Is it inflation?

[i7win7]

Is it inflation or is our dollars loosing value from printing too much money.

Something to consider

 

[Tropical Jack]

Answer to both questions - yes.

 

[Borane4]

Is it inflation or is our dollars loosing value from printing too much money

They are the same. Inflation is caused by governments printing money. In fact that seems to be the only reason it occurs.

 

[jyoutz]

Inflation is caused by more demand for goods than availability. Extremely low interest rates creates more demand.

 

[lynnmor]

Handing out money creates demand by those that created nothing, pushing up prices.

 

[mikester]

Is it inflation or is our dollars loosing value from printing too much money.

Something to consider
View attachment 75538

"but debt is the money of slaves"

I don't think The Donald would agree with this part

Inflation is caused by more demand for goods than availability. Extremely low interest rates creates more demand.

Interest is the cost of borrowing money. Inflation is the cost of bad debt.

 

[Biker1mike]

If you are spending at or near your net income and you like to carry substantial debt , inflation is a real problem.
If you have low debt and a decent buffer of spending to income ratio you can ride out most inflation rises and even make money with a good investment company.

 

[lynnmor]

If you are spending at or near your net income and you like to carry substantial debt , inflation is a real problem.

Actually buying sooner at lower prices rather than waiting till you can pay cash may cost you money. I hate debt but saw folks buy new homes back in the 1970's while I waited, it was a fools game because inflation back then was increasing home prices faster than I could save. The same could be said for tractors right now.

 

[Henro]

I live in a parallel universe I suppose.

Inflation is what I see when I look down at my waistline...some how it has mimicked what is going on in this universe...

 

[i7win7]

The way I understand it is - the Federal Reserve is a private corporation. If the government want to borrow a million dollars, the Fed, prints it and loans it with interest.

When loan is due and government has the million dollars, they don't have dollars for the interest. They barrow more.

When 2nd loan is due, they are missing principal dollars and interest dollars. Don't see how government can ever get out of debt.

 

[mikester]

If you are spending at or near your net income and you like to carry substantial debt , inflation is a real problem.
If you have low debt and a decent buffer of spending to income ratio you can ride out most inflation rises and even make money with a good investment company.

I think governments want inflation.

There are two ways governments can control debt. One is to be responsible and earn more money and pay it off, the other is to make your debt more worthless through inflation.

If your cow only has 4 teats you won't get any more milk out of her. If you water down the milk you get you have more to sell, but it ends up being worth less because it's watered down.

If you or I did this the bank or lender would demand payment and seize assets to recoup their losses. We would likely face some sort of legal repercussions.

The government has no accountability so they continue to behave badly. They hire the best and the brightest economists to be their confederates to justify their bad behaviour in order to counter anyone questioning what they are doing. If you have enough people telling the same lie then it becomes the truth.

Look up the amount of US debt held by China. Why try and pay it off when you can simply make debt disappear by changing the measuring stick.

 

[lynnmor]

I think governments want inflation.

Yep, that's how they can keep this immoral scheme going.

 

[GreensvilleJay]

I've never understood how any government can have/allow 'defeciet' budgets ?
Any of us normal folk or businesses do that, we'dd be in for a heap of trouble !!

 

[lugbolt]

If you are spending at or near your net income and you like to carry substantial debt , inflation is a real problem.
If you have low debt and a decent buffer of spending to income ratio you can ride out most inflation rises and even make money with a good investment company.

Well said and that's exactly why I got rid of my car that had a payment and went back to one that doesn't. Ive been wanting to invest for the first 40 some years of my life and never had a dime to do it with for that very reason, higher than comfortable debt, not enough income. Got debt free a few years ago, built up a good nest egg (enough that I quit a job I had almost 30 years with), comfortably. I feel bad for those folks that didn't, or took on more debt, or whatever. My looking back in history says that abnormally high/quick inflation leads to investment opportunities, and this time as long as nothing goes haywire, I'm fixing to do it. I can retire now, but I want to be able to retire and be very comfortable.

Thankfully this IS the USA and we all have the opportunity to make it, the unfortunate side of that is that many of us don't know how or where to start.

By the way I'm nowhere near "rich" at all, just comfortable. Tiny house, junk 30 year old car, etc.

 

[jyoutz]

"but debt is the money of slaves"

I don't think The Donald would agree with this part



Interest is the cost of borrowing money. Inflation is the cost of bad debt.

Low interest rates does increase demand because it makes debts more affordable.