Hyperinflation

[Simulacrum]

Been going on for a while and there's been no major backlash. Now they seem to increase the heat faster and blame the Virus™. It's going to be interesting to see people reaction at becoming more poor even faster.

 

[Beavis]

I don't think we'll see hyperinflation, but I think the price of necessities will rise that will out pace wages. People will spend a larger amount of their take home pay for the same amount of goods and housing they're getting now.

 

[Hellbound Hellhound]

So anyway, back on topic. Inflation numbers I actually trust are showing us climbing past 6% already. I expect it to get worse as government spending(printing) accelerates throughout the year.
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My grocery bill, gas, and energy bills are all showing steady increases. I live in a red state that a lot of people are fleeing to, so unfortunately housing and land here are already up over 10% YOY.

I don't know if we'll actually hit hyperinflation or just see a return to stagflation type numbers from the 70s, but either way I'm hoping my hedges will help.

The stagflation of the 70s was caused by the 1973 oil crisis, not money printing. The decision to increase the money supply was made by banks in response to the crisis, and it didn't work primarily because the problem was one of cost-push inflation, brought about by a politically motivated decision to inflate the price of a finite and inelastic resource.

That's not analogous to what's going on today, and it's far from clear that the lesson to take from the 70s was that increasing the money supply in response to a crisis was a bad idea. It's entirely possible (arguably, even likely) that the recovery would have been even slower without a monetary response.

 

[knobslobbin]

The stagflation of the 70s was caused by the 1973 oil crisis, not money printing. The decision to increase the money supply was made by banks in response to the crisis, and it didn't work primarily because the problem was one of cost-push inflation, brought about by a politically motivated decision to inflate the price of a finite and inelastic resource.

That's not analogous to what's going on today, and it's far from clear that the lesson to take from the 70s was that increasing the money supply in response to a crisis was a bad idea. It's entirely possible (arguably, even likely) that the recovery would have been even slower without a monetary response.

I never said we shared the *causes* for 70s stagflation, only that their inflation numbers in the low 10 percents year over year could be what we'll see instead of hyperinflation.

I'm sure whatever response to the coming economic crisis will make it worse, that's one thing you can count on our elites with.

 

[irishAzoth]

why does @Hollywood Hulk Hogan keep winning?

 

[Rich Evans Apologist]

how many of you doomers even realize how money is "printed" into the economy

do you genuinely think the US mint just fires up the printer and gives the money to a bank chosen via throwing some darts? if that's the level you're on, this is over your head

 

[HOMO FOR LIFE]

how many of you doomers even realize how money is "printed" into the economy

do you genuinely think the US mint just fires up the printer and gives the money to a bank chosen via throwing some darts? if that's the level you're on, this is over your head

Inflation happens because money is too cheap and abundant. Hyperinflation happens when people lose faith in currency.

 

[DeadFish]

So you think they ll replace the dollar with a new currency? If so then with what and what would be the conquences of that?

 

[Techpriest]

So you think they ll replace the dollar with a new currency? If so then with what and what would be the conquences of that?

No, that’s not happening. You’re dumb as a brick if you even think that’s a possibility.

 

[Ku Klux Fan]

So you think they ll replace the dollar with a new currency? If so then with what and what would be the conquences of that?

Handcrafted bead bracelets. People in general will be a bit more chill, but all the hippies will become super aggro before squandering their wealth. Naturally, the Jews will corner the market causing a race war in urban areas. The media will side with the Jews, but regular people will arm the blacks until the government intervenes and puts all non-kosher citizen in cages.

 

[DeadFish]

No, that’s not happening. You’re dumb as a brick if you even think that’s a possibility.

Jokes on you. Bricks are useful

 

[Rich Evans Apologist]

Inflation happens because money is too cheap and abundant. Hyperinflation happens when people lose faith in currency.

cease consuming crayons

 

[Techpriest]

Jokes on you. Bricks are useful

Ok that genuinely got a laugh take a fun Internet sticker

 

[MarvinTheParanoidAndroid]

This. Hyperinflation has a specific definition, and with foreign countries still very hungry for the USD (check the DXY) it's unlikely we'll see anything like that anytime soon. Current price increases are largely attributable to supply chain issues across the board, and we're not really going to know the full effect of this printing for another few years. We'll certainly hit some amount of overinflation, but it's hard for it to spiral out of control when literally every other country is also printing like crazy.

Wouldn't that just mean everyone's buying power is reduced?

So for those buying cushions such as precious metals, crypto, land and ect.
What are the chances your stuff just gets yoinked by those with power?

If that's the case then nothing will save you.

 

[HOMO FOR LIFE]

cease consuming crayons

I prefer gold crayons

 

[tulskij_tochnyj]

So you think they ll replace the dollar with a new currency? If so then with what and what would be the conquences of that?

A system with several currencies - clearing dollar for corporations to settle their bills, interdollar for international trade and cryptodollar with an expiration date on it for wagies. This will allow them to fully implement MMT. Although, I expect this from some Eurozone countries first.

 

[Willie Thrills]

If that's the case then nothing will save you.

Nerds have been investing in crypto and shit, chads have been investing in how to get that crypto off your hands.

 

[Bastard_Call]

So for those buying cushions such as precious metals, crypto, land and ect.
What are the chances your stuff just gets yoinked by those with power?

Crypto? Very likely. Land is a possibility, but precious metals despite being pretty popular right now are still small fry compared to the larger threats posed by crypto. Plus, historically precious metals have been "taken" by urging people to donate them to the banks or exchange them for fiat in order to help with some crisis. If you're not a dribbling retard that shouldn't be an issue, especially since anyone investing in metals already distrusts the government.

Crypto on the other hand would be much easier to devalue, especially if (read: when) the government starts implementing their own fed-bux for you to transfer your wealth to. Metals you can bury, and people will always want to buy them off you one way or another. Even if the government says they're worthless.

 

[knobslobbin]

My strategy for hedging excludes land for now. I think once rates start going up the price of housing/land is going to tank. Cheap money and easy mortgages are what is propping up the growth in that particular market. Cut that and toss in foreclosures from the covid shutdowns coming back online any day now and bam, my prediction is a correction worse than 2008. Or everyone goes nuts and flees into housing and the price explodes, but I'm leaning towards the former.

I'm guessing that the bulk of the inflation will hit food, gas/energy, precious metals, crypto. I think stocks have already seen their inflation boost, will go up a bit more but it seems hedge funds are already trying to unload stock and are seeking alternative places to park their clients' wealth.

Unfortunately nobody can predict how this crazy money printing will unwind and in which sectors of the economy. These horrible financial policies that led us here started decades ago, yay us for being alive during the consequences phase. Will it explode in a short amount of time, will it take the next decade to fully destroy our economy? In the 70s they had the oil crisis act as the pin prick, I wonder if we'll have a similar event to kick start the fun. The most recent was kicked off by mass defaults on mortgages heavily leveraged by banks iirc.

 

[Bill The Fucker]

Wouldn't that just mean everyone's buying power is reduced?

Yep. Well, sorta. It gets fucky when you look at it from a global trade perspective, but in general a country's currency will devalue as the population grows and more currency is printed to accommodate that.