Risk of Inflation in Economy.

[Iphomme]

   Our economy change drastically and very tangible of the eyed of everyone. We can not control the economics cycling in out of the world. More people suffer that can not afford to buy due of high demand of the prices the situation of the poor status it's getting vulnerable so it is really hard when we're in point of the high inflation more risk we can experience.

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[hugeblack]

If the country is run by a good government that is far from corruption, then inflation rates are not supposed to reach insane levels or constitute a crisis between individuals.

The inflation crisis shows the strength of the government's financial position. Unfortunately, the poor are the ones who pay the cost because they do not have sufficient financial tools to fight inflation.

The solution to this problem lies in obtaining more tools to fight inflation, Bitcoin may be one of those tools.

[Hydrogen]

Isn't it a strange world we live in where not overprinting fiat is considered unattainable rocket science to many states and regulatory authorities. Even more strange is how determined many are to refuse to acknowledge basic rules and principles of finance/economics applying even to large governments with trillions in assets.

There could be a certain anti intellectualism involved in believing humanity has evolved beyond basic laws of science and money. A trend people might want to reverse before circumstances deteriorate further.

Inflation is a relatively harmless things by itself. The real problem is convincing people circumstances leading to inflation are real problems that need addressing. Civilization appears to have reached a point where inflation is considered to be as mythical as aliens. It could be a concern.

[hannahB4]

This case is worsened in my Country, every day you witness a change in the price of goods and services and this is affecting the purchasing power of the poor and even the middle class. I hope very soon things will fall back into the right place.

[Silberman]

Isn't it a strange world we live in where not overprinting fiat is considered unattainable rocket science to many states and regulatory authorities. Even more strange is how determined many are to refuse to acknowledge basic rules and principles of finance/economics applying even to large governments with trillions in assets.

There could be a certain anti intellectualism involved in believing humanity has evolved beyond basic laws of science and money. A trend people might want to reverse before circumstances deteriorate further.

Inflation is a relatively harmless things by itself. The real problem is convincing people circumstances leading to inflation are real problems that need addressing. Civilization appears to have reached a point where inflation is considered to be as mythical as aliens. It could be a concern.

While true there are some reasons for this, when everyone is cheating then there is not much incentive for other governments to not do so, not only that if the government in question depends on exports to sustain a great part of their economy if they do not print as much money as the rest then their currency gets too strong inhibiting exports, and when we take into account the US is the leader of this despite its fiat currency point of dominance then a race to the bottom is almost inevitable even if it makes no sense for people like us.

[Ucy]

If the country is run by a good government that is far from corruption, then inflation rates are not supposed to reach insane levels or constitute a crisis between individuals.

The inflation crisis shows the strength of the government's financial position. Unfortunately, the poor are the ones who pay the cost because they do not have sufficient financial tools to fight inflation.

The solution to this problem lies in obtaining more tools to fight inflation, Bitcoin may be one of those tools.

In the time of choas, even the money wouldn't deliver the rich. Those living in rural areas will likely survive it without fiat money. There will be cities "secured" for people to live modern lifestyle during that time though, but at what cost? At the cost of giving up your freedom.

Well decentralized cryptocurrency/money would help those in rural areas.

[nightxglow]

The issue of inflation has been lingering for so long, and always become a problem for a country. Especially in this pandemic, the inflation is kinda hard to control. However, I guess with a suitable policy and fast decision making everything can be handled well. It's really important to treat inflation as a serious issue, inflation can be really dangerous for the country and also the people.

[fiulpro]

   Our economy change drastically and very tangible of the eyed of everyone. We can not control the economics cycling in out of the world. More people suffer that can not afford to buy due of high demand of the prices the situation of the poor status it's getting vulnerable so it is really hard when we're in point of the high inflation more risk we can experience.

Inflation is actually beneficial if we consider it done ✅ in small parts and if it's gradual. Yes, the price of these things will rise but at the same time the people are being paid better also. Therefore these people can afford the same lifestyle. I do think that inflation should be controlled only when the people are not getting paid the same raise.
There are certain countries where the inflation is actually very bad, people can only afford to buy a toilet paper with their salary of a month , therefore the people have a very hard life there. Now that is a case of uncontrolled inflation.
But when you consider developed countries like US, UK their inflation is not only natural, gradual but the people are also able to afford everything with their everyday salary. So that's a positive example.

[just_Alice]

   Our economy change drastically and very tangible of the eyed of everyone. We can not control the economics cycling in out of the world. More people suffer that can not afford to buy due of high demand of the prices the situation of the poor status it's getting vulnerable so it is really hard when we're in point of the high inflation more risk we can experience.

Inflation is actually beneficial if we consider it done ✅ in small parts and if it's gradual. Yes, the price of these things will rise but at the same time the people are being paid better also. Therefore these people can afford the same lifestyle.

From what you've said it can be concluded that inflation can be neutral if handled properly (people can afford the same lifestyle), but where's the benefit?

I do think that inflation should be controlled only when the people are not getting paid the same raise.
There are certain countries where the inflation is actually very bad, people can only afford to buy a toilet paper with their salary of a month , therefore the people have a very hard life there. Now that is a case of uncontrolled inflation.

Now, see, that's the main problem. There are not many decent countries, that raise salaries in accordance with the increase in prices. I think the majority still suffer from huge losses at times like this, because the prices are rising, while the salary stays the same, or grows not proportially to how the prices grow.

[Darker45]

You cannot control the world economy but your national leaders have a good amount of control over your local economy. Inflation is everywhere. All countries have their own inflation rates. But what is not common among them is that inflation deprives the most basic of needs from a lot of people in other countries while the poorest people in other countries do not have a difficult life.

There'd be a whole lot of issues behind this reality, not least of which is mismanagement, corruption, incompetence, and so on largely on the part of those whose fate of the land is in their hands.

[jrrsparkles]

You will lose your asset value that is the ultimate risk of living in a country where the inflation rate is high but inflation is not under the control of public it is in the control of leaders who need to make right financial policies and make their country as debt free nation and surplus revenue country. Don't ask money from the people which is not the right way of development.

[crwth]

That's why many people and institutions are looking for an alternative asset that is not affected by inflation and makes their money grow by hedging into it. That is the reason why some companies are putting their money into cryptocurrencies like Bitcoin. It's just that it's best to prevent that, and with the current economy and tragedies that we are experiencing right now, it's a good approach to it.

[Kong Hey Pakboy]

This case is worsened in my Country, every day you witness a change in the price of goods and services and this is affecting the purchasing power of the poor and even the middle class. I hope very soon things will fall back into the right place.

You are right about the difference of inflation in each country but the common problem that these poor countries have is that they could easily control these inflation to a sustainable level if they aren't corrupt. I don't think that we have to vilify inflation as something bad because if it moves in a sustainable way, it can be an indicator of a growing country.

[LUCKMCFLY]

   Our economy change drastically and very tangible of the eyed of everyone. We can not control the economics cycling in out of the world. More people suffer that can not afford to buy due of high demand of the prices the situation of the poor status it's getting vulnerable so it is really hard when we're in point of the high inflation more risk we can experience.

When talking about countries considered stable economies, the risk of falling into inflation above 3% is considered very serious, at least this applied to the US, I have friends in the US who say that with 100 USD you cannot buy the same items that you do. 10 years, which is much less, so this means that inflation has caused some havoc here in the economy where the hegemony of the dollar is always the boss.

If the third world countries in the worst case like Venezuela, inflation or hyperinflation is a fact, their economy is only sustained because most people handle dollars or currencies that are not those of the local economy, then I think Because of all this I see the dollar and the euro as a big bubble, at any moment all this could burst, as it happened in 2008.

[stompix]

Our economy change drastically and very tangible of the eyed of everyone.

Drastically? No!
For some countries maybe but here in Europe there is no such thing as drastic, a 10% at a maximum change in prices due to the problems in logistics and restarting chains that will soon go down as the euphoria from returning to normal and spending goes down is nothing drastic. We went through this with far fewer "causalities" than in 2017 and we're already far above those in terms of purchasing power and diminishing poverty.

More people suffer that can not afford to buy due of high demand of the prices the situation of the poor status it's getting vulnerable so it is really hard when we're in point of the high inflation more risk we can experience.

Time will fix this one, it's not caused by fundamental flaws, it's caused by a disruption in trade, manufacturing, workforce availability, and not in the last place the skepticism of a lot of business owners who thought the economy will not recover that fast and haven't been ready for the restart, the opening of the economy catching them with no workers, no stockpiles, no contracts.

It's a free economy, if oil goes up too many previous wells that were shut down as they were not profitable will come back online, if we have a higher demand and higher price for basic food it will take longer, one year when it comes to crops and 2-3 when it comes to meat but it will again come down when there are insane profits to be made, more capacity will be added and the ratio of demand and offer will adjust. And it's impossible to have a constant growth at such level in demand as we had after the end of quarantine in the Western world.
Cheer up, the future ain't that bleak, we've seen far worse!

There are not many decent countries, that raise salaries in accordance with the increase in prices. I think the majority still suffer from huge losses at times like this, because the prices are rising, while the salary stays the same, or grows not proportially to how the prices grow.

Countries do not raise wages on their own.
And if you think of the minimum wage, Germany didn't have one till 2015, and they did pretty well without it.

[sana54210]

Our economy change drastically and very tangible of the eyed of everyone.

Drastically? No!
For some countries maybe but here in Europe there is no such thing as drastic, a 10% at a maximum change in prices due to the problems in logistics and restarting chains that will soon go down as the euphoria from returning to normal and spending goes down is nothing drastic. We went through this with far fewer "causalities" than in 2017 and we're already far above those in terms of purchasing power and diminishing poverty.

Where do you live that 10% change is not a lot to you? I mean if I was given a 10% wage hike.. well that wouldn't a "huge" deal but I would be insanely happy about it, and I am pretty sure everyone else would be. Whereas when I get something for 10% more I am very sad, in my nation inflation "felt" is like 100% at this point, even though it is given like 17% or so and I still do not believe that but those are huge numbers.

Most of the developed world had like 2% or so inflation and having 10% is not easy, it is going to hurt a lot of people if it keeps this up and the prices do not slow down neither they are looking like it is going very bad for the past few months. In short, I would say that inflation is definitely going to doom levels, we need to recover quickly and get back to how life was, it is not easy I know but if we don't, we are going to be screwed.

[verita1]

Without a doubt, inflation is everyone's problem. Because we must think about the most vulnerable people who live in our countries, we can see it in our families and friends and little by little we realize that it is a bad thing for everyone because inflation tends to grow.

The goal of all is to fight to prevent the increase of poverty that is caused by the problems of the world's economies.
Fortunately, Bitcoin was invented to offer solutions to these socio-economic problems for which we are fighting to make it a success.

[crzy]

The increase on inflation can't be stop, and that's why every government is trying their best to slow this one down and prevent the hyperinflation that is already happening in some countries, and the result is really bad for them. I understand the cost of living nowadays, and we should do our best to increase our source of income so when the big inflation hits, we still have a money that can support our daily needs, don't put your money on a bank, better to put it on any investment asset so the value of your money increases.

[dezoel]

   Our economy change drastically and very tangible of the eyed of everyone. We can not control the economics cycling in out of the world. More people suffer that can not afford to buy due of high demand of the prices the situation of the poor status it's getting vulnerable so it is really hard when we're in point of the high inflation more risk we can experience.

It's looking worst because of the pandemic effect recently otherwise the economy of almost every country was doing good apart from some countries which may have their own internal structural problems and corrupt governments. Inflation was bound to happen and it was about time people realize why digital assets like bitcoins were in demand because there was a massive shift from offline to online and from fiat to crypto.

Small or under-developed countries face the worst of such times and hence a lot of people from these countries invested in Bitcoins because the least inflation you can expect is Bitcoins. How? I will try and explain from my own understanding of it. The value of BTC is usually seen in USD and if someone from a suffering country wants to convert his local currency into USD, they cannot do it. But through Bitcoins not just they do that but because of the surge in online payments, they also beat inflation and are able to earn on it.

[fullhdpixel]

This case is worsened in my Country, every day you witness a change in the price of goods and services and this is affecting the purchasing power of the poor and even the middle class. I hope very soon things will fall back into the right place.

I am sorry to disappoint you maybe but I don't see anything improving soon because a lot of governments are just hapless since they don't have any resources to come out of this massive economic-cavity caused by the virus and many countries are still facing it. Imagine the damage caused by all the lockdowns, shutdowns and forced curfews to the economy of the countries. There might be the lowest low in terms of economic crisis in the coming time but a glimmer hope is that, in the coming few years I can see the economy getting back to normal as businesses get back to operating again.

It's really important to treat inflation as a serious issue, inflation can be really dangerous for the country and also the people.

If a country was facing inflation before the virus they should be in a hyperinflation situation by now because even the top-performing countries in terms of inflation have failed to stop the inflation problem so one can only imagine what already suffering nations must be going through right now.

[carter34]

That's why many people and institutions are looking for an alternative asset that is not affected by inflation and makes their money grow by hedging into it. That is the reason why some companies are putting their money into cryptocurrencies like Bitcoin. It's just that it's best to prevent that, and with the current economy and tragedies that we are experiencing right now, it's a good approach to it.

Even putting money into bitcoin won't solve the situation because you are part of the country or system and when you make withdrawal of the coins or converted form, you still use it to buy in an inflated system, the worth of what you are getting will be lower if it was not inflation. Inflation is a big challenge to every economy.

This case is worsened in my Country, every day you witness a change in the price of goods and services and this is affecting the purchasing power of the poor and even the middle class. I hope very soon things will fall back into the right place.

Your country may not be the only one experiencing high inflation. Many other countries complain of it. It is becoming a new normal like covid-19.

[crwth]

Even putting money into bitcoin won't solve the situation because you are part of the country or system and when you make withdrawal of the coins or converted form, you still use it to buy in an inflated system, the worth of what you are getting will be lower if it was not inflation. Inflation is a big challenge to every economy.

Are you sure about what you are talking about? Yeah, it is like that but no matter what the situation is, it's always going to be better for your capital to have more in USD or in BTC. The way that you can not be affected by the inflation of USD is by not letting your money stay in USD. In that way, you lessen the effects. Taking advantage of the current volatility of your assets as well.

If you compare the amount of USD you will have with the following

• Hedged with Crypto
• Just HODLed USD

You will end up having more USD when you hedge against crypto because of the value of crypto will rise since the value of fiat will lessen.

[Mauser]

   Our economy change drastically and very tangible of the eyed of everyone. We can not control the economics cycling in out of the world. More people suffer that can not afford to buy due of high demand of the prices the situation of the poor status it's getting vulnerable so it is really hard when we're in point of the high inflation more risk we can experience.

High inflation is the a very big risk factor for our saving. If we keep cash at home or in an saving account at a bank, than a few years of high inflation will cripple the purchasing power of our FIAT money. There are a few ways to save our money from inflation. One way would be to buy stocks, the return is higher so it would compensate for the higher inflation, but in stocks is also more risk, we could lose money here. A better option in my opinion to protect ourself are treasury inflation protected securities (TIPS), they are basically bonds who pay a premium based on the inflation rate each year. So the higher inflation, the higher the cocupon. If we want to save long term FIAT money than we should definitely buy some of those.

[Gyfts]

Isn't it a strange world we live in where not overprinting fiat is considered unattainable rocket science to many states and regulatory authorities. Even more strange is how determined many are to refuse to acknowledge basic rules and principles of finance/economics applying even to large governments with trillions in assets.

There could be a certain anti intellectualism involved in believing humanity has evolved beyond basic laws of science and money. A trend people might want to reverse before circumstances deteriorate further.

Inflation is a relatively harmless things by itself. The real problem is convincing people circumstances leading to inflation are real problems that need addressing. Civilization appears to have reached a point where inflation is considered to be as mythical as aliens. It could be a concern.

Trust me, government officials are well aware of inflation, they just don't care because it's more convenient in the "now" to turn the printer into overdrive and create money out of thin air instead of fixing systemic problems. The US within the last year has printed more money than ever has existed in history before -- it's not like Americans are brain dead and don't understand fiscal responsibility. They knew the currency would bloat up, they just didn't care because it's a problem that can be pushed onto the next guy.

What's terrifying is the money the US owes to China. What happens when the US economy crashes? Surely that will effect China's economy if/when they default on their loans. And then what? Two of the largest economies in the world crash? Scary.

[Coyster]

   Our economy change drastically and very tangible of the eyed of everyone. We can not control the economics cycling in out of the world. More people suffer that can not afford to buy due of high demand of the prices the situation of the poor status it's getting vulnerable so it is really hard when we're in point of the high inflation more risk we can experience.

The economy was bound to end up this way, right when the pandemic started back in early last year, it was a signal that there was going to be an economic collapse. With lockdowns, people not working and businesses shut down etc, it was basically obvious that there'll be a downturn in the economic affairs of many countries, and even still on that, policies like printing of more money to bring the pandemic under control, didn't quite help matters, now we're faced with inflation/hyper inflation, and with the look of things, it may only get worse for our economy/Fiat from now going forward.

That being said, the situation has allured quite a lot of people to assets that can hold the value of funds during periods of inflation, like Bitcoin for example, we see how the institutional investors, prominent individuals and the rest are now interested in the network, and this growing interest is likely to increase as the Inflation levels gets worse.

[GeorgeJohn]

   Our economy change drastically and very tangible of the eyed of everyone. We can not control the economics cycling in out of the world. More people suffer that can not afford to buy due of high demand of the prices the situation of the poor status it's getting vulnerable so it is really hard when we're in point of the high inflation more risk we can experience.

Some countries are not into economy crisis and some are not into economy crisis, so from this scenario we have to know that development or betterment of a country economy depends on their management which can likely caused through their political leaders.

While countries suffer for higher demands of beverages and other materials use for industrial purposes and food consumptions, is because of lack of management and poor diversification of country economy, some countries focus on one source of revenue, so if the source happens to crash, it's obvious that the country will engage into economy crisis which will absolutely bring shortages of income.

So our upliftment in the country replies on the government heads who are piloting the affairs of the country, from my observation it's quit understood that what causes a lot of controversial issues that lead some countries into massive problem is embezzlement of funds and poor source of generating revenue.

[Silberman]

That's why many people and institutions are looking for an alternative asset that is not affected by inflation and makes their money grow by hedging into it. That is the reason why some companies are putting their money into cryptocurrencies like Bitcoin. It's just that it's best to prevent that, and with the current economy and tragedies that we are experiencing right now, it's a good approach to it.

This is correct, smart people know that sooner or later a crash of the economy will come because the inflation is simply too high, governments have printed so much money lately with the excuse of the pandemic that high levels of inflation for years are a given, and when people cannot get more money due to the high levels of unemployment and the small wealth they have is consumed by inflation then there is no way out of this and sooner or later we will face huge levels of hyperinflation.

[dimox]

inflation happen if people have mich money, and there is rarely to buy some product. and all of stuff increase their price in a long time. people cant handle in brief, need step and more step to make it normal.
need to know about economy of country itself is good, people can help just a little bit to roll their money. and team work by government and general public is needed to improve own country.

[AndySt]

Trust me, government officials are well aware of inflation, they just don't care because it's more convenient in the "now" to turn the printer into overdrive and create money out of thin air instead of fixing systemic problems. The US within the last year has printed more money than ever has existed in history before -- it's not like Americans are brain dead and don't understand fiscal responsibility. They knew the currency would bloat up, they just didn't care because it's a problem that can be pushed onto the next guy.
What's terrifying is the money the US owes to China. What happens when the US economy crashes? Surely that will effect China's economy if/when they default on their loans. And then what? Two of the largest economies in the world crash? Scary.

Just now, the most important thing for the government is to fight the coronavirus and overcome the negative phenomena for the economy, and the launch of a printing press for this is the most affordable and seemingly safe measure. Another question is how safe it is depends on the amount of money being printed and how efficiently the economy can digest it. However, judging by the volume of the stock market and the explosive growth of cryptocurrencies before this, it was clear where the excessive amount of money goes, but the situation is not stable and the current situation with the collapse of the bitcoin exchange rate suggests this. Therefore, we will monitor the situation and hope for the best, but the most important thing is to defeat the coronavirus epidemic.

[Xinarae*]

It is not possible for the people to avoid the risk of rising prices of the economy. It is under the control of the government when the prices of the economy go up it puts pressure on everyone high levels of defaulting debt have already put the financial sector at extreme risk and fragile investment conditions have put the economy under pressure. Weak revenue collection if revenue is not collected as per the target there will be pressure on budget implementation. Besides lack of corporate good governance in the banking sector even excess liquidity poses a kind of risk to the economy.

[husnija]

That is what is worried if there's inflation in almost all parts of the world, it will be difficult for the economy to move
All sectors will inevitably have an impact, especially new started small businesses will certainly find it difficult to survive

[wahyu wida]

It is not possible for the people to avoid the risk of rising prices of the economy. It is under the control of the government when the prices of the economy go up it puts pressure on everyone high levels of defaulting debt have already put the financial sector at extreme risk and fragile investment conditions have put the economy under pressure. Weak revenue collection if revenue is not collected as per the target there will be pressure on budget implementation. Besides lack of corporate good governance in the banking sector even excess liquidity poses a kind of risk to the economy.

indeed inflation is unavoidable, but the task of the government is to suppress inflation so that it does not skyrocket. I think that with the increase in people's welfare, inflation will not have a major effect on the life of a country. besides that, with good state management, of course it will help the strength of a country's economy

[stompix]

Where do you live that 10% change is not a lot to you?

This is the maximum I would see the overall prices rise to..
I live in Europe, some things have gone up in price but some are staying flat, basic food that is produced locally and it's not seasonal is barely changing, I put a 10% just to draw a median. Besides, as I said the rise is temporary, supply chains being broken, in some cases like beef because governments are trying to "protects" their consumers by banning exports and so on and on, the spike in prices is not here to stay indefinitely, as they grow production will ramp up because it's profitable, more production less imbalance.

But at the same time, you can't expect that all those production and distribution chains that have been cut or at least heavily affected for almost a year to resume normal work in a matter of days or weeks.

This is correct, smart people know that sooner or later a crash of the economy will come because the inflation is simply too high, governments have printed so much money lately with the excuse of the pandemic that high levels of inflation for years are a given, and when people cannot get more money

You're contradicting yourself.
Besides, in hyperinflation people are having too much money and not able to spend, not the other way around.

[bryant.coleman]

This is the maximum I would the overall prices rise to..
I live in Europe, some things have gone up in price but some are staying flat, basic food that is produced locally and it's not seasonal is barely changing, I put a 10% just to draw a median. Besides, as I said the rise is temporary, supply chains being broken, in some cases like beef because governments are trying to "protects" their consumers by banning exports and so on and on, the spike in prices is not here to stay indefinitely, as they grow production will ramp up because it's profitable, more production less imbalance.

But at the same time, you can't expect that all those production and distribution chains that have been cut or at least heavily affected for almost a year to resume normal work in a matter of days or weeks.

I have to disagree with you. Not all the assets are impacted by inflation at the same degree. For example, the price of commodities and assets that are plentiful will not go up much even if hyperinflation occurs. And this is applicable to food products, electronics, manufactured goods.etc. On the other hand, goods and services, as well as assets that have a limited supply will go up much more when compared to the first category. I am talking about bullion, skilled labor, collectibles.etc. If people have a lot of spendable money, then the value of these assets may go up by 50% or 100% in a short period.

[OnurGalatasaray]

Inflation is also a big danger for crypto. So many Shitcoins have huge inflation, like Ethereum or Polkadot. Such coins have a big risk of being devalued.
It is similar to cash, if more of it gets printed / staked price will go down per coins and holders will suffer inflation.

We should always only buy crypto where no inflation is a fact (like Bitcoin).

[Vishnu.Reang]

Inflation is also a big danger for crypto. So many Shitcoins have huge inflation, like Ethereum or Polkadot. Such coins have a big risk of being devalued.
It is similar to cash, if more of it gets printed / staked price will go down per coins and holders will suffer inflation.

We should always only buy crypto where no inflation is a fact (like Bitcoin).

How can you say that Ethereum and Polkadot are vulnerable to inflation, when their maximum supply is fixed? You can say that Dogecoin is vulnerable to inflation, because the maximum supply is not fixed. That is not the case with Ethereum. And they haven't implemented the PoS algorithm yet.. probably because they are not confident about it. In the end, Ethereum may end up with a hybrid algorithm with both PoS and PoW. But that shouldn't change the limit on maximum supply and therefore it should be safe from inflation.

[stompix]

~

I have to disagree with you. Not all the assets are impacted by inflation at the same degree. For example, the price of commodities and assets that are plentiful will not go up much even if hyperinflation occurs. And this is applicable to food products, electronics, manufactured goods.etc. On the other hand, goods and services, as well as assets that have a limited supply will go up much more when compared to the first category.

Yeah, but he was talking exactly about basic food and necessities, not about investments or other assets, those are not on the to be concerned about the list of people who struggle right now with money. As for services, I've actually checked all my utility bills right now and I see no actual change in them for like two years, nothing in from the ISP, telecom, gas, actually my electric bill went down about 1 eurocent per kWh, deliveries, cab fares, almost nothing has moved enough to catch my attention.
Of course, it's different from country to country, but in the end, it all goes down to stop electing morons in power, if some countries can avoid hyperinflation after a crisis it means the problem is with the ones making decisions.

How can you say that Ethereum and Polkadot are vulnerable to inflation, when their maximum supply is fixed?

Ethereum doesn't have a hard cap supply.

[magneto]

There's actually very little inflation in the economy right now.

What is very worrying is that people are expecting high inflation. And because of these inflationary expectations, you could have a self-fulling prophecy situation where inflationary expectations alone are able to lead to actual inflation in the future.

The quantitative easing and the myriad of fiscal stimuli are going to come at a cost, one way or the other. There is absolutely no way around that, although most policymakers still seem delusional about the potential consequences for some reason.

[Yatsan]

The rate of inflation varies within the country for we do have different resources and the state of economy matters depending on how the government and the people do manage to make use of the limited resources to be produced as goods and services being consumed by the mass public. Having bad governance and lack of resources might be a factor to cause the drastic change in terms of prices making higher inflation rate to arise making people do suffer within the economic state they belong.

[Shasha80]

The rate of inflation varies within the country for we do have different resources and the state of economy matters depending on how the government and the people do manage to make use of the limited resources to be produced as goods and services being consumed by the mass public. Having bad governance and lack of resources might be a factor to cause the drastic change in terms of prices making higher inflation rate to arise making people do suffer within the economic state they belong.

Each country does have a different inflation rate, depending on how the government manages the country. If every economic problem occurs,
it is only resolved by printing a lot of money, of course it will cause hyperinflation to occur. Which will make the prices of goods and services
uncontrollable, and will have a negative impact on the economy of a country. Because it will damage people's purchasing power and will also
reduce the value of savings owned by the citizens. Eventually there will be an economic crisis.

[Iphomme]

That is what is worried if there's inflation in almost all parts of the world, it will be difficult for the economy to move
All sectors will inevitably have an impact, especially new started small businesses will certainly find it difficult to survive

Yes its really true regards the inflation towards the impact of an economy. A lot of risk and damages will happen when it is getting worst. Even the Micro and Macro have also experienced difficulties.

[Sithara007]

There's actually very little inflation in the economy right now.

What is very worrying is that people are expecting high inflation. And because of these inflationary expectations, you could have a self-fulling prophecy situation where inflationary expectations alone are able to lead to actual inflation in the future.

The quantitative easing and the myriad of fiscal stimuli are going to come at a cost, one way or the other. There is absolutely no way around that, although most policymakers still seem delusional about the potential consequences for some reason.

The impact of inflation won't be immediately visible. It will take some time for its effects to be noticed. Governments around the world are indulging in a cash splurge in the name of stimulus. At least in some occasions, this will leave a lot of money at the hands of people who don't need it. Obviously some of this money will be used to make investment, pushing up the prices of equities and bullion. And some will be spent on luxuries and services, which may otherwise would of low priority. Overall, the impact will start to get noticed in 2-3 years, and the full effect will take at least 5 years to get reflected in the market.

[fillippone]

I see the picture being very different from "developed economies" and "emerging economies". (Please allow me this rough separation for the sake of discussion).

• In the emerging economies, commodities prices constitute a problem. Rising food prices have a negative impact on disposable income, and pose a serious threat to the less robust categories in the population. This might cause economic, political and social problem in those countries.
• Rising commodity prices can change the competitive advantage of a nation compared to their peers, either for misalignments in prices, or because rising prices can hinder the convenience of a whole industry
• In developed countries  commodity-induced inflation has a lesser impact. Inflation we are currently witnessing is more due to a base effect due to the massive disinflation in last year, due to COVID. In the long term rising inflation must be accompanied by rise in real wages. Something is against the secular trend of the last 20 years.
• True, rise in monetary aggregates can destabilise the inflation, sending the currencies in a Zimbabwe-style (or Weimar) style depreciation. But this is ultimately a very difficult scenario to witness.

[Nunoluck]

Inflation is bad for customers but it is good for company. Inflation makes their products price rise. I am very lucky because know about bitcoin. Now, I can avoid fiat inflation. I invest some of my money in btc and altcoins. I hope we have tangible currency which is as good as gold. when I invest in bitcoin, I feel that I find a way out from unstoppable fiat inflation.

[Btcoin Casino Top]

Judging by the comments, most people think inflation is the worst thing that can happen in an economy. But if you get even a little familiar with such science as economics, then you suddenly find that inflation is a "natural" phenomenon. The question is how strong is it, 3-5% is okay but more than 10% isn't.

[bryant.coleman]

Judging by the comments, most people think inflation is the worst thing that can happen in an economy. But if you get even a little familiar with such science as economics, then you suddenly find that inflation is a "natural" phenomenon. The question is how strong is it, 3-5% is okay but more than 10% isn't.

Inflation is a relatively recent phenomenon. During the days of the gold standard, there was hardly any inflation. However, as most of the countries discarded the gold standard and started printing banknotes without any control, the inflation rate went up. It just confirms that inflation results from incompetence of the governments. When the government fails to balance out its budget, it is forced to print more and more cash to cover the gap. And this results in inflation.

[paxmao]

I see the picture being very different from "developed economies" and "emerging economies". (Please allow me this rough separation for the sake of discussion).

• In the emerging economies, commodities prices constitute a problem. Rising food prices have a negative impact on disposable income, and pose a serious threat to the less robust categories in the population. This might cause economic, political and social problem in those countries.
• Rising commodity prices can change the competitive advantage of a nation compared to their peers, either for misalignments in prices, or because rising prices can hinder the convenience of a whole industry
• In developed countries  commodity-induced inflation has a lesser impact. Inflation we are currently witnessing is more due to a base effect due to the massive disinflation in last year, due to COVID. In the long term rising inflation must be accompanied by rise in real wages. Something is against the secular trend of the last 20 years.
• True, rise in monetary aggregates can destabilise the inflation, sending the currencies in a Zimbabwe-style (or Weimar) style depreciation. But this is ultimately a very difficult scenario to witness.

All of the above are true, however the effects of these are not linear. An increase of inflation to 1% has little effect, a 2% is considered desirable and if it goes beyond 5% then the effects on the public spending and investment strategies changes drastically. The problem is not as much the effects, but that, like wars, you know how they start but not how to end them with a victory or without being annihilated. I am not very confident on the ability of our politicians to control.

[fillippone]

Inflation is bad for customers but it is good for company. Inflation makes their products price rise.

Inflation is bad for companies too.
Of course they can make the price of their product rise, but eventually this is not certain, or they get damaged on their wharehouse costs.

Generally speaking inflation is bad for savers, while is good for debt issuers.

And guess who's the biggest debt issuers of them all?

[ivankoh]

Inflation is bad for customers but it is good for company. Inflation makes their products price rise.

Inflation is bad for companies too.
Of course they can make the price of their product rise, but eventually this is not certain, or they get damaged on their wharehouse costs.

Generally speaking inflation is bad for savers, while is good for debt issuers.

And guess who's the biggest debt issuers of them all?

How many company benefit from inflation.  It probably won't.  When the product is selling at a high level, it means that other products will be appraised with demand.  Competition will increase.  They are willing to reduce competitive prices to be satisfactory for the agency, customers and consumers.  It is no longer a risk, it always happens.  It's just that you haven't received a balance sheet from the government.  The damn thing is happening with land prices in my country.  Inflation makes the distinction between rich and poor become clearer than ever.  All cannot be justification.

[Sithara007]

How many company benefit from inflation.  It probably won't.  When the product is selling at a high level, it means that other products will be appraised with demand.  Competition will increase.  They are willing to reduce competitive prices to be satisfactory for the agency, customers and consumers.  It is no longer a risk, it always happens.  It's just that you haven't received a balance sheet from the government.  The damn thing is happening with land prices in my country.  Inflation makes the distinction between rich and poor become clearer than ever.  All cannot be justification.

I disagree. Inflation should not have any direct impact on competitiveness. Final price of a product is determined by the market conditions. If the cost of services and raw materials go up, then obviously the price of the final product will also go up. But it will be uniform for all the companies (i.e manufacturers). It is not like the cost will go up for one manufacturer, and it will remain the same for another. Real estate prices (as mentioned by you) on the other hand are vulnerable to inflation, because of limited supply. When people are having surplus money, they will be ready to pay a premium for preferred real estate spaces.

[fillippone]

On apparently uncorrelated news to this thread:


https://twitter.com/100trillionusd/status/1397843883380326400?s=21

FED is juggling M2, Inflation, Stock Market, The Banking system, this is a too unstable equilibrium to be held for too long.

[Xinarae*]

It is not possible for the people to avoid the risk of rising prices of the economy. It is under the control of the government when the prices of the economy go up it puts pressure on everyone high levels of defaulting debt have already put the financial sector at extreme risk and fragile investment conditions have put the economy under pressure. Weak revenue collection if revenue is not collected as per the target there will be pressure on budget implementation. Besides lack of corporate good governance in the banking sector even excess liquidity poses a kind of risk to the economy.

indeed inflation is unavoidable, but the task of the government is to suppress inflation so that it does not skyrocket. I think that with the increase in people's welfare, inflation will not have a major effect on the life of a country. besides that, with good state management, of course it will help the strength of a country's economy

Inflation helps the country's economy the government will have to take tough action. If the government does not control anything properly the challenges in the macro economy may increase in the current financial year inflation will increase as a result of the rising prices of goods in the international market again due to various natural disasters the supply system of the country may be disrupted. Inflation could be hampered if the policies of the major economies change.

[fillippone]

It is not possible for the people to avoid the risk of rising prices of the economy. It is under the control of the government when the prices of the economy go up it puts pressure on everyone high levels of defaulting debt have already put the financial sector at extreme risk and fragile investment conditions have put the economy under pressure. Weak revenue collection if revenue is not collected as per the target there will be pressure on budget implementation. Besides lack of corporate good governance in the banking sector even excess liquidity poses a kind of risk to the economy.

indeed inflation is unavoidable, but the task of the government is to suppress inflation so that it does not skyrocket. I think that with the increase in people's welfare, inflation will not have a major effect on the life of a country. besides that, with good state management, of course it will help the strength of a country's economy

Inflation helps the country's economy the government will have to take tough action. If the government does not control anything properly the challenges in the macro economy may increase in the current financial year inflation will increase as a result of the rising prices of goods in the international market again due to various natural disasters the supply system of the country may be disrupted. Inflation could be hampered if the policies of the major economies change.

I really can’t see how inflation is helping any country economy, besides erasing government debt, at the expenses of those who bought that debt (mainly the National investors, I guess), or via a nominal GDP growth with little real meaning.
Inflation is a savage beast, difficult to tame. Everyone that fiddled too much with variables, gor subdues, sooner or later. I am afraid the FED and other CB’s will soon follow that route.

[OnurGalatasaray]

Inflation is also a big danger for crypto. So many Shitcoins have huge inflation, like Ethereum or Polkadot. Such coins have a big risk of being devalued.
It is similar to cash, if more of it gets printed / staked price will go down per coins and holders will suffer inflation.

We should always only buy crypto where no inflation is a fact (like Bitcoin).

How can you say that Ethereum and Polkadot are vulnerable to inflation, when their maximum supply is fixed?

Çüş where is it fixed? It's not fixed.
Polkadot has 10% inflation per year and has infinite supply and fees are not burned.
Ethereum has 5% inflation per year and has infinite supply but fees will be burned at some point.

Ethereum and Pokadot are extremely vulnarable to inflation but Polkadot even more

You can say that Dogecoin is vulnerable to inflation, because the maximum supply is not fixed.

Yes.
Dogecoin is very inflationary like Ethereum and Polkadot.

That is not the case with Ethereum.

Of course it is same for Ethereum and Polkadot.

[fillippone]

Inflation is also a big danger for crypto. So many Shitcoins have huge inflation, like Ethereum or Polkadot. Such coins have a big risk of being devalued.
It is similar to cash, if more of it gets printed / staked price will go down per coins and holders will suffer inflation.

We should always only buy crypto where no inflation is a fact (like Bitcoin).

How can you say that Ethereum and Polkadot are vulnerable to inflation, when their maximum supply is fixed?

Çüş where is it fixed? It's not fixed.
Polkadot has 10% inflation per year and has infinite supply and fees are not burned.
Ethereum has 5% inflation per year and has infinite supply but fees will be burned at some point.

Ethereum and Pokadot are extremely vulnarable to inflation but Polkadot even more

You can say that Dogecoin is vulnerable to inflation, because the maximum supply is not fixed.

Yes.
Dogecoin is very inflationary like Ethereum and Polkadot.

Even if Dogecoin, ETH of any other shitcoin were designer not to be inflationary, being centralised shits, you couldn’t never trust their “central authorities” to be committed enforcing the protocol. “Can you guys stop trading”, version 2.0

[Reatim]

   Our economy change drastically and very tangible of the eyed of everyone. We can not control the economics cycling in out of the world. More people suffer that can not afford to buy due of high demand of the prices the situation of the poor status it's getting vulnerable so it is really hard when we're in point of the high inflation more risk we can experience.

What inflation when the market had already climbed up when the pandemic happens? I mean crypto market and not the worldwide economy .
if does not? meaning the market was manipulated this all time? But of course we can expect the incoming good things because the prices is steadily holding in the middle and there is no sign of falling back to the value before the bull happens.

[dkbit98]

I was reading one interesting ecoinometrics report showing that long term Bitcoin has proved to beat inflation,
in one year period Bitcoin beats inflation 85% of the time, in two years period 89% of the time, and 100% of the time in four years time period.
We can't know for sure what is going to happen in future and long term but it's safe to say that fiat money at some point with inevitable hyperinflation as we can see in history.

[fillippone]

I was reading one interesting ecoinometrics report showing that long term Bitcoin has proved to beat inflation,
in one year period Bitcoin beats inflation 85% of the time, in two years period 89% of the time, and 100% of the time in four years time period.
We can't know for sure what is going to happen in future and long term but it's safe to say that fiat money at some point with inevitable hyperinflation as we can see in history.

Interesting read.
The flaw in this study however is that bitcoin had such a stellar performance during the last years, that even if you add it to a shitty portfolio, the overall risk/reward is stellar.
So, as you said, the point is to assess the probability of future performance: bitcoin is going to stay a powerful inflation hedge only if will continue to exhibit a meaningful drift.

[affandi]

We know the inflation rate continues to increase every year, because Fiat continues to be printed and the economy worsens due to the Covid-19 pandemic in which people's purchasing power continues to decrease where every shop has decreased visitors.

in 2005 I bought a pack of cigarettes for $2 and now the price of that pack of cigarettes has increased dramatically to $20

the current solution is to invest in crypto or gold assets which in my opinion in the future will help the rate of economic growth for each individual.

[Sithara007]

We know the inflation rate continues to increase every year, because Fiat continues to be printed and the economy worsens due to the Covid-19 pandemic in which people's purchasing power continues to decrease where every shop has decreased visitors.

in 2005 I bought a pack of cigarettes for $2 and now the price of that pack of cigarettes has increased dramatically to $20

the current solution is to invest in crypto or gold assets which in my opinion in the future will help the rate of economic growth for each individual.

The example you have cited is an extreme case, because for different assets inflation is not uniform. One thing I would agree is that inflation will be worse in the near term. Because the governments around the world have returned to the big spending mode, after two decades of fiscal conservatism (the changing political mood necessitates it in many of the countries). This trend started many years ago, but the pandemic has now given the governments an opportunity to justify it.

[peter0425]

There's actually very little inflation in the economy right now.

Little comparing to what happens in 2020

What is very worrying is that people are expecting high inflation. And because of these inflationary expectations, you could have a self-fulling prophecy situation where inflationary expectations alone are able to lead to actual inflation in the future.

actually it is the media that makes peoples mind like that.

The quantitative easing and the myriad of fiscal stimuli are going to come at a cost, one way or the other. There is absolutely no way around that, although most policymakers still seem delusional about the potential consequences for some reason.

Hope that Inflation had already passed and wont effect the crypto market.

[Vishnu.Reang]

Hope that Inflation had already passed and wont effect the crypto market.

Inflation is actually good for the cryptocurrency market. Since most of the cryptocurrencies (except a few shitcoins such as Doge) has controlled supply mechanism, inflation would only mean a higher exchange rates for them. The net value of the other assets such as equities, real estate and bullion will go down as a result of inflation, while that of cryptocurrency will remain the same. And this will attract more investors, which in turn will result in another pump for the cryptocurrencies.

[dkbit98]

Interesting read.
The flaw in this study however is that bitcoin had such a stellar performance during the last years, that even if you add it to a shitty portfolio, the overall risk/reward is stellar.
So, as you said, the point is to assess the probability of future performance: bitcoin is going to stay a powerful inflation hedge only if will continue to exhibit a meaningful drift.

Don't worry so much about that because Biden and all other governments will take care of that with their new budget packages starting with United States 6 Trillion dollar budget
and they plan to increase it to 8.2 trillion dollars by year 2031.
Other countries will soon follow what America is doing and some of them will do even more printing, so we can simply do the math and follow stocks-to-flow model by PlanB.
Bitcoin will still have volatility and price manipulation but I am sure it will beat inflation more than any other asset like gold and precious metals.

[Gyfts]

Trust me, government officials are well aware of inflation, they just don't care because it's more convenient in the "now" to turn the printer into overdrive and create money out of thin air instead of fixing systemic problems. The US within the last year has printed more money than ever has existed in history before -- it's not like Americans are brain dead and don't understand fiscal responsibility. They knew the currency would bloat up, they just didn't care because it's a problem that can be pushed onto the next guy.
What's terrifying is the money the US owes to China. What happens when the US economy crashes? Surely that will effect China's economy if/when they default on their loans. And then what? Two of the largest economies in the world crash? Scary.

Just now, the most important thing for the government is to fight the coronavirus and overcome the negative phenomena for the economy, and the launch of a printing press for this is the most affordable and seemingly safe measure. Another question is how safe it is depends on the amount of money being printed and how efficiently the economy can digest it. However, judging by the volume of the stock market and the explosive growth of cryptocurrencies before this, it was clear where the excessive amount of money goes, but the situation is not stable and the current situation with the collapse of the bitcoin exchange rate suggests this. Therefore, we will monitor the situation and hope for the best, but the most important thing is to defeat the coronavirus epidemic.

When does fighting COVID become worse than the disease itself?

Major economies were entirely shut down so we could "stop the spread". Then, the money printing machine commences. I don't know how important it was to "fight Covid", at least in the traditional sense of locking everyone up, having entire industries lay off a chunk of their employees, and then begin issuing petty checks to compensate.

[affandi]

We know the inflation rate continues to increase every year, because Fiat continues to be printed and the economy worsens due to the Covid-19 pandemic in which people's purchasing power continues to decrease where every shop has decreased visitors.

in 2005 I bought a pack of cigarettes for $2 and now the price of that pack of cigarettes has increased dramatically to $20

the current solution is to invest in crypto or gold assets which in my opinion in the future will help the rate of economic growth for each individual.

The example you have cited is an extreme case, because for different assets inflation is not uniform. One thing I would agree is that inflation will be worse in the near term. Because the governments around the world have returned to the big spending mode, after two decades of fiscal conservatism (the changing political mood necessitates it in many of the countries). This trend started many years ago, but the pandemic has now given the governments an opportunity to justify it.

Yes, that's right, the regulations in each country are different, trade wars are the main solution to this problem, for example, like the United States and China attacking each other to increase their currency exchange rates, and that has a bad impact on the ecosystem of developing countries.

[Coin_trader]

We know the inflation rate continues to increase every year, because Fiat continues to be printed and the economy worsens due to the Covid-19 pandemic in which people's purchasing power continues to decrease where every shop has decreased visitors.

in 2005 I bought a pack of cigarettes for $2 and now the price of that pack of cigarettes has increased dramatically to $20

the current solution is to invest in crypto or gold assets which in my opinion in the future will help the rate of economic growth for each individual.

The example you have cited is an extreme case, because for different assets inflation is not uniform. One thing I would agree is that inflation will be worse in the near term. Because the governments around the world have returned to the big spending mode, after two decades of fiscal conservatism (the changing political mood necessitates it in many of the countries). This trend started many years ago, but the pandemic has now given the governments an opportunity to justify it.

Yes, that's right, the regulations in each country are different, trade wars are the main solution to this problem, for example, like the United States and China attacking each other to increase their currency exchange rates, and that has a bad impact on the ecosystem of developing countries.

Trade wars is only applicable for those rich country such as US and China as your example. But all the key players on trading are those small country which supplying raw materials for them. Inflation is inevitable due to the fiat nature of unlimited supply.


Neither Crypto nor gold is the solution for this problem because we can not force everyone to break the norm of using fiat since its the official currency in each respective country. The only solution was revising the economic flow globally.

[verita1]

Here's an interesting tweet by Gordon Johnson, a Twitter user knowledgeable about the US economy, addressing his argument, he replies to a tweet from Paul Krugman, a New York Times Opinion columnist.
Paul Krugman argues that there is no need to worry about inflation.

https://twitter.com/GordonJohnson19/status/1398655281714843654?s=19

[AndySt]

Hope that Inflation had already passed and wont effect the crypto market.

Inflation is actually good for the cryptocurrency market. Since most of the cryptocurrencies (except a few shitcoins such as Doge) has controlled supply mechanism, inflation would only mean a higher exchange rates for them. The net value of the other assets such as equities, real estate and bullion will go down as a result of inflation, while that of cryptocurrency will remain the same. And this will attract more investors, which in turn will result in another pump for the cryptocurrencies.

Why should the value of real estate and bullion necessarily fall as a result of inflation? I think that on the contrary, inflation leads to an increase in the cost of goods and services as a result of the functioning of a large amount of money in the market. The same should apply to the stock market and the cryptocurrency market, so you really should not be afraid of the impact of inflation on the cryptocurrency market. If there is an impact, it is more positive than negative. Although, of course, there are exceptions to the rules, such as the lag of the rise in real estate prices from the level of inflation, or the collapse of prices in the real estate market, but there are already reasons that are stronger than inflation at a particular time.

[Iphomme]

The increase on inflation can't be stop, and that's why every government is trying their best to slow this one down and prevent the hyperinflation that is already happening in some countries, and the result is really bad for them. I understand the cost of living nowadays, and we should do our best to increase our source of income so when the big inflation hits, we still have a money that can support our daily needs, don't put your money on a bank, better to put it on any investment asset so the value of your money increases.

  It's Getting worst by Pandemic the foundation can not support to all people. Some our country experienced hyperinflation and they suffered for their needs and want that they can not afford to buy on their self. But most in our community are in a status of vulnerability living like poor. They are the lowest people who suffered by inflation.

[andriarto]

We know the inflation rate continues to increase every year, because Fiat continues to be printed and the economy worsens due to the Covid-19 pandemic in which people's purchasing power continues to decrease where every shop has decreased visitors.

in 2005 I bought a pack of cigarettes for $2 and now the price of that pack of cigarettes has increased dramatically to $20

the current solution is to invest in crypto or gold assets which in my opinion in the future will help the rate of economic growth for each individual.

The example you have cited is an extreme case, because for different assets inflation is not uniform. One thing I would agree is that inflation will be worse in the near term. Because the governments around the world have returned to the big spending mode, after two decades of fiscal conservatism (the changing political mood necessitates it in many of the countries). This trend started many years ago, but the pandemic has now given the governments an opportunity to justify it.

Yes, that's right, the regulations in each country are different, trade wars are the main solution to this problem, for example, like the United States and China attacking each other to increase their currency exchange rates, and that has a bad impact on the ecosystem of developing countries.

developing countries are suffering because of the economic war between the two countries. on the one hand, China is boosting its economy to rule the world, while America seems to be strengthening its military power system, but they don't seem to want to lose their name as a superpower.

[Vishnu.Reang]

Why should the value of real estate and bullion necessarily fall as a result of inflation? I think that on the contrary, inflation leads to an increase in the cost of goods and services as a result of the functioning of a large amount of money in the market. The same should apply to the stock market and the cryptocurrency market, so you really should not be afraid of the impact of inflation on the cryptocurrency market. If there is an impact, it is more positive than negative. Although, of course, there are exceptions to the rules, such as the lag of the rise in real estate prices from the level of inflation, or the collapse of prices in the real estate market, but there are already reasons that are stronger than inflation at a particular time.

You didn't understood what I posted. The nominal price of real estate and bullion may go up as a result of inflation (in terms of fiat currency). But overall, the purchasing power of fiat goes down due to inflation, and it will make sure that the real value of these assets are lower than the pre-inflation level. Let me give you an example:

A country is having 20% annual inflation for 5 years. Nominal value of fiat currency remains same, but the purchasing power goes down by 60%. That means that purchasing power of 100 units of fiat currency during pre-inflation level is now equal to 250 units post-inflation. So in order for real estate and bullion to maintain their purchasing power, their nominal price needs to go up by 150%. But in real life cases, it never goes up by that much. At may be 50% or 60% at the most.

[dongyi17]

I think the inflation because of pandemic, the price increase, food, services, and other needs for living everyday. And I also think why the prices increase is to get their losses from previous year, that is business they are only thinking is to get profit.

[bryant.coleman]

I think the inflation because of pandemic, the price increase, food, services, and other needs for living everyday. And I also think why the prices increase is to get their losses from previous year, that is business they are only thinking is to get profit.

Nope.. I don't think that the businesses are responsible. With so much competition, it is virtually impossible for the businesses to overcharge. The problem is with the governments. Now they got the justification in terms of the pandemic and no one will question them if they print unlimited amounts of banknotes. The US government has announced additional spending plans worth $6 trillion. The other countries are likely to follow the example. It is a once in a lifetime opportunity for the politicians to steal trillions of USD from the public exchequer. And hyperinflation will be one of the several consequences that result from this robbery.

[oHnK]

I think the inflation because of pandemic, the price increase, food, services, and other needs for living everyday. And I also think why the prices increase is to get their losses from previous year, that is business they are only thinking is to get profit.

Nope.. I don't think that the businesses are responsible. With so much competition, it is virtually impossible for the businesses to overcharge. The problem is with the governments. Now they got the justification in terms of the pandemic and no one will question them if they print unlimited amounts of banknotes. The US government has announced additional spending plans worth $6 trillion. The other countries are likely to follow the example. It is a once in a lifetime opportunity for the politicians to steal trillions of USD from the public exchequer. And hyperinflation will be one of the several consequences that result from this robbery.

Yup, I couldn't agree more. The government is the most responsible for the inflation issue in the country. At first the government could print money with gold collateral in the country, but now they are so free to print money without any underlying assets.  The current alibi of the government and central bank, if asked what is the underlying asset of a currency today?  The short answer is a guarantee from the country's central bank.  But their policy is to print so much money just to fill the stomachs of the corruptors because it has been proven that in many countries the distribution of subsidized money does not reach the public.  deposit interest that can reach millions of dollars.

[sana54210]

I think the inflation because of pandemic, the price increase, food, services, and other needs for living everyday. And I also think why the prices increase is to get their losses from previous year, that is business they are only thinking is to get profit.

Nope.. I don't think that the businesses are responsible. With so much competition, it is virtually impossible for the businesses to overcharge. The problem is with the governments. Now they got the justification in terms of the pandemic and no one will question them if they print unlimited amounts of banknotes. The US government has announced additional spending plans worth $6 trillion. The other countries are likely to follow the example. It is a once in a lifetime opportunity for the politicians to steal trillions of USD from the public exchequer. And hyperinflation will be one of the several consequences that result from this robbery.

Business' are a bit of a responsible for the increase in price, but it is mostly the people who run and their greed. At the end of the day these companies are still making a ton of money, why are they increasing the price? What happens is that lets assume there is a company that sells a product for 10 bucks and they make 1 billion dollars a year right? So the costs increase, and then they spend some more this year because of pandemic, and even sell a bit less, now they are making 100 million dollars.

In order to prevent that they increase the price to 12.40 and they decrease the product size as well and fire thousands of workers and now they are making 150 million dollars instead of 100, they are still not making 1 billion, but they declined to make 100 million and for that extra 50 million profit they decided it was okay to charge more and fire people. That's what is wrong.

[Sithara007]

Business' are a bit of a responsible for the increase in price, but it is mostly the people who run and their greed. At the end of the day these companies are still making a ton of money, why are they increasing the price? What happens is that lets assume there is a company that sells a product for 10 bucks and they make 1 billion dollars a year right? So the costs increase, and then they spend some more this year because of pandemic, and even sell a bit less, now they are making 100 million dollars.

In order to prevent that they increase the price to 12.40 and they decrease the product size as well and fire thousands of workers and now they are making 150 million dollars instead of 100, they are still not making 1 billion, but they declined to make 100 million and for that extra 50 million profit they decided it was okay to charge more and fire people. That's what is wrong.

No one runs a business for charity. If the business is not profitable, then why anyone should go through all the pains? The rich can simply invest in treasury bonds and see their net wealth increasing without any effort. And let's not forget the fact that a large share of the businesses are facing bankruptcy as a result of this pandemic. If a company is able to sell their product at a premium price (take Apple for example), that is because of the exceptional quality of that product, and due to the brand name that was built over the years.

[Kittygalore]

I think the inflation because of pandemic, the price increase, food, services, and other needs for living everyday. And I also think why the prices increase is to get their losses from previous year, that is business they are only thinking is to get profit.

The pandemic is the main reason but that doesn't mean that it is a solvable problem because people can adapt, maybe at first they are in the dark as to what to do but as time goes on, they will slowly adapt to a new normal. The root reason for inflation is that the raw materials for products are getting expensive.

[PIR]

The risk of inflation in Economy really affect the whole system specially now that we are in Pandemic situation the government as well as individual are looking for the means to gain income or earn to make a living. Business world are also affected even the small enterprise, that is why those who engage in cryptocurrency world hope to earn and make profit so that it would somehow help them.

[bryant.coleman]

The risk of inflation in Economy really affect the whole system specially now that we are in Pandemic situation the government as well as individual are looking for the means to gain income or earn to make a living. Business world are also affected even the small enterprise, that is why those who engage in cryptocurrency world hope to earn and make profit so that it would somehow help them.

The purpose of cryptocurrency is not to create jobs or profits for businesses. But if they use cryptocurrency in the proper way, then ultimately it will result in benefit. IMO, the biggest advantage with cryptocurrency right now is that it can act as a store of value. Governments around the world are announcing big spending plans and this will ultimately result in extreme inflation. Moving your funds to some asset, that is at least partially protected against inflation will help you to protect your wealth during these difficult times.

[el kaka22]

Inflation is not "that" bad when it's done properly, because the money we have needs to grow more and more so that everyone could have more, the greed in human nature can be swallowed hole from the inflation, everyone could get richer and we would be doing fine.

However the problem is when there is a 2% inflation and 90% of that is for the billionaires and none of it for the regular people, that is not going to be the inflation that is the problem, it is the wealth gap. When you have more unemployed people, and when you have millions of more people who are working for minimum wage because they accept anything they can find instead of being unemployed, when you have college graduates who work at mcdonalds, and then you look at 10 people making nearly 300 billion dollars in profit, you know that inflation is not the issue and it is the unfair advantage rich people have.

[Sithara007]

Inflation is not "that" bad when it's done properly, because the money we have needs to grow more and more so that everyone could have more, the greed in human nature can be swallowed hole from the inflation, everyone could get richer and we would be doing fine.

However the problem is when there is a 2% inflation and 90% of that is for the billionaires and none of it for the regular people, that is not going to be the inflation that is the problem, it is the wealth gap. When you have more unemployed people, and when you have millions of more people who are working for minimum wage because they accept anything they can find instead of being unemployed, when you have college graduates who work at mcdonalds, and then you look at 10 people making nearly 300 billion dollars in profit, you know that inflation is not the issue and it is the unfair advantage rich people have.

My issue with inflation is that it reduces the net worth of our savings. And the impact is almost limited to the middle class, as they are the ones who hold assets that are vulnerable to inflation. The poor usually don't have any savings, while the rich have most of their wealth in the form of real estate and bullion, and these assets are protected against inflation. IMO, inflation impacts everyone (but middle class is disproportionately impacted) and it can be beneficial only for the politicians (they can keep their subjects happy with more handouts).

[fillippone]

In the meantime yesterday the annual inflation in EU hit 2% for the first time since 2018.
Forward inflation, inflation over a 5y period forecasted in 5Y, is also at relative maximums around 1.65 in Europe.

Don’t worry: the ECB has already clearly stated they are ready to let numbers run wild for a certain period of time, as they have been lagging the official targets for many years. So expect inflation above 2% nominal level and printers still going brrrr.

[Coroline]

Inflation reduces the value of the currency's purchasing power. So due to inflation, the same amount of money will buy less goods than before. This happens because sellers are compelled to increase the price of their goods. In an attempt to capture the same value for their goods after inflation.

As purchasing power falls, the standard cost of living is higher than it was before inflation. Consequently, people are required to make more money than ever before. Because to be able to get the same goods or services, they have to pay more.

[clint25n]

   Our economy change drastically and very tangible of the eyed of everyone. We can not control the economics cycling in out of the world. More people suffer that can not afford to buy due of high demand of the prices the situation of the poor status it's getting vulnerable so it is really hard when we're in point of the high inflation more risk we can experience.

That's right, that's why we are obliged to always invest, save from some of the money we work for... who knows in difficult conditions like this, at least we still have a handle to be able to continue to survive... no need to live excessively if it is still enough... I hope this condition will end soon and the government should be more concerned with the people below.

[bryant.coleman]

Inflation reduces the value of the currency's purchasing power. So due to inflation, the same amount of money will buy less goods than before. This happens because sellers are compelled to increase the price of their goods. In an attempt to capture the same value for their goods after inflation.

As purchasing power falls, the standard cost of living is higher than it was before inflation. Consequently, people are required to make more money than ever before. Because to be able to get the same goods or services, they have to pay more.

One of the issues with inflation is that the wages almost never goes up. Unless you change your job, your salary remains the same. And that is despite a steep reduction in purchasing power by 10% or 20%. The expenses on all the other services go up. On top of that, the net value of most of your savings will also go down (in case they are in the form of treasury bonds or bank deposits). In short, the only group of people who will benefit from inflation will be those who refuse to work and life off welfare benefits and handouts from the government.

[AicecreaME]

There are several factors why the economy of a country is at risk of inflation. One most common reason is politics. Politics play a great role in every aspect of our lives. You may not know or notice it, but almost everything involves politics. A country is governed by several people that have the work to lead the citizens into a better society. However, most often than not, the government fails to bring quality work and services that results to negative impact to the overall status of the economy. Thereafter, it is reflected in the market and mostly, the ordinary people suffer.

Bad governance can lead to an increased inflation rate. In fact, every presidential term here in our country, it is mandatory to check whether or not the inflation rate has gone up or down. This is one of the indicators if the leader strategized and planned well the execution of policies, laws, and regulations about supply and demand that could cause inflation of prices in the market.

As long as your country has a good set of people who are committed to serve their constituents, you have a little to worry about.

[Rono]

It is really creating a big problem. Inflation it making  the situation of little earning of people is very difficult time like die to living moment.This momentum never Ending soon.It has been such a shameless situation for the nation.In the other had which people has lots of money they can make more and not be taking granted in any poor and couldn’t even think about them.They have no issues or headaches for inflation.Now a days who is poor is getting more  poor and who has money is always getting bigger and bigger.If Good Government can not take this issues seriously than it is for sure that poor people dying for the Government.

[Wind_FURY]

This Italian artist sold an “invisible sculpture” for more than $18,000.

https://www.newsweek.com/italian-artist-sells-invisible-sculpture-more-18000-1596608

Hahaha. That’s simply, Proof of Inflation, and proof that it will definitely get crazier and crazier. Many people have too much cash in their hands to spend in useless things.

[zanezane]

This Italian artist sold an “invisible sculpture” for more than $18,000.

https://www.newsweek.com/italian-artist-sells-invisible-sculpture-more-18000-1596608

Hahaha. That’s simply, Proof of Inflation, and proof that it will definitely get crazier and crazier. Many people have too much cash in their hands to spend in useless things.

The reason for that is because fine arts is a scam that is used by elites to park their money and make a big tax breaks by making the arts a donation to museums. I mean that's what any greedy and stupid person will do, they try to spend on things that they don't want to impress the people that they don't like instead of helping those in need with their money.

[imstillthebest]

It is really creating a big problem. Inflation it making  the situation of little earning of people is very difficult time like die to living moment.This momentum never Ending soon.It has been such a shameless situation for the nation.In the other had which people has lots of money they can make more and not be taking granted in any poor and couldn’t even think about them.They have no issues or headaches for inflation.Now a days who is poor is getting more  poor and who has money is always getting bigger and bigger.If Good Government can not take this issues seriously than it is for sure that poor people dying for the Government.

not all times its the riches and the governments fault because some governments are good at handling thier country but there will still be poors because they dont have dicipline in thier selves .
also some rich can help the poor and not all rich are lucky to get richer but some can get poor if they are not wise in handling their money  . inflation can be fought out by everyone if they can plan ahead

[angrynerd88]

Inflation is bad for economy and government busy to make unique policies to control the inflation.Also best way to reduce inflation is legalize the crypto which help the econmoy to hit milestone. Particularly in this widespread, the expansion is kinda difficult to control. Be that as it may, I figure with a reasonable approach and quick choice making everything can be taken care of well. It's truly vital to treat expansion as a genuine issue, inflation can be truly perilous for the nation additionally the individuals.

[mojun7982]

Inflation is bad for economy and government busy to make unique policies to control the inflation.Also best way to reduce inflation is legalize the crypto which help the econmoy to hit milestone. Particularly in this widespread, the expansion is kinda difficult to control. Be that as it may, I figure with a reasonable approach and quick choice making everything can be taken care of well. It's truly vital to treat expansion as a genuine issue, inflation can be truly perilous for the nation additionally the individuals.

I wouldn't say that legalizing crypto can prevent the upcoming inflation at this point. It may just offer an opportunity to those are affected by inflation to reduce the impact by having value preserving assets. However, there are barely any value preserving assets at this point as they are either pegged to a currency or the assets are volatile.

[Gatorelf]

inflation is nothing more than greed, why isnt there deflation?  because people always want more for what they have

[Sithara007]

inflation is nothing more than greed, why isnt there deflation?  because people always want more for what they have

Deflation will happen only when there is a shortage of cash and there is an oversupply of various commodities. Such a scenario is unlikely to happen anytime in the future. Because the governments are engaging in stimulus measures (meaning uncontrolled printing of banknotes). This leaves surplus cash at the hands of people and they will be willing to pay more for the commodities. The last time we had deflation was during the 80s in Japan. But even Japan has moved to an inflationary system now.

[paxmao]

We may not know when will it happen, but we do know that it will happen. Bitcoin can be used against hyperinflation, but I am not so sure that it has yet the level of maturity required to actually serve a hedge agains normal levels of inflation. Think of it, because bitcoin can swing 20% in a month an nobody would blink, but the inflation is considered high when above 5% a year, so that is not really much of an use case in most occidental countries.

[leea-1334]

Inflation is bad for economy and government busy to make unique policies to control the inflation.Also best way to reduce inflation is legalize the crypto which help the econmoy to hit milestone. Particularly in this widespread, the expansion is kinda difficult to control. Be that as it may, I figure with a reasonable approach and quick choice making everything can be taken care of well. It's truly vital to treat expansion as a genuine issue, inflation can be truly perilous for the nation additionally the individuals.

Inflation is NOT necessarily bad for economy, it can be useful in certain times to stimulate spending but of course it is highly inefficient and it tends to benefit the upper classes more than anyone else.

I think in my view,,, legalizing crypto will not help inflation. Only curing the ails of the economy can.

[fillippone]

Inflation is NOT necessarily bad for economy, it can be useful in certain times to stimulate spending but of course it is highly inefficient and it tends to benefit the upper classes more than anyone else.

With inflation, the economy gets a stimulus from all the people spending from their money because they know that in the future their money will be less valuable.  If you like the economy tho thrive on the back of common people please...go live in Turkey

[Midy]

That's why many people and institutions are looking for an alternative asset that is not affected by inflation and makes their money grow by hedging into it. That is the reason why some companies are putting their money into cryptocurrencies like Bitcoin. It's just that it's best to prevent that, and with the current economy and tragedies that we are experiencing right now, it's a good approach to it.

that's why we have to have several sources of passive income, to be able to overcome the world economy which is getting more and more difficult, one of which as you mentioned is investing in stocks or cryptocurrencies, we can't imagine if conditions like this will continue for the next 3-5 years

[Wind_FURY]

This analysis is a preview on what’s coming in the U.S., or what might be coming. If the U.S. economy crashes, then most of the world economy crashes.

https://corporate.nordea.com/article/65915/usd-inflation-preview-prepare-for-another-shocker

Choose your hedge/store of value, it might be gold, real estate, emerging market equities, or Bitcoin/cryptocurrencies.

[Wind_FURY]

This analysis is a preview on what’s coming in the U.S., or what might be coming. If the U.S. economy crashes, then most of the world economy crashes.

https://corporate.nordea.com/article/65915/usd-inflation-preview-prepare-for-another-shocker

Choose your hedge/store of value, it might be gold, real estate, emerging market equities, or Bitcoin/cryptocurrencies.

I think that all bigger countries will experience higher inflation in the next years. Due to the corona pandemic many central banks are printing money heavily. We as the small investors can't do much except going for inflation protection. The best idea is to mix our assets and buy gold, cryptos and real estate.

The only problem is that gold is already expensive and so is prime real estate.

But do you know why their prices are also surging up? Because of INFLATION, and it will get worse before to gets better. I believe like the best Bitcoin investing strategy for plebs like us, what to do with Gold and real estate is to Buy the dip and HODL. If I can buy a small farm land, I would do it.

[Vishnu.Reang]

But do you know why their prices are also surging up? Because of INFLATION, and it will get worse before to gets better. I believe like the best Bitcoin investing strategy for plebs like us, what to do with Gold and real estate is to Buy the dip and HODL. If I can buy a small farm land, I would do it.

For people like us, Bitcoin looks like the most suitable option. If you go for gold/platinum, then storage is an issue. You need to spend on expensive safes at home and even then it is not 100% safe. One option is to go for bank lockers or digital ETFs. And regarding real estate (farmland, houses.etc), there are additional expenses in the form of property tax and maintenance. If you don't have maintenance and all, then real estate is not the suitable option for you. That leaves you with a handful of choices, such as stocks, cryptocurrency and bonds.

[boumalo]

Inflation USA
0,82 in April 2021 (4,16% for 2021)

Thursday, June 10, 2021 08:30 AM we will get the Consumer Price Index for May 2021

https://www.usinflationcalculator.com/inflation/current-inflation-rates/

If you want more infos on the way the official CPI is calculated : https://www.bls.gov/cpi/news.htm

[Sithara007]

Here in India, the CPI inflation has crossed 5% level. Before the pandemic, this was at 3%-4% range. And the worst news is that it is likely to increase further in the coming months. Here the case is similar to all the other countries. The government implemented a number of stimulus measures, which unfortunately had the side effect of increasing the inflation rate. I won't be surprised, if the inflation rate jumps to double digits by 2023-24. The last time India had double digit inflation was back in 2010. The surging price of crude oil seems to be a major driver.

[Iphomme]

Inflation is NOT necessarily bad for economy, it can be useful in certain times to stimulate spending but of course it is highly inefficient and it tends to benefit the upper classes more than anyone else.

With inflation, the economy gets a stimulus from all the people spending from their money because they know that in the future their money will be less valuable.  If you like the economy tho thrive on the back of common people please...go live in Turkey

quote]
  
  Yes you have a point the money will be less valuable in the future and many people suffer due that they can not afford to buy their needs and wants . The risk of an inflation on the economy will getting vulnerable for everyone .

[Wind_FURY]

Here in India, the CPI inflation has crossed 5% level. Before the pandemic, this was at 3%-4% range. And the worst news is that it is likely to increase further in the coming months. Here the case is similar to all the other countries. The government implemented a number of stimulus measures, which unfortunately had the side effect of increasing the inflation rate. I won't be surprised, if the inflation rate jumps to double digits by 2023-24. The last time India had double digit inflation was back in 2010. The surging price of crude oil seems to be a major driver.

Plus India has not opened its economy fully to 100% yet, because it is one of the worst hit countries of the pandemic. But once their economy opens fully, the people will spend spend spend, raising inflation! It will be the same for many other countries around the world.

[fillippone]

Inflation USA
0,82 in April 2021 (4,16% for 2021)

Thursday, June 10, 2021 08:30 AM we will get the Consumer Price Index for May 2021

https://www.usinflationcalculator.com/inflation/current-inflation-rates/

If you want more infos on the way the official CPI is calculated : https://www.bls.gov/cpi/news.htm

At the moment the market is expecting a 0.4% increase MoM, and a 4.7% increase YoY.

So things are accelerating.

[dark1234]

The impact of inflation will cause pricing to decrease or increase. This happens because the percentage of inflation is irregular at the present time, each country cannot be sure of the percentage of inflation during the pandemic with certainty. So, pricing and selling prices are often inaccurate and rising inflation will be a ticking time bomb during a pandemic for every country and the public may invest in gold whose inflation is not too significant is highly recommended and if we have more funds we can also invest in gold. try your luck at crypto money which is also promising

[Wind_FURY]

Inflation USA
0,82 in April 2021 (4,16% for 2021)

Thursday, June 10, 2021 08:30 AM we will get the Consumer Price Index for May 2021

https://www.usinflationcalculator.com/inflation/current-inflation-rates/

If you want more infos on the way the official CPI is calculated : https://www.bls.gov/cpi/news.htm

At the moment the market is expecting a 0.4% increase MoM, and a 4.7% increase YoY.

So things are accelerating.

They are, and those numbers will definitely look arbitary if the government/FED starts losing control of the monetary system. They will try to calm everyone down, and say it’s “expected”, or it’s “transitory” because they don’t want fiat holders/savers to spend their cash in an accelerated state that would accelerate the velocity of money.

[bryant.coleman]

Plus India has not opened its economy fully to 100% yet, because it is one of the worst hit countries of the pandemic. But once their economy opens fully, the people will spend spend spend, raising inflation! It will be the same for many other countries around the world.

I am not residing in India right now, but from what I have heard a lot of people have been pushed in to poverty as a result of this pandemic. So the situation there is different from what they have in developed nations. The government itself is cash strapped and the taxes on petrol and other commodities are at historic highs. And as a result they haven't been able to roll out too many stimulus programs. And I guess that the situation is same with the other developing nations as well. There is no large influx of fiat, unlike the case in developed nations.

[oHnK]

Plus India has not opened its economy fully to 100% yet, because it is one of the worst hit countries of the pandemic. But once their economy opens fully, the people will spend spend spend, raising inflation! It will be the same for many other countries around the world.

I am not residing in India right now, but from what I have heard a lot of people have been pushed in to poverty as a result of this pandemic. So the situation there is different from what they have in developed nations. The government itself is cash strapped and the taxes on petrol and other commodities are at historic highs. And as a result they haven't been able to roll out too many stimulus programs. And I guess that the situation is same with the other developing nations as well. There is no large influx of fiat, unlike the case in developed nations.

However, referring to various articles, many countries have adopted a policy of printing money to stimulate the economy in the community.  Even this developing country is following the policy of the fed in printing large amounts of fiat.  I find it strange that in the midst of covid, the state does not provide stimulus to the community.  Because too many restrictions have been put in place to prevent the spread of this covid.

[pantek talacuik]

   Our economy change drastically and very tangible of the eyed of everyone. We can not control the economics cycling in out of the world. More people suffer that can not afford to buy due of high demand of the prices the situation of the poor status it's getting vulnerable so it is really hard when we're in point of the high inflation more risk we can experience.

I don't really think about the risks that I always experience every day, you don't have to think too much about the losses you experience every day. at least you are aware of it and try not to repeat yourself in the same hole. Maybe that would be enough.

[TheGreatPython]

Our economy change drastically and very tangible of the eyed of everyone. We can not control the economics cycling in out of the world. More people suffer that can not afford to buy due of high demand of the prices the situation of the poor status it's getting vulnerable so it is really hard when we're in point of the high inflation more risk we can experience.

Inflation is a very big problem , it is not easy to be honest. Our current government in my country has ruined the economy and the covid-19 just seems like another great opportunity for them to totally destroy what is left as inflation has been high and they are also devalued the currency. A lot of things has been happening lately since things are very bad this time around and people are trying to survive. It’s all by God’s grace that we are surviving.

If the country is run by a good government that is far from corruption, then inflation rates are not supposed to reach insane levels or constitute a crisis between individuals.

The truth is that government everywhere is really corrupt. It gets worse in developing countries where the rich are in political powers and there is no one to hold them accountable for their very bad leadership, and they act however they want to. Well, you’re still right because I believe that there are countries things are not going to be as worse.

[Wind_FURY]

Plus India has not opened its economy fully to 100% yet, because it is one of the worst hit countries of the pandemic. But once their economy opens fully, the people will spend spend spend, raising inflation! It will be the same for many other countries around the world.

I am not residing in India right now, but from what I have heard a lot of people have been pushed in to poverty as a result of this pandemic. So the situation there is different from what they have in developed nations. The government itself is cash strapped and the taxes on petrol and other commodities are at historic highs. And as a result they haven't been able to roll out too many stimulus programs. And I guess that the situation is same with the other developing nations as well. There is no large influx of fiat, unlike the case in developed nations.

It’s also the same situation in many other nations, developed, or not. There will always be a part of society who will be financially left out, but it doesn’t mean that an economy is not suffering from inflation. Why are prices going up faster than your monthly salary? Inflation. But maybe it’s different in India, I’ll research.

[fillippone]

In the meantime, notation is at 5% in the US:

US inflation rate jumps to 5%, highest since 2008 – business live

NEWS: Consumer prices rose faster than expected in May.
- Headline CPI rose 5% from a year ago, versus 4.7% expected and the largest annual burst since 2008
- Core CPI rose 3.8% year-over-year, versus 3.5% expected and the fastest pace since

Do you see that sound in the background?

Brrrr Brrrrr

[Gyfts]

https://www.washingtonpost.com/business/2021/06/10/inflation-cpi-may-prices/


Literally all across retailers in the US, you will find stories about how they are increasing their prices on all products. Scary stuff. But as the WaPo article above indicates, lawmakers in the US are saying it's just temporary. Sure, the inflation is temporary. But are the effects temporary? Nope! They last a life time, and then some. Once prices increase, they don't go back down. And then who gets hurt? The consumer.

[Vishnu.Reang]

https://www.washingtonpost.com/business/2021/06/10/inflation-cpi-may-prices/


Literally all across retailers in the US, you will find stories about how they are increasing their prices on all products. Scary stuff. But as the WaPo article above indicates, lawmakers in the US are saying it's just temporary. Sure, the inflation is temporary. But are the effects temporary? Nope! They last a life time, and then some. Once prices increase, they don't go back down. And then who gets hurt? The consumer.

Inflation is never temporary. Once the prices go up, it stays there. The rate of increase may go down when the economic recovery occurs, but the inflation rate never goes to negative. The influx of fiat money can never be taken back. During various stimulus measures, huge amounts of banknotes are printed and distributed. These banknotes are never recalled. So the inflation rate never goes back to the previous levels. And with the pandemic justifying big spending moves by governments, we can forget about the era when inflation rate was below 2%. 

[FanEagle]

Our economy change drastically and very tangible of the eyed of everyone. We can not control the economics cycling in out of the world. More people suffer that can not afford to buy due of high demand of the prices the situation of the poor status it's getting vulnerable so it is really hard when we're in point of the high inflation more risk we can experience.

Inflation is not bad for the economy when it is spread carefully, when there is excess amount of money that needs to be going towards everyone, however if wealthy people get wealthier and the poor people stay the same then inflation is a horrible thing, it just means you earn the same money but spend more. That is what we see all around the world right now and that is the biggest problem.

Of course you do not have to have anything close to that in order to screw the nation, even regular people getting just a bit while wealthy get most of it is still bad, and at the end of the day that is going to result with economical crisis because companies need us to keep buying and if we do not have money then we can't buy and they won't profit, in that case we should get more to spend more right? Well they just pay companies bail out money instead...

[fillippone]

Today the FARBAST index has been updated:

Federal Reserve Balance Sheet Tops $8T for First Time

The Federal Reserve’s balance sheet has exceeded $8 trillion for the first time, following extensive measures the U.S. central bank took last year to contain the economic damage from the coronavirus.

The Fed’s balance sheet has nearly doubled since March 2020, when the pandemic erupted in the U.S, based on weekly statistics released Thursday by the U.S. central bank.

Inflation fears do not make the FED step out of the brrr pedal!

[inoes]

There is definitely a risk, therefore, bitcoin appears as a solution to the rejection of inflation, but the main problem is the high level of fluctuation.  inflation .  fluctuation .  so actually bitcoin is a solution but it also causes some problems.

[Rajamuda]

There is definitely a risk, therefore, bitcoin appears as a solution to the rejection of inflation, but the main problem is the high level of fluctuation.  inflation .  fluctuation .  so actually bitcoin is a solution but it also causes some problems.

the characteristics of bitcoin do have a negative side as well as a positive side, here of course we do have to learn about it to deal with various problems that can indeed occur,
actually.. the positive side of the fluctuations can be exploited. Crypto/Bitcoin can indeed be a solution, especially if the government is already familiar with crypto/bitcoin, it can provide jobs related to crypto/bitcoin.

[electronicash]

no matter how the economy is whether it's getting better the poor will always suffer. is always the poor that gets affected the most. when they receive stimulus checks, they spend it for their basic needs while the rich receive money they invest this money.

and now the poor who only receives money doesn't want to work anymore because they receive money even when they are just laying down. well, maybe not all the poor. but everyone might just get used to it.

[Sithara007]

Inflation fears do not make the FED step out of the brrr pedal!

Do you really think that they will stop printing crazy amounts of banknotes anytime now, since now they have got the perfect excuse (COVID 19)? The M1 monetary supply for the US Dollar has gone up by more than 100% ever since the pandemic started. That is, almost $4 trillion worth of new banknotes coming in to existence in the last 15 months. Other fiat currencies such as GBP and EURO are also showing a similar growth. And this was one of the reasons why El Salvador made BTC as one of the legal tenders in such a haste.

[boumalo]

Inflation USA
0,82 in April 2021 (4,16% for 2021)

Thursday, June 10, 2021 08:30 AM we will get the Consumer Price Index for May 2021

https://www.usinflationcalculator.com/inflation/current-inflation-rates/

If you want more infos on the way the official CPI is calculated : https://www.bls.gov/cpi/news.htm

At the moment the market is expecting a 0.4% increase MoM, and a 4.7% increase YoY.

So things are accelerating.

0,6 in May 2021

Un-adjusted 12 month ended May 2021 5%

Annual rythm in 2021 so far : 6,7%

It is very high numbers.

[uneng]

Of course you do not have to have anything close to that in order to screw the nation, even regular people getting just a bit while wealthy get most of it is still bad, and at the end of the day that is going to result with economical crisis because companies need us to keep buying and if we do not have money then we can't buy and they won't profit, in that case we should get more to spend more right? Well they just pay companies bail out money instead...

Interesting you mentioned that, because I noticed a side effect of inflation that is the decreasement in quality of the products we buy daily, including food. There are new brands appearing on the supermarket stands and even new products I didn't see before. These brands are cheaper, but when you consume the product the difference is easily perceived. They are decreasing the quality of the raw materials used to manufacture the products in order to keep the prices somehow stable (anyway they are each day more expensive).

The condensed milk, for an example, is featured by these new brands in a new format: now it's not made from pure milk anymore, but from the serum of the milk. The final product is much less tasteful and its consistency is more liquid. It won't take too long until food totally loses its taste in order to balance prices and keep people consuming.

[Vishnu.Reang]

0,6 in May 2021

Un-adjusted 12 month ended May 2021 5%

Annual rythm in 2021 so far : 6,7%

It is very high numbers.

From what I heard, the M1 monetary supply within the United States increased by 100% plus. So it is natural to have higher inflation numbers. Actually I am surprised to see such low numbers. I would expect the inflation rate to be in double digits by now. Perhaps the impact of the higher monetary supply takes a while to be reflected in the market. But I am sure about one thing. With Democrats in power until 2025 January, the inflation is not going to get any lower now. Within the next 4 years, I expect an annual inflation in double digits and federal debt of around $50 trillion.

[AndySt]

0,6 in May 2021
Un-adjusted 12 month ended May 2021 5%
Annual rythm in 2021 so far : 6,7%
It is very high numbers.

From what I heard, the M1 monetary supply within the United States increased by 100% plus. So it is natural to have higher inflation numbers. Actually I am surprised to see such low numbers. I would expect the inflation rate to be in double digits by now. Perhaps the impact of the higher monetary supply takes a while to be reflected in the market. But I am sure about one thing. With Democrats in power until 2025 January, the inflation is not going to get any lower now. Within the next 4 years, I expect an annual inflation in double digits and federal debt of around $50 trillion.

It's just that not all this money is splashing out on the commodity market and the crazy growth of bitcoin and Tesla shares are events of the same order. In any case, the state was left with no other such affordable and easy choice than the policy of monetary stimulation of the economy. We can only speculate on the extent to which this should have been done, but it is the direction of economic policy that neither the Democratic Party nor the Republican Party has raised any questions. Even Janet Yellen, who was not an ardent supporter of the policy of quantitative easing, now talks in the style of if you can print, then why not.

[secretgirl]

   Our economy change drastically and very tangible of the eyed of everyone. We can not control the economics cycling in out of the world. More people suffer that can not afford to buy due of high demand of the prices the situation of the poor status it's getting vulnerable so it is really hard when we're in point of the high inflation more risk we can experience.

it's true what you say, more and more people are suffering especially people who don't have wealth because the inflation rate is getting higher. purchasing power is decreasing, for example a few years ago we could buy an item but we need a lot of money to buy the same goods a few years later when inflation increases. inflation will be very detrimental to people who keep their wealth in cash, because cash will lose its value. the worst thing due to higher inflation is that it can make the standard of living go down and the economy to get worse, because the prices of goods are out of reach. so that the general public find it difficult to get the goods they want.

[Sithara007]

it's true what you say, more and more people are suffering especially people who don't have wealth because the inflation rate is getting higher. purchasing power is decreasing, for example a few years ago we could buy an item but we need a lot of money to buy the same goods a few years later when inflation increases. inflation will be very detrimental to people who keep their wealth in cash, because cash will lose its value. the worst thing due to higher inflation is that it can make the standard of living go down and the economy to get worse, because the prices of goods are out of reach. so that the general public find it difficult to get the goods they want.

It is the middle class that get disproportionately affected from inflation. The lower class doesn't usually have any savings and so they don't really bother about inflation. The rich also have most of their assets in the form of real estate or bullion, which are protected against inflation. It is the middle class who keep their savings in the form of bank deposits and the purchasing power of these assets decrease with rising inflation levels. To make matters worse, the salary never increases on par with inflation.

[Koro-Sensei]

There are several factors that Government could do to fight against inflation. They could use wages to lessen the growing inflation and if necessary reducing the printing of money in a year. The problem is that some governments are incompetent enough to sought these things and some are blinded with money. These are the reasons why most countries are suffering inflation.

[carter34]

Even putting money into bitcoin won't solve the situation because you are part of the country or system and when you make withdrawal of the coins or converted form, you still use it to buy in an inflated system, the worth of what you are getting will be lower if it was not inflation. Inflation is a big challenge to every economy.

Are you sure about what you are talking about? Yeah, it is like that but no matter what the situation is, it's always going to be better for your capital to have more in USD or in BTC. The way that you can not be affected by the inflation of USD is by not letting your money stay in USD. In that way, you lessen the effects. Taking advantage of the current volatility of your assets as well.

You have to realise that volatility is in two ways, either for bullish or for bearish. When you hodl or invest at wrong time, your investment drops and may worth less even when converted to fiat. Except you have to change into stable coin to retain its value. Inflation affect the crypto except if the bull season resume.

[Dread Pirate Roberts]

   Our economy change drastically and very tangible of the eyed of everyone. We can not control the economics cycling in out of the world. More people suffer that can not afford to buy due of high demand of the prices the situation of the poor status it's getting vulnerable so it is really hard when we're in point of the high inflation more risk we can experience.

Thats true inflation will effect economy, money value will lower and everything will more expensive. there is many type investment that will save people from inflation such gold, property and now for digital investment is crypto.

[ChiBitCTy]

Inflation certainly is a major issues right now that I believe the vast majority of people are not prepared for.  Where I work, we currently offer a fixed account with a rate of 2.53%, which is VERY good for todays standards ( the best fixed rate you can get at a bank is currently around .5%).  That being said, with inflation around 3%+ on average right now, technically you're losing money sitting in that account "earning" 2.53%.  Here is a great article I just read about the Fed Reserve and skyrocketing interest rates- https://www.cnbc.com/2021/06/16/fed-holds-rates-steady-but-raises-inflation-expectations-sharply-and-makes-no-mention-of-taper.html

"Though the Fed raised its headline inflation expectation to 3.4%, a full percentage point higher than the March projection, the post-meeting statement stood by its position that inflation pressures are “transitory.” The raised expectations come amid the biggest rise in consumer prices in about 13 years".

[boumalo]

0,6 in May 2021

Un-adjusted 12 month ended May 2021 5%

Annual rythm in 2021 so far : 6,7%

It is very high numbers.

From what I heard, the M1 monetary supply within the United States increased by 100% plus. So it is natural to have higher inflation numbers. Actually I am surprised to see such low numbers. I would expect the inflation rate to be in double digits by now. Perhaps the impact of the higher monetary supply takes a while to be reflected in the market. But I am sure about one thing. With Democrats in power until 2025 January, the inflation is not going to get any lower now. Within the next 4 years, I expect an annual inflation in double digits and federal debt of around $50 trillion.

With less money creation, the prices would have gone down so the difference in purchasing power between the situation we have and what we would have with sound money is huge and the loss of purchasing power is big too.

Having assets offset a lot of the price increases and innovation push the prices lower so the inflation phenomena is not simple one-sided event.

[sapnu]

   Our economy change drastically and very tangible of the eyed of everyone. We can not control the economics cycling in out of the world. More people suffer that can not afford to buy due of high demand of the prices the situation of the poor status it's getting vulnerable so it is really hard when we're in point of the high inflation more risk we can experience.

The crisis that the world is about to face with regards to economy is invetable specially now that Covid 19 happened. Lots of business were shutdown forcibly as they face bankrupt which further leads to an economical breakdown. High inflation will happen no matter how much we would like to stop it, the prices will go way too expensive and famine will take place as well as war between countries due to fighting over territories and natural resources. That is why it is much important that you are doing something now that prepares you in the future so you wouldn't struggle when the time comes or atleast lessen it.

[Coroline]

  Our economy change drastically and very tangible of the eyed of everyone. We can not control the economics cycling in out of the world. More people suffer that can not afford to buy due of high demand of the prices the situation of the poor status it's getting vulnerable so it is really hard when we're in point of the high inflation more risk we can experience.

The crisis that the world is about to face with regards to economy is invetable specially now that Covid 19 happened. Lots of business were shutdown forcibly as they face bankrupt which further leads to an economical breakdown. High inflation will happen no matter how much we would like to stop it, the prices will go way too expensive and famine will take place as well as war between countries due to fighting over territories and natural resources. That is why it is much important that you are doing something now that prepares you in the future so you wouldn't struggle when the time comes or atleast lessen it.

Inflation will erode the value of money over time, including investment. Therefore, investors should buy investment products with a rate of return that is greater or at least equal to the rate of inflation. Thus, inflation will not have a negative impact on investment. On the other hand, if the rate of return on investment is lower than the rate of inflation, the real return on investment will be minus.

[boumalo]

There are so many evidences of inflation at the moment, starting with the official CPI in the US.

https://www.bls.gov/cpi/ 0,6% in May 2021

The release of the June number is July 13th

[Vishnu.Reang]

There are so many evidences of inflation at the moment, starting with the official CPI in the US.

https://www.bls.gov/cpi/ 0,6% in May 2021

The release of the June number is July 13th

Normally I don't go by these numbers, because they are generalized numbers combining a number of different assets. For ordinary people, it is inflation in the petroleum, food, medical and transport sectors which matter the most. And from what I can see, the the prices in these sectors have gone up by much more than 0.6%. The crude oil prices have almost doubled over the last 12 months, and this will act like a chain reaction, increasing the prices in other sectors (by pushing up the cost of transporting goods).

[horrifiedx1]

There are so many evidences of inflation at the moment, starting with the official CPI in the US.

https://www.bls.gov/cpi/ 0,6% in May 2021

The release of the June number is July 13th

Normally I don't go by these numbers, because they are generalized numbers combining a number of different assets. For ordinary people, it is inflation in the petroleum, food, medical and transport sectors which matter the most. And from what I can see, the the prices in these sectors have gone up by much more than 0.6%. The crude oil prices have almost doubled over the last 12 months, and this will act like a chain reaction, increasing the prices in other sectors (by pushing up the cost of transporting goods).

right, with the increase in oil prices, of course, the transportation sector will be the most affected, while everything related to the distribution of goods uses transportation, so this will trigger an increase in all prices. unless, for example, electrical energy that has been developed can replace it, so that it can replace the role of oil

[jaysabi]

If the country is run by a good government that is far from corruption, then inflation rates are not supposed to reach insane levels or constitute a crisis between individuals.

The inflation crisis shows the strength of the government's financial position. Unfortunately, the poor are the ones who pay the cost because they do not have sufficient financial tools to fight inflation.

The solution to this problem lies in obtaining more tools to fight inflation, Bitcoin may be one of those tools.

In developed nations, corruption has nothing to do with it. In poorer nations, corruption is probably not the cause of inflation either. There is a correlation between corrupt leaders in developing nations and high rates of inflation, but not because of the corruption itself. The cause of inflation is the monetary policy, full stop.

[Vishnu.Reang]

right, with the increase in oil prices, of course, the transportation sector will be the most affected, while everything related to the distribution of goods uses transportation, so this will trigger an increase in all prices. unless, for example, electrical energy that has been developed can replace it, so that it can replace the role of oil

Any increase in the crude oil prices will have far reaching impact, because it is being used in almost all the sectors - transportation, power generation, industries, heating (natural gas prices are also linked to crude oil prices), chemicals and plastic manufacturing, asphalt.etc. And if we check the prices for the last 12 months, it can be seen that the rate of brent crude has gone up from $40 per barrel to $75 per barrel. The prices have almost doubled. And from the historical perspective, the increase in crude oil prices is being regarded as one of the early signals of worsening inflation.

[STT]

Stating it as risk would suggest a risk also of deflation occurring is there, we have a certainty of continual price rises because of excessive liquidity and failure in currency standards.   The risk for deflation I'll state as a scenario but I don't think it happens, for deflation we'd require a reversal to QE and that cannot likely occur all that might be possible is default on debt and this equates to deflation.  
  Governments can and do go broke normally but not when they have any option to do otherwise, so what happens near term is quite predictable and its an excess of inflation.   Ultimately this is destructive and I'd hope most people are able to shelter their family from its effects but the whole of society will suffer some loss, quite simply free money does not exist so you know losses are coming.

I'm not stating a controversial opinion here especially, Iam paraphrasing the Federal Reserves released minutes.  This all is a deliberate policy and has been determined to be the most stable course to ensure against disorderly markets.

[pinggoki]

Inflation is something that cannot be cured other than with good and competent governance. A lot of factors are in play when it comes to the purchasing power of your national currency that simply blaming it to the working class won't work. Proper allocation of funds plus ensuring that corruption is prevented usually solves the issue with inflation as in the case with countries where the government is doing its intended work. Otherwise we're really going to be the ones who will suffer at the end of the day.

Inflation certainly is a major issues right now that I believe the vast majority of people are not prepared for.  Where I work, we currently offer a fixed account with a rate of 2.53%, which is VERY good for todays standards ( the best fixed rate you can get at a bank is currently around .5%).  That being said, with inflation around 3%+ on average right now, technically you're losing money sitting in that account "earning" 2.53%.  Here is a great article I just read about the Fed Reserve and skyrocketing interest rates- https://www.cnbc.com/2021/06/16/fed-holds-rates-steady-but-raises-inflation-expectations-sharply-and-makes-no-mention-of-taper.html

"Though the Fed raised its headline inflation expectation to 3.4%, a full percentage point higher than the March projection, the post-meeting statement stood by its position that inflation pressures are “transitory.” The raised expectations come amid the biggest rise in consumer prices in about 13 years".

That's the thing, even when you do means that "experts" say could help you earn and save money, if your country's currency is highly inflating or is inflating you really have little to no choice. So it's either you risk losing your money anyway by not saving it in a bank or you apply for a new job, because no sane man would ever think of their respective country finally getting their stuff together through protests and movements.

[AndySt]

right, with the increase in oil prices, of course, the transportation sector will be the most affected, while everything related to the distribution of goods uses transportation, so this will trigger an increase in all prices. unless, for example, electrical energy that has been developed can replace it, so that it can replace the role of oil

Any increase in the crude oil prices will have far reaching impact, because it is being used in almost all the sectors - transportation, power generation, industries, heating (natural gas prices are also linked to crude oil prices), chemicals and plastic manufacturing, asphalt.etc. And if we check the prices for the last 12 months, it can be seen that the rate of brent crude has gone up from $40 per barrel to $75 per barrel. The prices have almost doubled. And from the historical perspective, the increase in crude oil prices is being regarded as one of the early signals of worsening inflation.

You will also compare with negative oil prices and get a catastrophe in inflation in general   Please let's not forget that oil prices are a separate, slightly non-market story, when prices collapse and rise several times and even go into the negative side, so I don't quite agree with oil prices as arguments about inflation. To some extent, I agree with you, but the situation with the pandemic is so unique that not all past indicators can show the correct and most importantly the real picture of what is happening. When you print a lot of unsecured money, you will get inflation anyway. Another question is that in the current conditions, the tools of governments are not so extensive and the main task is to try to minimize the negative consequences later.

[Sithara007]

You will also compare with negative oil prices and get a catastrophe in inflation in general   Please let's not forget that oil prices are a separate, slightly non-market story, when prices collapse and rise several times and even go into the negative side, so I don't quite agree with oil prices as arguments about inflation. To some extent, I agree with you, but the situation with the pandemic is so unique that not all past indicators can show the correct and most importantly the real picture of what is happening. When you print a lot of unsecured money, you will get inflation anyway. Another question is that in the current conditions, the tools of governments are not so extensive and the main task is to try to minimize the negative consequences later.

There can be a reverse argument as well. Rather than saying that high oil prices are causing inflation we can also claim that it is inflation that is responsible for the high oil prices. The governments around the world have sanctioned big spending measures, giving the excuse that they are needed to fight the pandemic. On the other hand, the inflation levels have remained low, partly because of the slowdown in bullion and real estate sectors. But the increase in crude prices is a good sign that the inflation rate is going up.

[breathlessz]

You will also compare with negative oil prices and get a catastrophe in inflation in general   Please let's not forget that oil prices are a separate, slightly non-market story, when prices collapse and rise several times and even go into the negative side, so I don't quite agree with oil prices as arguments about inflation. To some extent, I agree with you, but the situation with the pandemic is so unique that not all past indicators can show the correct and most importantly the real picture of what is happening. When you print a lot of unsecured money, you will get inflation anyway. Another question is that in the current conditions, the tools of governments are not so extensive and the main task is to try to minimize the negative consequences later.

There can be a reverse argument as well. Rather than saying that high oil prices are causing inflation we can also claim that it is inflation that is responsible for the high oil prices. The governments around the world have sanctioned big spending measures, giving the excuse that they are needed to fight the pandemic. On the other hand, the inflation levels have remained low, partly because of the slowdown in bullion and real estate sectors. But the increase in crude prices is a good sign that the inflation rate is going up.

Until now, oil seems to play a major role in inflation. but indeed inflation seems unavoidable by a country, which occurs every year. especially with rising oil prices, inflation will certainly occur, on the other hand if the government prints money continuously it will encourage inflation as well. Therefore, by trying to keep prices stable, you will be able to control inflation

[Xinarae*]

As the amount of inflation rises so does the price of all food items in the country which puts the country's economy at risk and puts people at greater risk. The overall economic situation of the country is positive major key indicators are improving one of these is the decline in remittances and the growth rate of remittances and exports and the rise in inflation. Everything is in the hands of the government if the government wants it can reduce the amount the country's economy is not progressing according to its true potential. Progress in the productive sector is being hampered by lack of infrastructure and inadequate supply of gas and electricity.

[mckinleeanael07]

Since the outbreak of the pandemic until now, the prices of commodities in my country have increased, the life of farmers like me is really quite bad, life is difficult, the pandemic leads to unemployment. If you don't go anywhere, you can't do anything, so where can you get money to buy food, food, etc. while the value of the goods was increasing, I felt miserable.

[Vishnu.Reang]

Since the outbreak of the pandemic until now, the prices of commodities in my country have increased, the life of farmers like me is really quite bad, life is difficult, the pandemic leads to unemployment. If you don't go anywhere, you can't do anything, so where can you get money to buy food, food, etc. while the value of the goods was increasing, I felt miserable.

You have mentioned that you are a farmer? In that case, inflation is more beneficial for you, right? The price of your agricultural produce will go up, and in the end you will be left with more cash in hand. I understand that the expenses also might have gone up - such as transport, fertilizer and pesticide. But the increase in price of output should more than make up for that. In my country, the farmers are more worried about aspects such as lockdowns and restrictions in movement, and inflation is not a big issue right now.

[fillippone]

In the meantime the US CPI hits 5.4% on a YoY basis:

U.S. consumer prices post largest gain in 13 years; inflation has likely peaked

• Consumer prices increase 0.9% in June
• CPI accelerates 5.4% year-on-year
• Core CPI surges 0.9%; soars 4.5% year-on-year
• Used car, trucks account for more than a third of CPI jump

Highest level since 1991.



Inflation is here.
Transitory or not, this is a hidden tax on everyone assets.

[bryant.coleman]

In the meantime the US CPI hits 5.4% on a YoY basis:

U.S. consumer prices post largest gain in 13 years; inflation has likely peaked

>5% is very significant for the United States. The return from the US treasury bonds is around 1.2% per year, and the high inflation rate may create issues for the US government. If there is such a huge gap between the bond interest rate and the inflation, then the demand for bonds will subside and the government may find it hard to increase its federal debt without indulging in unlimited printing of banknotes. And this comes at a time when Joe Biden has unveiled some big spending plans (for which he need >$10 trillion in the next 4-year period).

[boumalo]

There are so many evidences of inflation at the moment, starting with the official CPI in the US.

https://www.bls.gov/cpi/ 0,6% in May 2021

The release of the June number is July 13th

0,9% in June
https://www.bls.gov/cpi/

There are supply chaines problems and a portion of the inflation seems transitory but it is very likely the prices will keep going up

[Sithara007]

0,9% in June
https://www.bls.gov/cpi/

There are supply chaines problems and a portion of the inflation seems transitory but it is very likely the prices will keep going up

0.9% per month is equivalent to >10% per year. And from the charts that is given in the above mentioned website, it looks as if the increase is primarily driven by the spike in crude oil prices. Energy prices have gone up by 24.5% during the last 12 months period, mostly due to decisions by the Biden regime to help the OPEC (suspension of the Keystone pipeline, banning of fracking on federal lands.etc). Food prices have increased only by 2.4% during the same period. And within the energy sector, energy commodities have gone up by +44.2%, while energy services have seen only a +6.3% rise.

[Clairvoyance]

Inflation is inevitable in this fast growing economy we are living in. Especially in the light of this pandemic, one country might handle it better than others. We will see more third world countries cope up last due to increasing number of infection rate and budget dwindling down. Moreover, we might see better days ahead with the sudden influx of vaccines coming from different countries helping to end this pandemic.

[Semar Mesem]

   Our economy change drastically and very tangible of the eyed of everyone. We can not control the economics cycling in out of the world. More people suffer that can not afford to buy due of high demand of the prices the situation of the poor status it's getting vulnerable so it is really hard when we're in point of the high inflation more risk we can experience.

The first risk is rising food prices, everyone needs food and this makes everyone have to think extra to meet their daily needs, in my country there are many economic problems because inflation continues to increase, purchasing power decreases so that many companies close their businesses.

[bryant.coleman]

Inflation is inevitable in this fast growing economy we are living in. Especially in the light of this pandemic, one country might handle it better than others. We will see more third world countries cope up last due to increasing number of infection rate and budget dwindling down. Moreover, we might see better days ahead with the sudden influx of vaccines coming from different countries helping to end this pandemic.

I would prefer an economy with zero inflation. But I know that it is not practical to expect something like that, since the governments nowadays favor big spending. So at the most, we will get a situation where the inflation rate is under control (i.e less than 5% per year). But given the pandemic impact on the economy, even that target seems to be unviable. Monthly inflation in the United States is now close to 1% level. And in the third world nations, it can be much worse, although the real picture will be revealed only after a few years. 

[LUCKMCFLY]

I think that the most extreme inflation is that of Venezuela and although they say that it is at 6500% it is much more, in fact, today they are doing the third monetary reconversion to be applied for October 1, which, in total, they have taken away Since the first conversion 14 zeros, now 6 zeros have been removed from the currency.


Source: https://es.statista.com/estadisticas/495527/paises-con-la-tasa-de-inflacion-mas-alta-mundial/

Some experts affirm that if it is not accompanied by economic systems and radical measures, inflation will be much more brutal, I think that this is simply a wash of warm water for everything that is being lived, since the country is not even with the Bolívar currency but are handled are dollars, this is fictitious.

I think that for now no country can come close to the madness of the economy that Venezuela has, where everything is a mess and each person lives their day to day differently, so inflation is no longer surprising, it is just an ideal mirage that makes the government look.

[Sithara007]

^^^ Countries such as Zimbabwe and Venezuela always had high inflation. Another way to look is to see how the annual inflation rate has changed recently. For Venezuela, such high levels have remained as such for many years. Most of the population no longer use the national currency and they know how to deal with hyperinflation. On the other hand, in the US, the inflation rate has remained at 1-2% until 2017-18, and now it is higher than 5%. It makes a major difference to the population in the US, if the prices go up by 20%-30% in just 4 years or so.

[Dragonfund]

There are several factors that Government could do to fight against inflation. They could use wages to lessen the growing inflation and if necessary reducing the printing of money in a year. The problem is that some governments are incompetent enough to sought these things and some are blinded with money. These are the reasons why most countries are suffering inflation.

It's actually easy behind pad and say whatever opinion everyone has with something but that's entirely different from been in the action, the heat alone wouldn't make you think something things, that's what government face sometimes especially criticism from opposition parties.
I know the Government can limit inflation because, if you compare countries performance to one another, you will observe that inflation in some countries a few way higher than others but the truth is, as long as fiat money is still in circulation, there would be some inflation.
There are also natural disaster that contributes among inflation which sometimes beyond our capacity.

[bryant.coleman]

There are also natural disaster that contributes among inflation which sometimes beyond our capacity.

Drastic times need drastic measures. But at the same time, the governments should not use such situations as an excuse to implement their radical policies. Look at what is happening in the United States. It has been only a few months since Joe Biden took office. And he has already announced trillions of USD worth of additional spending measures. And from where the money is going to come from? He has proposed a few measures, that looks unrealistic. So in the end, to cover the deficit they will either issue more treasury bonds, or print more banknotes.

[fillippone]

<...> So in the end, to cover the deficit they will either issue more treasury bonds, or print more banknotes.

Don't forget taxes.
Taxing the rich to fund the government.

Ohh the irony.
Taxes and QE at the same time!
First you make the rich richer, and the poor poorer with QE: you distort the markets to favour those who can afford to invest in the financial markets, leaving the lower classes behind.
Then you tax the rich of the profit you allowed him to gain, only to repair the damages you did in the first place with QE!
Wunderbar!

[oHnK]

<...> So in the end, to cover the deficit they will either issue more treasury bonds, or print more banknotes.

Don't forget taxes.
Taxing the rich to fund the government.

Ohh the irony.
Taxes and QE at the same time!
First you make the rich richer, and the poor poorer with QE: you distort the markets to favour those who can afford to invest in the financial markets, leaving the lower classes behind.
Then you tax the rich of the profit you allowed him to gain, only to repair the damages you did in the first place with QE!
Wunderbar!

I feel confused by the current economic situation they are doing, actually it has nothing to do with me reviewing their policies, especially since I don't live in that country, but with their policies they actually hit the economy in a developing country like mine.  I don't know why and what is the problem in the minds of world leaders today.  Simultaneous conditions of tax and qe policies in the US will attract their investors who are in my country, not to mention the pressure in my own country which is no less bad.  During this pandemic, the government seemed out of control in debt.  Providing social assistance is only their alibi to owe a lot to other countries, the state continues to be burdened but the rulers are not burdened at all because their term of office is only 5 years, a maximum of 10 years.  But the state bears the amount of their debt for life and will continue to pass down from generation to generation.  Until the country goes bankrupt because the interest on debt is no longer counted.  Not only in the US but there are so many similar economic cases today, therefore crypto seems to be the answer, especially BTC to be a solution to this broken centralized economic system.

[fillippone]

<...>
 Not only in the US but there are so many similar economic cases today, therefore crypto seems to be the answer, especially BTC to be a solution to this broken centralized economic system.

You have to understand that the US are by far in a better situation than many other countries. For example, the US will never be in the situation of being in default, as they will always be able to print more money to pay for their debt
Not so like in Europe, where debt of each contry is issued by different subject than the ECB, which controls the monetary level, while the fiscal leverage is enacted by each member state.
 

[Sithara007]

Don't forget taxes.
Taxing the rich to fund the government.

How much further can they increase the taxes? Marginal income tax is already at a level higher than 50% in most of the developed nations. There is limited scope of an increase in tax revenue by increasing the income tax. It needs to come from other sources, such as capital gains tax and corporate tax. And the US is already moving in that direction. They have announced an increase in the corporate tax, and intent to tax long term capital gains tax at a rate which is on par with the income tax. But the question is, what they will do next time?

[jaysabi]

0,9% in June
https://www.bls.gov/cpi/

There are supply chaines problems and a portion of the inflation seems transitory but it is very likely the prices will keep going up

0.9% per month is equivalent to >10% per year. And from the charts that is given in the above mentioned website, it looks as if the increase is primarily driven by the spike in crude oil prices. Energy prices have gone up by 24.5% during the last 12 months period, mostly due to decisions by the Biden regime to help the OPEC (suspension of the Keystone pipeline, banning of fracking on federal lands.etc). Food prices have increased only by 2.4% during the same period. And within the energy sector, energy commodities have gone up by +44.2%, while energy services have seen only a +6.3% rise.

The energy prices don't have anything to do with Biden policies.  Keystone wouldn't be producing for years still and same with fracking on federal lands.  None of this impacted the current supply, so none of this impacted the current prices.  The prices are reactive to actual supply changes from OPEC, not policy decisions that would have changed supply 3-5 years from now.

[bryant.coleman]

The energy prices don't have anything to do with Biden policies.  Keystone wouldn't be producing for years still and same with fracking on federal lands.  None of this impacted the current supply, so none of this impacted the current prices.  The prices are reactive to actual supply changes from OPEC, not policy decisions that would have changed supply 3-5 years from now.

If the government remains neutral, then the shale oil producers in the United States should be able to rapidly increase their production. Some of these producers are profitable at crude oil prices of $40 per barrel, while almost all of them would return profits at $60. And the current prices (WTI) are close to $70 per barrel. Ideally the shale oil producers should be rushing to restart their rigs, but they are not doing that for now. The OPEC has announced that 400k daily increase will be there from September onwards, and this should make sure that the price stays at ~$70 per barrel.

[King Khaizan]

The increase in prices due to inflation occurs due to the influence of several factors. These factors trigger continuous price increases, resulting in inflation. The following are several factors that can be the cause of inflation that appears in the community;

1. The High Amount Of Demand For An Item

2. Increasing the amount of money in circulation

3. Production Cost Increase

Prolonged inflation has a negative impact on business and the economy. Therefore, it is necessary to find a way to overcome inflation so that it does not occur continuously. Here are some ways to overcome inflation so that business and the economy in society are better.

1. Doing Internal Cost Efficiency
One way to overcome inflation that can be done by business actors is to reduce internal costs. Ensuring that internal costs can run efficiently can reduce the company's burden. Some internal costs that can be regulated to be more efficient include electricity costs and administrative costs.

2. Reducing the Three Costs
There are three basic costs that are definitely incurred by the company: Production Costs, Operational Costs, and Marketing Costs. The occurrence of inflation can be caused by one, two, or even all three of these basic costs. Therefore, these three basic costs must be kept to a minimum.

3. Innovate and Variation
One way to deal with inflation that can be done by business actors is to innovate and make new variations. These new innovations and variations lead to an increase in the choice of products available in the community. With so many choices, people no longer hunt for the same product.

4. Raise the Price
Although inflation is related to price increases, it turns out that this price increase can actually be a way to overcome inflation for companies. This step can be used when other conditions are no longer possible to use.

[glendall]

<...> So in the end, to cover the deficit they will either issue more treasury bonds, or print more banknotes.

Don't forget taxes.
Taxing the rich to fund the government.

Ohh the irony.
Taxes and QE at the same time!
First you make the rich richer, and the poor poorer with QE: you distort the markets to favour those who can afford to invest in the financial markets, leaving the lower classes behind.
Then you tax the rich of the profit you allowed him to gain, only to repair the damages you did in the first place with QE!
Wunderbar!

true , the case of inflation makes the poor poorer where they are required to pay taxes whose purpose is not clear which should not be those who are taxpayers, everything from health insurance to income taxes is increased, but we don't know whether the top officials pay taxes?

[Vishnu.Reang]

My country is one of the most frequently affected by natural disasters such as floods, droughts and earthquakes, this is what makes inflation in my country more than 7% per year so that it creates a lot of problems, especially the prices of all commodities and labor wages, especially during a pandemic like now so that it makes the economy in my country getting difficult.

There was a time, when the inflation rate in my country was above the 10% mark. It was difficult back then, as everyone was struggling to cover the surging expenses with limited salaries. But the big change occurred after 2014, when the crude oil prices crashed. The inflation slowed down to around 4% per year and stayed broadly at that level until 2020. But the honeymoon seems to be over now, as the inflation rate is once again going up (partly due to the rising crude oil prices). Consumer Price Index (CPI) was up by 6.3% (YoY) last month.

[Assface16678]

The solution to what you're saying in regards to inflation, it's that people should elect a smarter and competent government officials, increase the production of local products and reduce the importation of products that already exist in the local market, that's the only way to prevent being outrunned by inflation because it's inevitable, raw materials get expensive in the coming years.

[Shamm]

  Risk of inflation of the economy is a big problem more people frustrated about on this problem. More poor family can't afford to buy their needs and wants they are vulnerable to this situation because some people had no degree and their salary is not enough for them to fed their families.

[Caldear]

The economic crisis caused by inflation shows the strength of the government's fiscal position. Inflation has deprived many people of their most basic needs and made people poorer.

But now many people will choose Bitcoin under the inflation crisis. Bitcoin's scarcity will not issue additional currency, so it can fight inflation.

[conected]

  Risk of inflation of the economy is a big problem more people frustrated about on this problem. More poor family can't afford to buy their needs and wants they are vulnerable to this situation because some people had no degree and their salary is not enough for them to fed their families.

Coupled with the pandemic disaster, the economy is increasingly chaotic. People who work non-government are more affected, especially those who get a mediocre salary. Prices of basic commodities are increasing.

- Basic demand products increase sharply in value as well as the tragedy of the period of Covid-19, reserves of money in countries as well as manufacturing industries have fallen into disrepair, the chaos can still be estimated to be mild but when this instability is not contained, quite a few disasters are going to happen and I think inflation is bound to happen. More money will be printed to help overcome the immediate rift, a little higher inflation can still be cut by policy but chaos will be war between domestic and foreign

[Freezingel]

Inflation can be managed if the government can do their job well actually, of course, inflation is always a problem or issue that will never disappear in our economy, and it's really dangerous as well if we don't pay enough attention to it, but i believed that great policy, precise decision making from the government, and also a control from them can help to control and manage our inflation in low inflation. If it's already going to medium inflation, the government should already pay a lot attention to it and take actions, before it's going to hyperinflation or going out of control. However, sometimes our government are too neglectant, paying to other issue, or just care about their ownselves, corruption and many others. The risk of inflation will always be there, but it can be controlled.

[suryana]

  Risk of inflation of the economy is a big problem more people frustrated about on this problem. More poor family can't afford to buy their needs and wants they are vulnerable to this situation because some people had no degree and their salary is not enough for them to fed their families.

Coupled with the pandemic disaster, the economy is increasingly chaotic. People who work non-government are more affected, especially those who get a mediocre salary. Prices of basic commodities are increasing.

- Basic demand products increase sharply in value as well as the tragedy of the period of Covid-19, reserves of money in countries as well as manufacturing industries have fallen into disrepair, the chaos can still be estimated to be mild but when this instability is not contained, quite a few disasters are going to happen and I think inflation is bound to happen. More money will be printed to help overcome the immediate rift, a little higher inflation can still be cut by policy but chaos will be war between domestic and foreign

It is true that the situation for the past year has been very bad. People lose their jobs, financial difficulties and the level of basic needs are increasing. This makes us stressed and we must be good at managing our finances.

[Shamm]

It is true that the situation for the past year has been very bad. People lose their jobs, financial difficulties and the level of basic needs are increasing. This makes us stressed and we must be good at managing our finances.
[/quote]

 Yeah it's very difficult for the past years specially the pandemic was spreading along the country. It is really hard for the poor class status of people that they don't have a shelter to live, No work no pay, and specially to those people who did not finish their study the don't have a chance to get work that's the perspective of some company. More people sacrifice and suffered because they can not afford to buy food for their family so having  an inflation is difficult on us.

[Sithara007]

It is true that the situation for the past year has been very bad. People lose their jobs, financial difficulties and the level of basic needs are increasing. This makes us stressed and we must be good at managing our finances.

We should always be prepared for adverse situations. Intelligent people always take care to save a part of their earnings. This helps them in times of need. Even in my neighborhood, I am witnessing a lot of hardship as a result of the pandemic. Some people have even committed suicide, as they were unable to pay back their loans. The government should give some sort of psychiatric counselling as well. Suicide is not the solution for any of this. They need to understand that the business will be back to normal, once the pandemic is contained.

[Rahman11]

When prices for energy, food, commodities, and other goods and services rise, the entire economy is affected. Rising prices, known as inflation, impact the cost of living, the cost of doing business, borrowing money, mortgages, corporate, and government bond yields, and every other facet of the economy.

[jossiel]

When prices for energy, food, commodities, and other goods and services rise, the entire economy is affected. Rising prices, known as inflation, impact the cost of living, the cost of doing business, borrowing money, mortgages, corporate, and government bond yields, and every other facet of the economy.

And the problem for some countries, they can't cope up with increase with those things.

Yet the salary of a normal office person don't increase and it has to take a lot of board meetings before they give an increase even if everybody is dealt to inflation.

[Baihaki Khaizan]

Inflation risk is the opportunity that cash flows from investments will not be worth much in the future because of changes in purchasing power due to inflation.  Usually, this risk is taken by investors when holding cash.  In addition to fiscal and monetary policies, the government can also overcome inflation by increasing production output, facilitating the entry of imported goods, stabilizing people's income (wage levels), setting maximum prices, and monitoring and distributing goods.