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Further Discussions => Economics , Sociology & Politics => Topic started by: admin on February 26, 2024, 02:18:36 PM

Title: Why do we have inflation ?
Post by: admin on February 26, 2024, 02:18:36 PM
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.
Title: Re: Why do we have inflation ?
Post by: examplens on February 26, 2024, 02:28:07 PM
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/

Quote
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.
Title: Re: Why do we have inflation ?
Post by: Husires on February 26, 2024, 02:39:19 PM
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.
Title: Re: Why do we have inflation ?
Post by: admin on February 26, 2024, 02:54:29 PM
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.
Title: Re: Why do we have inflation ?
Post by: MrSpasybo on February 26, 2024, 03:55:32 PM
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  8)

Title: Re: Why do we have inflation ?
Post by: Tribalchief on February 26, 2024, 03:58:07 PM
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.
Title: Re: Why do we have inflation ?
Post by: Lucius on February 26, 2024, 05:54:08 PM
~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.
Title: Re: Why do we have inflation ?
Post by: trendcoin on February 26, 2024, 06:17:31 PM
...

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...
Title: Re: Why do we have inflation ?
Post by: Agbe on February 26, 2024, 11:21:24 PM
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.
Title: Re: Why do we have inflation ?
Post by: notblox1 on February 27, 2024, 12:04:11 AM
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?  ;D
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.

Title: Re: Why do we have inflation ?
Post by: TomPluz on February 27, 2024, 09:15:59 AM
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 (https://www.cfr.org/backgrounder/dollar-worlds-reserve-currency). 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.


Title: Re: Why do we have inflation ?
Post by: yahoo62278 on February 27, 2024, 10:31:03 AM
Inflation is terrible and thank your politicians IMO. Anything the government is involved in is controlled by liars and cheats.
Title: Re: Why do we have inflation ?
Post by: bitmover on February 27, 2024, 06:58:58 PM
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...
Title: Re: Why do we have inflation ?
Post by: Dr.Bitcoin_Strange on February 27, 2024, 10:57:48 PM
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. 
Title: Re: Why do we have inflation ?
Post by: trendcoin on February 28, 2024, 05:02:17 AM
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.
Title: Re: Why do we have inflation ?
Post by: Sim_card on February 28, 2024, 10:54:47 AM
Changes is constant, and as time changes, so the value of commodities increases. Things are no longer the way they are from the ancient of days, and this is why there must be inflation, because the world population is increasing, and it is only through printing of money that the government can use to solve some financial problems. I am not in support of printing more money, but there is no way that money will not be printed in the long run. Corruption is what cause hyperinflation.
Title: Re: Why do we have inflation ?
Post by: Gurujebs on February 28, 2024, 11:18:25 AM
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.

Funny enough, they wouldn't admit it that they are printing money like this. You can't print unless there is something that back the currency which must be able to preserve that value for long time, this is what they also tell us because they always used reserve as back up but we know these is all lies and what we suffer later is the inflation and it's the common man that fee the impact of these their stupidity, they have money stolen somewhere when they are done with the printing.

When they now see that inflation is getting over their roof, that's when you see them increasing interest rate by many basis points to discourage borrowing and to mopped excess money in supply,  the people involved in monetary and fiscal policy sometimes need to be jail for their policy sometimes.
Title: Re: Why do we have inflation ?
Post by: 0t3p0t on February 28, 2024, 04:05:39 PM
Inflation is terrible and thank your politicians IMO. Anything the government is involved in is controlled by liars and cheats.
Exactly. That is what the new norm look like nowadays and yet people don't realize that and still keep on supporting these liars. I do hope that one day ordinary people will find ways to fight and survive inflation and not embrace and suffer.
Title: Re: Why do we have inflation ?
Post by: Peter90 on February 29, 2024, 08:31:18 PM
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?

Of course
There is always enough gold
If there is not enough gold --> demand > supply --> gold's value increase.

More workers you say.
No problem, each one receives less gold than his father, but more valuable, so no difference.

With physical gold you can't do it because bars aren't divisible at will.
Gold-backed stablecoins are. They allow you to pay a worker 0,0000001 grams of gold
Thanks blockchain!
Title: Re: Why do we have inflation ?
Post by: trendcoin on March 01, 2024, 05:53:36 AM
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?

Of course
There is always enough gold
...

There's not enough gold. The supply of gold is limited. The world population is growing.

(https://miro.medium.com/v2/resize:fit:1400/1*4XtN8ArtISrhx8XtRSnE7g.png)


Let's imagine that this year you are getting a monthly salary of 1000 dollars, next year you will get a raise according to inflation and your salary will be 1200 dollars. In a gold-indexed system, this year you will receive 13 grams of gold as a monthly salary, but next year the world population will increase, inflation will occur due to demand, and you will receive 11 grams of gold as a monthly salary. Your salary will decrease, not increase. We can determine the increase in salary by inflation, that's easy, but do you know how to determine the decrease in salary?


Also, aggregate welfare is not a constant. Aggregate welfare is a variable. We increase welfare by creating value. By creating value we somehow create inflation. If we fix total welfare, we block development.

I invest in fixed supply investment instruments, I invest in Bitcoin and altcoins and I buy gold, but the history of the world has made progress with monetary expansion policies.
Title: Re: Why do we have inflation ?
Post by: Altcoin1998$ on March 01, 2024, 10:16:12 AM
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.
Only when corruption runs rampant in a monopolistic country and foreign debt continues to soar does money printing continue.  The more currency is printed in the country, the more inflation will increase.  Moreover, various political ancillary factors are responsible for the increase in inflation in different countries.  If heinous crimes like money laundering are organized in the political circles and foreign money is smuggled, then only the rate of inflation increases and the country as a whole moves to such a position that it is not possible to control inflation despite hundreds of efforts.
Title: Re: Why do we have inflation ?
Post by: DrBeer on March 01, 2024, 06:06:38 PM
Inflation, whether we like it or not, is a normal process. The only clarification is controlled and low inflation.
The causes of inflation are diverse.
There are bad variants - when the economy is weak, when there is corruption in the country, when the authorities do not correspond to their position. Then they are forced to print money primitively to provide the country's economy with "blood" for the financial system - money.
There are bad options, but not dependent on the economy and the government - for example, pandemics, global natural disasters, wars, terrorist attacks, technological disasters....
And there is natural, controlled inflation - the purpose of which is to make people spend and invest their money. This is such an artificial "compulsion" to maintain the economy of the country at the expense of the flow of money. When you buy or invest, you support the economy. If money does not flow into the economy, it will stop. And the concept of "money-blood of the economy" very accurately describes its purpose.
Title: Re: Why do we have inflation ?
Post by: Peter90 on March 01, 2024, 07:52:07 PM
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?

Of course
There is always enough gold
...

There's not enough gold. The supply of gold is limited. The world population is growing.

Hi trend
I think you are making some mistakes but for now just a general observation from me
You are saying that a currency whose supply is limited can’t become the currency of world whose economy/population are increasing, because it reaches the point when there isn't enough currency - this is your argument.

I find it weird that someone is making the point that bitcoin can’t become a world currency, this is a community of crypto people, and nobody says anything
Title: Re: Why do we have inflation ?
Post by: Peter90 on March 02, 2024, 04:40:22 PM
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?

Of course
There is always enough gold
Let's imagine that this year you are getting a monthly salary of 1000 dollars, next year you will get a raise according to inflation and your salary will be 1200 dollars. In a gold-indexed system, this year you will receive 13 grams of gold as a monthly salary, but next year the world population will increase, inflation will occur due to demand, and you will receive 11 grams of gold as a monthly salary.
Your salary will decrease, not increase.

No, but you are smart
You didn't quote the part of my previous post that pre-countered your statement  :D

There you go

If there is not enough gold --> demand > supply --> gold's value increase.

More workers you say.
No problem, each one receives less gold than his father, but more valuable, so no difference.

11 grams of gold can have a bigger purchasing power than 13 grams of gold

You focus on quantity
You should focus on value
Title: Re: Why do we have inflation ?
Post by: Agbe on March 02, 2024, 10:37:09 PM
Now the question that also arise from the excess printing of is, what are they doing with this money and where this money is going (spent)? Is it that they are compiling the money in their private houses? Because if they are really using those money inflation will not be much as it is. And in this inflation we are shouting and crying also protesting because high cost of living but these politicians are not even saying anything. Is it that the inflation is not affecting them? According to Karl Marx the only solution to this problem is "REVELATION". And military government is part of the revolution.
Title: Re: Why do we have inflation ?
Post by: Peter90 on March 03, 2024, 02:27:08 PM
Also, aggregate welfare is not a constant. Aggregate welfare is a variable. We increase welfare by creating value. By creating value we somehow create inflation.

That’s the opposite TC: increasing welfare --> increasing money’s value
Inflation is caused by increasing money supply, not by increasing welfare

Imagine a close economic system
Aggregate welfare (GDP) = 3 apples
Total money supply = 3 $
Everything works fine

GDP increases of 47 apples, so now we have
GDP = 50 apples
TMS = 3 $
Each $ can buy now much more apples than before. That’s the opposite of inflation.
Inflation is caused by increasing money supply, not by increasing welfare.



But let’s go back now to your main point: in a gold standard it comes to a point when there isn't enough money (gold)

So, GDP has increased, now in our closed economic system there are 50 apples vs. 3 $
The system can’t work anymore - you say - there are not enough dollars.

Of course there are enough dollars - I say: imagine each dollar = 100 cents, so
GDP = 50 apples
Total Money supply = 300 cents

Are 300 currency units enough in order to manage 50 apples?
Of course they are (remember: the purchasing power of each cent has increased through welfare's increase)

You say, well how about when GDP reaches 1000 apples?
Imagine living in a digital era, like ours, so minimum currency unit = 0,000001 $
GDP = 1000 apples
TMS = 3 millions currency units
3 millions currency units are more than enough vs. 1000 apples, I say


You are focused on quantity.
Quantity is a problem only where there is no currency divisibility (in our example, where there are only 3 $ banknotes, or 3 gold coins).
In a digital world, quantity is never a problem, because digital allows divisibility.
Title: Re: Why do we have inflation ?
Post by: trendcoin on March 03, 2024, 11:24:26 PM
...
I find it weird that someone is making the point that bitcoin can’t become a world currency, this is a community of crypto people, and nobody says anything

I know that what I am saying is risky and I know that I will get reactions from here or elsewhere, but we can only speak the truth if we are realistic. Otherwise, we create populist discourses and by creating populist discourses we can build a happy world inside our shell, but when we come out of our shell the harsh realities of life will upset us.

Bitcoin cannot replace the dollar because they have different fundamentals. The dollar is a reserve currency and there is armed power behind it. Bitcoin is a store of value like gold. Gold has survived throughout history. Bitcoin will also survive throughout history.

However, history shows us with examples that it is not possible to develop civilizations with currencies with limited supply. Currencies with limited supply can best serve as a store of value, but they cannot enable us to build civilizations.

I am a Bitcoin, altcoin and gold holder, but this does not distract me from other realities.


...
11 grams of gold can have a bigger purchasing power than 13 grams of gold

You focus on quantity
You should focus on value

I have no objection to this, the purchasing power of 11 grams of gold may be higher than 13 grams of gold depending on the conditions, but in the absence of inflation, how do you plan to adjust the salary decrease? What parameters will you use?

I am a believer in free market economics because free market economics has proven itself empirically. Socialist and communist thought collapsed in Russia, collapsed in East Germany, is dead in Cuba and moribund in North Korea.

I wish you a good day, Peter90.

...
According to Karl Marx the only solution to this problem is "REVELATION". And military government is part of the revolution.

Karl Marx said that the proletarian revolution would start in England, but Socialist revolutions have happened in underdeveloped eastern countries. Karl Marx is a person who made many erroneous predictions.
Title: Re: Why do we have inflation ?
Post by: Emmanuel1 on March 14, 2024, 11:21:54 PM
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.
Actually, they are several factors that can generate inflation in a society, and they are decrease in productivity, increasing in raw material prices an increase in taxes etc. And when this factors listed and more are not taking into consideration in a society, inflation is inevitable in that society.
Title: Re: Why do we have inflation ?
Post by: EluguHcman on March 16, 2024, 10:59:21 AM
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.
You're to say that, the governments and it's associates are unquestionable and they operates beyond the lawsuit of civil rights all just for self interest.

But if we can tak this inflation stuff in all way rounds which we know that inflations are experienced in all angles of monetary such as centralized and decentralized financial institutes, the basic concepts and necessities of inflations is to  enhance investments to an advancing peaks, also to encourage financial expenditures which is to insight that the numbers of products and funds are not more than enough so if economical expenditures is being underated then we can go on extinction of facing insufficiencies.
In a centralized institutes it could help to enumerate financial regulations.
Title: Re: Why do we have inflation ?
Post by: Peter90 on March 16, 2024, 12:08:12 PM
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.

All true Lucius
on the other hand you crypto people should be thankful for inflation because without inflation there wouldn't be no bitcoin.
Unlike today, originally bitcoin wasn't considered as a way to make money.
It was seen primarily as the solution to currency devaluation.
In other words, without inflation you wouldn't be here :D


DEBASEMENT IN THE MODERN ERA

The dissolution of the Bretton Woods system in the 1970s marked a pivotal moment in global economic history. Established in the mid-20th century, the Bretton Woods system had loosely tethered major world currencies to the U.S. dollar, which itself was backed by gold, ensuring a degree of economic stability and predictability.

However, its dissolution effectively untethered money from its golden roots. This shift granted central bankers and politicians greater flexibility and discretion in monetary policy, allowing for more aggressive interventions in economies. While this newfound freedom offered tools to address short-term economic challenges, it also opened the door to misuse and a gradual weakening of the economy.


HOW BITCOIN AVOIDS DEBASEMENT

Bitcoin offers a permanent solution to this issue. Its supply is capped at 21 million, a number that is hard-coded and safeguarded by proof-of-work mining and a decentralized network of nodes. Thanks to its decentralized nature, no single entity or government can control Bitcoin’s issuance or governance. Furthermore, its inherent scarcity makes it resilient to the inflationary pressures that are typically seen with traditional fiat currencies.

As a distributed system, Bitcoin users can ensure that the supply never deviates from the predetermined supply cap by running the software that downloads and validates the entire transactional ledger. By verifying every transaction in Bitcoin’s history, where every coin came from and where it went, users can be absolutely sure that the supply has not been debased and no coins were created that should not have been.

Full node software like this for Bitcoin is essentially a counterfeiting detection machine that anyone can run. It guarantees the supply is intact, that coins being spent were properly authorized, and no funny business is happening. Any Bitcoin wallet software can also ensure that no one can restrict your access to your own money.

In times of economic uncertainty, or when central banks engage in extensive money printing, investors often turn to assets like gold and bitcoin for their store-of-value properties. As time progresses, there’s potential for people to recognize Bitcoin not just as a store of value, but as the next evolution of money.

zerohedge.com (https://www.zerohedge.com/crypto/bitcoin-has-no-top-because-fiat-has-no-bottom-understanding-monetary-debasement)


I disagree with the last sentence, but that's for another day  :D
Title: Re: Why do we have inflation ?
Post by: Dr.Bitcoin_Strange on March 16, 2024, 11:46:49 PM
When it comes to inflation, it is important to investigate the concept of "clinging prices." This relates to how difficult it can be for pricing to respond rapidly to economic changes. For example, organizations may need time to adjust their prices in reaction to changes in demand or costs. In the meantime, this may generate inflation. This occurs when the costs to produce items and services rise, as shown in changes in the pricing of goods and services, changes in consumer demands, as well as shifts in the world's economic situation.
Title: Re: Why do we have inflation ?
Post by: Peter90 on March 17, 2024, 12:41:34 AM
"Printing money is necessary in order to stimulate the economy"

(https://pbs.twimg.com/media/GIuANXwXIAAmjBv?format=jpg&name=medium)

 :D

J. Milei, Argentina's President, libertarian
Title: Re: Why do we have inflation ?
Post by: DrBeer on March 17, 2024, 10:58:53 AM
"Printing money is necessary in order to stimulate the economy"

(https://pbs.twimg.com/media/GIuANXwXIAAmjBv?format=jpg&name=medium)

 :D

J. Milei, Argentina's President, libertarian


I would put it a little differently :) Forced additional issuance not only helps solve some problems in government funding, but also stimulates the economy to act. However, it also partially stimulates people to find a better use for their money than keeping it "under the mattress", which also leads to the transfer of this money into the economy and promotes consumption of goods and services.
Title: Re: Why do we have inflation ?
Post by: KingsDen on March 17, 2024, 11:21:03 PM
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.

Any activity that involves pumping money into the economy might lead to excess supply of money in circulation which often results in inflation. Most times, the supply of money in the form of government borrowings and expenditures are necessary for the development of the country but as we know what has an advantage also has a disadvantage. Despite the fact that the money in circulation helps in developmental projects, it also results in inflation when the Money in circulation becomes excess and most government policies are not strong enough to tackle the issue of inflation.
Title: Re: Why do we have inflation ?
Post by: Altcoin1998$ on March 21, 2024, 04:16:40 PM
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.
We consider inflation rate according to my country native currency with dollars ..

2018, BDT 75@1$
2020, BDT95@1$
2024, BDT,124@1$
The inflation rate is constantly increasing in my country, the main reason is that the government is always secretly and secretly printing money to pay the foreign debt, as a result, the amount of money in the country has increased due to money printing, but the inflation is constantly increasing due to the foreign policy not matching the quality of the country's economy. .
Title: Re: Why do we have inflation ?
Post by: Peter90 on March 21, 2024, 06:29:36 PM
We consider inflation rate according to my country native currency with dollars ..

2018, BDT 75@1$
2020, BDT95@1$
2024, BDT,124@1$
The inflation rate is constantly increasing in my country, the main reason is that the government is always secretly and secretly printing money to pay the foreign debt, as a result, the amount of money in the country has increased due to money printing, but the inflation is constantly increasing due to the foreign policy not matching the quality of the country's economy. .

Hi Altcoin
in order to show the devaluation of a currency (in this case the BDT) you have to compare it with a stable currency.
The $ is not a stable currency

(https://wolfstreet.com/wp-content/uploads/2022/04/US-CPI-2022-04-12-dollar-purchasing-power-since-2000.png)


You write
2018, BDT 75@1$
2020, BDT95@1$
2024, BDT,124@1$
... but that 1$ in 2018 wasn't the same 1$ in 2020, and the 1$ in 2020 wasn't the same of the 1$ in 2024.
The purchasing power of that 1$ changed.


If you want to have an idea of the inflation in your country it's better to compare the BDT with a stable currency like the Singaporean dollar, for example, or with gold (my favorite)

(https://i.ibb.co/0KT9q02/1.png)

So, comparing BDT with 1oz of gold, we have
2018 BDT 110k@1oz
2020 BDT 130k@1oz
2024 BDT 240k@1oz
That's a more accurate picture of how your currency is depreciating.

If you look at those numbers in % you'll see that comparing the BDT vs. $ it looks like the BDT has lost less than 50% of its purchasing power in 6 years, but that's not accurate.
Comparing the BDT vs. a stable currency like gold you can in fact see that the BDT in the last 6 years has lost more than 50% of its purchasing power.
Title: Re: Why do we have inflation ?
Post by: DrBeer on March 26, 2024, 08:12:28 PM
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.
We consider inflation rate according to my country native currency with dollars ..

2018, BDT 75@1$
2020, BDT95@1$
2024, BDT,124@1$
The inflation rate is constantly increasing in my country, the main reason is that the government is always secretly and secretly printing money to pay the foreign debt, as a result, the amount of money in the country has increased due to money printing, but the inflation is constantly increasing due to the foreign policy not matching the quality of the country's economy. .


Question - and how does the government pay the EXTERNAL debt by printing new money ? Having printed local currency, the government has to use it to buy dollars/euros/yuan (depending on the currency of external borrowing) and give it to the creditor. The "printed local currency" remains in the hands of the person who sold the currency. And it is not very profitable for the holder of the local currency to create inflation with these sums of money, because it is he who will be the first to suffer. I think there is some other reason for inflation..... Most often it is really "printing money out of thin air", but not to pay off foreign debts - but internal obligations - from domestic loans to social payments. And then, indeed, the excess money supply ends up in the domestic market, which leads to devaluation.
Title: Re: Why do we have inflation ?
Post by: Mr. Allcrypto on March 26, 2024, 10:06:13 PM
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.


The money printing too is a key factor of why we have  inflation, but also there are some government policies too that affect the economy and bring rise of inflation in the country...
When the demands of goods and services are very high in a country and the quantity of it is very small then inflation will surely take place, taking for example if althea government lay down policies that affect importing of a particular goods that the demand is very high, it will lead to inflation and the prize of that product will increase...
Title: Re: Why do we have inflation ?
Post by: Peter90 on March 26, 2024, 11:01:44 PM
"Printing money is necessary in order to stimulate the economy"

(https://pbs.twimg.com/media/GIuANXwXIAAmjBv?format=jpg&name=medium)

 :D

J. Milei, Argentina's President, libertarian


I would put it a little differently :) Forced additional issuance not only helps solve some problems in government funding, but also stimulates the economy to act. However, it also partially stimulates people to find a better use for their money than keeping it "under the mattress", which also leads to the transfer of this money into the economy and promotes consumption of goods and services.

I'm a libertarian
I love freedom

I think people shouldn't be "stimulated" to take their savings out from under the mattress and invest them otherwise those savings get destroyed through inflation.

Investing means risk.
I don't like seeing people - ordinary people. Financially unsophisticated people. Pensioners. Poor people. People who have no idea how to invest - I don't like seeing these people being forced to take risks in order to protect their savings from inflation.

I think people should do whatever they want with their money, without being pressured, without being "stimulated",
and I think monetary authorities should stop devaluing people's money.
Title: Re: Why do we have inflation ?
Post by: DrBeer on March 28, 2024, 10:52:49 AM
"Printing money is necessary in order to stimulate the economy"

(https://pbs.twimg.com/media/GIuANXwXIAAmjBv?format=jpg&name=medium)

 :D

J. Milei, Argentina's President, libertarian


I would put it a little differently :) Forced additional issuance not only helps solve some problems in government funding, but also stimulates the economy to act. However, it also partially stimulates people to find a better use for their money than keeping it "under the mattress", which also leads to the transfer of this money into the economy and promotes consumption of goods and services.

I'm a libertarian
I love freedom

I think people shouldn't be "stimulated" to take their savings out from under the mattress and invest them otherwise those savings get destroyed through inflation.

Investing means risk.
I don't like seeing people - ordinary people. Financially unsophisticated people. Pensioners. Poor people. People who have no idea how to invest - I don't like seeing these people being forced to take risks in order to protect their savings from inflation.

I think people should do whatever they want with their money, without being pressured, without being "stimulated",
and I think monetary authorities should stop devaluing people's money.

Freedom is loved by all, myself included :)
But freedom does not mean permissiveness, or the ability to do whatever you want, without regard for others. Believe me - you will not like it much if your neighbor will commit crimes under the slogan "I love freedom". No matter how much we talk about freedom, we always come to the point that there are still rules, which it is recommended to adhere to. Absolute freedom does not exist in a community, because it is regulated by laws and financial laws as well. The ultimate freedom is possible on a desert island, when you are alone there, but I'm sure it's not the freedom you dream of :).
And about money "I think that people should do whatever they want with their money, without pressure and "stimulation"" - I don't insist that everyone should be an investor. It's everyone's choice - if you want to be, don't want to be, keep the stacks under your mattress. The question is, how effective is it?
Yes, in investing, developing your business, there will always be risks. And direct, indirect, and generally not expected... I, for example, could never think that my country will be subjected to a huge terrorist attack by a neighboring country. I have not suffered direct losses, but I know many people who have lost a lot, if not everything. But they are rebuilding businesses in other regions.
Those who kept money under their mattresses have lost all their savings.

In ordinary life, money "under the mattress" is not the most sensible use of savings. They "dry up", they do not benefit the economy, they create risks.

Therefore, as a supporter of freedoms and the right to choose - I do not insist on investments, I leave the right to choose to the owners of money, it is their money, and to dispose of it. And inflation - don't take my previous answer as "the government generates inflation so that everyone invests", you probably didn't quite understand me. I was just describing why this process can also be beneficial.
Inflation is a side process of social community and unstable world situation. When we find methods of solving these problems - then there may be no inflation:)
 
Title: Re: Why do we have inflation ?
Post by: FOKA33 on March 31, 2024, 12:52:53 AM
When the economy is constantly changing there must be an inflation. When prices tends to rise there must be an inflation, there are different factors that must leads to inflation such as  increase in the money supply, high cost of production etc.. thus the federal reserve is working to bring it down.
Title: Re: Why do we have inflation ?
Post by: DrBeer on March 31, 2024, 11:31:27 AM
When the economy is constantly changing there must be an inflation. When prices tends to rise there must be an inflation, there are different factors that must leads to inflation such as  increase in the money supply, high cost of production etc.. thus the federal reserve is working to bring it down.


Prices, in a market economy can't just go up, you make a good point. Price change can be a consequence of inflation, but price change does not lead to inflation, on the contrary - inflation or deflation affects prices in the market. But it should be noted that not only inflation - market conditions, a sharp increase in demand or fall in supply of goods/services, various negative processes, such as natural disasters, wars, etc., are not the only factors. Inflation is a more complex process that affects all spheres of our life, including pricing.

Title: Re: Why do we have inflation ?
Post by: Uruhara on April 03, 2024, 03:05:22 AM
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.
Well, this is a factor in many countries experiencing inflation and even hyper inflation. Examples include Zimbabwe and Venezuela. And printing too much money will only create an unlimited supply of money on the market which will lead to a drastic decline in the value of a currency. In my country, hyper inflation has occurred in the past. But not because of printing too much money, but at that time it was caused by the uncontrolled circulation of 3 types of currency at once on the market. Luckily everything can be resolved and get better again.
Title: Re: Why do we have inflation ?
Post by: Peter90 on April 13, 2024, 08:56:52 AM
I invest in fixed supply investment instruments, I invest in Bitcoin and altcoins and I buy gold, but the history of the world has made progress with monetary expansion policies.

Hi trend

(https://fred.stlouisfed.org/graph/fredgraph.png?width=880&height=440&id=CUUR0000SA0R)

This chart shows how the purchasing power of the $ has changed - decreased - over time.
I could post similar charts for every country and currency in the world.



You say you invest in investment instruments, bitcoin... alt coins... gold...
Good for you trend, but do you know that there are billions of people in this world who do not invest in those things?
And not necessarily because they are lazy.
Maybe they are too poor, maybe they are unbanked or underbanked, maybe - like my neighbours - they are not enough financially sophisticated - would you force grandmas to read the Financial Times?.
Maybe they don't trust banks... the issuers of those financial instruments... financial advisors and the financial literature.
Maybe...


You are talking as if your situation - with your financial options - is the standard situation worldwide.
Do you know what does that destruction of money's purchasing power mean for people and families who are not in your - privileged - situation?

Read this post about unbanked and underbanked people (https://www.altcoinstalks.com/index.php?topic=191920.msg1503349#msg1503349) in the USA.
This is USA.
I let you imagine other regions.
Unbanked and underbanked.
Hundred of millions of people and their families.

When I hear people talking about "progress with monetary expansion policies"... I wish they could - for a moment - lose their privileges and share the same condition of those billions of people who struggle protecting themselves from inflation.
Title: Re: Why do we have inflation ?
Post by: Peter90 on April 21, 2024, 05:06:50 PM

When I hear people talking about "progress with monetary expansion policies"... I wish they could - for a moment - lose their privileges and share the same condition of those billions of people who struggle protecting themselves from inflation...

... like these people in Argentina

(https://i.ibb.co/0GX6JRV/1.png)


This is inflation
People working... saving... their entire life... for nothing





"Inflation is necessary for economic development"

This is MSM propaganda
The fact that inflation goes with economic development doesn't mean that inflation is the cause of economic development.

Correlation isn't causation

Inflation is not necessary for economic progress.
For centuries there was economic progress without inflation: despite economic progress, that gold coin didn't lose purchasing power
Title: Re: Why do we have inflation ?
Post by: notblox1 on April 23, 2024, 11:41:12 PM
Only real reason for inflation is for rich people to get richer and poor people to get more poor.
Anyone who is trying to justify inflation is not thinking with his head but he only repeats what someone else told him.
Inflation is a scam, same as taxes that are not voluntary.
Title: Re: Why do we have inflation ?
Post by: Uruhara on April 24, 2024, 07:00:46 AM
Only real reason for inflation is for rich people to get richer and poor people to get more poor.
Anyone who is trying to justify inflation is not thinking with his head but he only repeats what someone else told him.
Inflation is a scam, same as taxes that are not voluntary.
Well, if we explain it more deeply then everything is inseparable from a game played by rich people. And actually we are also part of the game. And we have to try to survive the challenges in this game, one of which is called inflation. If we want to be able to avoid inflation then we have to be smart people. And you must really understand the current financial and political system. And the concern at this time is that many people don't even understand the financial system they are currently using.
Title: Re: Why do we have inflation ?
Post by: DrBeer on April 27, 2024, 11:38:58 AM
Only real reason for inflation is for rich people to get richer and poor people to get more poor.
Anyone who is trying to justify inflation is not thinking with his head but he only repeats what someone else told him.
Inflation is a scam, same as taxes that are not voluntary.

I would be very grateful to you if you would describe in a few sentences, with arguments only, how inflation is caused by the fact that "the rich get richer, the poor get poorer" and what this story has to do with it. It is very interesting to hear your opinion, which, as I understand (right ? ) is not based on the principle "he only repeats what someone else told him".

Please describe step by step what this process looks like, at what step inflation appears and why. And of course - why with inflation the rich get richer, describe the mechanism in detail, let's discuss - I understand what you wanted to say but there are some interesting nuances :)
Title: Re: Why do we have inflation ?
Post by: Legion on May 08, 2024, 11:04:20 AM
Only real reason for inflation is for rich people to get richer and poor people to get more poor.
Anyone who is trying to justify inflation is not thinking with his head but he only repeats what someone else told him.
Inflation is a scam, same as taxes that are not voluntary.
Well, if we explain it more deeply then everything is inseparable from a game played by rich people. And actually we are also part of the game. And we have to try to survive the challenges in this game, one of which is called inflation. If we want to be able to avoid inflation then we have to be smart people. And you must really understand the current financial and political system. And the concern at this time is that many people don't even understand the financial system they are currently using.
Not many people understand economics like this, those who work in factories only as laborers don't really care about inflation, what is clear is that they have to keep working to keep earning money, so far it is very difficult to get a job that provides a steady income and this is one of the effects of inflation.
Title: Re: Why do we have inflation ?
Post by: emmybd on May 11, 2024, 04:50:06 AM
There are many reasons of inflation. War, economic mismanagement, political instability, corruption and natural calamity such as flood can fuel inflation all over the world. All these factors contribute in different ways in various parts of the world.
Title: Re: Why do we have inflation ?
Post by: Peter90 on May 19, 2024, 06:05:42 PM
Money has 3 tasks:
1) means of exchange
2) store of value
3) unit of account


Unit of account
The problem with inflation is that a depreciating currency makes difficult to measure & compare the value of items over time

This is the drama of inflation: People become poor without seeing it.
People see they have more money - their salaries have increased - and are convinced their wealth has increased.


(https://i.ibb.co/JsJpVfV/2.png)

Title: Re: Why do we have inflation ?
Post by: DrBeer on May 20, 2024, 11:55:56 AM
Money has 3 tasks:
1) means of exchange
2) store of value
3) unit of account


Unit of account
The problem with inflation is that a depreciating currency makes difficult to measure & compare the value of items over time

This is the drama of inflation: People become poor without seeing it.
People see they have more money - their salaries have increased - and are convinced their wealth has increased.
....

This is a long-standing problem - people simply do not understand how the financial system works, what money is, why there is inflation and what it is. For them, a lot of papers in their wallet is "wealth"! More is "even better".....
Financial illiteracy of the population - one of the global scourges of the modern world!

PS I am fond of numismatics and bonistics, in the collection there are stamps of Germany of the beginning of the 20th century, with a face value of 10 billion marks. Money then depreciated literally every couple of hours. I hope this will not happen again in any country ...
Title: Re: Why do we have inflation ?
Post by: bitterguy28 on May 20, 2024, 12:13:04 PM
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.
Don't  be much affected Admin because politics is a legal term for Corruption meaning politicians are there to
take money and be wealthy and not for the people to benefits from their positions.
in short these are a helpless case as inflation will keep coming not until true political motives will cover the position.
Title: Re: Why do we have inflation ?
Post by: Peter90 on May 20, 2024, 04:17:48 PM
(https://i.ibb.co/Dw9yDVy/7.png)
Title: Re: Why do we have inflation ?
Post by: DrBeer on May 23, 2024, 07:17:56 PM
Inflation question:
What do you think is the more effective method of curbing real inflation:
- price increases
- tax increase
- triggering deflationary processes
- your answer ?
Title: Re: Why do we have inflation ?
Post by: Agbe on May 26, 2024, 09:17:42 PM
It's easy for them because they always have devaluation as a way out of problems.
In the third world Nations or Countries, the devaluation in some time is a negotiation among governments. World Bank and IMF are also in the game. They promised to develop your country when you devalue your currency but all are lies. Africans countries have devalued their economics for many times yet the continent is worst in development in all ramifications. And right now in my country, why the inflation is high, because I the 2023 general Election in the country, the then government printed plenty new designed note and also the Boko Haram and Fulani Herdsmen are killing the farmers who suppose produce local production to reduce inflation are killed. The government is the problem for the inflation. If they can even provide a conducive environment for the farmers, I think inflation will reduce.
Title: Re: Why do we have inflation ?
Post by: DrBeer on July 11, 2024, 07:26:38 PM
It's easy for them because they always have devaluation as a way out of problems.
In the third world Nations or Countries, the devaluation in some time is a negotiation among governments. World Bank and IMF are also in the game. They promised to develop your country when you devalue your currency but all are lies. Africans countries have devalued their economics for many times yet the continent is worst in development in all ramifications. And right now in my country, why the inflation is high, because I the 2023 general Election in the country, the then government printed plenty new designed note and also the Boko Haram and Fulani Herdsmen are killing the farmers who suppose produce local production to reduce inflation are killed. The government is the problem for the inflation. If they can even provide a conducive environment for the farmers, I think inflation will reduce.

Let's understand the reasons, the real reasons ?
1. The countries you mentioned (as well as others) go to the IMF to meaningfully take a CREDIT. Right ? No one is forcing them ? Right ?
2. To get loans, it is necessary to show for what purposes and on what conditions the funds will be repaid. It is not the population that takes the money, but the government.
3. The money goes into settlement accounts, which are managed by the GOVERNMENT. Where this money goes afterwards is a question for the government, which has to deal with it. Since these loans are eventually paid back by the POPULATION, the government takes out another CREDIT to pay off the previous and future embezzlement in order to put another debt on the population.
4. But the economy does not forgive this, and in the end, the rulers, having taken the credit money without creating anything useful for the economy, are forced to run the "printing press". Or just print money all the time just to give it to people, trying to show "care" and "skillful rule.".... Think of it this way
Title: Re: Why do we have inflation ?
Post by: Agbe on July 11, 2024, 08:05:51 PM
Let's understand the reasons, the real reasons ?
1. The countries you mentioned (as well as others) go to the IMF to meaningfully take a CREDIT. Right ? No one is forcing them ? Right ?
2. To get loans, it is necessary to show for what purposes and on what conditions the funds will be repaid. It is not the population that takes the money, but the government.
3. The money goes into settlement accounts, which are managed by the GOVERNMENT. Where this money goes afterwards is a question for the government, which has to deal with it. Since these loans are eventually paid back by the POPULATION, the government takes out another CREDIT to pay off the previous and future embezzlement in order to put another debt on the population.
4. But the economy does not forgive this, and in the end, the rulers, having taken the credit money without creating anything useful for the economy, are forced to run the "printing press". Or just print money all the time just to give it to people, trying to show "care" and "skillful rule.".... Think of it this way
I agree with you on all the factors you listed except the first one. I have seen a project and heard of a project World Bank imposed on the third World Nations to collect loans. And the loans were unwillingly cause collected and the projects were executed and the programs runs for some years and collapsed because it was not planned by the government of the land but from the monetary institutions for their own benefits and not for the citizens benefits.  We ask ourselves why any of the technological innovations were produced from African countries, is it that we don't have talented scholars? Let me not deviate too much.

Inflation in most time in African countries are caused by the advance or developed countries for their benefits. They advised the third world Nations government wrongly and benefits from it.  Though excess printing of money also part of it and the greediness of the government and leaders are part of the inflation but let the  Umbilical Cord should be cut off and let's see how things can workout for the continent. Have you heard or read (Walter Rodney, ‘How Europe Underdeveloped Africa’)? If not you can browse it and read more.
Title: Re: Why do we have inflation ?
Post by: Aanuoluwatofunmi on July 12, 2024, 12:08:18 PM
Inflation will always be as long there is no any tangible changes towards the way governments have been used in printing the money and the financial regulations protocols in place, there need to be some changes in the way things were being done, we are tired of the old patterns, things are changing and this is why we could discover in a large extent the numbers of people supporting for a decentralized digital currency which is bitcoin.
Title: Re: Why do we have inflation ?
Post by: DrBeer on July 13, 2024, 03:58:50 PM
Let's understand the reasons, the real reasons ?
1. The countries you mentioned (as well as others) go to the IMF to meaningfully take a CREDIT. Right ? No one is forcing them ? Right ?
2. To get loans, it is necessary to show for what purposes and on what conditions the funds will be repaid. It is not the population that takes the money, but the government.
3. The money goes into settlement accounts, which are managed by the GOVERNMENT. Where this money goes afterwards is a question for the government, which has to deal with it. Since these loans are eventually paid back by the POPULATION, the government takes out another CREDIT to pay off the previous and future embezzlement in order to put another debt on the population.
4. But the economy does not forgive this, and in the end, the rulers, having taken the credit money without creating anything useful for the economy, are forced to run the "printing press". Or just print money all the time just to give it to people, trying to show "care" and "skillful rule.".... Think of it this way
I agree with you on all the factors you listed except the first one. I have seen a project and heard of a project World Bank imposed on the third World Nations to collect loans. And the loans were unwillingly cause collected and the projects were executed and the programs runs for some years and collapsed because it was not planned by the government of the land but from the monetary institutions for their own benefits and not for the citizens benefits.  We ask ourselves why any of the technological innovations were produced from African countries, is it that we don't have talented scholars? Let me not deviate too much.

Inflation in most time in African countries are caused by the advance or developed countries for their benefits. They advised the third world Nations government wrongly and benefits from it.  Though excess printing of money also part of it and the greediness of the government and leaders are part of the inflation but let the  Umbilical Cord should be cut off and let's see how things can workout for the continent. Have you heard or read (Walter Rodney, ‘How Europe Underdeveloped Africa’)? If not you can browse it and read more.

Suppose you're right. Then the question is - explain how are you FORCED to take loans? You can't be forced to take out a loan. Moreover, there is always a choice - besides the IMF, there are a lot of other organizations.  And the government has the POSSIBILITY to borrow where conditions are more convenient. But there is a nuance - most other organizations do not give loans to governments that steal previous loans.
Title: Re: Why do we have inflation ?
Post by: bisdak40 on July 27, 2024, 04:25:54 PM
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.
Yes, I agree printing money is one of the factors of inflation because it makes the production of goods and services costs high. Also, the demand for goods and services exceeds the supply which is caused by the printing of money where the supply is low and the demand is high so they will increase the cost of their products and services.
Title: Re: Why do we have inflation ?
Post by: Stompix on July 27, 2024, 04:44:20 PM
Only real reason for inflation is for rich people to get richer and poor people to get more poor.

So let me get this right, how does inflation keep on working if rich people get richer and poor people get poorer?
Because if people stop affording stuff then stuff is no longer bought then obviously prices decrease or stuff is no longer produced as much so less profits for the rich manufacturer, less income for all the suppliers and employees so less spending power, and on and on and on...
How is that possible that the Gini measurement has fallen from 70 in 1990 to 62 in 2019 if you say the rich get richer and the poor poorer?

Anyone who is trying to justify inflation is not thinking with his head but he only repeats what someone else told him.

And you know that because....somebody told you, right?  :D
Title: Re: Why do we have inflation ?
Post by: notblox1 on July 27, 2024, 07:49:08 PM
So let me get this right, how does inflation keep on working if rich people get richer and poor people get poorer?
Are you blind or what?
Because people die and they keep repeating same stuff all the time.
If you think inflation works than I have nothing else to talk with you, because you are brainwashed.

And you know that because....somebody told you, right?  :D
No.
Becaue I use my brain for thinking, unlike you.
Title: Re: Why do we have inflation ?
Post by: Aanuoluwatofunmi on July 27, 2024, 09:51:30 PM
We continue to experience inflation because there is a lot of things needed to be changed concerning the way the governments policies works on the economy and fiat currency monetary policies, if changes can be done, then there wont be any more changes as we have been having over the years, if we have tested on something and we see that its  not working as planned or expected, then a review should be taken in respect of it in knowing on how it could be considered for some levels of changes desired.
Title: Re: Why do we have inflation ?
Post by: philipma1957 on July 29, 2024, 02:32:00 AM
OKAY let's try simple math.



In the 1950s when I was born there were about 2.5billion people there are now 8.1 billion people.

So demand keeps growing .

LAST I looked the planet is the same size as it was in 1957.

So demand grows and supply stays the same. Thus inflation.   Either no fucking for 5 years just blow jobs and muff diving. Which would reduce demand. A new pandemic that kills 2 billion or a fusion drive making space travel easy giving tons more supply.

I will likely not see no fucking for 5 years or a fusion drive. I AM not hoping for a 33% death rate pandemic. So I will need to live with inflation.
Title: Re: Why do we have inflation ?
Post by: laijsica on July 31, 2024, 07:28:19 PM
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.
Yes, I agree printing money is one of the factors of inflation because it makes the production of goods and services costs high. Also, the demand for goods and services exceeds the supply which is caused by the printing of money where the supply is low and the demand is high so they will increase the cost of their products and services.
Inflation is caused not only by money printing but also by external debt and excessive government borrowing from domestic banks. If a country's government's ability to generate diversified income shrinks, they starts printing money, which increases inflation. Also foreign trade imbalance, global recession, above all lack of visionary monetary policy of the government can lead to inflation.
Title: Re: Why do we have inflation ?
Post by: philipma1957 on August 01, 2024, 12:38:25 AM
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.
Yes, I agree printing money is one of the factors of inflation because it makes the production of goods and services costs high. Also, the demand for goods and services exceeds the supply which is caused by the printing of money where the supply is low and the demand is high so they will increase the cost of their products and services.
Inflation is caused not only by money printing but also by external debt and excessive government borrowing from domestic banks. If a country's government's ability to generate diversified income shrinks, they starts printing money, which increases inflation. Also foreign trade imbalance, global recession, above all lack of visionary monetary policy of the government can lead to inflation.
. All the debt and borrowing is due to demand endlessly growing.

when I was 7 years old in 1964 there where 2.5 billion people world wide

there are over 8.1 billion this is a 3x increase in demand

we have the same supply in 2024 as 1964. the planet is 0% bigger.

We do have a few better methods in tech and product which help but they are not keeping up with demand growth.

Printing money and taking on debt are ways to cover up the issue. Ie bandages on a wound that is growing day by day.

Even the pandemic which killed a few extra million people world wide is not a match for the constant demand growth (population growth)

I submit that population growth = demand growth. With maybe a bit shaved off by better production methods.

I also submit that we really need to address the issue soon or a fucking shit ton of hurt will happen.
Title: Re: Why do we have inflation ?
Post by: Chilwell on December 19, 2024, 06:32:44 AM
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.
I applaud this point that you made, the increase in good and services  that is taking place day by day (inflection) some people are feeling good about it most especially the traders. Because traders might benefit from this trend, it's essential to acknowledge the harsh reality. Inflation is not solely caused by the government or the wealthy alone, it's a complex issue with multiple factors at play.

Everyone, regardless of their socioeconomic status, contributes to inflation in some way. Even the poor and traders can inadvertently perpetuate inflation by accepting or even benefiting from higher prices.

Traders, in particular, might profit from inflation by selling commodities at higher prices. They understand that people will still purchase essential goods despite price increases, which can lead to individuals depleting their savings and income.
Title: Re: Why do we have inflation ?
Post by: Agbe on December 19, 2024, 02:52:05 PM
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.
Yes, I agree printing money is one of the factors of inflation because it makes the production of goods and services costs high. Also, the demand for goods and services exceeds the supply which is caused by the printing of money where the supply is low and the demand is high so they will increase the cost of their products and services.
Let face the fact on the table printing of money has little effect on inflation because inflation is basically based caused by cost of production of the goods and services when the cost price of a material is high it's natural that the purchasing price of the material will be high inflation can be reduced by right government policies, one of the ways that inflation can be reduced is through mass production of goods so that the goods can be surplus so that the price of these good's can be reduced
Title: Re: Why do we have inflation ?
Post by: Mia Chloe on December 19, 2024, 06:53:07 PM
Inflation question:
What do you think is the more effective method of curbing real inflation:
- price increases
- tax increase
- triggering deflationary processes
- your answer ?
I think one of the major reasons is the financial system. Back when inflation wasn't a problem most part of the world made use of gold and silver for their transactions and that kept the financial system in place since money wasn't easy to create. However the whole system got too greedy and trashed the concept of making use of rare items like gold for money and adopted paper also known as notes.

Before this whole twist paper was used as a means of exchange back then too but it was more like a coupon to redeem a particular amount of gold or silver which was money. Now printing money is easier and over circulation is becoming a bigger issue.
Title: Re: Why do we have inflation ?
Post by: DrBeer on December 22, 2024, 10:39:32 PM
Inflation question:
What do you think is the more effective method of curbing real inflation:
- price increases
- tax increase
- triggering deflationary processes
- your answer ?
I think one of the major reasons is the financial system. Back when inflation wasn't a problem most part of the world made use of gold and silver for their transactions and that kept the financial system in place since money wasn't easy to create. However the whole system got too greedy and trashed the concept of making use of rare items like gold for money and adopted paper also known as notes.

Before this whole twist paper was used as a means of exchange back then too but it was more like a coupon to redeem a particular amount of gold or silver which was money. Now printing money is easier and over circulation is becoming a bigger issue.

I agree with you in part, but as always - there are nuances :)
Let me start with the fact that since childhood I am fond of numismatics. At first I collected just coins of different countries, then, having grown up, a little changed the vector - on numismatics as an investment and one of the options for diversification.
So I will tell you - if in the “beginning of times” everything was as you describe, then already in the Middle Ages began to massively “depreciate” the currency, and even in gold and silver. How do you ask? Very simple ! Among the ways:
- reducing the weight of precious metal in coins
- lowering the quality of the alloy
- reduction of the coins themselves
- issuance of “in replacement” of gold and silver coins - coins and bilon and other metals.
And the reason for this is extremely simple - there was no possibility to extract more gold because of some restrictions. And when paper money appeared, the process became much easier :)
Title: Re: Why do we have inflation ?
Post by: Stompix on December 23, 2024, 01:42:54 PM
I think one of the major reasons is the financial system. Back when inflation wasn't a problem most part of the world made use of gold and silver for their transactions and that kept the financial system in place since money wasn't easy to create. However the whole system got too greedy and trashed the concept of making use of rare items like gold for money and adopted paper also known as notes.

People need to understand things change!
During the gold standard for 400 years, the average inflation was 0.5%, it was 2% in the last 100 years. The world population was 350,000,000 in 1400 and 1,600,000,000    in 1900, in 400 years it grew by 1.2 billion, then it grew by 7 billion in just one hundred years and a bit.

This means demand for stuff grew  28 times faster during the last century than the previous 4!
What happens when demand grows that fast and supply can't keep up with it?

The gold standard would not have kept prices more affordable, it would have kept the price of meat at 1 gram but you would have ended earning half of that gram over time then a quarter then even less as it would have been gold that got more expensive not product cheaper.


Title: Re: Why do we have inflation ?
Post by: Gurujebs on December 23, 2024, 03:19:39 PM
Let face the fact on the table printing of money has little effect on inflation because inflation is basically based caused by cost of production of the goods and services when the cost price of a material is high it's natural that the purchasing price of the material will be high inflation can be reduced by right government policies, one of the ways that inflation can be reduced is through mass production of goods so that the goods can be surplus so that the price of these good's can be reduced

The fact remain! Excess printing of money has big side effects on inflation and math's doesn't lie. In Nigeria, the past government under the office of the president, a lot of money were printed without even the approval of the president and look at what the inflation is saying in Nigeria today, it's 32%, don't say dollar made it to go up because before the subsidy thing, inflation was already in 24% before this government came.

Look at what happened to Zimbabwe currency, very similar to what happened in Argentina. Money printing brings inflation faster than any other factors in any economy.
Title: Re: Why do we have inflation ?
Post by: target on December 23, 2024, 03:52:35 PM
Let face the fact on the table printing of money has little effect on inflation because inflation is basically based caused by cost of production of the goods and services when the cost price of a material is high it's natural that the purchasing price of the material will be high inflation can be reduced by right government policies, one of the ways that inflation can be reduced is through mass production of goods so that the goods can be surplus so that the price of these good's can be reduced

The fact remain! Excess printing of money has big side effects on inflation and math's doesn't lie. In Nigeria, the past government under the office of the president, a lot of money were printed without even the approval of the president and look at what the inflation is saying in Nigeria today, it's 32%, don't say dollar made it to go up because before the subsidy thing, inflation was already in 24% before this government came.

Look at what happened to Zimbabwe currency, very similar to what happened in Argentina. Money printing brings inflation faster than any other factors in any economy.

Zimbabwe been always the example of this inflation where money of the country becomes worthless. But this story been around for centuries even during the time of Roman Empire which is the reason how they crumble.

During the Chinese dynasty time, they also have this inflation and they also fall. Empire falls because of monetary system failure. They says it's because they keep the war going which wars are expensive. They have to print money.
Title: Re: Why do we have inflation ?
Post by: Didia Sofunichi on January 05, 2025, 08:41:23 AM
It might not be entirely correct to say that the reason we have inflation is because they keep printing money, do you have any empirical evidence?

And besides Nigeria is a country full of knowledgeable human resources that understands the implications of printing excess money
Title: Re: Why do we have inflation ?
Post by: Celsius on January 15, 2025, 04:06:35 AM
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.
When the economic condition of a country is very bad and the amount of foreign debt of that country becomes very high, automatically the government comes under pressure. When the government falls under pressure, there is a need to print paper money, be it willingly or unwillingly. When the bank prints paper money unwritten, the inflation of money is seen in the country. The prices of daily essentials continue to increase drastically.  Thus the value of a country's currency tends to depreciate and rampant inflation occurs.
Title: Re: Why do we have inflation ?
Post by: Stompix on January 15, 2025, 03:28:17 PM
When the economic condition of a country is very bad and the amount of foreign debt of that country becomes very high, automatically the government comes under pressure. When the government falls under pressure, there is a need to print paper money, be it willingly or unwillingly. When the bank prints paper money unwritten, the inflation of money is seen in the country. The prices of daily essentials continue to increase drastically.  Thus the value of a country's currency tends to depreciate and rampant inflation occurs.

And still, Japan has one of the highest debt-to-GDP ratios, has printed the most money in all developed countries, is struggling with growth and an old population, and yet despite that for nearly 7 consecutive years it had below 1%, experiencing twice deflation.
So how is this possible?
Obviously printing money is not the only culprit, you can print money endlessly if people don't spend it there will be no inflation.
Title: Re: Why do we have inflation ?
Post by: Agbe on January 19, 2025, 12:32:54 PM
Inflation is a product of lack when ever there's lack of supply of a particular product or goods it is natural that the price of such goods will increase in value so inflation in countries is basically caused by lack of that country to produce goods and services to meet up local demands in the country when that happens there will be an increase in the price of such goods because to solve the problem of lack the country has to import into the country and depending on the countries currency in the international market that was used as the exchange for the goods to get them into your countries these imports will have to to recover their money and make gain by inflating the price of the imported goods on the local market
Title: Re: Why do we have inflation ?
Post by: Celsius on February 03, 2025, 12:11:37 AM
When the economic condition of a country is very bad and the amount of foreign debt of that country becomes very high, automatically the government comes under pressure. When the government falls under pressure, there is a need to print paper money, be it willingly or unwillingly. When the bank prints paper money unwritten, the inflation of money is seen in the country. The prices of daily essentials continue to increase drastically.  Thus the value of a country's currency tends to depreciate and rampant inflation occurs.

And still, Japan has one of the highest debt-to-GDP ratios, has printed the most money in all developed countries, is struggling with growth and an old population, and yet despite that for nearly 7 consecutive years it had below 1%, experiencing twice deflation.
So how is this possible?
Obviously printing money is not the only culprit, you can print money endlessly if people don't spend it there will be no inflation.
When the main political party of a country is involved in corruption, irregularities, money laundering, etc., then of course you will prioritize the rise in commodity prices as the main problem in that country. Important issues such as a significant decline in the country's reserves, a significant increase in foreign debt, and a decrease in foreign remittances are among the main reasons for inflation in my country.
Title: Re: Why do we have inflation ?
Post by: Stuart on February 07, 2025, 03:56:54 AM
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.

I think the excessive printing of money which causes devaluation has a big part to play in the causes of inflation. Though, this might not be the only reason for the inflation experience. Poor or bad governance is the major or cause of inflation. They do what they do, for selfish reasons. They, the CBN manager are the ones who knows what they do to devalue native currency.

When there is no flow of cash in the system, there is room for inflation. The act of hoarding money, can also lead to the cause of inflation.
Title: Re: Why do we have inflation ?
Post by: bisdak40 on February 26, 2025, 02:14:26 PM
Inflation is a product of lack when ever there's lack of supply of a particular product or goods it is natural that the price of such goods will increase in value so inflation in countries is basically caused by lack of that country to produce goods and services to meet up local demands in the country when that happens there will be an increase in the price of such goods because to solve the problem of lack the country has to import into the country and depending on the countries currency in the international market that was used as the exchange for the goods to get them into your countries these imports will have to to recover their money and make gain by inflating the price of the imported goods on the local market
Yeah, that's true. When there aren’t enough goods or products in a country, prices naturally go up because people still need them. If a country can’t produce enough for itself, it has to buy from other countries. And since imported goods come with extra costs like shipping and currency exchange, the sellers raise prices to make a profit.
Title: Re: Why do we have inflation ?
Post by: Aanuoluwatofunmi on February 27, 2025, 02:14:35 PM
Inflation has been in existence before now, even right from the days of our ancestors, there have always been inflation, there is nothing we can do about the rise in price of commodity items in the market, we are only expected to work towards how we are going bto be less dependent of the running economy and take advantage of being established to find our own way out of the challenges, this could come in by adopting for the use of crypto and bitcoin specifically, this makes one not to rely on them as well, not to even talk of when the government are taking it serious by inflicting demands on taxes thereby increasing it more upon fiat economy.
Title: Re: Why do we have inflation ?
Post by: Stompix on February 27, 2025, 06:43:47 PM
And still, Japan has one of the highest debt-to-GDP ratios, has printed the most money in all developed countries, is struggling with growth and an old population, and yet despite that for nearly 7 consecutive years it had below 1%, experiencing twice deflation.
So how is this possible?
Obviously printing money is not the only culprit, you can print money endlessly if people don't spend it there will be no inflation.
When the main political party of a country is involved in corruption, irregularities, money laundering, etc., then of course you will prioritize the rise in commodity prices as the main problem in that country. Important issues such as a significant decline in the country's reserves, a significant increase in foreign debt, and a decrease in foreign remittances are among the main reasons for inflation in my country.

Doesn't make sense!
Mexico had a lower inflation rate than South Korea and Benin and Malaysia lower than Denmark.
You're telling me those are less corrupt than Denmark?

Inflation is when people spend the printed money , not when the government prints it, if there is no increase in demand for goods from spending power there is no inflation.

Inflation has been in existence before now, even right from the days of our ancestors, there have always been inflation,

No, there wasn't!
https://www.datawrapper.de/blog/medieval-prices-wages


Title: Re: Why do we have inflation ?
Post by: Joeboy on April 02, 2025, 11:43:11 PM
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 believe inflation has and still is the order of the day because of ehigh cost of production. Due to the present economic situation we are having, which is partly due to our leaders inability to contribute positively into the economy, producer tends to have hard time getting raw materials at a reduced price.  However, when they finally gets the raw materials at high prices, they hike the prices of the finished product just to compensate their pockets due to the high amount of money they spent securing this raw materials.