US inflation jumped 7% in December as prices rise at rates unseen in decades

[bitmover]

US inflation jumped 7% in December as prices rise at rates unseen in decades

The price of goods and services in the US continue to rise at rates unseen in decades, jumping 7% in December compared to the same month last year – the seventh consecutive month in which inflation has topped 5%.

The news represents a blow to the Biden administration and the Federal Reserve, which until recently have characterized soaring prices as a “transitory” phenomenon brought about by supply chain issues triggered by the pandemic.

On Wednesday, the labor department said the consumer price index (CPI) – which measures what consumers pay for a wide range of goods – rose 0.5% last month compared with November and 7% compared with December 2020.

https://www.theguardian.com/business/2022/jan/12/us-inflation-rate-december-2021

United States is losing control over inflation. 7% is something similar to Brazil inflation, which was 10% last year. That is terrible.

I saw this chart today, showing how much purchasing power USD lost since 1912:

source: https://www.instagram.com/p/CYohEjmLE6q/ (Made by a Brazilian economist)

100 USD would have the same purchasing power as 3,53 USD did in 1912.

Central banks money printing strategy, public spending all those strategies are costing a lot to us, individuals. Our savings are shrinking due to high inflation all over the world.

I believe bitcoin was designed for this situation. Lets see how will it react.

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[Gyfts]

I've noticed the shift from anger towards government adding to inflation by reckless spending and supply chain issues move to the corporations. As if the corporations are responsible for supply chain issues, that they are merely raising the price for their own corporate greed and not because fiat currency is losing its value. Anything to keep people occupied -- can't hold the government responsible if the people don't know who's to blame for inflation. And with most things, demonize the capitalist system, the private businesses, in order to sell the idea that it is more government that can fix inflation. Meanwhile, they want to spend even more money in fighting Covid as well as a social spending spree to the tune of trillions.

[fiulpro]

Inflation rates beyond 2-3% are not only harmful for the economy but for the people as well. Considering US they are not just facing this problem alone:
1. They have huge debts
2. The cases of COVID-19 are rising drastically
3. People are leaving their jobs because of bad conditions at the workplace
4. Economy is slowly going into recession
5. Price of dollar is getting weaker
6. Government is printing excessive amount of money and funding weird projects
What I do think is, all this with inflation as well would cause extreme probelms for the whole economy ending up with them not being at the top.

[stompix]

I saw this chart today, showing how much purchasing power USD lost since 1912:

When 85% of the population was making less than 15$ per week  .
Or it would be nice to see how much would that 100$ be if you would have put them in a bank, it might not be 4.3 billion like in Futurama but I bet it's not 100$ either.

Considering US they are not just facing this problem alone:
1. They have huge debts
2. The cases of COVID-19 are rising drastically
3. People are leaving their jobs because of bad conditions at the workplace
4. Economy is slowly going into recession
5. Price of dollar is getting weaker
6. Government is printing excessive amount of money and funding weird projects
What I do think is, all this with inflation as well would cause extreme probelms for the whole economy ending up with them not being at the top.

1. Mostly to themselves
2. So do cases everywhere
3. Yet the overall number of poeple employed is climbing
4. What??
5. In regards to what? Euro? Yen? Pounds?
6. Yeah, that is the only actual issue.

As someone who has seen over 100% inflation, 7% yoy is nothing.
Wait till it hits again at least twice the value yoy for anything major to happen.

[bitmover]

Or it would be nice to see how much would that 100$ be if you would have put them in a bank, it might not be 4.3 billion like in Futurama but I bet it's not 100$ either.

I have a similar information

If you had invested in 1965 $100 into SP500, you would have now $28,159.36, which is 28,059.36%, or 10.40% per year.

This huge! SP500 performance is amazing.

source: https://www.officialdata.org/us/stocks/s-p-500/1965

I do own some SP500 index funds, which are amazing despite of everyone saying it is a bubble.

The best defining of bubble is: 'Any asset that the price has skyrocketed but you haven't bought" 

[teosanru]

US inflation jumped 7% in December as prices rise at rates unseen in decades

The price of goods and services in the US continue to rise at rates unseen in decades, jumping 7% in December compared to the same month last year – the seventh consecutive month in which inflation has topped 5%.

The news represents a blow to the Biden administration and the Federal Reserve, which until recently have characterized soaring prices as a “transitory” phenomenon brought about by supply chain issues triggered by the pandemic.

On Wednesday, the labor department said the consumer price index (CPI) – which measures what consumers pay for a wide range of goods – rose 0.5% last month compared with November and 7% compared with December 2020.

https://www.theguardian.com/business/2022/jan/12/us-inflation-rate-december-2021

United States is losing control over inflation. 7% is something similar to Brazil inflation, which was 10% last year. That is terrible.

I saw this chart today, showing how much purchasing power USD lost since 1912:

source: https://www.instagram.com/p/CYohEjmLE6q/ (Made by a Brazilian economist)

100 USD would have the same purchasing power as 3,53 USD did in 1912.

Central banks money printing strategy, public spending all those strategies are costing a lot to us, individuals. Our savings are shrinking due to high inflation all over the world.

I believe bitcoin was designed for this situation. Lets see how will it react.

7% is really way too much for any developed economy, it's dangerous because GDPs won't be rising at the same rate which means the expenses are rising but the incomes of the people are not rising creating problem for common people. A surprising thing for me is how during 1929 great depression dollar became very strong, this is strange because generally more money is printed during depressions to create demand in economy and despite that dollar strengthen, can anyone explain this?

[stompix]

A surprising thing for me is how during 1929 great depression dollar became very strong, this is strange because generally more money is printed during depressions to create demand in economy and despite that dollar strengthen, can anyone explain this?

In short, there was no money printing during the Great Depression, which combined with people and businesses defaulting on loans and banks having a desperate need for cash, in their liquidation spree the prices simply couldn't keep up, lowering the value of assets and making with each step the dollar stronger. But as you can see, one good indicator doesn't mean everything is good, just as a full tank won't get you anywhere if you have an engine failure.

The moral of the story, be careful what you wish for  

If you had invested in 1965 $100 into SP500, you would have now $28,159.36, which is 28,059.36%, or 10.40% per year.
This huge! SP500 performance is amazing.

But, but ...but...everyone is saying you're going to lose money investing in the markets.
Of course, there is a difference between what poeple say and reality, just like you pointed out in the last line.

[_act_]

I believe bitcoin was designed for this situation. Lets see how will it react.

That is what bitcoin is for, it will be good to hold bitcoin than keeping fiat. You are specifically talking about US but there are fiat that are far worse than US dollar, more inflation in such countries. The worst investment I have seen is the people that are convinced by banks to hold fiat in fixed deposit for years, the people may not know that their money will not have value like people, the value lost will be more more than the interests they will be paid.

[The Sceptical Chymist]

United States is losing control over inflation. 7% is something similar to Brazil inflation, which was 10% last year. That is terrible.

Damn right it's terrible--and not only inflation itself, but the availability of everyday items people need, as there's still some kind of supply chain chaos going on.  Good luck trying to buy cat food your cats will actually eat.  You'd be better off starting a mouse farm at home, and I say that only half-jokingly.  It'd be cruel to do so, but the economics would probably work out just fine.

Meanwhile, the headlines on every newspaper I see: "COVID cases spike".  Every fucking day.  It's as if the ship is sinking and the band is playing some horrible tune that isn't designed to secretly alert the crew that there's an impending disaster.  I've never seen things as bleak as this in my life, nor people acting as irrationally as they are.

Inflation is just the beginning.  Not sure if bitcoin is going to be the solution or not, but I'm hoping there is a solution, period.

3. People are leaving their jobs because of bad conditions at the workplace

I'm curious about those "bad conditions" though I'm not arguing that people are refusing to work.  I just saw an example of that tonight, where a store is closed because there wasn't enough staff to keep it open.  What are those conditions, exactly?  Being forced to wear masks?  Other COVID-related BS?

[Poker Player]

United States is losing control over inflation. 7% is something similar to Brazil inflation, which was 10% last year. That is terrible.

Damn right it's terrible--and not only inflation itself, but the availability of everyday items people need, as there's still some kind of supply chain chaos going on.  

I would like to remind that this is not something that has just happened, as if a hurricane is coming, it is the result of policies that have caused this inflation.

Now the FED, seeing that inflation is getting out of control, seems to be going to act, and fast. It is not clear to me that they will end up being as tough as they have planned. If you want to take away the drug from a drug addict, the best thing to do is to reduce the doses little by little, if you take it away all at once he will have cold turkey.

Turning to the economy, if as a result of the Fed's policies to curb inflation, there is a crash in the stock market or if we go into a depression/recession, they are going to have to go back to supplying the junkie with drugs.

[magneto]

The transitory narrative is slowly ousting itself.

Even with the depressed CPI figures, it should be clear to anyone that the dollar is losing its purchasing power, and fast.

Certainly not a good look for the Fed who aren't even considering raising rates that seriously at the moment. Seems like Powell is more concerned about the stock market rather than inflation.

[lixer]

I believe bitcoin was designed for this situation. Lets see how will it react.

That is what bitcoin is for, it will be good to hold bitcoin than keeping fiat. You are specifically talking about US but there are fiat that are far worse than US dollar, more inflation in such countries. The worst investment I have seen is the people that are convinced by banks to hold fiat in fixed deposit for years, the people may not know that their money will not have value like people, the value lost will be more more than the interests they will be paid.

This time around I am making sure that a good amount of my money is being stored as Bitcoin or any other good cryptocurrency, but most especially I store my money with Bitcoin. This is very important, and over the years I have reaped the benefits of doing that.

Whenever I receive my monthly salary, a part of it goes into Bitcoin and I just keep it there as savings, and then the rest stays in my bank account, and that is where I do most of my expenses. Sometimes I can also decide to do a little bit of expenses from my amount that is stored in Bitcoin. I just try to balance everything, and it has been really helpful, if there happens to be inflation, I am not losing much.

[davis196]

The high levels of inflation in the US were pretty much expected,after the massive money printing and the COVID stimulus checks.How is the time for the Federal Reserve to raise the interest rates and stop the money printing,quantitative easing and other policies.Unfortunately the federal government of the USA will have to cut a lot of the government costs and try to lower the ridiculous multi-trillion federal budget deficit,in order to fight the inflation.This is highly unlikely to happen.
The devaluation of the US dollar will continue,but the US dollar will remain as the strongest and most stable fiat currency in the world,which sounds absurd.

[teosanru]

A surprising thing for me is how during 1929 great depression dollar became very strong, this is strange because generally more money is printed during depressions to create demand in economy and despite that dollar strengthen, can anyone explain this?

In short, there was no money printing during the Great Depression, which combined with people and businesses defaulting on loans and banks having a desperate need for cash, in their liquidation spree the prices simply couldn't keep up, lowering the value of assets and making with each step the dollar stronger. But as you can see, one good indicator doesn't mean everything is good, just as a full tank won't get you anywhere if you have an engine failure.

The moral of the story, be careful what you wish for  

If you had invested in 1965 $100 into SP500, you would have now $28,159.36, which is 28,059.36%, or 10.40% per year.
This huge! SP500 performance is amazing.

But, but ...but...everyone is saying you're going to lose money investing in the markets.
Of course, there is a difference between what poeple say and reality, just like you pointed out in the last line.

Oh yes I forgot that this indicator doesn't signify the strength of dollar but instead signifies the weakness of prices of commodities, great depression obviously brought down prices a lot, so obviously dollar purchasing power went up. But yes one indicator can't be a barometer of the whole economy. But if you see this indicator the most bullish times are indicating when dollar weakened the most.

[tygeade]

US inflation jumped 7% in December as prices rise at rates unseen in decades

The price of goods and services in the US continue to rise at rates unseen in decades, jumping 7% in December compared to the same month last year – the seventh consecutive month in which inflation has topped 5%.

The news represents a blow to the Biden administration and the Federal Reserve, which until recently have characterized soaring prices as a “transitory” phenomenon brought about by supply chain issues triggered by the pandemic.

On Wednesday, the labor department said the consumer price index (CPI) – which measures what consumers pay for a wide range of goods – rose 0.5% last month compared with November and 7% compared with December 2020.

I don’t even care about news like this. This is not the first time that they are always talking about the economy falling and inflation rising and all that, it's even becoming very annoying at this point. You would see economists and even government workers talking about inflation rising and all that, then you will be asking yourself why these people never do what they are meant to do or play their roles in making sure that there isn’t this inflation that is being talked about, and also ensure that things are going pretty well as they should.? All they do is talk about it and it still happens, they never bring any solution at all. I’m better off making sure that my money is being held tight in crypto.

[arallmuus]

I don’t even care about news like this. This is not the first time that they are always talking about the economy falling and inflation rising and all that, it's even becoming very annoying at this point.

Well you atleast should be aware of this kind of news. Inflation and economy failing means cash are going to flow into cryptocurrencies so its kind of a blessing for us that are already in crypto space.

All they do is talk about it and it still happens, they never bring any solution at all.

Its because there is no effective solution for inflation. Its always going to happen and the very least, all they can do is to reduce the inflation rate through various of method. Obviously shit happens and one of them is the pandemic which forced alot of countries inflation rate to skyrocket so its kinda expected that this would happen anytime soon

[Gyfts]

Inflation rates beyond 2-3% are not only harmful for the economy but for the people as well. Considering US they are not just facing this problem alone:
2. The cases of COVID-19 are rising drastically
3. People are leaving their jobs because of bad conditions at the workplace

In any developed world, and plenty of developed nations like India, a vaccine is available. The vaccine, by and large, prevents hospitalization and death.

The inflation caused by Covid was entirely preventable, and in essence, artificial. As I mentioned before, the entirety of inflation is based on the dollar losing its value due to supply and demand, not corporate greed. So people leaving their jobs due to Covid after a vaccine has been introduced is a byproduct of generous unemployment benefits with the federal government unwilling to let Covid go.

If you made the case that an economy should be shut down for 1.5 years back in March of 2020 when the world entered a lockdown period, people would have rightfully made the case that the economy would crash, supply chains would collapse, and inflation would run rampant. But somehow, there is a willingness to accept Covid restrictions even if that means withering away a strong economy because there are hundreds of thousands of cases of the sniffles.

Cases shouldn't dictate Covid policy, only hospitalization and deaths. The reason you're seeing people leave their jobs, aside from unemployment benefits, are because they're led to believe that Covid is a death sentence. It's far from it.

[Silberman]

I've noticed the shift from anger towards government adding to inflation by reckless spending and supply chain issues move to the corporations. As if the corporations are responsible for supply chain issues, that they are merely raising the price for their own corporate greed and not because fiat currency is losing its value. Anything to keep people occupied -- can't hold the government responsible if the people don't know who's to blame for inflation. And with most things, demonize the capitalist system, the private businesses, in order to sell the idea that it is more government that can fix inflation. Meanwhile, they want to spend even more money in fighting Covid as well as a social spending spree to the tune of trillions.

I noticed that as well, they are trying to shift away the blame to anything and anyone except themselves, now if the governments could not print their own money and do so whenever they wanted they may have a point as inflation in that case will be caused by third party, but when they have the money printing machine they cannot shirk away their responsibilities no matter how hard they try, and people are realizing this as the inflation is simply too high for people to ignore.

[sana54210]

This time around I am making sure that a good amount of my money is being stored as Bitcoin or any other good cryptocurrency, but most especially I store my money with Bitcoin. This is very important, and over the years I have reaped the benefits of doing that.

Whenever I receive my monthly salary, a part of it goes into Bitcoin and I just keep it there as savings, and then the rest stays in my bank account, and that is where I do most of my expenses. Sometimes I can also decide to do a little bit of expenses from my amount that is stored in Bitcoin. I just try to balance everything, and it has been really helpful, if there happens to be inflation, I am not losing much.

I would guess that many people do it exactly for this purpose. I have the same logic, plus I do not trust the people who run fiat, it is the governments, central banks, basically humans all around, fair or not fair it is still people. Crypto has nobody at the top, we decide what will happen and that is why I believe that we are going to be fine.

So, if we keep this going, then we are talking about something much more valuable here, we are talking about the freedom to choose and no inflation, which is why people invest into bitcoin. It is not just you and me, not everyone is in this for getting rich, sometimes people are protecting their store of value.

[Wiwo]

I believe bitcoin was designed for this situation. Lets see how will it react.

That is what bitcoin is for, it will be good to hold bitcoin than keeping fiat. You are specifically talking about US but there are fiat that are far worse than US dollar, more inflation in such countries. The worst investment I have seen is the people that are convinced by banks to hold fiat in fixed deposit for years, the people may not know that their money will not have value like people, the value lost will be more than the interests they will be paid.

I guess the deception lies with the marketers of that bank who will try all means possible to convince new customers to get their money fixed in the bank and the most popular message, is how stable the capital will be in the fixed account not minding the revised effect of the inflation rate within the time speculation in the agreement of the fixed money.
The effect of global warming is hitting hard on the economy of most countries and the US inflation rate is far less compared to those countries in the third world.