Why do we have inflation ?

[admin]

The only reason why we have inflation, is because they keep printing money ... and there's no one to stop these damn politicians & bankers ...
It's pure theft.

[examplens]

The only reason why we have inflation, is because they keep printing money ... and there's no one to stop these damn politicians & bankers ...
It's pure theft.

It's easy for them because they always have devaluation as a way out of problems. It seems as if drunks are running the economy.
Today I saw this https://www.reuters.com/markets/europe/ecb-reports-record-loss-2023-rate-hikes-bite-2024-02-22/

The European Central Bank on Thursday reported a record annual loss for 2023 and said further losses were likely as its aggressive interest rate hikes force it to pay out billions of euros to banks.
...
The ECB, the central bank for the 20-nation euro area said its loss before the release of provisions was 7.9 billion euros after a loss of 1.6 billion euros in 2022.

This way I can be a banker too.

[Husires]

Inflation is a word used to describe the successive increase in the prices of goods and services, but saying that printing money is the cause of inflation is wrong, as the market needs printing money and controlled inflation to grow. Most economies indicate that inflation of 1% to 2% is good for the economy, but excessive inflation that The problem is not controlled by the central bank, as the prices of goods and services continue to increase, which affects the economy and has reasons:

Random printing of money.
Wrong policies of the central bank.
Corruption, government laxity, and spending on projects that are not economically feasible.
Inflation due to fuel prices or supply chains.

If the government does not print money, inflation may occur due to the reasons above.

[admin]

Inflation is a word used to describe the successive increase in the prices of goods and services, but saying that printing money is the cause of inflation is wrong, as the market needs printing money and controlled inflation to grow. Most economies indicate that inflation of 1% to 2% is good for the economy, but excessive inflation that The problem is not controlled by the central bank, as the prices of goods and services continue to increase, which affects the economy and has reasons:

Random printing of money.
Wrong policies of the central bank.
Corruption, government laxity, and spending on projects that are not economically feasible.
Inflation due to fuel prices or supply chains.

If the government does not print money, inflation may occur due to the reasons above.

isn't the money printing what devalues the existing money on the market
These last few years money printing have gone brrrr ... so did inflation.

[MrSpasybo]

Inflation is a word used to describe the successive increase in the prices of goods and services, but saying that printing money is the cause of inflation is wrong, as the market needs printing money and controlled inflation to grow. Most economies indicate that inflation of 1% to 2% is good for the economy, but excessive inflation that The problem is not controlled by the central bank, as the prices of goods and services continue to increase, which affects the economy and has reasons:

Random printing of money.
Wrong policies of the central bank.
Corruption, government laxity, and spending on projects that are not economically feasible.
Inflation due to fuel prices or supply chains.

If the government does not print money, inflation may occur due to the reasons above.

I agree with most of your opinion!

I will present my point of view:
Inflation is when fiat loses value, or goods increase in price relative to fiat.
For simplicity, I consider the price of goods X = Total amount of money / Total amount of goods.
An increase in X means inflation is occurring.

What we can most easily see: when the economy only grows no more than 10% per year, meaning the amount of new goods produced does not increase more than 10%, but for some reason the government prints more than 10% of total amount. This causes X to increase => inflation.

This is the simplest and most common logic because printing money is the simplest solution the government can implement to handle the immediate problem in the economy, not including the problem of inflation. There are many problems in the economy that can motivate governments to print money: disaster or epidemic relief, investment in infrastructure, repayment of government debt. Normally, printing more money than the increase in goods in the economy is seen as a loan from the future with the expectation: print $1 today so the economy grows and creates $2 worth of goods in the future.

The losses of state-owned companies and ineffective investment of the national budget also create pressure to print money to compensate. That action is seen as pushing the losses towards the people.

Our economy is being driven based on the fear of fiat devaluation: people are encouraged to consume to promote the circulation of cash flow, creating growth momentum for the economy. That's the government's expectation so they try to keep inflation around 2-4% per year. Usually they do much better, meaning inflation is usually no less than 5% ^^

Sometimes, the denominator of X, Total amount of goods, decreases when a break in the supply chain also causes X to increase, creating inflation. This is happening when exports of goods from China are stalled because of the pandemic, Russia's oil and gas sources are limited due to sanctions, and Ukrainian grain is also more difficult to export, or at a higher average cost due to war. The prices of these goods have increased rapidly.

During the Covid-19 pandemic, we have a combo: reduce goods, increase money printing, causing inflation to become extremely serious. We are facing that and have to accept a new, higher price for most goods.

>> In short, blaming money printing is just a way to condemn the government's ineffectiveness in running the economy.

P/s: believe me, in the future, if aliens invade the earth, governments will also act by printing money 

[Tribalchief]

isn't the money printing what devalues the existing money on the market
These last few years money printing have gone brrrr ... so did inflation.

Certainly, excessive printing and disbursing of money into the economy have a key hand in the inflation problem, but that shouldn't be the only factor. The idea of excessive printing of money is basically to cover up for failures. The Federal Reserve, which was supposed to act as an overseer by monitoring the country's monetary policy, has become a massive political entity that manipulates the set policies against the people.

[Lucius]

~snip~
This way I can be a banker too.

Don't worry, they will all get a salary increase and very nice bonuses for their work, and if someone pays the price, it will be those ordinary people who just do what they are told, and mostly end up being blamed for everything. Accordingly, I would not conclude that bankers are stupid or incompetent, but that they know very well that the system protects them even when they do things that have nothing to do with a healthy brain.


Inflation has always seemed to me to be a good way to take as much money as possible from people that they have saved for years, and when the prices of goods and services go up sharply and wages remain the same, people have to use their savings in order to survive. In this way, ordinary people become poorer and even more dependent on the system, and such people are always easier to control than those who are financially independent.

[trendcoin]

...

I agree with you, controlled monetary expansion creates controlled inflation and growth can only happen if everything is under control...

Of course, we will invest in assets with limited supply and we will question the institutions that monopolize the power to print money, but if we look at the history of humanity, we can see that the failed civilizations were those that could not grow, and growth or progress directly corresponds to economic meaning...

[Agbe]

The only reason why we have inflation, is because they keep printing money ... and there's no one to stop these damn politicians & bankers ...
It's pure theft.

now the question is all these money they are printing everytime where are they using them? Because if they are using them in the country effectively, I don't think inflation and cost of living would be high to this level. Many politicians are compiling those money in their houses and some of them use them to develop the already developed countries by building schools, hospitals and other institutions in those countries and forgetting their own country to be decayed.

[notblox1]

Inflation is a word used to describe the successive increase in the prices of goods and services, but saying that printing money is the cause of inflation is wrong

And who told you that inflation is good in any way? Experts again? 
You can see real life examples that inflation is never good for people, it is another form of theft since paper money is backed by nothing.
Before paper money inflation was happening with metal coins, they slowly started to add cheaper metals instead of gold and silver.
In the ends economy will always collapse by design just to be replaced with something new they want.

[TomPluz]

The only reason why we have inflation, is because they keep printing money ... and there's no one to stop these damn politicians & bankers ...It's pure theft.

I remember my college days when we discussed the topic of inflation and it was said that this has something to do with the law of supply and demand of MONEY. And rightly so, when the government people and central bankers have this habit of quantitative easing (better known as printing more money) then they increase the supply of money which can directly and indirectly push inflation to the roof. For the past many decades, there has had been this contention that actually inflation is good for the economy and that it is something that we should not be afraid of. This is quite true in the USA whose dollar is the international reserve and the official medium for international commerce. You see, in this situation, there is that constant demand for US Dollar hence the government is thinking that whatever they are printing can easily be absorbed by the international market. And this is bringing us to the issue of dedollarization, a movement by many countries to get away from the established global status by the 1944 Bretton Woods Conference, in which forty-four countries agreed to the creation of the IMF and the World Bank. I am just hoping that economic managers and central bankers of the USA know what they are doing and they can be able to steer away the country from the possible big mess once the dollar will lose its dominance as there will surely be hyper-inflation never seen before.

[yahoo62278]

Inflation is terrible and thank your politicians IMO. Anything the government is involved in is controlled by liars and cheats.

[bitmover]

The only reason why we have inflation, is because they keep printing money ... and there's no one to stop these damn politicians & bankers ...
It's pure theft.

People often ask for it.

In Brazil, politician promise many benefits, higher wages, free stuff,  better pensions etc and the only way to pay for that is buy printing money . And then we all pay by inflation later on...

[Dr.Bitcoin_Strange]

The only reason why we have inflation, is because they keep printing money ... and there's no one to stop these damn politicians & bankers ...
It's pure theft.

I learned that the cost of production usually changes consistently after some time; the change could be slow and it could also be high sometimes too. If the cost of producing a particular goods or item increases, the price of that item will definitely go up a little. Also, high demand usually increases the price of goods slightly. In the past, high demand and high costs of production usually affected the prices of goods and services, but this time around, inflation has gone far beyond those two old factors that usually contribute to high prices. 

Too much printing of money has caused the value of money to reduce and therefore will definitely increase the cost of production because most of the companies that produce the things we use also buy some raw materials for their production, and if the value of cash has depreciated so badly, it will also affect them too. So, the money printing is what has actually caused inflation to hike. 

If it were just scarcity, high demand, and the cost of production that were affecting the economy, I don't think that the rate of inflation would have been this high. 

[trendcoin]

Let's imagine we live in ancient times...

Let's imagine that we rewarded our army with gold for conquests... Gold is in limited supply. Probably after a few conquests, we will not be able to find gold to reward the army with. What do we do in this situation? Let me tell you about something that was done in the past: we mix silver into the gold.

Times have changed, today we don't have conquests and we don't have a large military force, but to develop our civilizations we need people to work, unless we are colonialists, and guess what, is there enough gold today for every worker as there was yesterday?

Inflation is certainly a theft but quantitative easing policies are a necessity for developing countries.