Warren Buffett says he's sees ‘very substantial inflation’ and rising prices

[dogetalk]

Buffet is good at doing his research for stocks and has made huge gains at stocks but he is not very good at doing his research for cryptocurrencies, where he absolutely lacks of knowledge. He even wanted to date Justin Sun, CEO of a fraudulent coin called "TRON".
Buffet should stay at his stocks or doing technically detailed research about cryptocurrencies before making conclusions, like he often does. As a Boomer, his focus is clearly outdated like so many conservative Boomers. Cryptocurrency will be a step forwards and everyone who will buy it right now (only good coins) will make good money.

[kryptqnick]

This serves as a counterpoint to everyone who says the US economy is "booming" atm.

It is interesting how every potential cause of inflation is mentioned here. EXCEPT for Biden and the fed printing increasing piles of fiat to fund their aggressive stimulus plans and COVID lockdowns.

The timeline of events and the media's stance on it form 2020 leading to the present, speaks volumes on everything.

It appears that those concerned with US dollar devaluation and potential hyperinflation can expect no relief from the fed or official sources. All of whom are already laying the groundwork to deny their involvement in any hyperinflation/devaluation which occurs.

You're making a great point. I think that the global economy will be in trouble for a while after the pandemic is over (and it's nowhere near over nowadays), and some industries will have a very hard time recovering in general (cinemas, for instance). The US is no exception, so their economy cannot be booming after spending and losing so much money that wasn't planned to be spent and lost. And I agree with you that inflation is totally because of overprinting money at a rate never seen before in the US history.
As fiat becomes less stable, more people might get attracted by Bitcoin, so there's also a potentially good thing for the market here.

[Gozie51]

Buffet IMO is not wrong if he says inflation is around  because most economy have not taken back to their feet about full production (because of covid-19) that will lead to export and capital to the economy and raising reserves. The countries go with the option of printing money. Printing money is not always good for the economy if the purpose is for circulation into the economy because it will cause prices of goods to increase. US have been on this and this is not a better option if not properly handled.

[AndySt]

Buffet IMO is not wrong if he says inflation is around  because most economy have not taken back to their feet about full production (because of covid-19) that will lead to export and capital to the economy and raising reserves. The countries go with the option of printing money. Printing money is not always good for the economy if the purpose is for circulation into the economy because it will cause prices of goods to increase. US have been on this and this is not a better option if not properly handled.

Oddly enough, but in this case, inflation is a boon and shows that the economic mechanisms are working and responding and the economy is really starting to recover. On the contrary, it would be strange and suspicious if, after pouring so much printed money into the economy to overcome the pandemic, there would be no price growth and, accordingly, inflation, and all the money would only warm up the stock market and the cryptocurrency market. There is nothing wrong with reasonable inflation, although of course ordinary citizens are unlikely to be delighted with this.

[Gyfts]

https://www.khou.com/article/news/local/htownrush/prices-on-almost-everything-is-spiking-post-pandemic/285-15d2167d-f34b-4405-9c19-55697515d631

TL;DR - Prices are increasing on everything. Any commodity you can think of, prices have increased.

Too many people are conflating the increases due to supply chain issues because of COVID, problem is, the supply chain was stressed, did not fail, and at some point the prices for these goods would return to normal once the pandemic subsided. Well, we are at the lowest COVID cases in almost every major country since around March (or whenever an individual country's peak was). Prices for goods continue to increase.

Turns out, printing endless money has consequences. Gonna be an interesting couple of years.

[jaysabi]

This serves as a counterpoint to everyone who says the US economy is "booming" atm.

It is interesting how every potential cause of inflation is mentioned here. EXCEPT for Biden and the fed printing increasing piles of fiat to fund their aggressive stimulus plans and COVID lockdowns.

The timeline of events and the media's stance on it form 2020 leading to the present, speaks volumes on everything.

It appears that those concerned with US dollar devaluation and potential hyperinflation can expect no relief from the fed or official sources. All of whom are already laying the groundwork to deny their involvement in any hyperinflation/devaluation which occurs.

Since the Fed has been actively trying to get the inflation rate above 2% on a macro scale, it seems like things right now are pretty much going as expected. Not sure why this is a giant shock to you. The Fed has not made it a secret, they've told everyone explicitly that they're targeting long-term average inflation rates of 2%, and because we've been below that for so long, that necessarily means inflation above that in order to reach the average of 2%.

[Gozie51]

Buffet IMO is not wrong if he says inflation is around  because most economy have not taken back to their feet about full production (because of covid-19) that will lead to export and capital to the economy and raising reserves. The countries go with the option of printing money. Printing money is not always good for the economy if the purpose is for circulation into the economy because it will cause prices of goods to increase. US have been on this and this is not a better option if not properly handled.

Oddly enough, but in this case, inflation is a boon and shows that the economic mechanisms are working and responding and the economy is really starting to recover. On the contrary, it would be strange and suspicious if, after pouring so much printed money into the economy to overcome the pandemic, there would be no price growth and, accordingly, inflation, and all the money would only warm up the stock market and the cryptocurrency market. There is nothing wrong with reasonable inflation, although of course ordinary citizens are unlikely to be delighted with this.

I quite agree with you that inflation is part of interaction of policies and production and that it can be humanly induced for certain purposes but the point is let the purpose not be selfish. High rate of inflation has already gone against whatever purpose because the after effect is going down to the masses as the end effect. If inflation is above 2% in an economy, you just know hardship is starting to crop in. Example in Nigeria the high level of hardship is majorly caused by high inflation which is far above in the 2 digit figure and that is having advance effect on even the rich. Cost of food stuffs is far above what any one can expect and that is just a basic need, then luxury life is just a dream.
Cost of living is very high where there is high rate of inflation.

[oHnK]

Buffet IMO is not wrong if he says inflation is around  because most economy have not taken back to their feet about full production (because of covid-19) that will lead to export and capital to the economy and raising reserves. The countries go with the option of printing money. Printing money is not always good for the economy if the purpose is for circulation into the economy because it will cause prices of goods to increase. US have been on this and this is not a better option if not properly handled.

Oddly enough, but in this case, inflation is a boon and shows that the economic mechanisms are working and responding and the economy is really starting to recover. On the contrary, it would be strange and suspicious if, after pouring so much printed money into the economy to overcome the pandemic, there would be no price growth and, accordingly, inflation, and all the money would only warm up the stock market and the cryptocurrency market. There is nothing wrong with reasonable inflation, although of course ordinary citizens are unlikely to be delighted with this.

I quite agree with you that inflation is part of interaction of policies and production and that it can be humanly induced for certain purposes but the point is let the purpose not be selfish. High rate of inflation has already gone against whatever purpose because the after effect is going down to the masses as the end effect. If inflation is above 2% in an economy, you just know hardship is starting to crop in. Example in Nigeria the high level of hardship is majorly caused by high inflation which is far above in the 2 digit figure and that is having advance effect on even the rich. Cost of food stuffs is far above what any one can expect and that is just a basic need, then luxury life is just a dream.
Cost of living is very high where there is high rate of inflation.

It is true that if inflation is not controlled, the real example is the Nigerian economy, but 2% can still be said to be normal and this is a normal thing to support economic growth.  The Fed's policy of printing money on a large scale in 2020 does not seem to be included in the inflation support factor that Warren said.  However, this also greatly contributed to the increase in inflation from the target that had been set.  I understand that in 2020, the Fed printing money to buy corporate bonds means that the money is channeled into production factors which are still good solutions for economic recovery during a pandemic.  However, it is very surprising that Biden's policy in March 2021, which has signed 1.9T USD, must be printed and aimed at the society.  It's a strange policy but WB doesn't comment.  Biden spreads huge amounts of money for the consumptive sector, and this is very burdensome for the economy if the production sector is not ready.

[Silberman]

This serves as a counterpoint to everyone who says the US economy is "booming" atm.

It is interesting how every potential cause of inflation is mentioned here. EXCEPT for Biden and the fed printing increasing piles of fiat to fund their aggressive stimulus plans and COVID lockdowns.

The timeline of events and the media's stance on it form 2020 leading to the present, speaks volumes on everything.

It appears that those concerned with US dollar devaluation and potential hyperinflation can expect no relief from the fed or official sources. All of whom are already laying the groundwork to deny their involvement in any hyperinflation/devaluation which occurs.

I find it funny that Buffett claims this is a form of inflation when raising prices by natural causes are not really inflation it is just an increase in the price you need to pay and nothing more, inflation is the increase of the money supply which eventually leads to raising prices and this can only be done by governments and banks, so the fact that he does not mention this tells us all what we need to know about him, he is part of the system and if he has to lie to keep it alive that is precisely what he will do.

[Coyster]

Buffet is good at doing his research for stocks and has made huge gains at stocks but he is not very good at doing his research for cryptocurrencies, where he absolutely lacks of knowledge. He even wanted to date Justin Sun, CEO of a fraudulent coin called "TRON".
Buffet should stay at his stocks or doing technically detailed research about cryptocurrencies before making conclusions, like he often does. As a Boomer, his focus is clearly outdated like so many conservative Boomers. Cryptocurrency will be a step forwards and everyone who will buy it right now (only good coins) will make good money.

Warren wasn't talking about cryptocurrencies, he prolly might have expressed his disinterestedness in Bitcoin in the past and that's pretty much understandable, but Buffet's current claims about inflation is correct, it's basically there for everyone to see, the policies most governments have taken in the past year or so is definitely going to result in inflation. in my country, prices of everything has gone higher than what it was previously, and I mean for practically every good and service, that's the inflation we're talking about, and it's yet to get to the climax, it's just at it's "milk teeth stage", thus who knows what's coming in a few years.

We're talking about the government printing money for stimulus bonuses, which is prolly the major cause of inflation, but the government were in a state of delimma, covid-19 was a unforseen circumstance that rocked the world, there were little other alternatives to pump money into the economy. I'm not in support of printing excess money just like that, but imo, it was what the government felt they had to do at that moment to sustain the economy from total collapse.

[dezoel]

With the inflation that is taking place, I think a lot of institutions and also some big investors will start looking for other ways that they can invest their money. And when it comes to an option to choose, Bitcoin has become very popular lately with the bull run and everything, and a lot of institutions have chosen Bitcoin as an option for storing their assets, and I wouldn’t be surprised that more of them will be going for it.

Too many people are conflating the increases due to supply chain issues because of COVID, problem is, the supply chain was stressed, did not fail, and at some point the prices for these goods would return to normal once the pandemic subsided. Well, we are at the lowest COVID cases in almost every major country since around March (or whenever an individual country's peak was). Prices for goods continue to increase.

At what time will the prices for things go down? The rate of covid-19 now seems to be less compared to what it was last year, and a lot of companies have resumed work, people are back to their daily businesses, thought thins were going to get better, but rather it keeps getting worse.

[Sithara007]

I don't know why everyone here gives so much importance to Warren Buffet. Across different sub-sections I have seen at least 4-5 threads which mentions him in the title. Warren Buffet was a great investor. But that was many decades ago. Right now he is a bitter old man who can't fathom the success made by cryptocurrency. Most of the economic analysts have predicted a steep rise in inflation, which corresponds to Biden's plan for an additional $6 trillion in spending ("American Families Plan"). Now we don't need Buffet to repeat those words.

[(o)(o)ilikeboobs(o)(o)]

I don't know why everyone here gives so much importance to Warren Buffet. Across different sub-sections I have seen at least 4-5 threads which mentions him in the title. Warren Buffet was a great investor. But that was many decades ago. Right now he is a bitter old man who can't fathom the success made by cryptocurrency. Most of the economic analysts have predicted a steep rise in inflation, which corresponds to Biden's plan for an additional $6 trillion in spending ("American Families Plan"). Now we don't need Buffet to repeat those words.

Printing more money to pump into the market and taxing the rich capitalists is one way to drive inflation.
Capitalists will increase the price of the products they make to have more income to pay taxes.
Citizens will use government subsidies to invest in cryptocurrencies and the money they earn to invest because they know that their money is losing value over time.
Not Buffet, but we see it ourselves. Gold has risen, food has risen. The next item outside the supermarket will increase slowly until we realize it.

[Coyster]

Printing more money to pump into the market and taxing the rich capitalists is one way to drive inflation.
Capitalists will increase the price of the products they make to have more income to pay taxes.
Citizens will use government subsidies to invest in cryptocurrencies and the money they earn to invest because they know that their money is losing value over time.
Not Buffet, but we see it ourselves. Gold has risen, food has risen. The next item outside the supermarket will increase slowly until we realize it.

Going by my recent findings/observations, I don't think the expected inflation is something that's too far-fetched, I think the inflation is already upon us, basically everything in my country has gone up, from the most expensive commodity, down to the cheapest of them all, and I've been in talks with some of my friends abroad, and I'm told it's the same thing where they are as well, the thing is people are yet to understand that this is the post-pandemic (not that we're even out of the pandemic yet), inflation we've all been talking about since the printing of excess money and other policies used by the government for the sake of covid-19 pandemic began.

The thing is corporations will buy Bitcoin as a hedge against the devaluing Fiat currencies cause they have money at their disposal, but for the average individual, it's much more difficult, especially now that cost of living is pretty high, they would rather use their stimulus for their daily needs than for investing in something that's somewhat risky.

[aoluain]

Printing more money to pump into the market and taxing the rich capitalists is one way to drive inflation.
Capitalists will increase the price of the products they make to have more income to pay taxes.
Citizens will use government subsidies to invest in cryptocurrencies and the money they earn to invest because they know that their money is losing value over time.
Not Buffet, but we see it ourselves. Gold has risen, food has risen. The next item outside the supermarket will increase slowly until we realize it.

Going by my recent findings/observations, I don't think the expected inflation is something that's too far-fetched, I think the inflation is already upon us, basically everything in my country has gone up, from the most expensive commodity, down to the cheapest of them all, and I've been in talks with some of my friends abroad, and I'm told it's the same thing where they are as well, the thing is people are yet to understand that this is the post-pandemic (not that we're even out of the pandemic yet), inflation we've all been talking about since the printing of excess money and other policies used by the government for the sake of covid-19 pandemic began.

The thing is corporations will buy Bitcoin as a hedge against the devaluing Fiat currencies cause they have money at their disposal, but for the average individual, it's much more difficult, especially now that cost of living is pretty high, they would rather use their stimulus for their daily needs than for investing in something that's somewhat risky.

Absolutely its upon us, as restrictions ease and business open up they will want and
need to try and claw back lost revenue, this will be coupled with the pent up demand
for buying by consumers.

Govenrmants will have to be paid back for the relief they gave to everyone during the
pandemic, There are still a large portion of thise funds still unspent and will be spent
in the above scenario.

There are a lot of younger people buying Bitcoin via Revolut but the understanding of
Bitcoin is generally quite low, its unfortunate that more average people dont realise
the power Bitcoin can provide in the future inflation landscape.

[(o)(o)ilikeboobs(o)(o)]

The thing is corporations will buy Bitcoin as a hedge against the devaluing Fiat currencies cause they have money at their disposal, but for the average individual, it's much more difficult, especially now that cost of living is pretty high, they would rather use their stimulus for their daily needs than for investing in something that's somewhat risky.

The government prints too much money to regulate the economy, so that's the first reason. Another reason is due to the reduction of agricultural production and commodity production, making these products reduce production and inventory more. Firms need to deal with their own economic problems, which are fees such as storage, product distribution, and capital recovery. They will do everything according to plan to revive their business. The escalation in commodity prices is inevitable.

Free money drives everyone to consume, and this happens to almost everyone. Converting their assets to Bitcoin and cryptocurrencies will be easier for businesses with stable revenue. That is easy to see. Not everyone has a vision of inflation, especially for the poor.

[BrewMaster]

This serves as a counterpoint to everyone who says the US economy is "booming" atm.

however we look at things, there is simply no way the US economy can be booming anytime soon. with COVID, increased rate of joblessness, economic wars Trump started, rising prices thanks to inflation, and the cherry on top which is FED printing a shitton of money.
we are lucky it hasn't crashed to the ground yet.

And with that having said, is he going to look for another way to protect their assets on his BH? will this give a point to him that he should take a look  how bitcoin performs while they are experiencing inflation?

i strongly believe he already has a lot of bitcoin in his pocket.

[tyz]

This serves as a counterpoint to everyone who says the US economy is "booming" atm.

Warren Buffet has a point here. The U.S. economy is currently booming because there is an extremely large amount of cheap money and this money enters the economic cycle quickly (unlike in Europe, for example, where there are other structures). This increases inflation, which can already be seen in the partly extreme real estate prices. Therefore, sooner or later, the Fed will have to raise interest rates to contain inflation and protect the economy. But this is exactly what will cause stock prices to fall and indirectly hit the economy. The FED is in a quandary.

[justdimin]

The government prints too much money to regulate the economy, so that's the first reason. Another reason is due to the reduction of agricultural production and commodity production, making these products reduce production and inventory more. Firms need to deal with their own economic problems, which are fees such as storage, product distribution, and capital recovery. They will do everything according to plan to revive their business. The escalation in commodity prices is inevitable.

Free money drives everyone to consume, and this happens to almost everyone. Converting their assets to Bitcoin and cryptocurrencies will be easier for businesses with stable revenue. That is easy to see. Not everyone has a vision of inflation, especially for the poor.

The reason why poor do not really care about inflation in a savings stand point (obviously we all care about inflation for regular purchasing prices increasing) is the simple fact that if you are actually a poor person you would know that you can't save money, anyone who can put money aside time to time is not a poor person, even a poor person could do that maybe a few times in their life but not constantly and not in a consistent manner.

It means they can't care about increasing their account, they can't care about finding a way for their bank account to grow faster than inflation, because they spend it, whatever they earn they end up spending and that means they do not have any money at all. I am sort of in the middle, I do save a bit of money so I am definitely not poor thank god, but I am also not rich by any standard neither, I am saving up funny amount of money per month, like maybe $50 per month but that is better than be in debt every month.

[magneto]

When the sage of Omaha tells you something about the fiat economy, he's probably right.

Even though I don't necessarily agree with everything that Buffett has said in the past, especially in terms of his archaic attitude towards cryptos in general, that doesn't detract from the fact that he is an excellent investor with an edge above the rest in the fiat game.

Reflation risks are rife right now, and it should be pretty obvious for anyone that has taken simple economics. Prices are going to go up as a result of more money chasing the same amount of goods - I don't really understand how people could possibly deny that.