RE: Here’s the Inflation – in Stocks, Real Estate, Higher Ed ~ Ryan McMaken … (Death of the Dollar–32) with Link to Full Story
Another interesting publication, absolutely worth reading. Thanks for sharing your experience view on this particular topic buddy
Whether or not we experience or even notice inflation may vary widely, depending on our socio-economic status, our age, or various other factors.
For instance, the price of oil has dropped over the past few years. Therefore, anyone whose business relies heavily on transportation would likely not see any inflation. Similarly, clothing prices have also been dropping, meaning that inflation might not be noticed by those operating in that secto
Both of those examples are interesting and proving, that even with enormous amount of money pumped into economy .. we can actually experience deflation instead of inflation.
One can ask: how is that even possible, right?
And the answer is quite straight forward: inflation is result of amount of money cheasing available products/goods. Right now there is so much money pumped into economies, however those money usually are not being spend. Consumers are saving, instead of spending. So we may experience deflation for quite some time.
The thing is, that once economies will start recovering and money flow will increase (at the same time amount of goods and services available will shrink, since many businesses will close down) - then most likely we will experience very high inflation.
Have a great weekend buddy,
Yours, Piotr
I'm afraid that might happen. And that one cannot be prepared for an economic onslaught of such magnitude.
Perhaps the pandemic will even minimize the effects of the economic crisis. And be part of the cause.
Time will tell us the truth. Jewel that to prepare friend @crypto.piotr
Good points, particularly about deflation. I know that in countries with high inflation, citizens do not save, since their money will be worth so much less by tomorrow, or next week, or next month. So, they spend money today.
However, currently, people still have no reason to spend. But once inflation hits, watch out!!
Hi @majes.tytyty
I think that the main difficulty for saving is that you don't earn enough even to be able to save, most families in countries with high inflation rate are solving day by day. And saving becomes almost impossible for many
That's true, particularly in the past 2 decades or more. Saving is almost impossible, so many people rely on credit to make ends meet. Quite simply, it's a recipe for disaster – for not only the individuals, but also for the economy as a whole.