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Historic perspective aside, this is a current issue as well. After all, housing prices and the stock markets in general keep going up as more money keeps being

Historic perspective aside, this is a current issue as well. After all, housing prices and the stock markets in general keep going up as more money keeps being “printed” (most money is digital nowadays). This inflation will one day hit the real economy, and hurt us all!

coinward 6y ago
inflation is hitting today and tomorrow, unexpected expansion of the money supply IS inflation. Prices going up is the effect that you're alluding to, this happens after supply/demand information passes through institutions, it's only a matter of time.
- iav 6y ago
  Inflation is expected to be 0.6% this year and 1.6% next year by CBO. The 5 year Inflation-indexed Treasury (TIPS) market is implying inflation of 1.6%. Prices on commodities and rent prices in major cities are mostly flat to down. Prices of imports are low and stable on average. So if you are observing signs of inflation, you are not living in the US or using the US Dollar.
  - Sschellbach 6y ago
    I'm living in the US and have seen inflation my entire life in nearly every direction. Looking at tuition, real estate, gold, equities and more!
RobertoG 6y ago
I suppose you mean hyperinflation, because inflation is not only not a problem, but a goal of current central banks. Maybe, we should make a law that whoever predict hyperinflation should tell us, at least, an approximate date for it. I have been hearing predictions of hyperinflation since I was a kid. It should be also to be forbidden to change the definition of inflation, that is already very well defined. A stock market or real state bubble is not hyperinflation. It should be obvious by now, after the example of Japan, the quantitative easing programs after 2008 and, now, the Covid countermeasures that the issue of inflation is a little more complicate that the gold worshipers would like us to believe.
- fulafel 6y ago
  To add, a major problem facing central banks has been too low base inflation, so interest rates have been crippled as a tool for stimulus.
  - RobertoG 6y ago
    Only that monetary policy is the wrong tool, fiscal policy is the right tool but it's not used because ideological reasons.
- AnimalMuppet 6y ago
  Pre-1979, those predictions actually had some empirical evidence behind them. Inflation and interest rates were high and rising. Then Volcker happened, and inflation has been on a long-term downward trend ever since. Now it's running into zero.
  - Gibbon1 6y ago
    Yeah Volcker destroyed manufacturing and busted the unions. Reagan Admin started the Iran Iraq war which drove down the price of oil. Inflation problem solved.
    - AnimalMuppet 6y ago
      Volcker didn't bust the unions. You could argue that Reagan did, but not Volcker. Second, Reagan didn't start the Iran-Iraq war - Iraq did. Third, the Iran-Iraq war drove the price of oil up, not down.
      - Gibbon1 6y ago
        > Iran-Iraq war drove the price of oil up, not down. Nope
        deleted 6y ago
        [deleted]

coinward 6y ago

inflation is hitting today and tomorrow, unexpected expansion of the money supply IS inflation. Prices going up is the effect that you're alluding to, this happens after supply/demand information passes through institutions, it's only a matter of time.

iav 6y ago
Inflation is expected to be 0.6% this year and 1.6% next year by CBO. The 5 year Inflation-indexed Treasury (TIPS) market is implying inflation of 1.6%. Prices on commodities and rent prices in major cities are mostly flat to down. Prices of imports are low and stable on average. So if you are observing signs of inflation, you are not living in the US or using the US Dollar.
- Sschellbach 6y ago
  I'm living in the US and have seen inflation my entire life in nearly every direction. Looking at tuition, real estate, gold, equities and more!

RobertoG 6y ago

I suppose you mean hyperinflation, because inflation is not only not a problem, but a goal of current central banks. Maybe, we should make a law that whoever predict hyperinflation should tell us, at least, an approximate date for it. I have been hearing predictions of hyperinflation since I was a kid. It should be also to be forbidden to change the definition of inflation, that is already very well defined. A stock market or real state bubble is not hyperinflation. It should be obvious by now, after the example of Japan, the quantitative easing programs after 2008 and, now, the Covid countermeasures that the issue of inflation is a little more complicate that the gold worshipers would like us to believe.

fulafel 6y ago
To add, a major problem facing central banks has been too low base inflation, so interest rates have been crippled as a tool for stimulus.
- RobertoG 6y ago
  Only that monetary policy is the wrong tool, fiscal policy is the right tool but it's not used because ideological reasons.
AnimalMuppet 6y ago
Pre-1979, those predictions actually had some empirical evidence behind them. Inflation and interest rates were high and rising. Then Volcker happened, and inflation has been on a long-term downward trend ever since. Now it's running into zero.
- Gibbon1 6y ago
  Yeah Volcker destroyed manufacturing and busted the unions. Reagan Admin started the Iran Iraq war which drove down the price of oil. Inflation problem solved.
  - AnimalMuppet 6y ago
    Volcker didn't bust the unions. You could argue that Reagan did, but not Volcker. Second, Reagan didn't start the Iran-Iraq war - Iraq did. Third, the Iran-Iraq war drove the price of oil up, not down.
    - Gibbon1 6y ago
      > Iran-Iraq war drove the price of oil up, not down. Nope
      - deleted 6y ago
        [deleted]