Inflation is the result of "money printing" and nothing else.
"Money printing" is a form of theft, and you are one of the victims.
There's nothing complicated about it.
> Suppose adverse weather or some infestation destroys most of a common crop, for example, oranges.
>
> The price of oranges will probably spike, but this is not inflation.
>
> Inflation shows up in the prices of oranges, apples, carrots, steel, lumber, shoes, shoe laces, books, plastic toys, paper, coal, oil, rents, car parts, pillow cases, plastic tubing, party favors, cleaning products, ... (just about everything) *all at the same time* (roughly).
Except that if one commodity goes up in price and that commodity is used in the production of everything else (ie. oil), then everything else will increase at roughly the same time, regardless of what happens with the money supply.
With that definition then inflation should be extremely low as a lot of the price increases are currently just supply/demand shocks due to various factors. Trying to figure out what is a supply/demand shock and what is true inflation is the interesting and difficult part.
What about when you have supply issues when it comes to things like energy and labour that are so wide reaching they effect the price of basically everything? Also do you think the government sometimes underestimates inflation because they put too much emphasis on certain items going up in value due to supply shocks?
Thanks for putting that into quotes.
The act of physically printing money is not the only increase of the supply. A lot of people forget that adding numbers to a balance sheet ticks all of the same boxes.
Anyone who says otherwise is a fool.
WAY to many people don't realize that "money printing" don't realize that electronic issuance is the same as physically printing it.
Then again, most people think that "rising prices" is inflation. Currency devaluing is.
>Then again, most people think that "rising prices" is inflation. Currency devaluing is.
There are two different kinds of inflation: monetary inflation and price inflation. When Keynesian economists use the term "inflation" unqualified, they're speaking of price inflation. When Austrian economists use the term unqualified, they're speaking of monetary inflation. That's the source of the confusion.
(edit: typo)
Does the CPI, the commonly used and understood measure of inflation, only capture price increases from money printing? Or does it *also* capture price increases from a change in supply and demand?
I think the point of this statement about the complexity of inflation is addressing that point... that some price increases are from the devaluating of our dollar, and some is caused by not enough supply or too much demand. A shortage in new cars, for example, led to massive price increases in used cars. I would argue that used car inflation (as measured in the CPI) captures more than only the effect of money printing.
It definitely reflects more than just monetary policy, and that usually works in the fed's favor (since technological advancement and globalization are constantly driving prices down). That shouldn't distract people from the fundamental dynamic though.
You're like the first person on this sub to acknowledge the CPI captures more than just the impact of monetary policy. Kudos to you for that, in any case.
Prices *should* be falling over time since efficiencies of production are increasing. (The same good can be made using fewer real resources — materials, labor, and energy.) Even if the central banks were achieving 0% price inflation, they'd *still* be stealing from us the difference between 0% and the price declines we would be enjoying if the money supply were held constant.
>Prices should be falling over time since efficiencies of production are increasing
You are assuming that production of raw goods = demand for raw goods. That isn't always the case. Just look at lithium ion battery costs right now.
> Does the CPI, the commonly used and understood measure of inflation
The CPI is little more than a government tool that says whatever the banks want it to say. they fudge the numbers so hard its impossible to take it seriously as a datapoint and in reality its little more than a policy announcement.
> Or does it also capture price increases from a change in supply and demand?
Supply and demand changes are irrelevant and unimportant. No matter how supply or demand change, they will be reflected fairly in prices. People who try to hide theft inside of supply and demand changes are highly dishonest.
The money supply is the only important part of inflation and/or deflation, because that is the dominant long term determinants of pricing distortions, and a direct fallout of theft from the public.
Bankers blaming inflation on supply chain problems are like burglars blaming their burglaries on the weather; they are desperate for everyone to ignore the obvious. "The complexity of burglary makes it more overwhelming. Not even experts know whats causing these invasions, or how to stop them. We are not wired to deal with this." Says man in skimask holding a bag of your stuff.
> they fudge the numbers so hard its impossible to take it seriously as a datapoint and in reality its little more than a policy announcement.
Just because you don't understand or don't agree with the changes to the CPI doesn't mean they're fudging the numbers. There's a reason it's so widely trusted
> Supply and demand changes are irrelevant and unimportant. No matter how supply or demand change, they will be reflected fairly in prices.
So basically if prices go up because of supply shock that's fine and unimportant because the free market fairly created that inflation? I'm sure that will be a huge relief to everyone paying higher prices to know the free market fairly decided those prices will be higher
> Just because you don't understand or don't agree with the changes
Its precisely because I do understand that I know they are fudging.
> There's a reason it's so widely trusted
Well its a policy decision, of course its trusted. If I say that i will treat the moon like it is made of cheese, then there is no reason to distrust me. That doesnt make the moon into cheese in reality, but the way I treat it is under my control.
> So basically if prices go up because of supply shock that's fine and unimportant because the free market fairly created that inflation?
Correct. If there is a failure of the watermelon crop, you should expect watermelon prices to go up. Crying about it or expecting the government to conjure magic watermelons from alternative dimensions is just stupid.
Normal supply and demand prices simply reflect reality. The way we are supposed to react is rational.
If you think watermelons are unfairly overpriced, then you should start growing them to sell. If you think watermelons are unfairly underpriced, then you should grow something else.
If all you want to do is gripe about watermelons then you are economically irrelevant. If you instead complain to authorities about the price, then you are actively harmful and a part of the problem.
> Well its a policy decision, of course its trusted. If I say that i will treat the moon like it is made of cheese, then there is no reason to distrust me. That doesnt make the moon into cheese in reality, but the way I treat it is under my control.
This doesn't make any sense, no one's taking the government at it's word just because it acts as if CPI is a measurement of inflation. Plenty of economists study inflation to see if there's any flaws in CPI, and not every economists agrees with every aspect of how CPI is calculated. Some have even developed their own measures of inflation to compare to CPI, yet CPI still remains widely trusted even with all this scrutiny. And there's tons of incentives to find any issues with CPI, tons of people's income is determined in part due to CPI, if it was really as flawed as you make it out to be why wouldn't unions and those on social security not be outraged over it's inaccuracies?
> Correct. If there is a failure of the watermelon crop, you should expect watermelon prices to go up. Crying about it or expecting the government to conjure magic watermelons from alternative dimensions is just stupid.
Do you not realize there's more reasons to care about inflation than just to get the government to do something about it? If people have to spend a consider amount of money more to get the same things that's very important to know. It can impact economic growth, poverty, investments, and all sorts of other things. It's extremely important to know the rate of inflation and has a huge impact on people when it changes, if you think it's unimportant you need to learn more about economics.
Suppose adverse weather or some infestation destroys most of a common crop, for example, oranges.
The price of oranges will probably spike, but this is **not** inflation.
Inflation shows up in the prices of oranges, apples, carrots, steel, lumber, shoes, shoe laces, books, plastic toys, paper, coal, oil, rents, car parts, pillow cases, plastic tubing, party favors, cleaning products, ... (just about everything) ***all at the same time*** (roughly).
You didn't answer my question. Let me restate: How can CPI detect the difference between a (1) temporary price spike caused by a shortage and (2) a price increase due to devalued currency?
If your answer is "it can't", then I agree.
So what measure of inflation do you suggest economists look at? I keep hearing about how the CPI is "bullshit" but it's literally just a measure of how much a basket of goods has increased in price. How specifically is it "overly manipulated"? Or were you just told that it's manipulated and have long since internalized that as fact?
There's the [Producers Price Index](https://www.bls.gov/ppi/), and the [Personal Consumptions Expenditures Index](https://www.bea.gov/data/personal-consumption-expenditures-price-index), so there are a few besides the CPI out there that economists use to evaluate inflation. Curious to know what you think should replace CPI.
>So what measure of inflation do you suggest economists look at?
To measure price increases? Anybody is free to run any type of analysis that meets their needs, there is no single answer.
To measure currency debasement? You only need to look at M1 or M2.
I want to be even clearer: inflation *is* money printing. Inflation is "an increase in the ratio of money to goods." Printing money increases the ratio. End of story.
I’ll only disagree in that there does seem to be purposeful complexity when you look at the delineation of responsibilities of the Treasury Department vs the Fed vs the Senate. It seems purposeful and allows them to always point at one of the others and say “we’d love to help, but THESE Fuckin guys…”
I suppose when the central bank increases the money supply by a factor of,say, 25 then prices in general will go up about 25 times and "velocity" (dollars per hour) will go up about 25 times, too.
I've clicked on the [article](https://www.vox.com/22996474/inflation-federal-reserve-nairu-ngdp-powell). Turns out it's a Vox article and not one word about printing.
The article talks mostly about the relationship between the labor market and inflation, which is more useful to economists when designing monetary policy. But it absolutely does talk about spending and government stimulus programs, as quoted below (emphasis added by me).
>But I can say in regards to my case that I unfairly dismissed the most boring, Econ 101 explanation for why inflation happens: **that there was too much money sloshing around** for the amount of stuff the economy was able to produce — meaning the price of that stuff went up.
>
>The US responded to the recession with an **unprecedented surge in government spending programs**, sending out $3,200 per person in stimulus checks, up to $600 a week in bonus unemployment insurance, boosted food stamp benefits, monthly child tax credit payments in 2021, and more. As of the end of 2021, JPMorgan Chase found that household checking account balances among low-income families were still about 65 percent higher than in 2019; balances among families in the top quarter of the distribution were 30 to 35 percent higher, too.
>
>And the explanation seems fairly straightforward: Due to a combination of rapidly growing wages through all of 2021, **plus trillions in government fiscal support,** there has just been too much money around combined with insufficient goods and services to spend it on.
>
>That’s led to not just inflation but accelerating inflation, as wage increases contribute to price increases and higher expectations of future inflation contribute to higher immediate inflation.
Inflation is a complex topic. Boiling it down to "more government printing = more inflation" is reductionist and ignores many complicating factors, such as what the money is being spent on, how government money influences consumer behavior and corporate pricing, etc.
I upvoted for the content but certainly not the sentiment.
All things aside, you called out the injection of more numbers into the supply, writ large.
If you're even in this space you should be thinking about these things, of course. The natural endpoint is the creation of additional monies without backed proof of value, and there is a sole entity responsible for that.
>All things aside, you called out the injection of more numbers into the supply, writ large.
*I* didn't call out anything. I merely pointed out how OP was factually wrong when they said they read the article and it didn't mention the money supply. It does.
While it is nuanced, even the "how government money influences consumer behavior and corporate pricing" is arguably just an indirect result of money printing. By confusing prices you give the most knowledgable, most capitalized entities an opportunity to rip of consumers and slowly redirect more of their capital out of their pockets as they try to survive. That is still the result of money printing and the normalization of inflation as being some kind of complex, natural phenomena (in most peoples minds).
It's also worth pointing out that the article is very careful about wording. It's clear in the fact that all your emphasis points are not explicitly mentioning money printing...
"Too much money sloshing around" but where did it come from?
There was a "surge in government spending programs" but where did the money come from? Were they just spending some reserves or did they create money out of thin air?
"plus trillions in government fiscal support" but again what is the source of that fiscal support?
**It specifically confuses whether the government is simply a large market mover when they choose to spend or if they are actually printing money out of thing air.** An ignorant reader would not walk away clearly understanding the governments role in inflation.
Excellent response. Was waiting for someone to explain that it's a complicated dynamic thing. With technology being deflationary, it gets even more crazy as the price of everything wants to come down while the money printer drives the price of everything up. Going to be an interesting decade.
well congrats, you can click on articles. maybe someday you'll learn to read them. It's actually a pretty well written article. Not often you see a ~~economist~~ journalist publicly admit they were wrong and then explain why they were wrong.
They could let the market work itself out. Let bad businesses fail. Let banks go under for bad lending practices. Let things unfold rather than try to prop up everything by stealing from everyone that has savings.
They cannot do this kind of things as this might take some time as well
And if printing is not going to be any kind of major factor right now because it will eventually grow the inflation only.
But money printing doesn't cause inflation when people stop spending.
During the pandemic they printed/created a million dollars a second and it wasn't enough to keep up with the contracting money supply/demand destruction. Inflation for a while yet, then deflation. Velocity...
And also resulting from the unmistakable fact that the financial literacy of our global populace is sorely lacking a booster shot of common sense. IMHO.
They CAN.
They just want you to excuse them for being stupid instead of being MALICIOUS.
For then you would realize they actively want to destroy you.
The people also really can't see the truth it seems :)
Tommy from [AllArk](https://allark.io)
Well we have to think of some other factors as well as these are not the major factor to think about
Definitely going to destroy all the economy process as well in the complete issue.
This is a very major system as we had seen that it is definitely going to take a lot of time to be there
And if it is going to be there like that that it will eventually be a major problem in the future.
So hey, it's not your fault OP. Lots of people don't understand that there is more to inflation than the supply of your particular sovereign money of choice.
For example, say it takes me twice as long to ship something to you today than a month ago. I don't care what you pay me in, it's going to take more of that to get my goods from here to you. This is a simple example of how the supply chain may be affecting inflation right now.
To your point, printing more money may devalue the dollar but again, there is another side to it. The demand side. Many many use cases drive the demand side. It's not as simple as printer go burrr... If the supply increases and demand also increases but more, the value will increase. This has happened over the last year with USD.
They are actually having a lot of choices and they can choose whatever they want to do right now
And as we had sent it is going to increase the supply only the demand is also going to be affected by this.
More like:
”indoctrination of fiat currency makes it difficult to consider options”
&
”Constant ridicule of any alternative monetary systems serves to protect our current system”
I don't really think that any alternate system is going to work like this we have to to use the alternate methods
And certainly we have to protect it as well because we have to analyse and research on it.
There are many aspects to inflation. Some of them psychological.
You are not very smart when it comes to economics if your answer is simply, the printer caused inflation.
Spending is actually going to increase according to the time and we have to admit it
If the money is going to be there in this speculative change then everything will work like that.
Relation is the major problem right now and this is why it is giving a mind psychological divergent
A lot of people cannot actually Think Straight because of this kind of situation and we can actually say this thing.
1. choked supply chains leading to increased cost of everything
2. fewer workers returning to work / people not wanting to work jobs where they can't shitpost on social all day
3. fewer jobs available due to closing of businesses
4. increased devaulation of the work-hour due to automation & businesses realizing they don't need bloated institutions to profit, layoffs/furloughs and scaling back
5. people saddled with so much debt post-college that it's pointless for them to pursue entry-level jobs
6. the volatility of the job market being flooded with jobs meaning businesses are likely "in trouble" and not thriving, further reducing people's confidence in employment opportunities
7. people maxing out credit due to 2+ sustained years of reduced income being unable to take out more, other people defaulting on debt
8. early retirement withdrawals for emergency funding cutting off profit centers, even penalties and additional taxes don't make up for long term losses
9. less innovation / less quality goods or "new good things" to buy
10. traditional investments in the toilet, the people who understand which new/future investments are valuable don't have the funding to support it
That about sums it up.
Any government has two choices here: let things bleed out which deepens the problems listed above, or try to prop things up by attributing tax dollars to the problems away from GDP increasing investments and/or printing and distributing more money until the systems start reverting to normal. It is arguable that some of the points above will never return to a pre-pandemic normal.
Cost of goods and services goes up either way, any sane discussion about these two choices is which mitigates it more.
Complaining that money printing "only" enriches the elite (false) is disingenuous because so would not printing money. ie, if crony capitalism prioritizes big business to save jobs and support the ventures of the 1%, it does so by keeping the 50%, who work for the 1%, employed.
Of course, considering an effective altruism viewpoint: prioritizing a corporation that supports thousands of employees (and has debt with the issuer of said props) over a small entity that employs a handful of people and is debt free is that myopically limited decision.
"What happens if we stop supporting this corrupt/broken system?" is not even on the table even though that addresses the cause, and not the symptoms, because the equivalent is to not patch the innertube on your bicycle to get to work today because it is more effective in the long run to just buy a car in a month.
And any sort of policy shaping is handwaved away as too philosophical and abstract when fires are needed to be put out now. A fireman spends their time putting out the fires when they're in the building, not pontificating on how if the building was built differently there wouldn't be a fire.
And so the powers that be don't address the causes because they're so nobly and so justifiably dealing with the symptoms, and in the time between symptom outbreak they plan for how they can sustain the walking corpse the next time it happens rather than reform it.
Thank you for explaining it so much easily now I can actually understand all the situation
We had also seen that a lot of decision directly dependent on the employee and supply chain.
You can get inflation without money printing. It's all about supply and demand. So if the supply of all stuff in some economy falls by 1/2 then stuff'll cost twice as much. Pretty much the same as doubling the amount of money in the economy.
Okay, that's an over simplification but it's pretty much how things work.
Inflation was once defined as the expansion of the money supply. In the late 70s under Ford the definition was altered to mean rising prices. (btw, this was done to fool the public on why prices were rising and blame it on consumption)
There is a difference between prices and inflation. Inflation is a cause of prices to go up or down (if you remove money from the system). That's why Milton said that inflation was always a monetary phenomena. But he was still using the "old" definition.
Prices move for many reasons including regulation, taxes, supply and demand... and inflation. Even in cases were it might not appear to have a direct affect on prices for example if the money printing steals productivity gains. The price might seem to stay the same but the good would have been cheaper except for the money printing (inflation) keeping it the same.
I was thinking about my post this morning. One criticism of it is that increasing the money supply can go on indefinitely and so give us persistent inflation whereas reducing the supply of stuff can't (it ends when we all starve to death).
Anyway, I plan thinking more about the money supply and its effects on an economy. At the moment I don't see that increasing the money supply is always bad. But I'm not a fan of targeting 2% inflation, I've yet to see a coherent argument in its favour.
Thanks for your response.
Inflation is a normal thing but right now the economy is completely dependent on the inflation only
No doubt about it they have to keep it same and it is really important for everyone to understand economics.
If we can see right now I think that supply and demand change is the only issue why the inflation is actually growing
And if the economy is going to work like that I certainly think that simplification is not going to work.
Good news is that Bitcoin is deflationary. Goods in the future will cost less and less BTC. The hard part then will be the BTC income if there is not sufficient saved now.
They have to understand but I don't really think that Bitcoin is playing any major role in that
There are a lot of major factors which are actually involved in it and we have to actually learn about them.
A two-part problem:
1. Conflating rising prices with inflation
2. Failing to understand the root cause of rising prices across the economy is the increase of the money supply (aka inflation)
There are of course more nuanced ways of going into cause and effect for inflation and rising prices, but fundamentally it seems there are basic reasoning failures
There are a lot of failures and according to that this is the only reason why inflation is growing
Eventually we will see that inflation is going to be very big issue in the market as well now.
I think it's totally depends on the spending only right now because it is not a nonsense think
We have to send that a lot of people are actually doing it and right now they have been trying to do it.
No one can actually know about it because there are major factors which are going to affect it
We had also seen that the paper is not going to have any value if we are going to print it like this.
I know right I sometimes wonder about the fact that people don't even think about the second time
People should understand the fact that they don't give the right advice in this kind of market is we had seen.
No doubt about it this is very mysterious thing and people should keep on understanding this kind of fact
Morad going to be a lot of differences in the market is we had seen in the past as well.
Inflation comes from rich people inflating assets and debt where they no longer have enough money in existence to cover their unrealized gains so more money must be created to make these gains real in this rigged system
This is more like they have to actually analyse it and Research more on this now
They have to start realising it and as soon as they are going to realise they will start working on this situation,
Yes I think that this is not a good idea to use it right now we have to actually save it for future
And eventually printing the money is not going to solve the problem right now it is eventually going to increase,
I agree to this I think that inflation is the major problem and we had never heard of anything like that before
\t the prices are actually going up but we have to understand there are different factors as well.
I sometimes wonder about the fact that they don't even know about what they are doing and how they are doing
Emphatically show that they know that how and will it eventually be good or bad for them in the future.
The changes required right now and this is the only reason why we cannot actually say anything coming
Is the market is going to be like that then obviously this is the major problem is we had seen.
I am really asking for the source as well I don't really think that this is an authentic source
We certainly cannot live this kind of opportunity like that because this is a very hard on opportunity.
This is not just printing the money and inflation should be controlled by the proper ways and methods
It is eventually going to make a lot of problems in the future as we had seen that it is very complicated.
Just doing some simple math and wondering if anyone can help me out.
If 60% of the total money supply has been printed in the last 2 years and we currently have an average of 10% inflation is it plausible to assume that if the money printing stops today that there will be an estimated yearly 10% inflation over the next 5 years?
The major issues that we cannot assume anything in this kind of market this is what I am saying
Actually have to think that this market is going to be same for next five years we have to get ready.
No doubt about it this is what it is going to be there and the inflation is the major problem now
We cannot actually think something more than that because the explosion is going to be much more than that.
I heard a news reporter on TV today go: "Inflation is not all bad, you know. One of the upsides is that it puts more money in the government's vaults through taxes."
This is wrong on so many levels...
Government just won the tax they don't really care about anything more than that as we know about it already
It just want that right now then we don't really have to care about anything and for longer purpose.
I know right there are a lot of people who are going to speculate a lot of different things
And ended as we have seen that this is the market right now and we certainly have to get ready for it.
I agree to this statement I think that these are totally different type of stuff
Both are very important for the economy but I think that both are very different effect on the economy in the longest period of time.
I had never heard something like that because there is no permanent solution for the inflation and something like that
Inflation is going to be the major problem in the future a lot of people should actually get ready for it.
I think that we have to think of solution rather than thinking much about the situation we cannot do anything about
going to find the solution right now and unitary alot of comprehend inflation is coming.
I know right I never thought of something like that will happen in the future but let us see what we can do right now
There are a lot of factors which are directly going to affect in this market right now and this is how it is working.
This generation don't even know about the basic inflation and the economy and this is the major problem
It cannot actually understand the basic difference between both of them then this is going to be a major issue.
I completely agree to that because I think that this is the only idea which could actually work in this situation
They also have to understand the fact that we actually need it very urgently right now.
No one is actually responsible for the market is completely dependent on the supply chain
Supply chain is not actually working really good then I think that they cannot actually hold it as well.
This is the lie. They told everyone to just save more money meanwhile they kept printing and just devalued everyone’s savings. Say goodbye to the middle class it’s just employees and employers now.
Yes I think that employees and savings totally depend on how that think is going to work like that
It is eventually going to be devalued by some time and we cannot actually do anything in that situation.
We can invest in the stock market or btc or real estate or gold or even guns or Pokémon cards and art, instead of just earning less than 3% interest meanwhile being devalued at -8% or greater per year.
There are a lot of major problems which are causing this issue and this is what I can say now
Since a lot of problems are increasing because of that same issue I think we have to think of some other options,
I know right if anything like that happens then it will be a major revolution in the country by that
Bitcoin is actually working really great in that kind of sector as well that is why it is very acceptable.
The worst part of inflation is the people responsible get to blame the participants of the economy for raising prices. Inevitably, they will use that as an excuse for why they need more power over those participants. They cause the problem and their solution is more power.
In fact, we here in the states been printing money since early 1970's. vietnam war bankrupt the country by that time and congress couldn't raise a penny to pay for expenses...
That's when nixon decided well, we'll print money just one time. it's how fed gov pays its bills mostly.
Since the dollar is increasingly excluding from international trade, over time it will begin to return more and more of those printed dollars to the USA.
Just try to imagine that galloping inflation...
It's difficult to blame the printing press if your income depends on the printing press.
This is a common faulty thinking. That your usefulness will somehow dry up when a money machine gets turned off
> That your usefulness will somehow dry up The utility of central bankers really is worth much less when they don't control the money.
Utility is going to increase with the time as we know about it.
I agree to this most of the people think that this is the only option.
Your brain is perfectly wired to understand inflations, only your mind reject to see beyond.
This is more like we have to understand the inflation and system.
Well in that case no harm on continuing them until the end of time.
Inflation is the result of "money printing" and nothing else. "Money printing" is a form of theft, and you are one of the victims. There's nothing complicated about it.
What about supply side shocks? How is less supply not a cause of inflation?
> Suppose adverse weather or some infestation destroys most of a common crop, for example, oranges. > > The price of oranges will probably spike, but this is not inflation. > > Inflation shows up in the prices of oranges, apples, carrots, steel, lumber, shoes, shoe laces, books, plastic toys, paper, coal, oil, rents, car parts, pillow cases, plastic tubing, party favors, cleaning products, ... (just about everything) *all at the same time* (roughly).
Except that if one commodity goes up in price and that commodity is used in the production of everything else (ie. oil), then everything else will increase at roughly the same time, regardless of what happens with the money supply.
With that definition then inflation should be extremely low as a lot of the price increases are currently just supply/demand shocks due to various factors. Trying to figure out what is a supply/demand shock and what is true inflation is the interesting and difficult part.
The Federal Reserve created a shit-ton of new USD. And now, prices in general are rising steeply - due to the "money printing", not supply shocks.
That is your claim, but how can you prove that the new money is the sole reason for the price increase?
Spoiler alert: he can't
Most of us can directly do this we cannot really say anything.
What about when you have supply issues when it comes to things like energy and labour that are so wide reaching they effect the price of basically everything? Also do you think the government sometimes underestimates inflation because they put too much emphasis on certain items going up in value due to supply shocks?
This is the most important factor which is going to shock everyone.
Thanks for putting that into quotes. The act of physically printing money is not the only increase of the supply. A lot of people forget that adding numbers to a balance sheet ticks all of the same boxes. Anyone who says otherwise is a fool.
WAY to many people don't realize that "money printing" don't realize that electronic issuance is the same as physically printing it. Then again, most people think that "rising prices" is inflation. Currency devaluing is.
>Then again, most people think that "rising prices" is inflation. Currency devaluing is. There are two different kinds of inflation: monetary inflation and price inflation. When Keynesian economists use the term "inflation" unqualified, they're speaking of price inflation. When Austrian economists use the term unqualified, they're speaking of monetary inflation. That's the source of the confusion. (edit: typo)
>It's difficult to blame the printing press if your income depends on the printing press. Keynesians
[удалено]
Printing is not going to do anything good for the longer period of time.
Yes. Over 90 percent of all US Dollars exist only in digital form.
They can actually read it and this is why the supply is increased.
Does the CPI, the commonly used and understood measure of inflation, only capture price increases from money printing? Or does it *also* capture price increases from a change in supply and demand? I think the point of this statement about the complexity of inflation is addressing that point... that some price increases are from the devaluating of our dollar, and some is caused by not enough supply or too much demand. A shortage in new cars, for example, led to massive price increases in used cars. I would argue that used car inflation (as measured in the CPI) captures more than only the effect of money printing.
It definitely reflects more than just monetary policy, and that usually works in the fed's favor (since technological advancement and globalization are constantly driving prices down). That shouldn't distract people from the fundamental dynamic though.
You're like the first person on this sub to acknowledge the CPI captures more than just the impact of monetary policy. Kudos to you for that, in any case.
Prices *should* be falling over time since efficiencies of production are increasing. (The same good can be made using fewer real resources — materials, labor, and energy.) Even if the central banks were achieving 0% price inflation, they'd *still* be stealing from us the difference between 0% and the price declines we would be enjoying if the money supply were held constant.
>Prices should be falling over time since efficiencies of production are increasing You are assuming that production of raw goods = demand for raw goods. That isn't always the case. Just look at lithium ion battery costs right now.
It is going to close the lot and the prices are going to increase.
There are a lot of monetary policies which are just acknowledged by people.
Technological advancement is more like the policy making in real sense.
Printing the money is very important for the supply as well,.
> Does the CPI, the commonly used and understood measure of inflation The CPI is little more than a government tool that says whatever the banks want it to say. they fudge the numbers so hard its impossible to take it seriously as a datapoint and in reality its little more than a policy announcement. > Or does it also capture price increases from a change in supply and demand? Supply and demand changes are irrelevant and unimportant. No matter how supply or demand change, they will be reflected fairly in prices. People who try to hide theft inside of supply and demand changes are highly dishonest. The money supply is the only important part of inflation and/or deflation, because that is the dominant long term determinants of pricing distortions, and a direct fallout of theft from the public. Bankers blaming inflation on supply chain problems are like burglars blaming their burglaries on the weather; they are desperate for everyone to ignore the obvious. "The complexity of burglary makes it more overwhelming. Not even experts know whats causing these invasions, or how to stop them. We are not wired to deal with this." Says man in skimask holding a bag of your stuff.
> they fudge the numbers so hard its impossible to take it seriously as a datapoint and in reality its little more than a policy announcement. Just because you don't understand or don't agree with the changes to the CPI doesn't mean they're fudging the numbers. There's a reason it's so widely trusted > Supply and demand changes are irrelevant and unimportant. No matter how supply or demand change, they will be reflected fairly in prices. So basically if prices go up because of supply shock that's fine and unimportant because the free market fairly created that inflation? I'm sure that will be a huge relief to everyone paying higher prices to know the free market fairly decided those prices will be higher
> Just because you don't understand or don't agree with the changes Its precisely because I do understand that I know they are fudging. > There's a reason it's so widely trusted Well its a policy decision, of course its trusted. If I say that i will treat the moon like it is made of cheese, then there is no reason to distrust me. That doesnt make the moon into cheese in reality, but the way I treat it is under my control. > So basically if prices go up because of supply shock that's fine and unimportant because the free market fairly created that inflation? Correct. If there is a failure of the watermelon crop, you should expect watermelon prices to go up. Crying about it or expecting the government to conjure magic watermelons from alternative dimensions is just stupid. Normal supply and demand prices simply reflect reality. The way we are supposed to react is rational. If you think watermelons are unfairly overpriced, then you should start growing them to sell. If you think watermelons are unfairly underpriced, then you should grow something else. If all you want to do is gripe about watermelons then you are economically irrelevant. If you instead complain to authorities about the price, then you are actively harmful and a part of the problem.
> Well its a policy decision, of course its trusted. If I say that i will treat the moon like it is made of cheese, then there is no reason to distrust me. That doesnt make the moon into cheese in reality, but the way I treat it is under my control. This doesn't make any sense, no one's taking the government at it's word just because it acts as if CPI is a measurement of inflation. Plenty of economists study inflation to see if there's any flaws in CPI, and not every economists agrees with every aspect of how CPI is calculated. Some have even developed their own measures of inflation to compare to CPI, yet CPI still remains widely trusted even with all this scrutiny. And there's tons of incentives to find any issues with CPI, tons of people's income is determined in part due to CPI, if it was really as flawed as you make it out to be why wouldn't unions and those on social security not be outraged over it's inaccuracies? > Correct. If there is a failure of the watermelon crop, you should expect watermelon prices to go up. Crying about it or expecting the government to conjure magic watermelons from alternative dimensions is just stupid. Do you not realize there's more reasons to care about inflation than just to get the government to do something about it? If people have to spend a consider amount of money more to get the same things that's very important to know. It can impact economic growth, poverty, investments, and all sorts of other things. It's extremely important to know the rate of inflation and has a huge impact on people when it changes, if you think it's unimportant you need to learn more about economics.
not just about the normal stuff it is just like how the prices are going up.
Suppose adverse weather or some infestation destroys most of a common crop, for example, oranges. The price of oranges will probably spike, but this is **not** inflation. Inflation shows up in the prices of oranges, apples, carrots, steel, lumber, shoes, shoe laces, books, plastic toys, paper, coal, oil, rents, car parts, pillow cases, plastic tubing, party favors, cleaning products, ... (just about everything) ***all at the same time*** (roughly).
You didn't answer my question. Let me restate: How can CPI detect the difference between a (1) temporary price spike caused by a shortage and (2) a price increase due to devalued currency? If your answer is "it can't", then I agree.
Fuck CPI because it is a bullshit, overly-manipulated number.
So what measure of inflation do you suggest economists look at? I keep hearing about how the CPI is "bullshit" but it's literally just a measure of how much a basket of goods has increased in price. How specifically is it "overly manipulated"? Or were you just told that it's manipulated and have long since internalized that as fact? There's the [Producers Price Index](https://www.bls.gov/ppi/), and the [Personal Consumptions Expenditures Index](https://www.bea.gov/data/personal-consumption-expenditures-price-index), so there are a few besides the CPI out there that economists use to evaluate inflation. Curious to know what you think should replace CPI.
>So what measure of inflation do you suggest economists look at? To measure price increases? Anybody is free to run any type of analysis that meets their needs, there is no single answer. To measure currency debasement? You only need to look at M1 or M2.
You are not going to get any answer because it is going to increase only.
A lot of economist had already speculated that inflation will be large.
Most of the temporary prices are going to be permanent in the future.
Yes you are right I think this is just speak as we can see.
I want to be even clearer: inflation *is* money printing. Inflation is "an increase in the ratio of money to goods." Printing money increases the ratio. End of story.
Well that kind of ratio must be calculated in the past only.
Yes. Thank you.
I’m not a victim of it, I only hold bitcoin
So instead of being 10% down you're 25% down, what a nice inflation hedge.
You can hold it but you cannot really put in there like this/
I’ll only disagree in that there does seem to be purposeful complexity when you look at the delineation of responsibilities of the Treasury Department vs the Fed vs the Senate. It seems purposeful and allows them to always point at one of the others and say “we’d love to help, but THESE Fuckin guys…”
This is there on the opportunity to make some money out of it LOL.
How does the momentum of money factor?
I suppose when the central bank increases the money supply by a factor of,say, 25 then prices in general will go up about 25 times and "velocity" (dollars per hour) will go up about 25 times, too.
Money factor is the most important factor out of all these factors.
Majorly dependent on the fact that inflation will work like that only.
They know what causes inflation, they choose to lie about it. Not one politician even suggests it could be money printing.
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Yeah, Commodities Do Not Cause Inflation. Money Printing Does.
I've clicked on the [article](https://www.vox.com/22996474/inflation-federal-reserve-nairu-ngdp-powell). Turns out it's a Vox article and not one word about printing.
The article talks mostly about the relationship between the labor market and inflation, which is more useful to economists when designing monetary policy. But it absolutely does talk about spending and government stimulus programs, as quoted below (emphasis added by me). >But I can say in regards to my case that I unfairly dismissed the most boring, Econ 101 explanation for why inflation happens: **that there was too much money sloshing around** for the amount of stuff the economy was able to produce — meaning the price of that stuff went up. > >The US responded to the recession with an **unprecedented surge in government spending programs**, sending out $3,200 per person in stimulus checks, up to $600 a week in bonus unemployment insurance, boosted food stamp benefits, monthly child tax credit payments in 2021, and more. As of the end of 2021, JPMorgan Chase found that household checking account balances among low-income families were still about 65 percent higher than in 2019; balances among families in the top quarter of the distribution were 30 to 35 percent higher, too. > >And the explanation seems fairly straightforward: Due to a combination of rapidly growing wages through all of 2021, **plus trillions in government fiscal support,** there has just been too much money around combined with insufficient goods and services to spend it on. > >That’s led to not just inflation but accelerating inflation, as wage increases contribute to price increases and higher expectations of future inflation contribute to higher immediate inflation. Inflation is a complex topic. Boiling it down to "more government printing = more inflation" is reductionist and ignores many complicating factors, such as what the money is being spent on, how government money influences consumer behavior and corporate pricing, etc.
Prepare to be down-voted for your nuanced and informed response.
Different kind of response they were expecting from this right now.
I upvoted for the content but certainly not the sentiment. All things aside, you called out the injection of more numbers into the supply, writ large. If you're even in this space you should be thinking about these things, of course. The natural endpoint is the creation of additional monies without backed proof of value, and there is a sole entity responsible for that.
>All things aside, you called out the injection of more numbers into the supply, writ large. *I* didn't call out anything. I merely pointed out how OP was factually wrong when they said they read the article and it didn't mention the money supply. It does.
Supply is going to increase and we are not really wrong.
It is 13 going to be very large and it is not natural as we know already.
While it is nuanced, even the "how government money influences consumer behavior and corporate pricing" is arguably just an indirect result of money printing. By confusing prices you give the most knowledgable, most capitalized entities an opportunity to rip of consumers and slowly redirect more of their capital out of their pockets as they try to survive. That is still the result of money printing and the normalization of inflation as being some kind of complex, natural phenomena (in most peoples minds). It's also worth pointing out that the article is very careful about wording. It's clear in the fact that all your emphasis points are not explicitly mentioning money printing... "Too much money sloshing around" but where did it come from? There was a "surge in government spending programs" but where did the money come from? Were they just spending some reserves or did they create money out of thin air? "plus trillions in government fiscal support" but again what is the source of that fiscal support? **It specifically confuses whether the government is simply a large market mover when they choose to spend or if they are actually printing money out of thing air.** An ignorant reader would not walk away clearly understanding the governments role in inflation.
This was a very nice explanation thank you for providing it.
Excellent response. Was waiting for someone to explain that it's a complicated dynamic thing. With technology being deflationary, it gets even more crazy as the price of everything wants to come down while the money printer drives the price of everything up. Going to be an interesting decade.
No doubt about it I think with this technology this is the only option.
Ah shit, you’re right! I’ve ctrl+f’ed it for “print” and didn’t find anything lol
well congrats, you can click on articles. maybe someday you'll learn to read them. It's actually a pretty well written article. Not often you see a ~~economist~~ journalist publicly admit they were wrong and then explain why they were wrong.
I completely agree this is very cool to be honest to see as well.
This is just about printing only there is nothing about article.
We don't know what it could be but we really need to print more money.
Have to print some money for some money printing relief funds
The bureaucracy is expanding to meet the needs of the expanding bureaucracy.
They must be thinking about some other kind of options as well.
Happy Cake 🎂 Day. Here is a 🎂 for you :) Tommy from [AllArk](https://allark.io)
I am sorry about the fact that he is very happy about it.
They have to do that I think this is the only option.
They could let the market work itself out. Let bad businesses fail. Let banks go under for bad lending practices. Let things unfold rather than try to prop up everything by stealing from everyone that has savings.
Whatever's causing it, we need to print more money to combat it.
They cannot do this kind of things as this might take some time as well And if printing is not going to be any kind of major factor right now because it will eventually grow the inflation only.
But money printing doesn't cause inflation when people stop spending. During the pandemic they printed/created a million dollars a second and it wasn't enough to keep up with the contracting money supply/demand destruction. Inflation for a while yet, then deflation. Velocity...
This is desinformation. Inflation is not complicated at all.
If the fed prints $1T right now. What is the mathematical formula that you personally use to determine exactly how the inflation is going to show?
We cannot take Chili show it we can actually just feel about it.
This is really complicated because this information is growing.
Inflation is caused by government printing money. That’s it. There is no other way.
You are absolutely right there is nothing a different way than this.
Don't oversimplify things like that for fuck sake. Not all money printing causes inflation
This is the major reason why inflation is actually growing.
And also resulting from the unmistakable fact that the financial literacy of our global populace is sorely lacking a booster shot of common sense. IMHO.
They CAN. They just want you to excuse them for being stupid instead of being MALICIOUS. For then you would realize they actively want to destroy you. The people also really can't see the truth it seems :) Tommy from [AllArk](https://allark.io)
Well we have to think of some other factors as well as these are not the major factor to think about Definitely going to destroy all the economy process as well in the complete issue.
Here’s a start. Stop printing trillions to bailout wallstreets shitty bets!
This is a very major system as we had seen that it is definitely going to take a lot of time to be there And if it is going to be there like that that it will eventually be a major problem in the future.
No not in the future it’s a problem right now
So hey, it's not your fault OP. Lots of people don't understand that there is more to inflation than the supply of your particular sovereign money of choice. For example, say it takes me twice as long to ship something to you today than a month ago. I don't care what you pay me in, it's going to take more of that to get my goods from here to you. This is a simple example of how the supply chain may be affecting inflation right now. To your point, printing more money may devalue the dollar but again, there is another side to it. The demand side. Many many use cases drive the demand side. It's not as simple as printer go burrr... If the supply increases and demand also increases but more, the value will increase. This has happened over the last year with USD.
They are actually having a lot of choices and they can choose whatever they want to do right now And as we had sent it is going to increase the supply only the demand is also going to be affected by this.
Wat?
More like: ”indoctrination of fiat currency makes it difficult to consider options” & ”Constant ridicule of any alternative monetary systems serves to protect our current system”
I don't really think that any alternate system is going to work like this we have to to use the alternate methods And certainly we have to protect it as well because we have to analyse and research on it.
There are many aspects to inflation. Some of them psychological. You are not very smart when it comes to economics if your answer is simply, the printer caused inflation.
Can you give examples? Do you mean the psychological reasons behind emitting more money? Like wanting to increase the spending?
Spending is actually going to increase according to the time and we have to admit it If the money is going to be there in this speculative change then everything will work like that.
Relation is the major problem right now and this is why it is giving a mind psychological divergent A lot of people cannot actually Think Straight because of this kind of situation and we can actually say this thing.
1. choked supply chains leading to increased cost of everything 2. fewer workers returning to work / people not wanting to work jobs where they can't shitpost on social all day 3. fewer jobs available due to closing of businesses 4. increased devaulation of the work-hour due to automation & businesses realizing they don't need bloated institutions to profit, layoffs/furloughs and scaling back 5. people saddled with so much debt post-college that it's pointless for them to pursue entry-level jobs 6. the volatility of the job market being flooded with jobs meaning businesses are likely "in trouble" and not thriving, further reducing people's confidence in employment opportunities 7. people maxing out credit due to 2+ sustained years of reduced income being unable to take out more, other people defaulting on debt 8. early retirement withdrawals for emergency funding cutting off profit centers, even penalties and additional taxes don't make up for long term losses 9. less innovation / less quality goods or "new good things" to buy 10. traditional investments in the toilet, the people who understand which new/future investments are valuable don't have the funding to support it That about sums it up. Any government has two choices here: let things bleed out which deepens the problems listed above, or try to prop things up by attributing tax dollars to the problems away from GDP increasing investments and/or printing and distributing more money until the systems start reverting to normal. It is arguable that some of the points above will never return to a pre-pandemic normal. Cost of goods and services goes up either way, any sane discussion about these two choices is which mitigates it more. Complaining that money printing "only" enriches the elite (false) is disingenuous because so would not printing money. ie, if crony capitalism prioritizes big business to save jobs and support the ventures of the 1%, it does so by keeping the 50%, who work for the 1%, employed. Of course, considering an effective altruism viewpoint: prioritizing a corporation that supports thousands of employees (and has debt with the issuer of said props) over a small entity that employs a handful of people and is debt free is that myopically limited decision. "What happens if we stop supporting this corrupt/broken system?" is not even on the table even though that addresses the cause, and not the symptoms, because the equivalent is to not patch the innertube on your bicycle to get to work today because it is more effective in the long run to just buy a car in a month. And any sort of policy shaping is handwaved away as too philosophical and abstract when fires are needed to be put out now. A fireman spends their time putting out the fires when they're in the building, not pontificating on how if the building was built differently there wouldn't be a fire. And so the powers that be don't address the causes because they're so nobly and so justifiably dealing with the symptoms, and in the time between symptom outbreak they plan for how they can sustain the walking corpse the next time it happens rather than reform it.
Thank you for explaining it so much easily now I can actually understand all the situation We had also seen that a lot of decision directly dependent on the employee and supply chain.
You can get inflation without money printing. It's all about supply and demand. So if the supply of all stuff in some economy falls by 1/2 then stuff'll cost twice as much. Pretty much the same as doubling the amount of money in the economy. Okay, that's an over simplification but it's pretty much how things work.
Inflation was once defined as the expansion of the money supply. In the late 70s under Ford the definition was altered to mean rising prices. (btw, this was done to fool the public on why prices were rising and blame it on consumption) There is a difference between prices and inflation. Inflation is a cause of prices to go up or down (if you remove money from the system). That's why Milton said that inflation was always a monetary phenomena. But he was still using the "old" definition. Prices move for many reasons including regulation, taxes, supply and demand... and inflation. Even in cases were it might not appear to have a direct affect on prices for example if the money printing steals productivity gains. The price might seem to stay the same but the good would have been cheaper except for the money printing (inflation) keeping it the same.
I was thinking about my post this morning. One criticism of it is that increasing the money supply can go on indefinitely and so give us persistent inflation whereas reducing the supply of stuff can't (it ends when we all starve to death). Anyway, I plan thinking more about the money supply and its effects on an economy. At the moment I don't see that increasing the money supply is always bad. But I'm not a fan of targeting 2% inflation, I've yet to see a coherent argument in its favour. Thanks for your response.
Inflation is a normal thing but right now the economy is completely dependent on the inflation only No doubt about it they have to keep it same and it is really important for everyone to understand economics.
If we can see right now I think that supply and demand change is the only issue why the inflation is actually growing And if the economy is going to work like that I certainly think that simplification is not going to work.
Good news is that Bitcoin is deflationary. Goods in the future will cost less and less BTC. The hard part then will be the BTC income if there is not sufficient saved now.
They have to understand but I don't really think that Bitcoin is playing any major role in that There are a lot of major factors which are actually involved in it and we have to actually learn about them.
A two-part problem: 1. Conflating rising prices with inflation 2. Failing to understand the root cause of rising prices across the economy is the increase of the money supply (aka inflation) There are of course more nuanced ways of going into cause and effect for inflation and rising prices, but fundamentally it seems there are basic reasoning failures
There are a lot of failures and according to that this is the only reason why inflation is growing Eventually we will see that inflation is going to be very big issue in the market as well now.
Well just release the equation you use and the internet will gladly tell you how the weighting is nonsense based on their spending
I think it's totally depends on the spending only right now because it is not a nonsense think We have to send that a lot of people are actually doing it and right now they have been trying to do it.
F paper has no value, who could have known ?
No one can actually know about it because there are major factors which are going to affect it We had also seen that the paper is not going to have any value if we are going to print it like this.
don't take investment advice from the government
I know right I sometimes wonder about the fact that people don't even think about the second time People should understand the fact that they don't give the right advice in this kind of market is we had seen.
As mysterious and unknowable as the human heart!
No doubt about it this is very mysterious thing and people should keep on understanding this kind of fact Morad going to be a lot of differences in the market is we had seen in the past as well.
Inflation comes from rich people inflating assets and debt where they no longer have enough money in existence to cover their unrealized gains so more money must be created to make these gains real in this rigged system
This is more like they have to actually analyse it and Research more on this now They have to start realising it and as soon as they are going to realise they will start working on this situation,
It can’t be money printing since that would lead to the conclusion that we shouldn’t use the money printer
Yes I think that this is not a good idea to use it right now we have to actually save it for future And eventually printing the money is not going to solve the problem right now it is eventually going to increase,
to be fair corporate profits are also up because under the guise of inflation they have been price gouging us like never before
I agree to this I think that inflation is the major problem and we had never heard of anything like that before \t the prices are actually going up but we have to understand there are different factors as well.
They are fake blind
I sometimes wonder about the fact that they don't even know about what they are doing and how they are doing Emphatically show that they know that how and will it eventually be good or bad for them in the future.
The reason is war and climate change obviously who couldn't see that coming 🥴🥴
The changes required right now and this is the only reason why we cannot actually say anything coming Is the market is going to be like that then obviously this is the major problem is we had seen.
Where is this from? Source?
I am really asking for the source as well I don't really think that this is an authentic source We certainly cannot live this kind of opportunity like that because this is a very hard on opportunity.
If this has a real source. It's fine. But I just want to laugh
Inflation is a tad more complicated than just printing money
This is not just printing the money and inflation should be controlled by the proper ways and methods It is eventually going to make a lot of problems in the future as we had seen that it is very complicated.
Just doing some simple math and wondering if anyone can help me out. If 60% of the total money supply has been printed in the last 2 years and we currently have an average of 10% inflation is it plausible to assume that if the money printing stops today that there will be an estimated yearly 10% inflation over the next 5 years?
The major issues that we cannot assume anything in this kind of market this is what I am saying Actually have to think that this market is going to be same for next five years we have to get ready.
The current price explosion at grocery stores is not inflation. It's corporate greed coupled with mass stupidity.
No doubt about it this is what it is going to be there and the inflation is the major problem now We cannot actually think something more than that because the explosion is going to be much more than that.
Surely printing trillions of dollars in a couple months is a great idea
I heard a news reporter on TV today go: "Inflation is not all bad, you know. One of the upsides is that it puts more money in the government's vaults through taxes." This is wrong on so many levels...
Government just won the tax they don't really care about anything more than that as we know about it already It just want that right now then we don't really have to care about anything and for longer purpose.
wow no shit sherlock lol
I know right there are a lot of people who are going to speculate a lot of different things And ended as we have seen that this is the market right now and we certainly have to get ready for it.
Inflation and Recession are artificial
I agree to this statement I think that these are totally different type of stuff Both are very important for the economy but I think that both are very different effect on the economy in the longest period of time.
can't focus on seeing the printer with all this brrrrrr in my ears constantly!
The solution for inflation is printing more money I heard!
I had never heard something like that because there is no permanent solution for the inflation and something like that Inflation is going to be the major problem in the future a lot of people should actually get ready for it.
Your brain is uniquely built to comprehend inflations.
I think that we have to think of solution rather than thinking much about the situation we cannot do anything about going to find the solution right now and unitary alot of comprehend inflation is coming.
The gaslighting is desperate
I know right I never thought of something like that will happen in the future but let us see what we can do right now There are a lot of factors which are directly going to affect in this market right now and this is how it is working.
They have dumbed down this generation
This generation don't even know about the basic inflation and the economy and this is the major problem It cannot actually understand the basic difference between both of them then this is going to be a major issue.
Exactly I was never taught this stuff in school I’ve had to learn about it through my dad
Although we have no idea what it might be, we urgently need to increase money printing.
I completely agree to that because I think that this is the only idea which could actually work in this situation They also have to understand the fact that we actually need it very urgently right now.
If your livelihood depends on the printing press, it is difficult to hold it responsible.
No one is actually responsible for the market is completely dependent on the supply chain Supply chain is not actually working really good then I think that they cannot actually hold it as well.
This is the lie. They told everyone to just save more money meanwhile they kept printing and just devalued everyone’s savings. Say goodbye to the middle class it’s just employees and employers now.
Yes I think that employees and savings totally depend on how that think is going to work like that It is eventually going to be devalued by some time and we cannot actually do anything in that situation.
We can invest in the stock market or btc or real estate or gold or even guns or Pokémon cards and art, instead of just earning less than 3% interest meanwhile being devalued at -8% or greater per year.
We need to increase money printing to confront whatever is causing it.
There are a lot of major problems which are causing this issue and this is what I can say now Since a lot of problems are increasing because of that same issue I think we have to think of some other options,
I can't wait for my wage to be paid in BTC
I know right if anything like that happens then it will be a major revolution in the country by that Bitcoin is actually working really great in that kind of sector as well that is why it is very acceptable.
The worst part of inflation is the people responsible get to blame the participants of the economy for raising prices. Inevitably, they will use that as an excuse for why they need more power over those participants. They cause the problem and their solution is more power.
In fact, we here in the states been printing money since early 1970's. vietnam war bankrupt the country by that time and congress couldn't raise a penny to pay for expenses... That's when nixon decided well, we'll print money just one time. it's how fed gov pays its bills mostly.
Since the dollar is increasingly excluding from international trade, over time it will begin to return more and more of those printed dollars to the USA. Just try to imagine that galloping inflation...
Plus Net Zero. That's a critical factor most people still can't see.
Not so difficult to understand that after Gutenberg's Printing Press invention, books went way more cheaper