Hyperinflation

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Sped Xing said:
This is why people keep teasing me with "hyperinflation." I bought a medium-sized farm in 2020, on a low, fixed interest rate.

Since my income comes almost all at once at the end of my fiscal cycle, and my expenses are mostly at the beginning, everything would be rainbows and kisses for me if the dollar collapsed.
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Don’t worry bro. If we ever got hyperinflation the banks would get laws passed to allow them to adjust loans.
 
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knobslobbin said:
The board members of a bank are rarely the owners.

For example, the NY Fed Bank:

Who owns Citibank: Top 2 shareholders are Blackrock and The Vanguard Group. The top 2 shareholders of Blackrock are The Vanguard Group and Kuwait Investment Authority. The top 2 funds in the Vanguard Group (funds here are also the owners) are Eli Lilly & Co. & Microsoft Corporation.

JPMorgan Chase Bank: Top 2 shareholders are The Vanguard Group and Blackrock.
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Came across an article talking about nearly the same thing but with better research: https://www.lewrockwell.com/2021/04/bill-sardi/who-runs-the-world-blackrock-and-vanguard/
 
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The real blackpill in this thread isn't the inflation, it's the realization that the average person has an absolutely retarded grasp on the basics of economics.

Feel free to assume this gripe is targeted at whoever dared disagree with you.
 
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Here’s why it’s a good thing.
 

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So the general gist of why we haven't seen hyperinflation is that a lot of the money we cooked up is being held in reserve by everyone & is running at low velocity, if it starts flowing at high velocity we may see hyperinflation.
 
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MarvinTheParanoidAndroid said:

So the general gist of why we haven't seen hyperinflation is that a lot of the money we cooked up is being held in reserve by everyone & is running at low velocity, if it starts flowing at high velocity we may see hyperinflation.
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Basically, there isn't enough collateral (shit the bank can seize to secure their loan) for the banks to justify actually loaning out the massive amounts of cash they've been stuffed with. They've been using the reverse repo market to park their money with a guaranteed return to beat out the inflation loss caused by them sitting on the cash. The fed has already stated they intend to shut down reverse repos soon, so that'll be the time to watch closely.
 
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Never Scored said:
Inflation hit 6.2% year over year for October. 0.9% month over month jump blowing away the 0.6% estimate.
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But that does not tell the whole story. The butter I buy went up 30% within 2 months. The bread I buy went up 20+ percent within 2 months. Gas??? 10% within a month. Cheese... Stable... Go figure. Things that were normal purchases are now "Specials" in the Supermakets that are in my region.

I was more worried with stagflation however the recent moves by our congressional Overlords now has got me to believe that things are going to be bad.

IMHO... One thing which has to be mention is the Faith of the US dollar within the world. That faith was crushed by its actions on Afghanistan. The rest of the world saw how the Biden Administration is inept. From that point on you can see a drop in value of the dollar which means it cost more for product. Add all of the other snafus going on and you are having a serious problem at hand.
 
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My groceries are definitely much more expensive then they were prior for sure, but everyone already has been experiencing that. What I have found odd is that buying a cheap bottom shelf 5th of liquor is the same price today as it was a year ago in my area. Guess you can self medicate with alcohol and deal with the coof and the world if you can't afford a turkey this year. Perhaps I'm reading in to this a bit too much....
 
(not) y2k compliant said:
My groceries are definitely much more expensive then they were prior for sure, but everyone already has been experiencing that. What I have found odd is that buying a cheap bottom shelf 5th of liquor is the same price today as it was a year ago in my area. Guess you can self medicate with alcohol and deal with the coof and the world if you can't afford a turkey this year. Perhaps I'm reading in to this a bit too much....
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Bourbon and other American made drinks shouldn't be facing supply chain disruptions, and demand for the lower shelf bottles is pretty constant. As long as banks can deposit the extra printed money at the Fed there is not going to be much in the way of price changes due to nominal disruptions - the higher inflation now comes from fewer goods, not more money.
 
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HullDown said:
Bourbon and other American made drinks shouldn't be facing supply chain disruptions, and demand for the lower shelf bottles is pretty constant. As long as banks can deposit the extra printed money at the Fed there is not going to be much in the way of price changes due to nominal disruptions - the higher inflation now comes from fewer goods, not more money.
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Not quite true. They were high during the Coof. A lot of things were high during the Coof. A manufactured method of ass raping the middle/lower class.

I was buying Cheap Vodka @ 12 bucks. The same Cheap Vodka is now 10 bucks.

Now I am a firm believer in the Burrito Index. I heard this comment in 1990 and it gained traction in the year 2000.
I use a variation of the method using fast food as an indicator.

The chart below someone did a name brand burrito and its pricing.


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I will say this again A lot of this is manufactured by the FEDs and their actions with money, The Biden Administration and its hand messing with the economy, and of course the super rich/ corporations.
Again if companies are suffering why is the stock market gone up? Why businesses are having banner year after year?

We already have Zillow manipulation the housing market 1 or 3 pillars that keeps our economy going.

As stated previously, winter is going to be cold and costly for many this year.
 
Baroque said:
Inflation is an important component to a healthy economy; we WANT inflation and the FED targets inflation at 2% per year. Why? Because if we didn't, people would hoard their money, which is then money that can't be put back into the economy. When you deposit $100 in a bank, the bank doesn't store that money in a vault (only a small percentage must legally be stored), the bank loans that money to someone who is, for example, looking to expand their business. This is same economic principle of "efficient market allocation of resources to where they are best utilized." Without inflation making rich people's money worth slightly less every year, they would have much less of an incentive to invest it (ideally you invest your money to get a rate of return at our exceeding inflation if you want to maintain the inflation-indexed value of your money), and in the case of deflation you really have problems because then the absolute incentive is to hoard your money since just holding it becomes an investment in itself.

The problem here and elsewhere is that economics used to be wholly philosophical, so a philosopher's thoughts on the origins, drivers, and offsets to inflation used to be all there was. Now with econometrics, we can test these fundamental truths and, like so often with "proven science," find the evidence wanting. Further, claims like "inflation and money supply are feedback loops" aren't as supported as many people ideologically NEED them to be. Add to that the precious metal lobby, who love to fleece anyone they can with their "hedge against inflation!!" bit, and you get a mess.
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That all hinges on a constant infinite growth to justify this though. Which is retarded.
 
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