Inflation, Deflation, and General Consternation

[Heracleum Persicum]

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Inflation happens when prices go up

Prices go up when "purchasing power" goes up

"Purchasing power" goes up when people have "more money than they had year before"

So

If 10% of Americans lost their job, and government helps them pay bare minimum", not many have more now than they had yr ago

There no "pricing power" to raise prices.

Yes, Trillions of dollars pored into economy

But, those Trillions of dollars are not piled on 'already earnings", but , those trillions of Dollars "partially replace" LOST earnings.

Those Trillions pored into "black hole"

https://www.nytimes.com/live/2021/02/12 ... -300-years

"Britain’s economy shrank by nearly 10 percent in 2020, the most in 300 years"

Economy is in deep recession, in ICU, held alive only by Intravenous Trillions of Dollars free money

Don't hold your breath, there will be no inflation.

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[Typhoon]

Well, if you prediction had been made for PR China, you would have been correct.

Inflation.png (1.79 MiB) Viewed 3462 times

No cigar for you.

[Typhoon]

Well, this is new. At least it is to me.

https://archive.ph/3MX2i]New Stateman | ... inflation

The prices of most goods are [now] not set by humans, but by automatic processes set to maximise their owners’ gains.

Algorithms gone wild.

In 2011 an Amazon seller called “profnath” listed a second-hand, out-of-print academic textbook (The Making of a Fly, by the geneticist Peter Lawrence) for $9.98. And there it would have stayed, had another seller not listed the same book using automatic pricing, which caused the original listing (also set with automatic pricing) to rise in turn. Each seller just wanted to make a slightly higher margin than the market rate, so the two listings kept bidding each other upwards until the book cost well over 23 million dollars.

[Doc]

Well, this is new. At least it is to me.

https://archive.ph/3MX2i]New Stateman | ... inflation

The prices of most goods are [now] not set by humans, but by automatic processes set to maximise their owners’ gains.

Algorithms gone wild.

In 2011 an Amazon seller called “profnath” listed a second-hand, out-of-print academic textbook (The Making of a Fly, by the geneticist Peter Lawrence) for $9.98. And there it would have stayed, had another seller not listed the same book using automatic pricing, which caused the original listing (also set with automatic pricing) to rise in turn. Each seller just wanted to make a slightly higher margin than the market rate, so the two listings kept bidding each other upwards until the book cost well over 23 million dollars.

They must come with one heck of a sleeve.

[Typhoon]

True blue - M. Hutchinson | The correct inflation target is Zero

Jason Furman, in the Wall Street Journal, is just the latest former senior financial official (Chairman of the Council of Economic Advisors, 2013-17) to suggest the Fed should raise its inflation target above the current 2%. We know what these people want – a target high enough that rates can be reduced to zero again, below the rate of inflation, benefiting their rich friends with access to leverage. For the rest of us, there is only one proper inflation target: zero. Adopting that target would solve most of the economic problems currently plaguing the West.

[noddy]

The usual explanation for a low , but positive, inflation target is that their is a stimulus effect created by encouraging big business not to hold on to money but invest it - use it or lose it.

so in this perfect world, people with money are investing and expanding it, creating pay rises that cover the inflation.

zero inflation lets people collect interest rates while doing nothing for society - something else big business withbig money would like.

economic theory all gets wishy washy when confronted with the rich and powerful doing what they want - a tweek here or there to the rules is not going to counter it.

[Typhoon]

True Blue - M. Hutchinson | World central banks are wimping out


Shadowstats | Alternative [US] inflation charts

[Heracleum Persicum]

True Blue - M. Hutchinson | World central banks are wimping out


Shadowstats | Alternative [US] inflation charts

https://www.bloomberg.com/news/articles ... ckout=true

Central Bank Gold Binge Is Even Bigger Than Previously Thought

https://www.scmp.com/economy/china-econ ... -nears-end

China keeps slashing US Treasury holdings

Am astonished Dollar not yet collapsed
.

[Typhoon]

True Blue - M. Hutchinson | World central banks are wimping out


Shadowstats | Alternative [US] inflation charts

https://www.bloomberg.com/news/articles ... ckout=true

Central Bank Gold Binge Is Even Bigger Than Previously Thought

https://www.scmp.com/economy/china-econ ... -nears-end

China keeps slashing US Treasury holdings

Am astonished Dollar not yet collapsed
.

You're easily astonished then.

Currently there is no viable alternative to the dollar.

Returning to a gold standard would be, I'd argue, as dumb as going all in with wind power in the sense that both cases there is little correlation be demand and supply.

[Heracleum Persicum]

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If India buying Oil from Saudi pays for the oil with Indian Rupee, Saudi has difficulty paying with Rupee buying things from Germany reason being that Germany does not buy much from India (to pay with Indian Rupee)

But Chinese Yuan has not this problem as all world nations, everybody, is buying huge amount of goods from China and any nation can pay with Yuan to China

Means, right now, real world challenger for U$ is Chinese Yuan

But this changing as India to become world's second largest economy by 2075, meaning, India will have huge trades with main economies which can settle accounts with India with Rupee.

Another danger for U$ is if BRICS have a "BRICS currency" as Europeans have Euro .. that too now in progress

So, U$ days are numbered

[Typhoon]

.

If India buying Oil from Saudi pays for the oil with Indian Rupee, Saudi has difficulty paying with Rupee buying things from Germany reason being that Germany does not buy much from India (to pay with Indian Rupee)

But Chinese Yuan has not this problem as all world nations, everybody, is buying huge amount of goods from China and any nation can pay with Yuan to China

Means, right now, real world challenger for U$ is Chinese Yuan

But this changing as India to become world's second largest economy by 2075, meaning, India will have huge trades with main economies which can settle accounts with India with Rupee.

Another danger for U$ is if BRICS have a "BRICS currency" as Europeans have Euro .. that too now in progress

So, U$ days are numbered

Maybe, probably not.

Anyways, this is an economics thread about inflation and deflation, not one to gone on, yet again, about your fifth-columnist fervent hope for the imminent collapse of the USD, the US, and the West. You have the "BRICS" thread in "Current Events" to do so.

So, please stick to the topic.

[Heracleum Persicum]

.

If India buying Oil from Saudi pays for the oil with Indian Rupee, Saudi has difficulty paying with Rupee buying things from Germany reason being that Germany does not buy much from India (to pay with Indian Rupee)

But Chinese Yuan has not this problem as all world nations, everybody, is buying huge amount of goods from China and any nation can pay with Yuan to China

Means, right now, real world challenger for U$ is Chinese Yuan

But this changing as India to become world's second largest economy by 2075, meaning, India will have huge trades with main economies which can settle accounts with India with Rupee.

Another danger for U$ is if BRICS have a "BRICS currency" as Europeans have Euro .. that too now in progress

So, U$ days are numbered

Maybe, probably not.

Anyways, this is an economics thread about inflation and deflation, not one to gone on, yet again, about your fifth-columnist fervent hope for the imminent collapse of the USD, the US, and the West. You have the "BRICS" thread in "Current Events" to do so.

So, please stick to the topic.

True



Rising price will rise for long time for certain goods, Energy, food, things that rising "Global South" (80% of world population) countries becoming more prosperous will want to consume, their population will have cars and eat more ..

On the other side, prices for "hard assets" will fall in "western countries" because population will shrink, age, and become (relative) poorer .. deflation.

That already has started in the West ..
.

[Typhoon]

True Blue - Hutchinson | There are no independent central banks

The person running the "Shadowstats" site has been documenting the US govt diddling with the inflation data for years.
Assume the same applies to other OECD nations.

Shadowstats | Alternate Inflation Charts