title: Re: Is Inflation Necessary Post by: Abiky on June 13, 2024, 06:02:27 PM Imagine you are a king in the Middle Ages, constantly making new conquests. The gold you have access to is limited and after a certain point you cannot access new gold supplies. What do you do to persuade your army to make new conquests? Do you have any other choice but to add silver to the gold coinage? Today, instead of making new conquests, we are building up our countries to join the ranks of developed countries. We don't have unlimited gold mines, and worse, we are not even in a position to put silver into gold coins like a middle age king, so we use paper money, which is the only thing we can do, and we solve all problems with inflationary strategies... I am accumulating gold, silver and Bitcoin, which are in limited supply, but these are the harsh realities of life and I cannot ignore them... We have given too much power to governments and banks as a society. Now they hold "all of the cards" to either destroy or recover the economy. The introduction of paper money marked the beginning of the end for the world economy. Being backed by nothing other than debt, gives governments full advantage over our financial lives. The situation is such where the poor become poorer, and the rich, richer. Inflation is necessary to liven up the economy. But too much of it is harmful. Especially to those in need. Fortunately, we have ways to beat down inflation. That's assuming with have enough capital to invest in scarce assets such as Bitcoin and Gold. These are uncertain times we're living into. So we should be prepared for the worst. Title: Re: Is Inflation Necessary Post by: Knight Hider on June 13, 2024, 06:09:15 PM Inflation is necessary for governments and anyone else who is in debt. It takes money from other people's savings.
Title: Re: Is Inflation Necessary Post by: Samlucky O on June 13, 2024, 07:26:21 PM But is inflation needed? inflation is a normal thing in all country all over the world, it doesn't only happens to some country. For me inflation has it important too in the sense that it increases work force of any country. For example when the goods becomes expensive more people will increase there production. Be it agriculture or manufacturing sector and many other sectors. It also reduce importation and increase exportation.Why can't we just keep the currency at the same value? The reduction in value of currency is as a result of limited in supply in goods which cause scarcity and it causes inflation and goods becomes expensive and people say money has reduced in value. Money doesn't reduce in value rather scarcity males things more expensive than before but people misinterpret it.And why does it only happen to money? I don't think so. If gold was used as money, inflation would have affected it. because if it was measured in 1gram to buy a basket of orange before, When inflation happens, 2 grams of gold would be used to purchase that same goods of 1gram of gold. Using gold as currency does not mean inflation would not affect it.For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings? Though most inflation is a natural inflation while some are manipulated by government, but in which ever way anything that has advantages also has disadvantages because most people gain from it while some lose from it. So its vise versa.One important thing to scale through inflation, is to pull out our fund from fiat to bitcoin to avoid inflation. Title: Re: Is Inflation Necessary Post by: frnandoh on June 14, 2024, 12:01:15 AM In current countries scenarios, at least a little inflation is important to economy because that encourages people to buy goods and companies to make products instead simply save money. A cold economy can bring a big crisis to a country.
Title: Re: Is Inflation Necessary Post by: shield132 on June 14, 2024, 10:28:50 AM Inflation at 2% doesn’t cause people to stimulate the economy and help it grow. In certain countries like Swiss or Japan they had negative interest rates in the past where you are being charged interest to hold it in the bank. That is a way to get people to spend it, not low inflation numbers. If you hold money and there is 2% inflation in first year, 3% - in the second year, then 2% - in the 3rd year, you'll understand that your money is losing purchasing value. 2% inflation mostly forces rich people to do something but it's not a catalyst for the poor or middle class. When rich people are forced, they start businesses and employ more people, the economy gets stimulated and people feel happy and aren't in fear. When inflation is high, too many people are in fear and feel hopeless to my mind.We cannot deal life without inflation. Governments need to issue bonds to pay for the country to run and as a result that money comes from money being printed out of thin air. It’s impossible for a country like the US to function without raising money from selling bonds, they hold too much debt. Title: Re: Is Inflation Necessary Post by: Ever-young on June 14, 2024, 11:26:25 AM But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings? I think price of things goes up when the demand is high and supply is low; and lower supply can be caused by so many factors which includes production costs and others. And mostly, goods that are not been produced in our countries are the once going very high with huge inflation which can be caused by cost of currency exchanges, transportation and so on.Inflation is a general something that happens worldwide but some people suffer it more because of their improper economic management, but provided your country depend on any good that is been imported from other countries, then inflation is likely to occur. You are actually right, there is no where on earth that inflation doesn't exist, that is the part of existence that makes life beautiful. Everyone do suffer inflation in one way or the other but most countries suffer it most, as you have said because of lack of management by our leaders, also for their selfish interest and also no matter how we try to be good or do good, there are things or law that can't be changed, I don't know if it's a natural occurrence just like this inflation, no matter how we do, our resources might be difficult for one to afford. So that is why we should be self employed or learn a skill to help our selves than depending on our government to makes things easier for us. Title: Re: Is Inflation Necessary Post by: eightdots on June 14, 2024, 04:54:09 PM If a country experiences stagnation regarding the economic growth of a country then it has a big impact on people's lives because there will be an imbalance that occurs. So that the public sector which is usually a step to support people's lives will have problems, such as food problems and so on. The state has a responsibility for the economic growth cycle and they have ranks to control the prices of goods in the market. What happens is that they do not side with the people and consider more the problems of companies and the problems of the country's economy. I would guess that you are right that stagnation would result with big companies keep taking money, while smaller investor or just regular people not growing with it, so all the big companies would take all the money. But when we are talking about stagnation, we should not just take it face value, we can't just say this is why it is bad, we should compare it to make sure that it is bad.Usually this happens because the government is corrupt and has no vision in managing the country and although in certain cases all countries experience the impact of inflation or recession at an uncalculated stage because certain problems occur. Economic growth is very important because it speaks of a wide scope and if there is no principle to control then the problem will arise bigger. So, when you compare stagnation to inflation, which one seems worse to you? I would say a very very high inflation could be much worse, of course a 5% inflation would be fine, that is not too much, I think people can live with that, anything under is perfect, but what if you had like those famous 100%+ ones? Argentina had one, Zimbabwe certainly had a lot more, and Türkiye recently had one I believe. Those are much worse than stagnation. States can control the prices of goods, but they usually do not intervene because the companies that change these prices are large corporations. In some cases, they are late to intervene in the price, which increases the rate of inflation. In some cases, the state cannot prevent the increase in inflation even if it does many things. The market continues its progress in some way. High rates of inflation negatively affect life. Inflation in the countries you mentioned is very high and the state is trying to intervene. As a result of mistakes made in the economy, inflation rose very high and some interventions were delayed. I hope that high inflation will drop soon and people will be able to sustain their economies comfortably. Title: Re: Is Inflation Necessary Post by: theteknolojist on June 15, 2024, 01:36:15 AM Inflation is necessary, and hedging against it is selfish...
But I don't mind ;) Title: Re: Is Inflation Necessary Post by: lizarder on June 15, 2024, 06:37:40 PM States can control the prices of goods, but they usually do not intervene because the companies that change these prices are large corporations. In some cases, they are late to intervene in the price, which increases the rate of inflation. In some cases, the state cannot prevent the increase in inflation even if it does many things. The market continues its progress in some way. If the state has the capacity to do so and what often happens is that they are late and the stock of goods is controlled by unofficial distributors so that they are the ones who play the price in the market. The inflation rate will be increasingly uncontrolled when goods start to become scarce in the market and that will become an even bigger problem to control inflation. If asked which sector plays a bigger role in the scarcity of goods when inflation occurs and maybe almost many of us know that.High rates of inflation negatively affect life. Inflation in the countries you mentioned is very high and the state is trying to intervene. As a result of mistakes made in the economy, inflation rose very high and some interventions were delayed. I hope that high inflation will drop soon and people will be able to sustain their economies comfortably. That is why the government must have a process design before everything happens and they must be able to review the stock of needs for each year. Although in certain cases inflation occurs even though the government has prepared everything well. The food sector plays a fairly large role and this sector needs to be maintained well by the government so that there is no shortage. Title: Re: Is Inflation Necessary Post by: darkangel11 on June 15, 2024, 08:16:29 PM In current countries scenarios, at least a little inflation is important to economy because that encourages people to buy goods and companies to make products instead simply save money. A cold economy can bring a big crisis to a country. Why would you need to artificially enforce a rule like that, making people buy stuff they don't need. In a perfect world, people buy goods they need and save money when they don't need them. Inflation is a tax imposed on everybody, especially hard on people who own money. It's like a tax that punishes you for saving, or punishes you for being rich. Is that a bad thing? IMO rich usually means smart and successful. In nature dumb people, if they happen to inherit wealth, will often lose it due to bad choices. Title: Re: Is Inflation Necessary Post by: Mate2237 on June 15, 2024, 09:46:16 PM In the world today with the bad leadership we have, inflation is not something that comes once or twice in the history of a country but it is part and parcel of human existence. In the inflation in this year in Africa is so much high that increasing the crime rate in the world. Everything in the world now is cost. Example. Car. Vehicles that were sold at the rate d $3,000 as of 2019 now it is sold as $10,000.
And the thing that shocked.me.mosy is the Petroleum. Petroleum that was sold as $0.068 now has $1.5 in my location per litre. There are two major people that causing this bad leadership in Africa. The electoral body and the judiciary. These are the problem in Africa leadership. Title: Re: Is Inflation Necessary Post by: Essential10 on June 16, 2024, 01:53:36 AM If I call the market conditions of the last two years in the country where I live, it has been an extraordinary growth. So far the government of my country has not taken any action, it is getting worse day by day. The people of my country are largely uneducated so the government is doing whatever it wants. A one-party government has been in power for a long time, with no one to speak against. The government and the government servants have become so corrupt that they are totally looting which is causing the price of everything to rise constantly. If we calculate the changes in the prices of various goods and services in the last two or three years, it is seen that inflation has increased a lot. Inflation in our country is close to ten percent which has made life difficult for middle class and lower middle class people. If corruption is not reduced in my country, it is not possible to reduce inflation, the situation may worsen in the coming days.
Title: Re: Is Inflation Necessary Post by: FanEagle on June 20, 2024, 08:48:23 AM These type of questions are beyond what we could "solve" in our daily discussions. Like for example, lets say that there is a real answer to this, what I mean is that this question doesn't have an exact number such as two plus two equals four, but for just a moment lets assume that we have considered long enough and discussed long enough and figured out that this question has an exact answer as well, in a theoretical situation.
Even in that situation, if we find a solution here, on this forum, how are we going to get the masses hear this? How are we going to make the finance world see this? How are suppose let the world leaders know about it? We can't, so while sometimes discussing things are fun, this one isn't really a serious question for this place. Title: Re: Is Inflation Necessary Post by: Hopila on June 20, 2024, 10:47:54 AM Inflation is needed and equally important for government its economy. because it encourages people to spend and invest their money rather than holding onto it. When the value of money decreases over time, individuals are more likely to put their money into assets or spend it on goods and services, which stimulates economic growth.
Title: Re: Is Inflation Necessary Post by: redsun114 on June 21, 2024, 04:50:53 PM Corruption isn't the reason why inflation exists, that is high taxes. Back in the day people complained about "communism" because it would be a world where everyone would pay super high taxes and get nothing from the government which would be working to equalize everyone.
But right now, capitalism is basically super wealthy people who are using your taxes to get themselves tax brakes or avoid taxes, so you are still paying super high taxes and get nothing in return anyway. So that is not inflation, that is corruption and those are very different two things, I do not think that we are going to get anything like that. We should realize that politicians could keep the inflation to a minimum at times, but sometimes big things happen and we can't avoid it. Title: Re: Is Inflation Necessary Post by: MissNonFall9 on June 24, 2024, 11:10:26 AM Inflation is needed and equally important for government its economy. because it encourages people to spend and invest their money rather than holding onto it. When the value of money decreases over time, individuals are more likely to put their money into assets or spend it on goods and services, which stimulates economic growth. There is no denying that inflation becomes essential for the country's economy to achieve the strategic objectives of a country at particular times. But if it continues for a long time then the economy of that country will be destroyed very easily. Therefore to keep the wheels of the country's economy moving or more dynamic the government sometimes resorts to inflation so that more entrepreneurs can be created.Title: Re: Is Inflation Necessary Post by: Abiky on June 24, 2024, 02:02:37 PM In the world today with the bad leadership we have, inflation is not something that comes once or twice in the history of a country but it is part and parcel of human existence. In the inflation in this year in Africa is so much high that increasing the crime rate in the world. Everything in the world now is cost. Example. Car. Vehicles that were sold at the rate d $3,000 as of 2019 now it is sold as $10,000. And the thing that shocked.me.mosy is the Petroleum. Petroleum that was sold as $0.068 now has $1.5 in my location per litre. There are two major people that causing this bad leadership in Africa. The electoral body and the judiciary. These are the problem in Africa leadership. Inflation came when countries started backing their currencies with debt. They wanted to have the ability to print money out of thin air and steer the economy to their own direction. It's now central banks' (and the Elites') game. And there's nothing we can do about itt. The rich will get richer, and the poor, poorer. This won't change anytime soon. Not even Bitcoin will save the world. While you can protect yourself against inflation by investing in scarce assets (eg: Bitcoin and Gold), you're limited to what you earn in Fiat terms. After all, the world is stuck in the Fiat Standard. It's the unit of account used for everything. Wages aren't increasing as much as inflation rates are. People are earning less, and prices of goods and/or services are rising higher. Things will only get worse, my friend. :( Title: Re: Is Inflation Necessary Post by: Mate2237 on June 24, 2024, 04:12:26 PM In the world today with the bad leadership we have, inflation is not something that comes once or twice in the history of a country but it is part and parcel of human existence. In the inflation in this year in Africa is so much high that increasing the crime rate in the world. Everything in the world now is cost. Example. Car. Vehicles that were sold at the rate d $3,000 as of 2019 now it is sold as $10,000. And the thing that shocked.me.mosy is the Petroleum. Petroleum that was sold as $0.068 now has $1.5 in my location per litre. There are two major people that causing this bad leadership in Africa. The electoral body and the judiciary. These are the problem in Africa leadership. Inflation came when countries started backing their currencies with debt. They wanted to have the ability to print money out of thin air and steer the economy to their own direction. It's now central banks' (and the Elites') game. And there's nothing we can do about itt. The rich will get richer, and the poor, poorer. This won't change anytime soon. Not even Bitcoin will save the world. While you can protect yourself against inflation by investing in scarce assets (eg: Bitcoin and Gold), you're limited to what you earn in Fiat terms. After all, the world is stuck in the Fiat Standard. It's the unit of account used for everything. Wages aren't increasing as much as inflation rates are. People are earning less, and prices of goods and/or services are rising higher. Things will only get worse, my friend. :( Yes I agree with you, inflation is an agreed plan from both the government and the elites. Inflation started late last year in my country, and became on the peak in this year then the president of the country formed economic team to reduce inflation and appointed the richest man in Africa as the leader of the team and other economic elites, guys inflation is increasing the more. The poor are crying and the rich is laughing. And because of that the poor can't afford good food to eat again so cholera pandemic breakout in the country and killing people everyday. Yesterday, Lagos state in Nigeria recorded 21 dead. Title: Re: Is Inflation Necessary Post by: serjent05 on June 24, 2024, 04:54:17 PM In the world today with the bad leadership we have, inflation is not something that comes once or twice in the history of a country but it is part and parcel of human existence. In the inflation in this year in Africa is so much high that increasing the crime rate in the world. Everything in the world now is cost. Example. Car. Vehicles that were sold at the rate d $3,000 as of 2019 now it is sold as $10,000. And the thing that shocked.me.mosy is the Petroleum. Petroleum that was sold as $0.068 now has $1.5 in my location per litre. There are two major people that causing this bad leadership in Africa. The electoral body and the judiciary. These are the problem in Africa leadership. Inflation came when countries started backing their currencies with debt. They wanted to have the ability to print money out of thin air and steer the economy to their own direction. It's now central banks' (and the Elites') game. And there's nothing we can do about itt. The rich will get richer, and the poor, poorer. This won't change anytime soon. Not even Bitcoin will save the world. While you can protect yourself against inflation by investing in scarce assets (eg: Bitcoin and Gold), you're limited to what you earn in Fiat terms. After all, the world is stuck in the Fiat Standard. It's the unit of account used for everything. Wages aren't increasing as much as inflation rates are. People are earning less, and prices of goods and/or services are rising higher. Things will only get worse, my friend. :( I got curious on why we are blaming the government for inflation so I made a short search about the cause of inflation and it gives me these three factors: demand pull - Quote As their names suggest, ‘demand-pull inflation’ is caused by developments on the demand side of the economy, cost-push pull - Quote cost-push inflation’ is caused by the effect of higher input costs on the supply side of the economy inflation expectation - Quote that is, what households and businesses think will happen to prices in the future can influence actual prices in the future We can read the detail explanation in this link[1]Despite of the bad view on inflation, it is said that inflation has a positive effect which is stated in this article[2] To list the good effect of inflation: 1. Inflation aggregates demand 2. Inflation helps increase production 3. Some inflation was necessary to prevent the Paradox of Thrift[3] 4. It is also believed that inflation can help reduce unemployment 5. Benefits to Borrowers[4] 6. Better Investment Returns since investors and entrepreneurs receive incentives for investing in productive activities[4] 7. Shareholders can earn a good income since companies book more profits and tend to share it with their shareholders via dividends[4] In short controlled inflation can help stabilize an economy so whether we like it or not inflation is necessary for the economy to move forward. [1] https://www.rba.gov.au/education/resources/explainers/causes-of-inflation.html [2] https://www.investopedia.com/ask/answers/111414/how-can-inflation-be-good-economy.asp [3] https://www.investopedia.com/terms/p/paradox-of-thrift.asp [4] https://www.toppr.com/guides/fundamentals-of-economics-and-management/money/impacts-of-inflation Title: Re: Is Inflation Necessary Post by: Nalain420 on July 08, 2024, 10:53:38 AM Fun fact: in order to keep inflation 0%, governments would still need to keep printing money. Deflation is the base state of all economies, given that technological advance results in more produce year by year. Printing money and fighting inflation are actually not the same and must be done differently by the government, because if too much money circulates in the market without control by the government it will not be very good for a country. Moreover, every citizen has to face inflation, which sometimes makes the citizens suffer a little if the prices of basic goods continue to rise and the value of the currency itself continues to decline. Meanwhile, the progress of technology itself needs to be encouraged by each country in terms of its development because the presence of technology in the economic sphere can also make it easier for most people who run certain businesses and can also complete their work very well without having to sacrifice more physical energy. And this can also give more people the opportunity to work and open up opportunities for certain businesses by relying on technology that already exists today. Title: Re: Is Inflation Necessary Post by: Abiky on July 08, 2024, 04:20:08 PM Nice comment Abiky, this need merit but I'm out of it. My country's debt profile is reading billions of dollars and now the government is doing all the they can do to pay it off so taxation is very high, and since the tax they are collecting from the manufacturers and duty tax at the boarders increase the prices of goods and services so the customers are the final bearers of the taxation. Yes I agree with you, inflation is an agreed plan from both the government and the elites. Inflation started late last year in my country, and became on the peak in this year then the president of the country formed economic team to reduce inflation and appointed the richest man in Africa as the leader of the team and other economic elites, guys inflation is increasing the more. The poor are crying and the rich is laughing. And because of that the poor can't afford good food to eat again so cholera pandemic breakout in the country and killing people everyday. Yesterday, Lagos state in Nigeria recorded 21 dead. It's sad to see how inequality keeps rising around the world. High inflation worsens the situation. At some point, I think inflation rates will decline to a considerable level. But the damage has already been done. Especially when the prices of goods and/or services will remain the same. Reducing inflation does NOT mean reducing the price of these things. It's just a means to stop or slow down the rate at which market prices increase. If wages increased at the same rate as inflation, we wouldn't be in this mess right now. We should blame greedy employers (companies, business owners) for this. They want to charge more (profit), but pay less. Bitcoin promises to "fix the world". I'm yet to see when that will happen. The future is unpredictable, so we can only hope for the best. Title: Re: Is Inflation Necessary Post by: Mate2237 on July 08, 2024, 09:32:37 PM Nice comment Abiky, this need merit but I'm out of it. My country's debt profile is reading billions of dollars and now the government is doing all the they can do to pay it off so taxation is very high, and since the tax they are collecting from the manufacturers and duty tax at the boarders increase the prices of goods and services so the customers are the final bearers of the taxation. Yes I agree with you, inflation is an agreed plan from both the government and the elites. Inflation started late last year in my country, and became on the peak in this year then the president of the country formed economic team to reduce inflation and appointed the richest man in Africa as the leader of the team and other economic elites, guys inflation is increasing the more. The poor are crying and the rich is laughing. And because of that the poor can't afford good food to eat again so cholera pandemic breakout in the country and killing people everyday. Yesterday, Lagos state in Nigeria recorded 21 dead. It's sad to see how inequality keeps rising around the world. High inflation worsens the situation. At some point, I think inflation rates will decline to a considerable level. But the damage has already been done. Especially when the prices of goods and/or services will remain the same. Reducing inflation does NOT mean reducing the price of these things. It's just a means to stop or slow down the rate at which market prices increase. If wages increased at the same rate as inflation, we wouldn't be in this mess right now. We should blame greedy employers (companies, business owners) for this. They want to charge more (profit), but pay less. Bitcoin promises to "fix the world". I'm yet to see when that will happen. The future is unpredictable, so we can only hope for the best. And from my conclusion this inflation right now is not from the government but within the sellers who are very greedy. They are just using the period to increase their items. And if things would come down again when this current president has been removed from sit because he is the caused of everything because of his economic policies affected the producers and sellers. So that will be 2030 and then. Title: Re: Is Inflation Necessary Post by: Abiky on July 11, 2024, 01:13:11 AM Abiky from my viewing I don't think the inflation level will reduce in anytime soon because they way things are increasing everyday is alarming. Last month I went to market to buy food stuff and I bought beans bag at the rate of $30 but this last Friday I went to the same market and I price beans bag and the seller told me that it is $70. And normally from my birth till now, rice was the only food item that cost more than any other thing but now many things have cost more than rice. And from my conclusion this inflation right now is not from the government but within the sellers who are very greedy. They are just using the period to increase their items. And if things would come down again when this current president has been removed from sit because he is the caused of everything because of his economic policies affected the producers and sellers. So that will be 2030 and then. Greed is what will "kill us all". Unless mainstream governments step in, companies/businesses/merchants will continue raising their prices to cash in the rewards. Things will only get worse. I sure hope this is a short-term thing. Otherwise, the "Elites" will rule the world for good. Is this part of a plan for a "New World Order"? Only time will tell. We're sailing in "uncharted waters". One thing is certain, and that's high inflation can't last forever. History repeats itself, right? ::) |