3 ms·

I'm from Argentina, even now with 100% inflation YoY I wouldn't call it "hyper-inflationary". We had hyper-inflation in 1989 and that was 79% monthly. People

I'm from Argentina, even now with 100% inflation YoY I wouldn't call it "hyper-inflationary". We had hyper-inflation in 1989 and that was 79% monthly. People in general won't accept doing $1,000 in work and by the time they can spend it only having $700, or worse for example $1. nobody is quitting their jobs because the currency is losing value. You cash your salary and just buy stocks, bonds, crypto, foreign currency and obviously groceries. Most companies I know simply are unwilling to adjust their wages for inflation With inflation in the double digits, with real inflation according to previous more accurate methods showing roughly a ~33% loss in value YOY, and the corresponding increase in taxes yes, some real wisdom here. Here, anybody that's in demand becomes self employed and that brings two benefits: first you can raise your rate as often as you want. Second, your tax rate decreases and gets more predicable for the fiscal year.

than3 4y ago
We had close friends growing up who were originally from Argentina during that time period in the early 90s, they were clearly traumatized by it. They told stories of raising chickens for eggs, and goats for milk/cheese/food, and the father credited that as the only reason they made it. Their stories left a real impression on me growing up. I ended up doing a lot of research during my college years. By definition hyper-inflationary is >50%/month, but it always lags and government isn't incentivized to keep it accurate. Year over year stateside is relatively tame in comparison except its not going to taper off as long as they keep printing increasing amounts of money. The Fed also broke banking when they departed from fractional banking in 2020 by setting the required deposits to 0% and went with capital requirements which use Basel III (counting capitalization on the stock market as backing deposits), which as we've seen with FRC, stock market exposure for banks in general is a bad idea.

than3 4y ago

We had close friends growing up who were originally from Argentina during that time period in the early 90s, they were clearly traumatized by it. They told stories of raising chickens for eggs, and goats for milk/cheese/food, and the father credited that as the only reason they made it. Their stories left a real impression on me growing up. I ended up doing a lot of research during my college years. By definition hyper-inflationary is >50%/month, but it always lags and government isn't incentivized to keep it accurate. Year over year stateside is relatively tame in comparison except its not going to taper off as long as they keep printing increasing amounts of money. The Fed also broke banking when they departed from fractional banking in 2020 by setting the required deposits to 0% and went with capital requirements which use Basel III (counting capitalization on the stock market as backing deposits), which as we've seen with FRC, stock market exposure for banks in general is a bad idea.