Inflation 2021

[coksiw]

I don’t know why Yellen keeps denying what it is become very obvious.
High Inflation is here, the CPI is messed up.

Asset inflation reflected in home prices and stock market. Exuberance in other silly assets like cryptocurrency (Dogecoin) and Non-Fungible Tokens. Lots of cash sitting in saving accounts.

Consumer goods inflation being nationwide noticed in the media now:

https://www.wsj.com/articles/consume...552601?mod=mhp

It was pretty obvious. Our economy trying to recover when every thing in our nation was still restarting and people getting out of their cave, and third world countries still in lockdowns. Plus the massive injection of cash into our economy.

[jfrog]

Originally Posted by coksiw

I don’t know why Yellen keeps denying what it is become very obvious.
High Inflation is here, the CPI is messed up.

Asset inflation reflected in home prices and stock market. Exuberance in other silly assets like cryptocurrency (Dogecoin) and Non-Fungible Tokens. Lots of cash sitting in saving accounts.

Consumer goods inflation being nationwide noticed in the media now:

https://www.wsj.com/articles/consume...552601?mod=mhp

It was pretty obvious. Our economy trying to recover when every thing in our nation was still restarting and people getting out of their cave, and third world countries still in lockdowns. Plus the massive injection of cash into our economy.

We are still in the pandemic. Too early to tell the actual impact of inflation.

[coksiw]

And more, just today:

https://www.wsj.com/articles/looking...hp_featst_pos3

https://www.wsj.com/articles/corn-is...=hp_lead_pos13

[Nicodemus1968]

Anyone on this forum being affected by the gas shortage on the southern east coast?

[coksiw]

It is getting started:

https://www.wsj.com/articles/global-...708764?mod=mhp

Inflation destroys accumulated wealth. There is little people can do about it. Anything you can do now, its effectiveness depends a lot on how badly it is and how long it lasts.

Let’s see how it goes.

[Tithesmeister]

Originally Posted by coksiw

It is getting started:

https://www.wsj.com/articles/global-...708764?mod=mhp

Inflation destroys accumulated wealth. There is little people can do about it. Anything you can do now, its effectiveness depends a lot on how badly it is and how long it lasts.

Let’s see how it goes.

I don’t believe inflation is always a bad thing. While it is true that inflation erodes the value of fiat currency, it also is built into the monetary system that we use.

If you think of value in terms of a home, forty years ago a nice home could be built for about forty dollars a square foot. Today, the same house may be one hundred and forty per square foot. The value of the house has not eroded, the difference in cost reflects the inflation rate over forty years, which eroded the value of the dollar, but the value of the house is fairly constant.

It could be that the value of things, such as food and housing, would be better measured in hours worked, instead of dollars. In my mind it is a much more consistent metric.

Inflation is favorable to those who repay debt, with dollars that are worth less, (not necessarily worthless). Inflation can be, in some cases, a way to offset debt service (aka interest). In the current climate, inflation may exceed interest expense. Hence, your home value may increase more than the dollar’s value is eroded. In that case the value of real estate can appreciate more than the value of the dollar depreciates. This seems to be the trend we are in today. It may not last for long.

[coksiw]

Originally Posted by Tithesmeister

I don’t believe inflation is always a bad thing. While it is true that inflation erodes the value of fiat currency, it also is built into the monetary system that we use.

If you think of value in terms of a home, forty years ago a nice home could be built for about forty dollars a square foot. Today, the same house may be one hundred and forty per square foot. The value of the house has not eroded, the difference in cost reflects the inflation rate over forty years, which eroded the value of the dollar, but the value of the house is fairly constant.

It could be that the value of things, such as food and housing, would be better measured in hours worked, instead of dollars. In my mind it is a much more consistent metric.

Inflation is favorable to those who repay debt, with dollars that are worth less, (not necessarily worthless). Inflation can be, in some cases, a way to offset debt service (aka interest). In the current climate, inflation may exceed interest expense. Hence, your home value may increase more than the dollar’s value is eroded. In that case the value of real estate can appreciate more than the value of the dollar depreciates. This seems to be the trend we are in today. It may not last for long.

I was actually talking about hyperinflation, which is where we are headed, seems like.

[Tithesmeister]

Originally Posted by coksiw

I was actually talking about hyperinflation, which is where we are headed, seems like.

Hyperinflation would be a severe problem. I’m not sure we’re heading there any time soon though. (Which means we very well may be).

[Michael The Disciple]

Here in South Central KY tonight my Gas Station had no gas but "Ultra". Had to pay 3.49 a gallon.

[Esaias]

The gas shortage is contrived.