Consumer Inflation Still Nowhere to be Found

[Silberman]

In which case will there be more money-when 10 people save it and one spends it, or when 10 people spend it and one saves it? Any accumulation encourages the issue of new money to make up for the loss of the money supply.

Again, if the money is not entering the consumer circle it will not cause anything!
An increase in the money supply does trigger inflation, but! only if that supply is actually used.

Think of Satoshi's coins! They are still there and not influencing the price, what if he starts spending them?

Correct, and we can find many historical examples of this, during world war one all countries got out of the gold standard and were printing money in order to sustain their war effort, but back home there was almost no inflation and this was because people were saving for a rainy day, they did not spend on anything but the basics, but when the war was over and confidence come back they began to spend their money and this caused massive inflation.

[bits4books]

In which case will there be more money-when 10 people save it and one spends it, or when 10 people spend it and one saves it? Any accumulation encourages the issue of new money to make up for the loss of the money supply.

Again, if the money is not entering the consumer circle it will not cause anything!
An increase in the money supply does trigger inflation, but! only if that supply is actually used.

Think of Satoshi's coins! They are still there and not influencing the price, what if he starts spending them?

Correct, and we can find many historical examples of this, during world war one all countries got out of the gold standard and were printing money in order to sustain their war effort, but back home there was almost no inflation and this was because people were saving for a rainy day, they did not spend on anything but the basics, but when the war was over and confidence come back they began to spend their money and this caused massive inflation.

The main problem is not in the inflation itself, it turns out, but in the fact that the market does not have time to create the supply for which there is demand in such situations.
And you can already come to the conclusion that you should not criticize the monetary system as such and people who are inclined to waste, even to hoarding, but simply accept the fact that the market really quite copes with self-regulation and knows how to be alive and not controlled by anyone.
and it's not the merit of some smart people that they created such a system - and the maximum understood it and try to convey to others.

[Silberman]

Correct, and we can find many historical examples of this, during world war one all countries got out of the gold standard and were printing money in order to sustain their war effort, but back home there was almost no inflation and this was because people were saving for a rainy day, they did not spend on anything but the basics, but when the war was over and confidence come back they began to spend their money and this caused massive inflation.

The main problem is not in the inflation itself, it turns out, but in the fact that the market does not have time to create the supply for which there is demand in such situations.
And you can already come to the conclusion that you should not criticize the monetary system as such and people who are inclined to waste, even to hoarding, but simply accept the fact that the market really quite copes with self-regulation and knows how to be alive and not controlled by anyone.
and it's not the merit of some smart people that they created such a system - and the maximum understood it and try to convey to others.

Disagree, the main problem is the increase in the money supply which sooner or later increase inflation, we cannot blame the supply here, if governments were printing money at the rate at which we had economic growth then you may have a point and that could be a sustainable level of inflation, but this is not what happens, how can the supply keep with the governments printing money when the US congress decided today to give 900 billions dollars as aid and most of that money was created out of thin air?

[teosanru]

I think there has been a lot of money that has been injected into the system as of now by various governments so we might see a Consumer Inflation soon. But when the GDP growth forecasts of most of the countries is negative I think such an inflation rate is pretty nice. Atleast we are not running into deflation which can be pretty bad for fiat. To my surprise, some people feel that lower inflation is a good sign but what they don't know is that lower inflation means lower growth rate which means that there won't be much growth in GDP unless and until we find a little bit of inflation in the Economy.

[stompix]

To my surprise, some people feel that lower inflation is a good sign but what they don't know is that lower inflation means lower growth rate which means that there won't be much growth in GDP unless and until we find a little bit of inflation in the Economy.

Yes, lower inflation right now with that much money printing, high unemployment, and people concentrating on necessities with a lot of the industry running at half or one-quarter speed is quite good. Higher inflation right now would be a social disaster for the entire middle and low-income class,  besides, GDP growth means nothing, if your purchasing power is turned to shit GDP growth will be nowhere to be found.

how can the supply keep with the governments printing money when the US congress decided today to give 900 billions dollars as aid and most of that money was created out of thin air?

Not "most" but rather all of it, and although there are ways to keep inflation in check while printing reasonable amounts of money (not trillions), one of them is injecting this directly into the economy and trying to increase production, not throwing it all at the consumer side. While this also will trigger further down the road increased demand and thus increased investment in production capabilities usually it will be a bit too late as inflation will hit first the pockets and thus reducing the further demand. Such policies need a lot of balancing, not the case here.

[bits4books]

Correct, and we can find many historical examples of this, during world war one all countries got out of the gold standard and were printing money in order to sustain their war effort, but back home there was almost no inflation and this was because people were saving for a rainy day, they did not spend on anything but the basics, but when the war was over and confidence come back they began to spend their money and this caused massive inflation.

The main problem is not in the inflation itself, it turns out, but in the fact that the market does not have time to create the supply for which there is demand in such situations.
And you can already come to the conclusion that you should not criticize the monetary system as such and people who are inclined to waste, even to hoarding, but simply accept the fact that the market really quite copes with self-regulation and knows how to be alive and not controlled by anyone.
and it's not the merit of some smart people that they created such a system - and the maximum understood it and try to convey to others.

Disagree, the main problem is the increase in the money supply which sooner or later increase inflation, we cannot blame the supply here, if governments were printing money at the rate at which we had economic growth then you may have a point and that could be a sustainable level of inflation, but this is not what happens, how can the supply keep with the governments printing money when the US congress decided today to give 900 billions dollars as aid and most of that money was created out of thin air?

The money supply will not cause inflation if it is not withdrawn from circulation for any time and if the corresponding quantity of goods (offers) is submitted under this money supply. If the supply exceeds the demand and the money supply increases , you get inflation. If the money supply first increases and then decreases due to hoarding, this causes inflation.
Now there may not be inflation such as you hope for just the same because those" created out of thin air " money goes immediately to the economy, to the general turnover, because supply and demand are in balance.

[DrBeer]

I think there has been a lot of money that has been injected into the system as of now by various governments so we might see a Consumer Inflation soon. But when the GDP growth forecasts of most of the countries is negative I think such an inflation rate is pretty nice. Atleast we are not running into deflation which can be pretty bad for fiat. To my surprise, some people feel that lower inflation is a good sign but what they don't know is that lower inflation means lower growth rate which means that there won't be much growth in GDP unless and until we find a little bit of inflation in the Economy.

Now the world economy is going through hard times, including because of Covid and its consequences. He had a huge impact on the crayons, the family business. And this led to the fact that the population lost its income on a large scale, from the "financial cushion" they tend to 0. Then a chain reaction begins - the lack of income leads to a decrease in the consumption of goods and services produced by other businesses (agrarians, industrial production, ....). Lack of "free" money and income leads to a decrease in inflation, but this is not a good trend. Such "stabilization" leads to a "withering" of the economy, an increase in poverty among the population, and a drop in pro-production as a whole. The saddest thing is that it will be difficult to restore the situation, many private businesses have irreversibly curtailed their activities, industrial companies are cutting production and decommissioning production facilities. To restart all this, again, money is needed. And they are not. Or they will be "expensive". In a word, only stagnation awaits us in the near future.

[teosanru]

I think there has been a lot of money that has been injected into the system as of now by various governments so we might see a Consumer Inflation soon. But when the GDP growth forecasts of most of the countries is negative I think such an inflation rate is pretty nice. Atleast we are not running into deflation which can be pretty bad for fiat. To my surprise, some people feel that lower inflation is a good sign but what they don't know is that lower inflation means lower growth rate which means that there won't be much growth in GDP unless and until we find a little bit of inflation in the Economy.

Now the world economy is going through hard times, including because of Covid and its consequences. He had a huge impact on the crayons, the family business. And this led to the fact that the population lost its income on a large scale, from the "financial cushion" they tend to 0. Then a chain reaction begins - the lack of income leads to a decrease in the consumption of goods and services produced by other businesses (agrarians, industrial production, ....). Lack of "free" money and income leads to a decrease in inflation, but this is not a good trend. Such "stabilization" leads to a "withering" of the economy, an increase in poverty among the population, and a drop in pro-production as a whole. The saddest thing is that it will be difficult to restore the situation, many private businesses have irreversibly curtailed their activities, industrial companies are cutting production and decommissioning production facilities. To restart all this, again, money is needed. And they are not. Or they will be "expensive". In a word, only stagnation awaits us in the near future.

Yeah I pretty much understand this which is what most of the people really don't realise out here. Inflation is a blessing in disguise and it's due to this lack of inflation that governments are deliberating upon a stimulus to bring back the economy to life however I think that this borrow and spend stimulus might not be that great for people and might even put them into a situation of debt trap but let's see it's too early to predict this.

[DrBeer]

I think there has been a lot of money that has been injected into the system as of now by various governments so we might see a Consumer Inflation soon. But when the GDP growth forecasts of most of the countries is negative I think such an inflation rate is pretty nice. Atleast we are not running into deflation which can be pretty bad for fiat. To my surprise, some people feel that lower inflation is a good sign but what they don't know is that lower inflation means lower growth rate which means that there won't be much growth in GDP unless and until we find a little bit of inflation in the Economy.

Now the world economy is going through hard times, including because of Covid and its consequences. He had a huge impact on the crayons, the family business. And this led to the fact that the population lost its income on a large scale, from the "financial cushion" they tend to 0. Then a chain reaction begins - the lack of income leads to a decrease in the consumption of goods and services produced by other businesses (agrarians, industrial production, ....). Lack of "free" money and income leads to a decrease in inflation, but this is not a good trend. Such "stabilization" leads to a "withering" of the economy, an increase in poverty among the population, and a drop in pro-production as a whole. The saddest thing is that it will be difficult to restore the situation, many private businesses have irreversibly curtailed their activities, industrial companies are cutting production and decommissioning production facilities. To restart all this, again, money is needed. And they are not. Or they will be "expensive". In a word, only stagnation awaits us in the near future.

Yeah I pretty much understand this which is what most of the people really don't realise out here. Inflation is a blessing in disguise and it's due to this lack of inflation that governments are deliberating upon a stimulus to bring back the economy to life however I think that this borrow and spend stimulus might not be that great for people and might even put them into a situation of debt trap but let's see it's too early to predict this.

Yes, now it is extremely difficult to draw conclusions and predict anything, because the whole world is still in a semi-shock state, and few people generally understand what needs to be done in the near future to correct (not even correct) the situation. The prospects for the development of a negative scenario with Covid are very serious, the impact is very negative, there are no high-quality system solutions yet. Medicine was not ready for such a challenge, as was the economy. As I understand it, until 2020, no one even could have imagined such a scenario ... In a word, we are moving to 2021 and watching the development of the situation

[so98nn]

The inflation is gonna be worst considering the new phase of COVID is on the way after identification of new mutation. I mean the main reason for this decline was world's disturbed economic cycling. Whole businesses stopped working, international borders were closed and the whole world was baffled into chaos as to what is next?

In the process they forgot that they have stepped on heart of the businesses and thus led to rise in the prices. USD is very dependent on the worlds trade with that country and rest. Since the effect was global it led to broken chain of command within economics. And there you go, inflation is at it's best.

Don't how worst this gonna be with this new pandemic stuff.