Is Ford Stock the New Tesla?

[elefantmedia]

They're talking about run-of-the-mill inflation driven by wage-price spirals, and saying that's how you get an inflationary spiral. In my mind, that's not the only way. We have a fiat currency and it's value is really derived from people's faith in it's value. You can print money and encourage borrowing etc, but much like stock market bubbles, there is a tipping point in there when all the feedbacks turn from negative to positive.  Normally, you hold money, it holds it's value, there's no real push to gain or spend it. If you think inflation is going to increase, it now becomes a hot potato that you want to spend as soon as you get it. You do this by buying useful assets like houses, land, food, things you need. When everyone does this it drives up the price, which would normally dampen demand, but if the expectation that money will continue losing value and the price will only increase, then the price doesn't matter anymore. Sellers can ask arbitrarily high prices. But who's going to sell into this and accept that money? Thus supply goes down at the same time demand goes up, further exacerbating the situation.  The government has been pumping new money into the economy to try and stimulate it, yet velocity stays low. Who needs to spend all that money under normal circumstances? But what happens when it all starts losing value? All that "cold" money suddenly turns hot, and the *effective* money supply suddenly increases. Meanwhile, everyone is also incentivized to borrow as much as possible to "short" the currency, further increasing the supply. But who wants to lend into this? The credit market slows, and the government steps in as "lender of last resort" again....using printed money.  Meanwhile, the massive amounts of money tied up in the stock market suddenly need a new home. I mean, who wants to hold a stock when all you can get out of it is increasingly worthless money. You paper gains are impressive, but it's only a reflection of the fact your asset is losing value, because the only value it has is denominated in dollars (rather than any kind of tangible use).  I mean it goes on and on. Wage-price spirals may be a part of 'normal' inflation but they don't really play into hyperinflation.

[kavouka]

Not one mention of the Fed's balance sheet or total money supply

[fourwheeler]

Inflation is the keystone of your system. If you promise not to invade our country, we'll switch to gold

[balefrost]

Issues can be solve by printing more to cover the last inflation rate

[chervonets]

What about the people who suffer from identity theft? I know it is a huge problem and people suffer lifetimes with soc sec numbers that are flagged accordingly and struggle to even get a free gas card. What is the policy on this. What about people who do not access the internet.

[yay111]

Sure raise the interest rate to 20%

[SkinnyBill]

The only issue is there is way to many cryptos ... Coinbase was fine when it had 3 coins ... but over 100 is way to risky

[mieke]

er

[Rogastail]

early gang

[ROJO2017]

Over 67%+ of Americans unemployed permanently!

[Sorcerer_Titus]

why haven't wages risen in line with inflation if it has risen by more than 2% a year for decades?

[MasterBeef360]

I hope everything crashes and burns so i can start buying out.

[nfd]

Unfortunate

[snickars]

Venturing into the trading world without the help of a professional trader and expecting profits is like turning water into wine, you would need a miracle, that's why i trade with Racheal Fernandez her skills set is exceptional.

[kacperoxs]

Inflation? Really?   Why are Treasury rates dropping? Why are they basically nailed to the floor? Why does one famous historian say interest rates are at a 5000-year-low? Low rates mean abundant credit for viable businesses. That means employment and rising wages. Those are all good things.  Americans have so much stuff jammed into their McMansions they have to hire people to haul it away before they buy more stuff. We throw away more food than other countries eat. If your lifestyle is cramped by un-preventable economic cycles, it's because of your unrealistic expectations.