Permanent inflation or "just temporary"

[paxmao]

A few leaders of OCDE countries are speaking wishfully about inflation, stating that this is just "a temporary peak". However this may or may not be the case. Even the people with best information (CEOs of large companies and perhaps some ministers) are unclear about how long do we have to endure inflation.

My translation for this is "we do not know if we can effectively pass the burden of all the money we printed onto the labour or the salaries will rise paving way for sustained high inflation in two years".

[jakdanyel]

This really might not be a temporary rise in inflation. We have already been waiting for a global economic recession for a long time. And I believe that it will happen in the near future. And these might be little signs of it. As long as FED continues to print money like there is no tomorrow, it will cause dollar to lose in value a lot in time. And this will not affect only the USA of course.

[Charles-Tim]

My translation for this is "we do not know if we can effectively pass the burden of all the money we printed onto the labour or the salaries will rise paving way for sustained high inflation in two years".

In my country, there will be inflation, it is what has been happening when fiat was created and used as legal tender in countries. And as usual it is, later the fiat will be devalued in order to reduce the purchasing power parity while workers salaries will be increased but which has no significance as a result of reduction in purchasing power parity.

[fiulpro]

A few leaders of OCDE countries are speaking wishfully about inflation, stating that this is just "a temporary peak". However this may or may not be the case. Even the people with best information (CEOs of large companies and perhaps some ministers) are unclear about how long do we have to endure inflation.

My translation for this is "we do not know if we can effectively pass the burden of all the money we printed onto the labour or the salaries will rise paving way for sustained high inflation in two years".

Inflation in terms of food can be *temporary*.
Inflation in terms of general products can be *temporary as well* for example:- toilet paper, the cost was very high therefore I do think that it can be both temporary and permanent.

- The permanent inflation can be for things like *healthcare*, *medicines*, *some products which are factory made*

It also depends on where we are analyzing the situation, if you do consider countries like UK and USA, they would be able to recover fast and the government might provide sustainable development for the people but we don't see that happening at the moment, but with countries like Afghanistan where due to Wars and everything, people are struggling everyday and they don't really have a good stable economy, they might never come out if this deep hole so fast. What's needed is, " support and recovery time for them*.

So this particular statement might have a lot of answers for a lot of situations and countries. Plus focusing on each and everyone is very necessary.

[Sanugarid]

This really might not be a temporary rise in inflation. We have already been waiting for a global economic recession for a long time. And I believe that it will happen in the near future. And these might be little signs of it. As long as FED continues to print money like there is no tomorrow, it will cause dollar to lose in value a lot in time. And this will not affect only the USA of course.

That's how inflation works, it will continue to rise. It's not a bad thing though as a normal inflation of around 2% is actually a sign of growth in the economy for some economists. We won't be able to stop them from printing because they need to replace the bills that's estimated to be lost every day or every year.

[amishmanish]

The infrastructure bill within the US aims to begin a spree of government expenses and absorb all of this newly printed money. It'll create the usual trickle down to local businesses, contractors and workers.

There is a potential case for launch of newer technologies and newer spending opportunities (some forced and some wishful) for the wage earners. Whether it is the en masse switch to electric cars or some form of AR/ VR based gadgets that end up becoming a source of expenditure. Considering such things, there can be a view that we are at the cusp of an explosion in growth as well as spending that will absorb all of this newly launched money.

The last pandemic we had gave rise to the Model T and the roaring 20s. The Great depression followed quickly and so did the wars. Yet, I think humanity has taken enough experience and the bad effects can be delayed this time around. Then there is the obvious trend of the crypto economy coming up and more and more people will be locking up funds in virtual properties. In short, it may not be as bad as it seems.

[NeuroticFish]

A few leaders of OCDE countries are speaking wishfully about inflation, stating that this is just "a temporary peak". However this may or may not be the case. Even the people with best information (CEOs of large companies and perhaps some ministers) are unclear about how long do we have to endure inflation.

My translation for this is "we do not know if we can effectively pass the burden of all the money we printed onto the labour or the salaries will rise paving way for sustained high inflation in two years".

The inflation is the speed of decreasing the value of the currency. While the value will most probably never increase back, the speed of decreasing the value will slow down.. sooner or later, possibly after a complete crash and recovery of markets though.
When will that happen? Nobody knows. Not too soon, though. There are far too many variables and although the declarations go towards having low inflation, politicians have to spend in order to keep their voters happy.

About the salaries, the things go even more interesting: from time to time the syndicates decide to come back into the game and ask for salary rises, covering the inflation (sometimes better sometimes worse) for some of the workers. Of course, some others will suffer; of course, this can lead to even more inflation.. it's a cat and mouse game. And while it can slow down now and then, it won't stop.

Now, with all that printed money, with the pandemic far from end, the politicians are trapped by their exaggerated optimism in spending funds: they have to spend even more and don't know how to do that nicely. So for short and medium term the inflation is bound to rise.

[livingfree]

A few leaders of OCDE countries are speaking wishfully about inflation, stating that this is just "a temporary peak". However this may or may not be the case. Even the people with best information (CEOs of large companies and perhaps some ministers) are unclear about how long do we have to endure inflation.

My translation for this is "we do not know if we can effectively pass the burden of all the money we printed onto the labour or the salaries will rise paving way for sustained high inflation in two years".

Inflation is inevitable.

It's the reality that everyone of us has to take. But from the top structure of society, the top are the ones that's mostly worried about it because they're the ones that will be badly affected by it.

But from the lower middle up to the lowest classification in the society, there's not that much to think of it as they're not coping up with the inflation but barely feel if there's an increase and mostly feel it when it hits.

[Ucy]

Inflation caused by scarcity of good quality things is likely a possibility and will be permanent. I however think that good quality could be replaced by substandard poor quality alternatives to mitigate serious inflation. To maintain the system the people controlled by it will consume poor quality... they will likely not know, understand or remember what good quality used to be. *Lands of forgetfulness

[so98nn]

Well currently the world is overseeing the situation right now. Due to COVID everyone is focused on the emergency situations and in the process big stuff like tourism, airlines, leisure, and thus businesses which depended on them also went down along with it.

This sounds sick but this is one of many reason where economic crisis started and it’s pretty logical.
When everyone sits at home the worlds gonna ruin isn’t it. Lolz.

So now coming back to the question of yours whether it’s temporary or not that entirely depends on many factors such as whether world is gonna start to work back with the same speed or not? Whether businesses will reset to the same level of operations as they used to or not ?

However in my opinion we overcame worst crashes in the history so this will pass too.

[davis196]

I believe that the inflation can be stopped successfully,if the US Federal reserve stops with the money printing,but the people,who are in charge of the Federal Reserve are concerned that this move might lead to slower recovery of the US economy after the pandemic and a future stagnation.
The other big factor,which pumps the inflation are the oil and natural gas prices.The demand for oil and gas increased pretty fast,while the production and supply is growing slowly.At some point the oil and gas supply will reach it's peak and the market will be balanced.Natural gas prices in Europe in Asia are crazy right now,but this is only the price on the short term spot markets.

[Doell]

Inflation of staple foods increases annually ,even news in Turkey is said to have opened 1000 new markets to stem the inflation rate which has increased by 20% ,Meanwhile in my country see news also the highest inflation rate occurred in the electricity gas clean water sectors at 3.57% and the construction sector at 3.45% only temporary

Inflation has been rising worldwide due to higher raw material costs supply constraints of goods stronger consumer demand as economies reopen

[tyz]

Difficult to say. The current upward price spiral is clearly caused by limited goods and still partly interrupted supply chains. Just look at how many industries are now affected by the shortage of semiconductors. If one can believe different sources, then this condition will continue at least 1-1.5 years. Whether the upward price trend will continue after the bottleneck has been overcome also depends on whether the central banks get the tappering implemented or continue as before. If they continue as they are, inflation could be significantly higher in the longer term.

[nullama]

A few leaders of OCDE countries are speaking wishfully about inflation, stating that this is just "a temporary peak". However this may or may not be the case. Even the people with best information (CEOs of large companies and perhaps some ministers) are unclear about how long do we have to endure inflation.

My translation for this is "we do not know if we can effectively pass the burden of all the money we printed onto the labour or the salaries will rise paving way for sustained high inflation in two years".

50 Years Ago Nixon ‘Temporarily’ Took the Dollar Off the Gold Standard

[stompix]

My translation for this is "we do not know if we can effectively pass the burden of all the money we printed onto the labour or the salaries will rise paving way for sustained high inflation in two years".

That money printing is not the main driving factor for inflation right now.

You can look at lumber prices and oil prices, all skyrocketed without the welfare checks and in totally different times and fashions.
Right now what's driving up the price of good is the continuous chaos in logistic chains where some manufactures can and other can't secure everything from raw materials to spare parts to manpower. Europe, for example, is barely out of the virus madness, slowly but surely everything starts going back to normal, it will take a bit before everything is put back in place, poeple come back to all their jobs, entire chains all over the globe are no longer affected by lockdowns or anything else.
It's not that we have much more money printed in the economy, it's the problem with the scarcity of goods.

Probably the first drop in this will happen right after Christmas and before the Chinese new year, that's a period of reset ith low activity which can be used to patch whatever is left to patch of this global commerce.

Now, with all that printed money, with the pandemic far from end, the politicians are trapped by their exaggerated optimism in spending funds: they have to spend even more and don't know how to do that nicely.

Well, for some of us the pandemic is nearly over, but looking at the numbers of the furious two  (Romania and Bulgaria) I don't understand why always those two must be special when it comes to statistics, good or bad, at least one of those countries must be in a league of its own compared to the rest of the EU.
Not that it's your fault or anything like that, but every single time something happens extreme examples from both the top and the bottom show how fractured this union still is, even after so many years, and it's not something that looks to be fixed anytime soon.

[NeuroticFish]

Well, for some of us the pandemic is nearly over, but looking at the numbers of the furious two  (Romania and Bulgaria) I don't understand why always those two must be special when it comes to statistics, good or bad, at least one of those countries must be in a league of its own compared to the rest of the EU.
Not that it's your fault or anything like that, but every single time something happens extreme examples from both the top and the bottom show how fractured this union still is, even after so many years, and it's not something that looks to be fixed anytime soon.

Although it's a bit off-topic, I know too well what you mean. Sadly.
The gap between educated and uneducated is too wide. Too many people are left without information or with mostly fake news, people who rely on the priest and maybe the mayor for "educated news". Too many others, with access to news and education think that they know better..., going from attempting shortcuts (in this case even black market covid certificates) to believing all the conspiracy theories, many of them handed over generously by main television channels too... I don't want to fill pages with everything.
But imho this stands for basically the whole Balkans area (I hope I'm wrong!!), so... the group may increase, especially as the politicians (Europeans and Romanians alike) don't know nor care much of how to handle this.


Maybe the... particularities... of my country are the reasons I see so well all the mechanics behind the (ever) increasing inflation 

[Gyfts]

Look at the US federal reserve chart of liabilities they've taken on in the past.

https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm

I point to this as irrefutable evidence of inflation being persistent because the biggest currency in the world cannot take on an unlimited number of liabilities and inject cash into the total money supply without ramifications. This debt does not just disappear. The fed tried to play games with quantitative easing, and it has not worked because the predictable side effect is high inflationary period that last ages.

Inflation isn't transitory anymore, this will last for years, probably for the next 4. And that's current predictions, keep in mind things could take a larger nose dive.

[Kittygalore]

Inflation is permanent, the opposite is going to be disastrous for the econ because that means that the value of the currency and the economy is going down. Inflation is a good thing if the government knows how to control it to the point where they can keep it around 2 or 3 percent, that's probably the time that we won't be complaining about inflation.

[pawanjain]

A few leaders of OCDE countries are speaking wishfully about inflation, stating that this is just "a temporary peak". However this may or may not be the case. Even the people with best information (CEOs of large companies and perhaps some ministers) are unclear about how long do we have to endure inflation.

My translation for this is "we do not know if we can effectively pass the burden of all the money we printed onto the labour or the salaries will rise paving way for sustained high inflation in two years".

I don't think inflation will ever be temporary. As long as we have the fiat currency system there will be inflation IMO.
Not only that but the inflation will keep rising every year and we will face recessions and economic turbulence in regular intervals.
As people become more aware of the situation more people will find an alternative and move to advanced financial systems like cryptocurrnecy.
This is one of the major reason why I have faith on cryptocurrency to pave the way for suitable financial conditions in the future.

[stompix]

Maybe the... particularities... of my country are the reasons I see so well all the mechanics behind the (ever) increasing inflation 

Interestingly it doesn't look in official numbers at least that Romania and Bulgaria are experiencing this year the highest inflation rates, although I'm not sure how good how accurate those numbers reported by each country are so for once you might escape this. Also, I'm unaware of any real money printing or airdrop checks in that part of the EU, if I recall correctly nothing even remotely on the scale of what the US did happen so if somehow in the hour your leaders get their shit together it's still possible to get out of this far better.

Random events can lead to random results, just as Poland was affected first in the last recession first and got out of it nearly unscratched only to bleed afterward it wouldn't be amazing to see something like this again, although...I  bet there are a lot of weird things in that growth.
Theoretically at this point growth would outpace inflation, to be honest, I don't even know what to make of a situation like this, all would point to a growth in manufacturing and exports, so who knows, despite everything the exact lack of measures will be the best measure.

It's going to be a really interesting year this 2022 when all the consequences will show up and at least economically we can quantify and analyze the results, it's way too early right now, and ...winter is coming!  

I don't think inflation will ever be temporary. As long as we have the fiat currency system there will be inflation IMO.

Tell that to Japan!