inflation

[Anonymous No.50017334]

What is even the point of inflation?

>people charge more for their stuff
>others ask for a salary raise
>back to square one

it's like everyone in the world is stupid

[Anonymous No.50017353]

>increase supply of $$ by 20%
>only allow 2% of that 20% increase to actually touch the hands of the public
>still increase prices by 20%

shits messed up

[Anonymous No.50017372]

>>50017334
inflation is a consequence of debt

[Anonymous No.50017421]

>>50017334
you are assuming that it is distributed evenly.
cantillon effect,
the goal is specifically to rob the pleb

[Anonymous No.50017638]

>>50017334
Well it's much better than deflation. I don't know any reasons other than that, maybe there aren't.

[Anonymous No.50017663]

>>50017334
>print $50 trillion
>give $2 trillion to the public as handouts
>keep the rest
>whole public shoulders the cost of the new $50T but only you really benefit

[Anonymous No.50017695]

>>50017334
the problem is money supply got doubled so theres 200% money but 99.9% of the money went to the top 50% so it makes like nothing affordable for the bottom 50% because their money didnt double but everyone else's did so they are all wtf bro what are u even poorer for? and they just cant figure it out ahha

[Anonymous No.50017751]

>>50017334
This is a good question
Let's observe an example
>Bread costs 1$
>Egg costs 0.1$
>Salary is 1k
>Can afford 1k of bread or 10k of eggs

>Money printer go brr
>Bread is 2$
>Egg is 0.2$
>Can afford 500 of bread or 5k of eggs
>Ask for a raise
>Get 2k salary
>Back to square one

The thing is that, commodities don't increase in value uniformly, a better simulation would be:
>Bread is 1.8$
>Eggs are 0.25$
So your buying power would decrease a bit on some items and increase on others
But the most important factor are savings, normies don't invest in stuff, they just save cash, and system such as this one discourages saving and encourages going into debt.
Also, the rich profit a lot from inflammation (via investing) so inflation is effectively a way of stealing money from normies without them knowing

[Anonymous No.50017753]

>>50017638
>Well it's much better than deflation
Imagine beliveing such an obvious banker lie

[Anonymous No.50017766]

>>50017695
You could 100000x the money supply, as long as that money isn't actually used/circulating it won't affect the value of money

[Anonymous No.50017803]

>>50017753
Not a lie, it's very logical: prices decline, every business and person will wait until prices get lower and lower. Result? The whole economy comes to a standstill.

[Anonymous No.50017813]

>>50017334
Except it isn't everyone. They wouldn't be able to charge more or get a pay rise if the dollars weren't there to be used. Currency debasement is the sole cause of inflation. Inflation is a tool that the banking cartel uses to destroy normie intergenerational wealth and keep their own families wealthy and in control.

[Anonymous No.50017832]

>>50017803
Nah, the people become richer, only buy stuff they actually need and produce quality goods.
I rather have a soceiyt where everyone is rich instead of endless grwoth consoomer meme who only benefits the top

[Anonymous No.50017841]

>>50017803
Deflation is normal and was throughout the golden age of America. If I can through technological advance me and my competitors can now bake 3 loads of bread for what (labour/capital) previously fruited 1, do prices go up or down? You believe banker lies, wake the fuck up. Deflation is the normal consequence of a thriving civilization

[Anonymous No.50017843]

>>50017832
> Muh rich become richer
> Society GOOD if everyone RICH

Did you finish school, anon?

[Anonymous No.50017849]

>>50017803
Wrong, people become more frugal and consooom less. Economies become leaner and better at producing essentials. Wasteful and destructive businesses naturally get starved out and then the economy begins to heal. Inflation keeps a bloated, corrupt economy on life support until it completely dies and takes a civilisation down with it as well.

[Anonymous No.50017862]

>>50017843
>soceity good if everyone poor

[Anonymous No.50017914]

>>50017862
Most poor people are motivated to not be poor. Most human beings do the bare minimum to stay afloat, the trick is to give them just enough welfare to keep them motivated, not destroy their motivation with UBI otherwise you end up in a great leap forward famine situation

[Anonymous No.50017921]

>>50017832
>>50017841
>>50017849
you're talking about different things. inflation/deflation has multiple meanings. anon is talking about it in reference to market liquidity. deflating market liquidity is BAD and causes markets to behave irrationally, as you can see with the current USD situation where it the dollar is temporarily increasing in value despite the supply rapidly inflating, because USD liquidity has been deflated by the fed. you're talking about a hypothetical currency where the supply is always going down (deflating), which has never existed because even gold is inflationary. even btc is inflationary. what matters is the supply and demand for the currency. supply inflation/deflation has an obvious effect on market liquidity and therefore relative value of an asset at any given time. the idea that there will ever exist a currency that only ever increases in value relative to everything else is pure fantasy

[Anonymous No.50017938]

>>50017841
The fact that it happened regularly doesn't mean that it was good by any means. Look at the Philips curve for example.

>>50017849
I agree to some extent, weak businesses getting eliminated can be good overall for efficiency. Constant deflation would hurt the economy more than it helps it though.

[Anonymous No.50017959]

>>50017938
Unlike fed manipulated inflation, deflation has and always will be transitory.

[Anonymous No.50018734]

>>50017914
>Only the human who is most willing to serve the wealthy class will survive (so the strong one), the rest will die

[Anonymous No.50018756]

>>50018734
when will we get our own Armstrong bros?

[Anonymous No.50018764]

>>50017843
I'm investing just because I'm tired, getting depressed from watching charts all day sounds a thousand times better than having a horrible boss again, I'm sick of being exploited and mistreated, and I don't even want to look for a job anymore I just want my lace bags to take me to a better place

[Anonymous No.50018780]

>>50017334
The point of inflation is to encourage people to spend a currency rather than hoarding it. This is because, if the value declines over time, then as an aggregate people will make the decision to purchase goods and services, or make investment, now over saving it for later. This is absolutely necessary for economic growth. Currency is meant to FLOW, like WATER, hence the term "currency" as in "current," like a river current, not remain stagnant.

The problem then isn't inflation in and of itself, because some inflation is good for the economy, but rather the problem is shitty monetary policy, rampant money printing, and fractional-reserve banking.

[Anonymous No.50019017]

>>50017766
Money is printed to be used, anon. Abused in this case. Either you're being naive or intentionally misleading.

[Anonymous No.50019521]

>>50018780
>Currency is meant to FLOW, like WATER, hence the term "currency" as in "current," like a river current, not remain stagnant.

are you retarded or simply don't speak languages?

[Anonymous No.50019623]

>>50017803
Imagine thinking everyone will become ascetic monks because prices will be 5% cheaper "next year" (forever).

[Anonymous No.50019879]

>>50019017
go deeper

>>50017766
this

[Anonymous No.50020023]

>>50017334
Inflation offsets debt decreases real value in debt and provides a means of payment. This comes at the cost of currency value. From a market standpoint most of the wealth transfers into corporate profits, the wagie salary has not matched inflation for a long while, we are getting fucked anon

[Anonymous No.50020471]

>>50017334
There is no "point" to inflation. It's just a consequence of more money being printed so people can purchase more goods for a while, so the economy doesn't stall.

[Anonymous No.50020494]

>>50017334
Karma for Beiber

[Anonymous No.50020649]

>>50019879
Okay, here's my hot take; a promissory is just that. Make a bunch of promises and keep making them until people realise you have no intention of keeping them. That is what we currently use as a medium of transaction; empty, broken promises.

[Anonymous No.50020752]

>>50019879
Also >>50017766 is guff. The fact it is in existence is depreciative as it wasn't created to just sit there. It was created to be transacted, which is what is happening with reverse repos and inter-bank lending etc. They are trying to stop a liquidity logjam when in fact they should be encouraging it and forcing diseased private banks into liquidation.

[Anonymous No.50020770]

>>50017334
the money supply needs to grow because the economy produces things
this money isn't perfectly allocated

[Anonymous No.50021499]

>>50017334
Just stake UTK on maiar and you've effectively beat inflation

[Anonymous No.50023018]

>>50017334
This is called a wage-price spiral in economics.

[Anonymous No.50023467]

>>50017334
The cantillion effect means the people closest to the money supply get the most benefit because inflation doesn't occur at the same pace in every industry. For example rent is behind home prices because people renew their leases annually or biannually. DYOR as to what types of people are closest to the money supply.

[Anonymous No.50023527]

the official claim is to keep the cattle spending money to move the economy because everyone knows they'd just save money until they die if inflation wasn't robbing them blind
in reality wage hikes never keep up with inflation so they're being robbed twice

[Anonymous No.50023541]

>>50017421
Woah, cool it with the antisemitism

[Anonymous No.50023587]

>>50017334
>What is even the point of inflation?
Makes my colorful online tokenerinos blast off to the moon!

[Anonymous No.50023983]

>>50017334
Companies make excuses to raise the price because someone else is and it cascades. People stop buying and instead of lowering prices on goods they fire half their workforce which buys even less goods.