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Author Topic: Inflation is always and everywhere a monetary phenomenon -- Milton Friedman  (Read 315 times)
wxa7115
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November 27, 2021, 10:00:54 PM
 #41

Inflation rate isn't normal, it is indeed a phenomenon caused by the government itself alone to adjust their debt and won't rely on other sources anymore, also the USA has the biggest yearly budget on Defense alone, where would they get that budget? Inflation and taxes ofcourse. However, they will deny that accusations because they know more than anyone and they are just saying that inflation is caused by the increased demand of supply than services or goods being produced.
I do believe that inflation rate is a horrible thing in most nations, however USA is a bit different in that case. They increased it knowingly because they wanted to liven up the market once again during/after pandemic. Which meant they gave out a ton of money, and stopped the market from collapsing and that resulted with them being a lot better during this period. The alternative would have been preventing inflation and that would cause a lot of unemployment and a lot of people starving and a lot of rent not paid and many other horrible situations.

This is why I believe that we are definitely looking at something that could be done properly with inflation and then they could just reel it back into regular times next year without a problem. This isn't to say they should do it all the time, it just means that they did it once to help the nation and it did and now they can go back. The bad inflation is the one that happens unknowingly, this was calculated move.
The problem with this is that they are only delaying the inevitable, I understand your argument and it makes sense, however the more they delay a corrective crash that takes the economy to more realistic levels then the harder the fall will be when it happens.

At this point it should be obvious that a collapse of the fiat system is inevitable, it will not happen tomorrow of course and it may even take decades, but the longer this is delayed the bigger the impact will be when it happens, so it could be argued it could have been better to let the market crash at the time, change the economic system currently in place and begin the recovery already.

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November 29, 2021, 07:14:31 PM
 #42

That's true that inflation is caused by the wrong economic policy. But such factors as lack of supply accelerate inflation so all factors influence on it. So as not to suffer from inflation too much, we need to invest but not jsut save. What is more, it will give us an additional source of money, so we will become financial free a bit more then.

I have dislike savings ever since my eyes was opened into financial world, savings is just like been a slavery to bank and other forms of banks.
Inflation is just something we cannot control but can be reduce to minimal by making sure that the economy is well perfectly executed in every segment of economy but when one part is affected, it will affected others and inflation will rise especially agricultural sector and importation.

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wxa7115
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December 03, 2021, 09:51:47 PM
 #43

That's true that inflation is caused by the wrong economic policy. But such factors as lack of supply accelerate inflation so all factors influence on it. So as not to suffer from inflation too much, we need to invest but not jsut save. What is more, it will give us an additional source of money, so we will become financial free a bit more then.

I have dislike savings ever since my eyes was opened into financial world, savings is just like been a slavery to bank and other forms of banks.
Inflation is just something we cannot control but can be reduce to minimal by making sure that the economy is well perfectly executed in every segment of economy but when one part is affected, it will affected others and inflation will rise especially agricultural sector and importation.
Keep enough cash around for your needs and in the case of an emergency, however the rest of your money should always be invested in something that can outpace inflation, right now paper assets are still performing well, so it is fine to hold stocks and other similar instruments.

However when a crisis really strikes paper assets have the tendency to do the worst as people are looking for a safe haven that can preserve the value of their money, and in that case assets like bitcoin or gold will be in high demand, and with this in mind then it is better to invest in bitcoin right now before its price goes up even more.

.
.DuelbitsSPORTS.
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Wind_FURY
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December 07, 2021, 07:52:08 AM
 #44

That's true that inflation is caused by the wrong economic policy. But such factors as lack of supply accelerate inflation so all factors influence on it. So as not to suffer from inflation too much, we need to invest but not jsut save. What is more, it will give us an additional source of money, so we will become financial free a bit more then.

I have dislike savings ever since my eyes was opened into financial world, savings is just like been a slavery to bank and other forms of banks.
Inflation is just something we cannot control but can be reduce to minimal by making sure that the economy is well perfectly executed in every segment of economy but when one part is affected, it will affected others and inflation will rise especially agricultural sector and importation.
Keep enough cash around for your needs and in the case of an emergency, however the rest of your money should always be invested in something that can outpace inflation, right now paper assets are still performing well, so it is fine to hold stocks and other similar instruments.

However when a crisis really strikes paper assets have the tendency to do the worst as people are looking for a safe haven that can preserve the value of their money, and in that case assets like bitcoin or gold will be in high demand, and with this in mind then it is better to invest in bitcoin right now before its price goes up even more.


On a very low enough time-preference, this is true. I hope newbies understood that. Because of Bitcoin’s infamous high volatility, there will be market cycles that you might be HODLing with a loss, depending when the person has purchased his/her coins. When in doubt, ZOOM OUT.

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