"Prepare for deflation in 2023"

[summonerrk]

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

I don't think anything like that will happen.The fact is that the consequences of Russia's separation from the world economy have already passed. The import and export chains in the world have normalized and everyone has found new reliable suppliers. Someone shifted to India and China, someone became closer to cooperate with Europe. All the consequences have already passed. Yes, the US Federal Reserve system loves to print money without it, which is not provided with anything. And of course, this affects the global economy, but not so much that bitcoin is in a strong movement.

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[doomloop]

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.

Why only 2 days? Someone who works only 8 hours a day can easily make some time to do a part-time job if they really want to earn some extra money, even if you have a family and have to give them time too, you can still have some time to spare that you can use for a secondary income, the best way is to learn some skill that you can use to do a job from home only to earn a few bucks every day, it can be a good way to at least have some extra savings every month.

Those who work extra hours, like more than 10, cannot do anything like this, and they will have to look for other jobs that can give them a bit more freedom so that they can do something else as a part-time job to earn some extra cash, if they don't want to do that, they might face problems in the future.

[hafiztalha]

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

I don't think anything like that will happen.The fact is that the consequences of Russia's separation from the world economy have already passed. The import and export chains in the world have normalized and everyone has found new reliable suppliers. Someone shifted to India and China, someone became closer to cooperate with Europe. All the consequences have already passed. Yes, the US Federal Reserve system loves to print money without it, which is not provided with anything. And of course, this affects the global economy, but not so much that bitcoin is in a strong movement.

There is no scene of deflation in USA. When Covid was in wave, many industries struggle a lot. Many industries have to stop their work, because there was no orders, they did not work in advance. So they have to clear industries and they push many employees into unemployment. That was a worse situation, there was a inflation, there are no chances of deflation because in USA services in goods price will go up due to inflation. There is no institution or government that will bend deflation to their side and inflation to other side. Deflation happens, when inflation is below 0 percent mean to say -0 percent that is practically not possible. When inflation affects one country, others countries are also affected by this. Because every country import and export things, their currency uses in other countries for trading.

[TheSpiral]

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.

People sometimes don't think about investment but they spend all amount they earned therefore when they need some amount immediately then they don't have any cash. If people have an idea that anytime inflation can reach to its peak then they will never use their money in anything which have no value and also they will use their maximum part of income as investment.

 If you have make investment and at any stage of life you don't want to do job then the others investment will help you and will act as a great support for you. With minimum cost you cannot create any business but when you invest some amount on monthly or annual basis then you will be able to use this large sum for creation of any business idea.

[philipma1957]

Well making a contrary prediction back in Jan of 2023 was bold . It looks like it was and will continue to be wrong. Inflation will stick around maybe till 2025.

[Unbunplease]

Higher energy prices lead to higher prices for the rest of the products and for shipping. For prices to fall and deflation to occur, there must be overproduction of at least oil, but the oil cartel has reduced oil production. Therefore, I personally do not see any conditions for the onset of so-called deflation at the moment

[Wind_FURY]

Higher energy prices lead to higher prices for the rest of the products and for shipping. For prices to fall and deflation to occur, there must be overproduction of at least oil, but the oil cartel has reduced oil production. Therefore, I personally do not see any conditions for the onset of so-called deflation at the moment

It's not that simple because overproduction also has a cost. If you increase production, the producer has to spend more for more employees, spend more for logsitics, more output, more for storage, which are also inflationary. Plus never forget that there never was inflation in any form that did not expand the money supply. It has ALWAYS been a monetary phenomenon.

[philipma1957]

Higher energy prices lead to higher prices for the rest of the products and for shipping. For prices to fall and deflation to occur, there must be overproduction of at least oil, but the oil cartel has reduced oil production. Therefore, I personally do not see any conditions for the onset of so-called deflation at the moment

It's not that simple because overproduction also has a cost. If you increase production, the producer has to spend more for more employees, spend more for logsitics, more output, more for storage, which are also inflationary. Plus never forget that there never was inflation in any form that did not expand the money supply. It has ALWAYS been a monetary phenomenon.

Well you did push a btc rise in the opening post so you were spot on with that.

Eggs got cheap by me. but most every other food went up in price. Along with many other items.

[STT]

I dont disagree deflationary effects can occur but ultimately we already know what side the bias is because Dollar will weaken drastically over the following decades.   Reason being deflation would relate to debt default or extreme taxation and confiscation, its possible but I dont imagine that occurs vs further dilution of the dollar monetary base value.


In next 3 years over half of treasury debt must be renewed or paid off.  There is no surplus just a continual deficit:
https://youtu.be/dt6a063Sdzk
Its not new, its been said before but presently Gov is borrowing 8.6bn a day.  The interest paid now yearly is higher then the total amount owed in previous decades.  If Volcker was here we'd end up with 15% interest rates perhaps and a ton of pain or deflation as mentioned but almost nobody would or could act like Volcker did 40 years ago and the more obvious path is dollar halves in value yet again.  I think another commentator mentioned inflation over the last 3 or 4 years has been about 50%, I should have saved the timestamp but these estimates and statements arent extreme just normal now.

there must be overproduction

Excess supply vs demand but we have rising demand in energy and its structural to economies growing faster then the west.

[Fortify]

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.

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

Deflation would be welcomed by many people considering the huge inflation in the last year that has effected everything from food, to furniture, to clothing, to fuel. If we stepped back a couple years people were making all sorts of predictions but you can guarantee that very few people were guessing accurately. Even the best experts in the world, central bankers and organizations like the IMF, wouldn't really like to admit that they often don't have a clue what the future holds. The Ukraine war came out of nowhere and triggered a bunch of consequences that nobody could have foreseen before. Who know's if a wider war in the Middle East would cause even more economic chaos for the whole world?

[Cryptomultiplier]

I would welcome deflation because of the reasons of inflation that I have witnessed and I think that it would be a good time to accumulate BTC because the prices of daily living would have been reduced, thus enabling more funds to be channeled to other areas.

Currently, the interest rates are higher than normal and I believe the prices of commodities would reduce but interest rates may linger for a duration because once prices go up, it's always hard for it to come down.

[philipma1957]

I would welcome deflation because of the reasons of inflation that I have witnessed and I think that it would be a good time to accumulate BTC because the prices of daily living would have been reduced, thus enabling more funds to be channeled to other areas.

Currently, the interest rates are higher than normal and I believe the prices of commodities would reduce but interest rates may linger for a duration because once prices go up, it's always hard for it to come down.

I have been around a long time. You see some deflation in electronics and tech. but most everything else just goes up and 🆙.

[DooMAD]

Wouldn't mind seeing some deflation in London.  If you go to see a band or show there, most of the bars are charging £12.00 (roughly $14.50 USD) or more for a single spirit+mixer.  That's -one- drink.  Daylight robbery.

Also, most of them are "cashless", which is frustrating.  Still don't know how that's legal.

[DrBeer]

Everyone dislikes inflation... It's hard to argue. But deflation is the "other side of the coin", and noticeable deflation is not a gift either. It's from the realm of "everything seems fine, but it's getting worse and worse every day"

"Deflation is a steady decline in the prices of goods and services in an economy over a period of time.
As demand falls, companies are forced to reduce production and lower prices. Fewer employees are needed to produce less goods, and companies start laying off staff, which leads to higher unemployment. Increased unemployment causes demand to fall because people have less money."

In this situation, I would favor low inflation, so stimulate the economy and invest the "skinny money"

[Volimack]

We can expect that our profit-making cycle is on the way, although not as much as before, but no one has any idea of the price level that Bitcoin will reach in the future. But I think it will be much higher than before but I don't know how much it will be, I can only guess that the highest price will be.

[Dunamisx]

We dislike inflation at all cost because it makes people get incapable of affording a living expenses when there's no increase in their income flow and every other things are increasing in price, it such continues then it may lead to an increase in the poverty poverty level and life may be unfavourable to many individuals and households, now over to deflation, are we really seing this coming or we are just perplexed about it.

[Wind_FURY]

I would welcome deflation because of the reasons of inflation that I have witnessed and I think that it would be a good time to accumulate BTC because the prices of daily living would have been reduced, thus enabling more funds to be channeled to other areas.

Currently, the interest rates are higher than normal and I believe the prices of commodities would reduce but interest rates may linger for a duration because once prices go up, it's always hard for it to come down.

I have been around a long time. You see some deflation in electronics and tech. but most everything else just goes up and 🆙.

But those products are relatively still expensive, no? A good, brand new smart phone still can't be afforded by most plebs if they don't have a credit card or any kind of access to credit.

Everyone dislikes inflation... It's hard to argue. But deflation is the "other side of the coin", and noticeable deflation is not a gift either. It's from the realm of "everything seems fine, but it's getting worse and worse every day"

"Deflation is a steady decline in the prices of goods and services in an economy over a period of time.
As demand falls, companies are forced to reduce production and lower prices. Fewer employees are needed to produce less goods, and companies start laying off staff, which leads to higher unemployment. Increased unemployment causes demand to fall because people have less money."

In this situation, I would favor low inflation, so stimulate the economy and invest the "skinny money"

You're absolutely right, but deflation through recession is precisely what the economies around the world need to control inflation. Because if the Federal Reserve, European Central Bank and other Central Banks around the world won't cause a recession themselves through QT/tightening of the money supply, then inflation will do it for them.

[DrBeer]

You're absolutely right, but deflation through recession is precisely what the economies around the world need to control inflation. Because if the Federal Reserve, European Central Bank and other Central Banks around the world won't cause a recession themselves through QT/tightening of the money supply, then inflation will do it for them.

I disagree, it seems to me that deflation and recession are not mutually corrective processes. And what is important - recession, in my opinion, is not able to correct inflation. Let me explain my position: Recession is a phase of the economic cycle when the economy falls and slows down. A recession is talked about when GDP declines for two quarters. That is, this process leads to a decrease in the circulation of money, but also reduces income and tax revenues to the budget. And this usually leads to the fact that the state will have to borrow money somewhere, because tax revenues are decreasing (state revenues), but mandatory state expenditures are not decreasing. Therefore, the state either credits or "prints money", which can hardly be called deflation. If I am mistaken - please correct me ?

[TakeItEasy]

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.

Inflation is due to the falls in the goods we need and when the users are more there is inflation and users will also not make things change, because the government would take care of it, as you talked about the fed printing as this is due to the people of a  country which are living inside the country and that is not due to the government or due to any other supporting the countries but only due to the persons inside that country. So, to get rid of inflation these things should also be stopped as due to media the things prices usually going up as they are seeing one thing and they are explaining another side of it. So, all these things usually affect the inflation rate in any country which would be better for the government to take care of on time.

[Wind_FURY]

You're absolutely right, but deflation through recession is precisely what the economies around the world need to control inflation. Because if the Federal Reserve, European Central Bank and other Central Banks around the world won't cause a recession themselves through QT/tightening of the money supply, then inflation will do it for them.

I disagree, it seems to me that deflation and recession are not mutually corrective processes. And what is important - recession, in my opinion, is not able to correct inflation.

Let me explain my position: Recession is a phase of the economic cycle when the economy falls and slows down. A recession is talked about when GDP declines for two quarters. That is, this process leads to a decrease in the circulation of money, but also reduces income and tax revenues to the budget. And this usually leads to the fact that the state will have to borrow money somewhere, because tax revenues are decreasing (state revenues), but mandatory state expenditures are not decreasing.

Therefore, the state either credits or "prints money", which can hardly be called deflation. If I am mistaken - please correct me ?

You're not wrong, but you're talking about something else. When the Federal Reserve and other Central Banks around the world start turning on the money printer and start the pivot to Quantitative Easing, then the situation has changed from that of being deflationary to inflationary. That's not a deflationary period anymore.

A deflationary period/tightening of the money supply, which causes a recession, and therefore curbs inflation, is still needed for the Central Banks to be given room to print money again, but hopefully more responsibly. In the current state of the monetary situation, the Federal Reserve have its hands tied. They can't print more money because risk of reinflation is still high. Core CPI needs to go down under 2%.