"Prepare for deflation in 2023"

[Wind_FURY]

@windfury
you were trying to infer that FED actions were going to cause a BITCOIN SURGE
i first responded to correct your notions of how the fiat economy works. and in later posts  that not only will there not be a bitcoin surge to the extents you imagine. but  how FED actions doent imply/cause bitcoin surge reactions

i explained what does cause bitcoin surges

you then deviated to say none of your topic was about bitcoin economy but only fed fiat economy. which i then quoted your "bitcoin surge like its 2015-7" to remind you that you stated it was about bitcoin surging

Is Bitcoin in an open market or not? Because the presumption is, although debatable, the Federal Reserve, and other other Central Banks, actions, ARE going to cause the Economy and almost EVERY TRADED ASSET in most open markets to surge or crash. It's a simple monetary phenomenon. If they print more money in circulation, it causes more demand = prices go up, inflation goes up. If they tighten and take money out of circulation, it lessens demand = prices go down, a deflationary cycle will come. I will admit again, that a 2015 - 2017 surge, it's debatable, but if the presumption that the Federal Reserve will over-adjust AGAIN on monetary expansion is right, then it's very possible.

[Wong Gendheng]

The threat of a recession of the global economy makes us have to be vigilant, not too easy to waste money for useless things such as parties, culinary, tourism and so on, it's better to immediately prepare with investment, no problem even though the value we think is lost, and cryptocurrencies are worth us Make a portion of investment because of a large profit potential.

[el kaka22]

I think surge regarding the price of bitcoin is something that is not "just" based on world economy. I mean sure it is impacted, there is no denying that and when the economy is terrible the price goes up because if fiat is terrible then it should be good for bitcoin.

But at the same time, we should not put the price of bitcoin depending just on that, there are many other things that it gets affected by, and it could be one of those that makes it. Like some great news of some big nation making it legal tender could make the price go up suddenly, even when economy hasn't changed, as you can see the world economy is the same, but that good news could make it higher. That type of things matter.

[Wind_FURY]

I think surge regarding the price of bitcoin is something that is not "just" based on world economy. I mean sure it is impacted, there is no denying that and when the economy is terrible the price goes up because if fiat is terrible then it should be good for bitcoin.

But at the same time, we should not put the price of bitcoin depending just on that, there are many other things that it gets affected by, and it could be one of those that makes it. Like some great news of some big nation making it legal tender could make the price go up suddenly, even when economy hasn't changed, as you can see the world economy is the same, but that good news could make it higher. That type of things matter.

You didn't get the whole point, or didn't get the context. We're not talking about the "World Economy", we are talking about the Central Banks all around the world, and their financial policies. Because it's a fact that for Central Banks to control inflation, they have to reduce the money in circulation and tighten liquidity. Its effect will be lower demand, causing a deflationary cycle, which I said MIGHT happen this year. BUT Jerome Powell looks that he's going to chamge his mind from what he previously said in Jackson Hall. I thought he was going to be "a Volker". I might be wrong. He might pivot earlier than expected, and there might not be a deflationary cycle.

[Joshapat]

Many think that in 2023 there will be deflation, if this is true, of course it is a better thing than inflation which is very difficult, in my country deflation is very rare, since I was in high school and knew economics lessons and saw the economic history in my country then only deflation occurred several times in agricultural products, apart from agricultural products, this has never happened.

[Sayeds56]

Prepare to experience a big surge for Bitcoin like it was 2015 - 2017

Deflation is always worse than inflation. Deflation means sustained decrease in prices of goods and services, can have several negative consequences on economy such as , decreased spending, reduced investment in new projects and hiring. This ultimately results in increase in unemployment which is not only bad for economy but also impacts vote bank of ruling party.

It is expected, that during deflation the both stocks and crypto markets may perform poorly.
I don't think FED will allow deflation to occur in USA, they will start printing money as soon as they detect some signs of deflation.

[Wind_FURY]

Prepare to experience a big surge for Bitcoin like it was 2015 - 2017

Deflation is always worse than inflation. Deflation means sustained decrease in prices of goods and services, can have several negative consequences on economy such as , decreased spending, reduced investment in new projects and hiring. This ultimately results in increase in unemployment which is not only bad for economy but also impacts vote bank of ruling party.

But aggressive QT/tightening is what the cabal behind the Federal Reserve must do to fight and control inflation, or else, the U.S. Dollar will be under the risk of hyperinflation.

The Federal Reserve's mandate is price stability, they have to have inflation under control.

It is expected, that during deflation the both stocks and crypto markets may perform poorly.
I don't think FED will allow deflation to occur in USA, they will start printing money as soon as they detect some signs of deflation.

I believe BRRR-Money-Printing will start as soon as something breaks. That's when Bitcoin WILL start to surge like it was during 2015 - 2017, because we already know that there's high probability that they will over-adjust in QE/expansion.

Although, Jerome Powell is indicating that the Fed might stop tightening, and pivot earlier than planned.

[Wind_FURY]

Bump. CPI is 3% for the month of June, the lowest inflation since March, 2021.

Plus a new narrative if we can call it that - Apollo's Chief Economist, Torsten Slok, says that because Federal Reserve rate hikes take 12 to 18 months before its real effects could be seen, he theorizes that a recession is a more probable result than a soft landing.

I actually thought we would see reinflation happen for June after Jerome Powell paused for that month. Perhaps now we might see deflation happen earlier than expected if Slok is right?

[Cookdata]

That's obviously a statement you don't hear many people say, but if we review the history of the cabal that decides if they should implement QE or QT, the cabal has the susceptibility to over-adjust in one side causing inflation, and probably deflation after over-tightening. When one act causes an outcome, they over-adjust to stop the outcome, which causes the opposite outcome.

This is subjective to individual country and I don't think my country is even ready for this discussion as most of the tightening policy is killing the mass literally, the increment of tax has also been a big burden to everyone and yet inflation has been a big discussion in the country which has affected every commodity you can found in the country, the services are not left out,  deflation is still far from here but perhaps the new government will find a way to make it work this time around but wait for a second, are you using same US that people are screaming on every day. 

I'm not an economist, but if deflation happens in 2023 that causes further recession, what would the Federal Reserve do? MAXIMUM ORDERS OF BRRR-MONEY PRINTING.

Prepare to experience a big surge for Bitcoin like it was 2015 - 2017

Then was late 2020 and 2021 price surge a deceptive measure of Bitcoin price run, 2015/17 is run is entirely different from 20/21 and we expect a soon surge in 2023, I beg to differ though but perhaps you are using halving effect in play otherwise even if the SEC go BRRR, the market makers will do what they like in the end, they have always been the benefactors of the surge.

[Franctoshi]

Fed printing of Money brought about two things, 1. price inflation, which is an increase in the price of goods and commodities, and 2. money inflation, which is printing 20% more in circulation just in one year. If at all we are close to a point where we are about to experience deflation, where FED may think of starting a quantitative easing QE, I don't see that of price inflation get solved any time soon.
Here in my country, the price of goods and services is skyrocketing and there's no sign of when it's going to be over.

[letteredhub]

in my country, the price of goods and services is skyrocketing and there's no sign of when it's going to be over.

It's same experience in almost every countries of the world there has been a constant increase in prices of goods and services mostly foodstuffs. And this inflation is more worsen in countries that are consumption-based- countries as they have to import more of whatever they need thereby spending 2x higher on commodities than what a person in a  production/industrial country would. The worse part about this whole inflation crisis is that no one knows when it's going to end, that's if it will finally end.  

[AmoreJaz]

in my country, the price of goods and services is skyrocketing and there's no sign of when it's going to be over.

It's same experience in almost every countries of the world there has been a constant increase in prices of goods and services mostly foodstuffs. And this inflation is more worsen in countries that are consumption-based- countries as they have to import more of whatever they need thereby spending 2x higher on commodities than what a person in a  production/industrial country would. The worse part about this whole inflation crisis is that no one knows when it's going to end, that's if it will finally end.  

if you look at that kind of scenario, you will be overwhelmed by the situation. so not to panic or get the feeling of anxiety, just think of what you can do to ease the burden of this situation. find ways on how to save from your everyday expenses. just an example, if you think solar panels can help you in lowering down the cost of your electricity bill, then start thinking of investing on this. it may incur you bigger expenses at the start but later on, you will reap the rewards of having solar panels installed on your roof. don't buy unnecessary things that will just pile up in your storage area. in short, why not start living frugally?

[awik p]

in my country, the price of goods and services is skyrocketing and there's no sign of when it's going to be over.

It's same experience in almost every countries of the world there has been a constant increase in prices of goods and services mostly foodstuffs. And this inflation is more worsen in countries that are consumption-based- countries as they have to import more of whatever they need thereby spending 2x higher on commodities than what a person in a  production/industrial country would. The worse part about this whole inflation crisis is that no one knows when it's going to end, that's if it will finally end.  

I as an employee really feel it, where the price of goods rises so I have to be good at managing finances, therefore for now I'm looking for additional work to cover the daily economic shortfalls, besides that I also have to think about investing that is not affected by inflation. as the head of the family bears the burden for the welfare of family members despite the various obstacles currently being experienced, I don't think this will end if the government continues to maintain fiat

[19Nov16]

The threat of world economic recession makes us be vigilant, many countries report slow economic inflation and growth so that it can make us poor, the easy step we have to take from now is trying to find other sources of opinion, if we work 5 days per week then we can Use the remaining 2 days to get additional income.

[Wind_FURY]

To all those people in the topic who mentioned that inflation is still high in their particular countries/regions, my reply for that I would say wait for two things.

- Aggressive rate hikes that would bring forth Deflation or a Recession

OR

- Aggressive price increases which would bring forth Stagflation, then rate hikes, then a Deflation + Recession AKA Depression

OR

The Cabal responsible for your country's monetary system might be "wizards" and everything will be solved without any serious issues. Haha.

[Flexystar]

I don't think it is as easy as you have depicted it here. You mean to say overgrowing of the inflation will reverse the outcome of inflation turn the situation into deflation again? Just like that? I am pretty sure that is not what happens if something is overgrown. The outcome of inflation won't reverse on itself but it will turn the economy upside down leading to worst economic crisis we have ever seen. With the increased federal debts and national reserves for various countries getting depleted or becoming hard to manage due to increased dollar to local currency value, its gonna get worst if nothing is controlled.

But we should know that everything depends on the major factors like how FED is going to regulate the interest, what are the methodology behind the overcoming of unemployment, increased rates and much more.

To all those people in the topic who mentioned that inflation is still high in their particular countries/regions, my reply for that I would say wait for two things.
- Aggressive rate hikes that would bring forth Deflation or a Recession
OR
- Aggressive price increases which would bring forth Stagflation, then rate hikes, then a Deflation + Recession AKA Depression
OR
The Cabal responsible for your country's monetary system might be "wizards" and everything will be solved without any serious issues. Haha.

That is definitely magical if it happens. But we all know the burden is on us, the tax payers always hit hard with such hikes. Cost of living is off the roof right now. For them it might be magical wand, for us it's grim reality.

[dothebeats]

Many think that in 2023 there will be deflation, if this is true, of course it is a better thing than inflation which is very difficult, in my country deflation is very rare, since I was in high school and knew economics lessons and saw the economic history in my country then only deflation occurred several times in agricultural products, apart from agricultural products, this has never happened.

I agree, of course it's a good thing. However, usually when prices goes down it wouldn't be as drastic like how it went up. Essentially, it wouldn't be as dramatic of a change as inflation goes where we can actually feel it the moment it hits. But this, of course, does not necessarily mean thag it's a bad thing.

[Litzki1990]

Various economists believe that 2023 may see the most inflationary event. Many countries have already been warned of inflation in 2023. There are many developing countries that may suffer the most inflation. We cannot ignore the phenomenon of inflation, only those who have experienced such incidents know how much of a threat inflation is to the economic system of a country. Since inflation is already being predicted, we should be alert about it in advance. I think the governments of every country should be aware of this and plan how they will deal with inflation during inflation. The government should conduct awareness campaigns as well as awareness campaigns so that people can be prepared for this issue.

[kingvirtus09]

The Federal Reserve is now watching the markets closely, and the continuity of withdrawing liquidity for a long period will accelerate avoiding deflation. It is easy to pump liquidity, but it will make it difficult to reach “healthy” inflation during the current fiscal year.

I am afraid of what is happening in China. The last thing we are waiting to see now is the return of  COVID19 with a good mutation, which means more health restrictions.
And the war that is taking place in Ukraine and the lack of control over it.
The energy crisis and its problems, especially with the European economy.

So we have enough problems to fear deflation

It may not happen that we will return to covid19 again, because we have seen its effects and effects all over the world and that is not good. After all, we haven't fully recovered after several years of pandemic.
Then I don't think the FED will let that happen, as long as they find a solution, they are for sure already doing it and preparing to not lead to such a situation.

[Davian144]

I agree, of course it's a good thing. However, usually when prices goes down it wouldn't be as drastic like how it went up. Essentially, it wouldn't be as dramatic of a change as inflation goes where we can actually feel it the moment it hits. But this, of course, does not necessarily mean thag it's a bad thing.

Decreases and increases that are not drastic usually only occur temporarily, so it is not worth saying that it is bad and it doesn't have to be called good either. Because things that happen temporarily are caused by ordinary factors that can affect prices in the market tend to change just a little bit, but in terms of inflation I see the effect can be a little bigger because almost the whole world can feel it even though everyone has their own way of dealing with it with their own methods.