Things we are doing or can do to beat inflation

Sudacafan

Sudacafan

Bionic Poster
I just learnt that the US is experimenting a 5.4% annual inflation.
Would this mean that kind of they will be exporting it to countries where the dollar is the monetary anchor or reference?
For salaried people, or others living on a rent or a fixed income, how we should cope with this?
No way out?

www.nytimes.com

A judge blocked Maryland’s bid to cut off federal unemployment benefits. (Published 2021)

The court challenge was one of several in states that have sought to discontinue federal payments that are funded until September.
www.nytimes.com www.nytimes.com

By the way, seems that some and corporations are making big money regardless. China seems to be growing fast again, too.
 
Last edited:
Look at Japan, they have an deflationary economy for 30+ years! Deflation is much worse then the other way around IMO!
Control government’s pumping out money but you do not want a recession either. Hurts the average family and puts many people homeless. Much better have full employment in the economy and have inflation along with it! I personal feel that the Fed and other worldwide banking agencies are doing the right thing to restart the world economy. In the U.S. economy, the stimulus for pandemic unemployment payments ends in September effecting around 2-4 million people estimated.

If you go back to the 1800s and earlier, many workers were semi unemployed and hard to estimated but guesses are in the 30% at one time or another. They survived on the odd jobs found in ranching, farming; where crops needed workers at harvesting and many travel from city to city looking for work, etc... People lived in the outdoors so homelessness was not a word at that time in theses eras.
 
Last edited:
Sudacafan said:
1. I just learnt that the US is experimenting a 5.4% annual inflation.

2. China seems to be growing fast again, too

3. ...corporations are making big money regardless.
Click to expand...
1. I believe this 5.4% is based in the April numbers and they project it out for the full year. April was the 1st month where the consumer did not have to wear mask in red states. In June lumber price fallen 50% and is back to pre-pandemic prices as well as other consumer products. Oil and gasoline has increased 40% however. Food has increased 25%. Services have also gone up too!

2. China domestic economy has stalled but exports are ramping up for June figures.

3. Corporations better be making big money as the recovery takes place. 2020 everything basically, shutdown worldwide business wise!
 
Last edited:
sureshs said:
There is also "shrinkflation," where food portions in restaurants are getting smaller. One Italian restaurant here has permanently replaced unlimited breadsticks with one small piece of garlic bread.
Click to expand...
Everything has shrunk in size. Look at candy bars and see how full box item are now. Box might look big as usually, but contents are filled 3/4 to full. Not only that, can items now contain 40%-60% liquid inside the can. In the 1950s, it was only 15%. Candy bars are 50% thinner!
 
I feel confident that there will be a major collapse in Western economies sometime in the next eighteen months that will make fears of inflation somewhat obsolete.

We are currently having, paradoxically enough, a covid boom. A post-covid bust will happen.

My Miele repair man took two weeks to arrive and not two days. People aren't buying as many new appliances, but they are investing in their homes if they have the money.
 
sureshs said:
There is also "shrinkflation," where food portions in restaurants are getting smaller. One Italian restaurant here has permanently replaced unlimited breadsticks with one small piece of garlic bread.
Click to expand...

Harry_Wild said:
Everything has shrunk in size. Look at candy bars and see how full box item are now. Box might look big as usually, but contents are filled 3/4 to full. Not only that, can items now contain 40%-60% liquid inside the can. In the 1950s, it was only 15%. Candy bars are 50% thinner!
Click to expand...

Yet Americans are fatter than ever:

 
sureshs said:
There is also "shrinkflation," where food portions in restaurants are getting smaller. One Italian restaurant here has permanently replaced unlimited breadsticks with one small piece of garlic bread.
Click to expand...
This can only be good for the many overweight people in the country.
 
Harry_Wild said:
Everything has shrunk in size. Look at candy bars and see how full box item are now. Box might look big as usually, but contents are filled 3/4 to full. Not only that, can items now contain 40%-60% liquid inside the can. In the 1950s, it was only 15%. Candy bars are 50% thinner!
Click to expand...
Same as I said above: This is good news.
 
Gerald Ford had the right idea as President in the mid 1970s --- encourage everyone to wear a "WIN" (whip inflation now) button
 
Fed Reserve is saying current inflation is supply based and is due to interruptions in the global supply chain. I think the 2 things we can do to fix inflation are 1. get American and the world vaccinated as Covid is the cause of supply chain interruptions, and 2. improve trade with our trading partners as tariffs will push the cost of goods higher and generate retaliatory tariffs from our trading partners. Primarily eliminate Covid and inflation should decrease but this could take several months as most USA goods depend on goods, parts and services from around the world. Many places around the world are not doing that well with Covid and don't have access to enough vaccines.
 
In the seventies inflation was fuelled by wages growth. The solution was to move industry offshore and thereby destroy union-backed wage increases at the source.

This inflation is fuelled by quantitative easing and fiscal policy plus the covid boom created by home owners bringing house purchases and/or renovations forward.

Increased demand causes supply problems that are particularly stressed by covid. As supply cranks up and demand diminishes we have the foundations of a crash.
 
Countries economies do not operation simultaneously. Where one country get excessive supply, another country's ramps up demand for that same product(not talking about real estate). Then there are new products being release each year like new iPhones, new model cars, clothing, etc... Wore out and obsolete equipment needs to be replaced too. These annual cycles of new products creates new demand and continuous employment to run the economy going forward.
 
Harry_Wild said:
Everything has shrunk in size. Look at candy bars and see how full box item are now. Box might look big as usually, but contents are filled 3/4 to full. Not only that, can items now contain 40%-60% liquid inside the can. In the 1950s, it was only 15%. Candy bars are 50% thinner!
Click to expand...

I am talking pre and post Covid timeframe only, not comparing to 50s
 
It is laughable. The U.S. economy is just starting to get into 1st gear and you already worrying that it going to overheat and cause hyperinflation! Wow! Have you guys look at downtown and see any people moving around and stores opening up yet? Probably not many are open.
 
Harry_Wild said:
It is laughable. The U.S. economy is just starting to get into 1st gear and you already worrying that it going to overheat and cause hyperinflation! Wow! Have you guys look at downtown and see any people moving around and stores opening up yet? Probably not many are open.
Click to expand...
where is your "downtown"
 
If you want to curb inflation then what you need to do is to increase the supply of goods and services. We are not meant to increase the money supply in the economy and not produce something for It simply doesn’t work that way. The economies of the world have been distorted - on purpose.
Scarcity of resources go hand in hand.
 
Last edited:
If you don’t have to buy any assets like houses or cars then don’t do it.
If you do have to buy any of these items buy products and invest in markets in the bottom 1/4 of the price scale or areas that haven’t already experienced the bulk of their price appreciation. Also make sure you have a buffer or safety net at hand and diversify your portfolio.
 
Crocodile said:
If you want to curb inflation then what you need to do is to increase the supply of goods and services. We are not meant to increase the money supply in the economy and not produce something for It simply doesn’t work that way. The economies of the world have been distorted - on purpose.
Scarcity of resources go hand in hand.
Click to expand...
Blame "Just in time inventory systems! as well as some orders cancelations
at the start of the pandemic. These two circumstances were the primary
cause of the short shortages we have now.
 
Last edited:
Harry_Wild said:
It is laughable. The U.S. economy is just starting to get into 1st gear and you already worrying that it going to overheat and cause hyperinflation! Wow! Have you guys look at downtown and see any people moving around and stores opening up yet? Probably not many are open.
Click to expand...

Yes, Fed Chairman believes inflation is primarily fueled by supply side interruptions. I think getting back to normal economies with more businesses open in USA and around the globe will go a long way to smoothing things out. I don't think we need to take drastic action until we see high demand driving inflation and we aren't there yet.
 
Bartelby said:
More vacuous nonsense from a no-nothing! Correlation does not mean causation. Complete with digital currency conspiracy!
Click to expand...
You keep calling it a conspiracy but it all continues to come true. And deep down you know it’s true, you just want to hide it. Let’s face it, it’s your dream to have international socialism and global governance, it’s what Marxists have been dreaming ever since the Soviet Union collapsed.
 
'The Great Reset' was the theme of a famous conference. It has since been turned into a global conspiracy theory of the usual sort aka 'The Great Repeat'. You can fill in the gaps.
 
Bartelby said:
'The Great Reset' was the theme of a famous conference. It has since been turned into a global conspiracy theory of the usual sort aka 'The Great Repeat'. You can fill in the gaps.
Click to expand...
That’s your mantra and you are sticking to it. Hiding something all right.
 
You must log in or register to reply here.
Back
Top