Permanent inflation or "just temporary"

[jossiel]

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.

In many countries, tourism didn't really great. Mostly were stopped and shut down, flights were stopped and only available for the most important industries and logistic matters.

A lot of countries that were dependent on the tourism industry have almost died with that sector.

But the good thing about this year, everything has started to recover. Many country's economies have been slowly recovering but inflation cannot be stopped.

[Ultegra134]

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.

In many countries, tourism didn't really great. Mostly were stopped and shut down, flights were stopped and only available for the most important industries and logistic matters.

A lot of countries that were dependent on the tourism industry have almost died with that sector.

But the good thing about this year, everything has started to recover. Many country's economies have been slowly recovering but inflation cannot be stopped.

That's my main concern, how is inflation stopping? Okay, tourism was pretty decent this year, especially on Crete island, where I live. I'm not sure about the rest of European countries though.

Things have started getting out of hand, it was pretty usual for prices rising in the summer, since the demand is dramatically increased, however, the season is almost over, with prices being higher than they were in July-August.

[AicecreaME]

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 a normal occurrence in the economy of each country. Inflation is usually indicated by the price increase of the products and services offered in a country. The consumer price index specifically is the term called for it. The inflation can either be good or bad depending on where you currently belong, what your social status is, and your situation in life.

If you belong to a rich country, inflation is usually not a big deal to them. Hence you have a little to worry about unless you belong to the lower bracket of the society. First world countries usually handle it better because of course they are richer and more capable than those of blossoming countries just yet. If you are poor, you will severly feel the impact of inflation because it is very evident in our daily lives, most especially if it is soaring. The price in the market will increase, so are the services offered. If you have a fixed income, you will have a hard time adjusting. You have to have a tight and disciplined budgeting plans to survive and get by.

When it comes to situation, if inflation is higher you will benefit if you owe someone or the banks a money because the interest rate would be lower. If someone owes you a money, you will be at disadvantaged because the interest rate the borrower will pay you will be lower. It's really a matter of situation. Either you are winning or losing, benefiting or not, enjoying or suffering. Like what they say, a blessing for some might be a nightmare for some and vice-versa.

[aysg76]

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 government appoints such educated officials to speak on these economical topics and they can mould the information to ordinary audience that they can presume that what they are saying is correct and they start to have some delusionary faith in them.Like this the inflation is temporary is not at all correct depending on the current government policies and how they tackle it like by printing more and more notes.But yes i agree with them that inflation is temporary and next permanent phase will be hyperinflation as deflation is becoming obsolete these days.They will issue such statements again and again but we are smart enough to have a look ourself on the charts.



So you see the red marks rising all over the world map? These are not resources increasing or gdp growth but rising inflation at fast pace.There is also another thing that inflation is temporary is right in context to say if it's 3.5% then next year it will be 4% and if they mean this then it's okay.At last the burden is imposed on middle class and working class and they are are majority of the population but still they face such situations.

BTCitcoin is the only solution for this.

[DOH!]

I think inflation is a permanent existence in society and influences people under the influence of the whole process.  How to combat that and the wear and tear of human labor that is losing practical value, bitcoin is a miracle to help people close this inflationary gap.  Fluctuating inflation rates increase the risk of an outbreak of hyperinflation.  Fuel, food will increase massively by the end of the year?  and always, my usual way of thinking is that it won't go away when we don't try to change to get over it.  The support of bitcoin is gaining meaning if more people take the risk to support it.

[jossiel]

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.

In many countries, tourism didn't really great. Mostly were stopped and shut down, flights were stopped and only available for the most important industries and logistic matters.

A lot of countries that were dependent on the tourism industry have almost died with that sector.

But the good thing about this year, everything has started to recover. Many country's economies have been slowly recovering but inflation cannot be stopped.

That's my main concern, how is inflation stopping? Okay, tourism was pretty decent this year, especially on Crete island, where I live. I'm not sure about the rest of European countries though.

Things have started getting out of hand, it was pretty usual for prices rising in the summer, since the demand is dramatically increased, however, the season is almost over, with prices being higher than they were in July-August.

Although there are still some countries that are being hit by the covid-19 virus. Yet, the majority of the countries are trying to recover as much as they can.

Inflation, price increase, and salaries have been always the same. This is the situation of most people during this pandemic but we'll be optimistic that once this ended, many commodities will start to decrease its prices.

[barbara44]

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 do not know which country you live in, but in the country where I live, hardly have I seen any inflation that was temporary, most of them were permanent inflation. And the way I’m looking at this one it seems like it’s going to be permanent as well, although salaries have not been increased to match the level of inflation we have so far.

But, I am hoping that things get better and also that the inflation is not going to be something permanent but rather a temporary inflation that will soon come down and things will get back to normal as it used to be before now. It is also going to depend on the government to fix up their economy, because if the government are not doing anything about it then nothing is going to get fixed.

[nur rochid]

I think inflation is a permanent existence in society and influences people under the influence of the whole process.  How to combat that and the wear and tear of human labor that is losing practical value, bitcoin is a miracle to help people close this inflationary gap.  Fluctuating inflation rates increase the risk of an outbreak of hyperinflation.  Fuel, food will increase massively by the end of the year?  and always, my usual way of thinking is that it won't go away when we don't try to change to get over it.  The support of bitcoin is gaining meaning if more people take the risk to support it.

right, inflation will always continue to increase, so that fiat money seems to start to lose its value, and this is proven by the increasingly expensive prices of necessities, and of course it will increase the burden on the community to get a decent life. on the other hand bitcoin offers freedom from inflation, but the basic thing that is used as a reason for the government is because of its uncontrollable nature

[Hippocrypto]

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 just a natural result of the economic policies pursued by central governments in most countries of the world. When it comes to inflation, I don't really think that it is just a temporary since after experiencing such situation, yes, we may be experiencing calm but sooner or later, inflation could be a topic again. But, in terms of food, and essential products inflation could be just temporary. However,  inflation maybe temporary or not will still have an impact and this is quite very serious thing when it happen, all we just need to do is to plan for us to survive.

[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".

The government appoints such educated officials to speak on these economical topics and they can mould the information to ordinary audience that they can presume that what they are saying is correct and they start to have some delusionary faith in them.Like this the inflation is temporary is not at all correct depending on the current government policies and how they tackle it like by printing more and more notes.But yes i agree with them that inflation is temporary and next permanent phase will be hyperinflation as deflation is becoming obsolete these days.They will issue such statements again and again but we are smart enough to have a look ourself on the charts.

...

So you see the red marks rising all over the world map? These are not resources increasing or gdp growth but rising inflation at fast pace.There is also another thing that inflation is temporary is right in context to say if it's 3.5% then next year it will be 4% and if they mean this then it's okay.At last the burden is imposed on middle class and working class and they are are majority of the population but still they face such situations.

BTCitcoin is the only solution for this.

I wonder how did they reach the conclusion that inflation in Russia shall be more than 45%. I think their economy is not doing great but at least they have plenty of raw materials and commodities and those tend to do well in inflation. Maybe I am just not used to this predictions.

I think I got my comment quite right, as I read recently on an UK outlet that

Minister refuses to commit to above-inflation public sector pay rise

An let the hunger games begin. Money printing bill is once more footed by the working class in the shape of increased SS taxes and, on top, lower salaries. Mastermove.

[turneps]

As reopenings continue, congestion, hiring difficulties and other limiting factors could continue to limit the pace of supply adjustment, thereby increasing the likelihood that inflation could be higher and longer lasting. than we expected.
In other words, inflation is getting out of control for the government, and the economy seems to be doing more, it is possible to see that inflation will linger.
Federal Reserve Chairman Jerome Powell said that inflation looks much worse than before.
However, some financial experts have pointed out that they disagree with this view

[dezoel]

I believe that if you ask most people now they’re going to tell you that they would prefer that this is not a permanent inflation, they would prefer that it is just a temporary if flashing that would go back two things being normal as it used to be before now. But, a lot of people have seen it really difficult and living their life at this time around, because of the hard work they have to put in their work and also how costly things are right now, they are not able to afford most things that they can see in the market just because there have been a rise in price.

Most products you see these days is either that the numbers of what you will get has been decreased or the price of the same amount has been increased, it’s just been like that and let’s hope that things get better or maybe the government will have to increase salaries for people to match the situation at hand.

[paxmao]

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.

I am not sure of that. Is there any source that backs up that opinion? My doubt is mainly that taxes reduce the disposable income for the families, but it increases the government spending by exactly the same amount. Government are usually ferocious spenders of anything that they get their hands in and even sometimes of that they do not even own. How would that work?

[magneto]

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.

I am not sure of that. Is there any source that backs up that opinion? My doubt is mainly that taxes reduce the disposable income for the families, but it increases the government spending by exactly the same amount. Government are usually ferocious spenders of anything that they get their hands in and even sometimes of that they do not even own. How would that work?

It's standard economic theory.

The government doesn't need to spend all of the tax revenue that it generates. At least in principle, tax collection and fiscal expenditure are two completely separate arms of fiscal policy.

So if you increase taxes, you could reign in spending without much government expenditure in reciprocal, if it is the government's plan to seriously curb inflation.

[Sithara007]

This is laughable. There is nothing like "temporary" inflation. Prices once gone up, stays there forever, or increases further. In my area, an acre of land went at around $10,000 two decades ago. Now the rate has increased to $1,000,000-$2,000,000. Everyone says that land has become expensive now. But people are still accumulating whenever they have an opportunity, because they know that the prices are not going to come down. The only commodity for which the prices actually decreased is crude oil. I remember crude going at $100-120 in 2010-13, but in 2020 the prices had come down to $40 per barrel.

[Quantum907]

Inflation will always be present at any time, price increases that are not followed by purchasing power make the economy difficult, the main increase is of course because the financial sector is difficult to grow so it is the duty of the government to be able to present a good economy so that the public can be productive and reduce the impact of inflation.

[Poker Player]

I am not sure of that. Is there any source that backs up that opinion? My doubt is mainly that taxes reduce the disposable income for the families, but it increases the government spending by exactly the same amount. Government are usually ferocious spenders of anything that they get their hands in and even sometimes of that they do not even own. How would that work?

I am not sure either.

I think he is getting confused. Both taxation and money printing is what governments use to fund their spending. Money printing usually leads to inflation, while tax hikes do not, but it depends on other factors. For example, you raise taxes, but you keep printing and wages go up too? There will be inflation.

But he contradicts himself because first he says that by raising taxes you lower inflation and ends up saying:

That situation creates an opportunity for the manufacturer to increase the price of the product or service and price inflation occurs.

[el kaka22]

I would say that inflation is the biggest problem over fiat right now.
As long as inflation stays, we are going to have a lot of future problems and there is really no way to fix it neither.

Super wealthy people like Jeff Bezos and Elon Musk will keep on gathering all the resources they want, and eventually they will reach to a point where we have no money and they have all the money in the world.

Since governments cannot allow that, they keep printing more and more money and allow us to get it by working hard by giving it to the companies, so we spend it back to companies and we have nothing left again and the cycle continues. It is impossible to break it unless you make the companies pay for it via hard taxes.

[mindrust]

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".

Whatever the FED chairman says, the truth is always the opposite. If he says we are good, then we are effed badly. If he says we are ruined, then it means we'll be fine tomorrow. So when he said the inflation transitory, I forgot how many months passed since then and the inflation is still here and higher than ever. What do we expect? They printed the 40% of the entire FED balance sheet in a year.

By "transitory" he probably wants to mean that after some time the prices won't be rising as much. He doesn't mean the prices will come down. Yes, the prices wouldn't be rising that fast if they stop printing new currency but we know that it is not going to happen.

[LUCKMCFLY]

Inflation will always be present at any time, price increases that are not followed by purchasing power make the economy difficult, the main increase is of course because the financial sector is difficult to grow so it is the duty of the government to be able to present a good economy so that the public can be productive and reduce the impact of inflation.

What happens is that it is very difficult for the impact of inflation to decrease, most governments are the ones that want to obtain more liquidity and in return they do not mind devaluing a little to obtain what they need, obviously this is the case of many Latin American countries, but really the problem has worsened not only in Latin America, I know that in the USA they have liquidity problems and that one of the things that is impacting Americans the most is inflation, which although they have the dollar which is by nature In history, the one that maintains a global hegemony is falling more and more, this can trigger more economic problems not only there but also in the surrounding countries that depend on the debt they maintain.