Permanent inflation or "just temporary"

[Viscore]

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 believe that the highness of the inflation is definitely temporary, at least in my nation, but the inflation that is more than what it should be is permanent, I doubt it will ever be recovered. So, basically if it is 2% that should be the inflation that we could live with and healthy, and if it is 10%+ in some nations, I believe it will still drop, but not to 2%, it will drop to 5-6% which is still a lot, obviously most nations would be super happy about dropping to that level, which shows how horrible we are doing right now.

However at least it is a drop, even though it is not a good and ideal place it will drop. So, technically the super high inflation in some nations are temporary, but higher than what should be is permanent everywhere.

Inflation will always be a part in our daily living and its here permanently. But i agree on you that although inflation will be here always but its high rate might only be temporary. And it really saddened us that during this time of pandemic, the prices of basic commodities are now even surging, when they should have sink down so we can save a little. And thinking that this covid 19 pandemic will definitely won't stop by this year or the following year, then we might lived for it now and be used to it. After all, you can be protected from inflation if you know where to put your money in a more profitable way.

[hello_good_sir]

Inflation is built into the fiat economy.

The fact that countries have an inbuilt inflation target should be enough to prove that.

To think that inflation is just transitory is absolutely ridiculous. You might as well be saying to yourself that fiat is going to last forever even though all the fiat currencies that we have ever seen in history have gone down in flames irrespective of their country of origin.

[timerland]

When it comes to inflation, i don't really think or see it as a temporary situation. Yes, we may at some point experience temporary calm in the situation of things, but soon after inflation will become a topic again. It is safer to plan to seek out ways to earn more and be able to support your lifestyle, because inflation to me will always be constant.

Unless, of course, you save your wealth into decentralized crypto assets

This is definitely not going to be a temporary situation.

Inflation has been happening to fiat currency, representative currency, and any centrally issued currency since the dawn of time.

Why are people still surprised when they see inflation jump to 5% p.a.?

In fact, that's actually fairly good in the grander scheme of things. Historically we have seen 10% p.a.+ inflation in most countries, on average.

[tbterryboy]

How do you even tell whether this is going to be temporary or permanent? In my country inflation has been a serious problem for years now, and it just keeps on increasing. So, I don’t really think that this is going to be it's temporary inflation, especially in countries where the government are not doing anything serious to solve the issues that the country is having.

So, if the government are not going to do anything to solve these issues, then how are they going to be able to fight inflation? Inflation is a result of issues that are affecting the economy of our country. So to stop it the government has to tackle these issues.

[jaysabi]

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.

Just about the whole world experienced a recession in 2020 during the COVID lockdowns.  I don't know that we're "waiting" for another recession so much as still recovering from the one we just had.  The question is if inflation is going to make the economic recovery much harder than it needs to be, as stimulus is the obvious answer to economic recession, and stimulus is really dangerous when you're already undergoing inflation.

[alviemery96]

Inflation is inevitable. It is a fact that we must all accept. But from the highest structure of society, the people at the top are the ones who mainly worry about it because they are the ones who will be heavily affected by it. worth more than this, we can't stop it, it's even more interesting: sometimes organizations decide to get back into the game and ask for a raise, masking inflation "sometimes better than sometimes sometimes better sometimes worse" for some workers. so we will always face inflation in life no matter in any profession.

[jaysabi]

Inflation is inevitable. It is a fact that we must all accept. But from the highest structure of society, the people at the top are the ones who mainly worry about it because they are the ones who will be heavily affected by it. worth more than this, we can't stop it, it's even more interesting: sometimes organizations decide to get back into the game and ask for a raise, masking inflation "sometimes better than sometimes sometimes better sometimes worse" for some workers. so we will always face inflation in life no matter in any profession.

Nah, it's mostly the lower classes that feel inflation the most for two reasons.  1) The rich are insulated from inflation by investments that appreciate with inflation instead of holding cash and the fact that any inflationary effects are not a significant portion of their net worth.  2)  Lower classes mostly have cash-based assets and no investments that negate the impact of inflation, and any inflationary effects are a significant portion of what little assets they have.  As much bitching about inflation as the rich do, it's not nearly as impactful to them as the lower classes.

[freedomgo]

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 central banks tell you it's temporay. But your favorite  "analyst" that got everyrhing wrong since the year 2000 tells you it's not. Gosh who to believe 

I would rather say that this inflation will gonna stay permanently. Although its not all the time that there will be rising inflation, but believe me inflation will never be gone as long as there is fiat that brings about inflation. And since the prices of basic commodities will continue to increase, then it will be those people who are facing poverty are mostly affected. Especially in this time of pandemic, the government should always be ready to assist those individuals who are mostly affected with this fast rising inflation, not as a form of cash, but maybe in giving livelihood projects that will help them to sustain their living.

[jaysabi]

Inflation is built into the fiat economy.

The fact that countries have an inbuilt inflation target should be enough to prove that.

To think that inflation is just transitory is absolutely ridiculous. You might as well be saying to yourself that fiat is going to last forever even though all the fiat currencies that we have ever seen in history have gone down in flames irrespective of their country of origin.

Everyone knows that inflation is a regular part of monetary policy, by design, in fiat economies.  What people mean by temporary inflation in the current context is whether or not the elevated inflation we're currently experiencing is temporary or a new normal.  5% is much higher than we've experienced in a long time, 1990 in fact was the last time the annual inflation rate for the year was over 5% and it was only above 5% for that one year.  Prior to that was the high inflation environment that ran from 1973 to 1982, and sometimes saw inflation rate reach 10% in those years.  The economy is so vastly different now it may not even be a meaningful comparison, but that's how long it's been not a concern.

[bittraffic]

Inflation is built into the fiat economy.

The fact that countries have an inbuilt inflation target should be enough to prove that.

To think that inflation is just transitory is absolutely ridiculous. You might as well be saying to yourself that fiat is going to last forever even though all the fiat currencies that we have ever seen in history have gone down in flames irrespective of their country of origin.

Everyone knows that inflation is a regular part of monetary policy, by design, in fiat economies.  What people mean by temporary inflation in the current context is whether or not the elevated inflation we're currently experiencing is temporary or a new normal.  5% is much higher than we've experienced in a long time, 1990 in fact was the last time the annual inflation rate for the year was over 5% and it was only above 5% for that one year.  Prior to that was the high inflation environment that ran from 1973 to 1982, and sometimes saw inflation rate reach 10% in those years.  The economy is so vastly different now it may not even be a meaningful comparison, but that's how long it's been not a concern.

If what goes on today is the new normal, a year from now we will have another new normal rate. But yup it's still temporary because another year passes another new normal rate. It's an alarming rate. US will have to contain this otherwise the political instability will cause this administration to fall.
I think the FED had it in mind though that they are going to adopt BTC soon, they are just not making people panic for now but just let them live life stay at home and they get their money from the government the keeps printing.

The rest of the world notices the foreign exchange currencies. If our money today appreciates then we know US money depreciates so what gives other countries still have the confidence in this currency?

[Mauser]

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 the favourite tool of countries with high debt levels. Instead of looking for ways to save money or cut down on government spending, you can just make the current money less valuable through inflation. This makes your debt also less valuable and easier to be repayed in the future. An inflation target of 2% is a good way for countries to not end up in downward spiral of excess debt. But staying above this target for too long is not good for the investors and people with some form of savings. Eventually inflation has to come down again. I don't think we will see higher inflation in the next few years. The pressure is already rising on the government to start raising interest rates again. Also commodity prices tend to move in cycles, it's just a matter of time for energy prices to stabilise again.

[michellee]

For sure, all government needs to hold the seat belt and tight to face the inflation that may or may not come after this. After this pandemic ends, all governments need to work hard to prevent inflation or minimize it by cutting the budget on every post or rebalancing their funds to be spread in all aspects of their economy. But I am sure this inflation is just temporary and will end soon, especially if all companies can back to the business and earn money. The country will get revenue again and everything will be back normal but with a new change because this pandemic changes everything.

[pinggoki]

Money and items of trade and currency have this history of inflation since time immemorial. As commodities become more advance and scarce at the same time, it automatically counterbalances the value of the fiat currency it is supported of. This causes inflation which greatly affects the common folk as compared to people who are relatively well-off. That being said I don't think inflation will go away anytime soon unless an overhaul of the money system is made to defect from the things that cause money to lose value, or at least create a readily scarce variation of money that is deflationary at the same time. Bitcoin seems to be a good answer for this but the current volatility of the coin makes it unviable for such role.

For sure, all government needs to hold the seat belt and tight to face the inflation that may or may not come after this. After this pandemic ends, all governments need to work hard to prevent inflation or minimize it by cutting the budget on every post or rebalancing their funds to be spread in all aspects of their economy. But I am sure this inflation is just temporary and will end soon, especially if all companies can back to the business and earn money. The country will get revenue again and everything will be back normal but with a new change because this pandemic changes everything.

After the economy catches up at the upheaval of COVID-19 pandemic there will sure be chances that prices of commodities may rise, and the printing of money made by the Government may or may not affect the price itself once the economy catches up. I do not know what they are to do in order to counterbalance these detriments because if they wouldn't USD would become inferior which will not only affect the dollar but all of currencies that it supports, Bitcoin on the other hand, being decentralized and existing in a different platform than fiat, wouldn't be affected so many people will be expected to invest in bitcoin to save the value of their wealth.

[bitgolden]

I would say that it is definitely looking more and more permanent each day. We have so many crashes in the stock market and superb increase on inflation that people are acting as if that is normal each time it happens. The market "reset" has happened way too frequently in the recent decades and we need to realize it is not normal. I believe that if 2020's have another crash like this, then we are going to permanently damage the economy and fixing it will not be easy.

You have to realize those super rich people usually sell stuff to be rich, you think Elon Musk could keep getting richer if there are no people who can afford to buy new teslas? He can't just sell his rich friends and get richer, he needs to sell it to everyone. Hence I believe richer getting richer will have a cap on it and eventually everyone else will be poor enough to not be able to buy anything from these people who are rich and that will destroy the system we live in.

[Ultegra134]

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.

Well I definitely agree on what you're saying, it was inevitable when economies were practically shut down for more than a year. This year's tourism season for instance was great, last year's though was pretty awful for Greece, a country which almost solely depends on it.

The issue is that all goods have increased in price, so has fuel and electricity, while the average available income due to these increases has dramatically decreased.

[Flexystar]

Certainly this is about all of the countries in the world considering how covid changed the way economics works. Sometimes one country was above all during the covid while others were asking for financial help along with medical borrowing. This led some countries to earn good amount of royalty and they kept themselves a bit away from the financial crisis. However, covid worsen so much later in the time that even those countries started to go down the sink and needed more money to run their own economical circle. With global job outrage, it put more burden on the governments as taxes were dropping at alarming rate. However, I believe situation is far far in control and no one is gonna see inflation coming their way.

[marine4u]

Inflation has been around for a long time, the Government knows how inflation will work and they have no way of cleaning it up or even marginal additions.  Previously, controlling inflation was risky but did not have much impact on the economy, they were carefree until the covid pandemic occurred.  It's just something that has to happen.  What did they measure with the CPI.  Inflation has become a chronic disease for the economy.  The harmful effects of increasing inflation are people's difficulties, when their wages are only enough to cover the rising cost of living, electricity, fuel, and food.  Lol

[RondoAnyar]

temporary or not inflation will still have an impact at least for people who are in the scope of the country or large companies that experience it.
and this is quite a very serious thing when it happens.
at least the word "temporary" still gives hope for some people to be able to continue what they should be doing in order to reduce the effects of inflation if it really happens.
but indeed until now the signs of inflation are even clearer and like it or not we must be ready and able to survive in this case.

[oHnK]

A week ago, I watched "Squawk Box" of CNBC with the guest star was Paul Tudor Jones. When he told his opinion about inflation, he said the number one issue which is faced by investors is inflation and this is not transitory. There are some reasons why he said this will not transitory and his indicators such as:

1. the demand side of the equation,
2. the core personal consumption expenditures price index increased,
3. the supply chain disruption.

Personally, I agreed with his opinion. The Fed has a policy for facing inflation with tapering off. They have prepared to increase the interest rates in the 2nd semester of 2022. Then, my country has prepared if this policy will be implemented immediately. So, we have to find another alternative for saving our assets so didn't affect this issue.

https://www.cnbc.com/video/2021/10/20/paul-tudor-jones-inflation-is-the-number-one-issue-facing-investors.html

[Victorycoin]

Another real way to curb inflation is to increase taxes paying more taxes reduces the disposable income of the people the total expenditure is reduced. People's purchasing power can be reduced by imposing new taxes and increasing the old tax rates when there is an excess demand for a product in the market and there is a huge shortage in the supply of the product along with it. That situation creates an opportunity for the manufacturer to increase the price of the product or service and price inflation occurs.