Is inflation coming?

[Dinner]

I remember back in 2008 there was a lot of fear about inflation and while assets like realestate did inflated pretty strongly after the great recession there was none of the feared hyper inflation. We are again hearing people loudly worry about inflation because of xovid, the response from governments to massively increase deficit spending even as production has dropped of dramatically. It was kind of scary to learn 1/3rd of all the US ars in the world was printed in the last 12 months.

So what do people think? Is everything going to be fine or are we in for a bumpy ride wrt inflation?

https://youtu.be/1HmGLV46L60

[SlowwHand]

Absolutely going to ****.

[Kidlicious]

We will probably be fine. You can't predict these things so just go with what is more probable, which is a little higher inflation but no hyperinflaton. I'm more worried about things going back to normal and getting back to normal growth and normality in general.

[N35t0r]

lol

[Dinner]

lol

You think the question is laughable? I sat on the fence and didn't take a side but as it was in the news I asked what other people thought. Is that so funny?

[Dinner]

Here is an op-ed by a Biden administration crony saying why inflation shouldn't be a concern in her opinion. It has a lot of shouldn't, nights, and maybes but does seem to ignore the huge printing of dollars (again a 33% increase in total supply of dollars world wide in the last 12 month). On the upside where else are international investors going to go? I don't see them dumping dollars to buy communist Chinese currency while the EU remains a dysfunctional mess.

[Dauphin]

My recollection of 2008 onwards was that money was being 'printed' to stave of fears of deflation (or rather that would be a side benefit from 'printing' even if not the purpose). Oversimplification, but at that point in time inflation and interest rates tanked. Hyperinflation was never a real threat because of deflationary pressure. Older people remembered the 1970s and 1980s and were fearful of the response.

I don't claim to understand the economics, and won't make a prediction with any belief.

On the plus side, inflation can help the middle class. My parent's generation wiped out their mortgages thanks to it.

[Kidlicious]

Here is an op-ed by a Biden administration crony saying why inflation shouldn't be a concern in her opinion. It has a lot of shouldn't, nights, and maybes but does seem to ignore the huge printing of dollars (again a 33% increase in total supply of dollars world wide in the last 12 month). On the upside where else are international investors going to go? I don't see them dumping dollars to buy communist Chinese currency while the EU remains a dysfunctional mess.

It will be passed along but at what limit.

[SlowwHand]

1) Oil prices will cause an increase in the price of all goods.
2) Stimulus checks. How is this good? How does that not increase the deficit? We have a huge stash of funds somewhere?
3) Sending money all over the world like we have it to send. Money to ****ing Pakistan for Gender Studies.
4) Don't get me started on China.

Call it inflation or whatever term makes you comfortable. Inflation is the kindest term that you can use.

[N35t0r]

You think the question is laughable? I sat on the fence and didn't take a side but as it was in the news I asked what other people thought. Is that so funny?

I just find it funny that you're worried about a couple % of inflation, where in Argentina we've been having more monthly inflation than you guys have yearly for at least 10 years. Obviously it's significant for you guys.

[Kidlicious]

Reminds me of my relatives that don't live in Oklahoma asking me about all the tornadoes like I worry about them.

[Kidlicious]

Banks, After Bracing for Disaster, Are Now Ready for a Boom - WSJ

[Dinner]

I just find it funny that you're worried about a couple % of inflation, where in Argentina we've been having more monthly inflation than you guys have yearly for at least 10 years. Obviously it's significant for you guys.

Ok, fair enough. BTW people are worried it could cause a lot more inflation then we've had to date. Some say there is nothing to worry about while others say there is. That leaves regular people scratching theor heads and wondering who is right.

[Jon Miller]

Hyper-inflation is a real problem, but the US hasn't had that in anyone's lifetimes ( I beleive ). Stagflation is also a real problem, but is a combination of high inflation (not hyper-inflation) and low productivity. Since the stagflation in the 1970s, the US has had either a good level of inflation or low inflation. Often low inflation. This has probably imbalanced the economy. A correcting period of high inflation (without low productivity) would be balancing.

Unless crazies get into power in the US (which is more likely from the Right than the Left) there is no concern for hyper-inflation.

A period of high inflation (With normal productivity) would be good for workers and those with moderate levels of debt. It would be bad for those with lots of cash or those who depend on relative asset appreciation due to low inflation. I am pretty certain that it won't be bad for you, but you are old enough and successful enough that it might not be good for you (directly) either.

A sign that there has been an imbalance between inflation and productivity is that in the last 40 years productivity has often increased while wages have often not.

JM

[N35t0r]

I think that the rest of the world (especially developing nations) has more to worry about the US getting some above-average inflation than the US does.