Inflation Cause

[TrustTheProcess]

Can someone who knows what they are talking about please explain why inflation is happening right now rather than last year when the pandemic started in detail?

 

Gas prices going up is related to supply/demand disturbances as the pandemic is phasing out/people are driving more regularly and making up for last year's losses according to Chevron's CEO... I am sure Joe's regulation of drilling licenses also contributed. 

 

but more broadly... what the hell is going on. 

[Wilhelm44]

The old ego based systems are collapsing. The world is being forced to wake up. True security is not about having a financial nest egg. If hyperinflation actually happens, even a billionaire couldn't do shit with any amount of money. A transition to a more harmonious world is on the way, and God only knows how Graceful that process will be. It might be a pretty wild ride the next couple of years. All the more reason to invest in waking up. 

[Shawn Philips]

On 20/11/2021 at 7:15 PM, Wilhelm44 said:

The old ego based systems are collapsing. The world is being forced to wake up. True security is not about having a financial nest egg. If hyperinflation actually happens, even a billionaire couldn't do shit with any amount of money. A transition to a more harmonious world is on the way, and God only knows how Graceful that process will be. It might be a pretty wild ride the next couple of years. All the more reason to invest in waking up. 

The harmnonious world idea is good but tell this to somebody who has been saving money for 10 years to buy a house for his family and then his money worths nothing. As long as money is the representation of hard work and effort if it loses value people can become angry, create riots or even don want to work anymore

[Yarco]

Money had not been injected into the system yet when the pandemic first started, and it takes time for the effects to start taking effect once it does.

Check out a graph of the money supply, look what happened between April and May 2020.

https://fred.stlouisfed.org/series/M1SL

The effects of inflation lag a fair bit after people start getting stimulus checks etc, it isn't felt immediately. The costs of things need to increase gradually.

For a lot of products, shipping disruptions means fewer items on the shelf. Less supply but demand is the same, so prices go up.

Some things are actually going down in price.... lumber went nuts for a while but now it's pretty much back to pre-pandemic prices.

I hear some economists talking about how once all the shipping containers start finally getting unloaded, we are probably going to see a deflationary scenario as tons of goods flood the market.  I've been researching hyperinflation a bit over the past year and normally it will follow a period of deflation first that catches everyone off guard.

In much of our economy things are deflationary and always have been.... specifically anything technology-related. Look at what a 50-inch flatscreen TV would've costed a decade ago vs today.

For housing I don't know what's going on. My house is worth almost double what I paid 5 years ago and that's pretty much the story everywhere, I'm not sure why it's such a global phenomenon. Lowering interest rates probably play a part, maybe people tired of being cramped in tiny apartments during lockdowns has increased demand for larger liviing spaces, even if it means spending 50% of your salary on a mortgage.

IMO it doesn't hurt to grab a few big bags of rice, bags of dried beans, canned food, etc. regardless of what is going to happen. For $100 you can pick up a couple months worth of food that will practically never go bad, and if nothing happens you can just slowly eat it as normal.

Edited November 22, 2021 by Yarco

[Gidiot]

@Wilhelm44 amen brother

[hoodrow trillson]

On 11/22/2021 at 0:56 AM, Yarco said:

 

I hear some economists talking about how once all the shipping containers start finally getting unloaded, we are probably going to see a deflationary scenario as tons of goods flood the market.  I've been researching hyperinflation a bit over the past year and normally it will follow a period of deflation first that catches everyone off guard.

 

The deflation is going to be very interesting.  

I'm curious to see how it affects the used car market specifically.  People with regular sedans are ballin out of control right now with how much their value has skyrocketed!