Inflation?

What are the reasons for inflation?

All theories welcome.
Is it just to steal value from savers?
There's gotta be more to it then that right?

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thesimpledollar.com/a-dose-of-financial-reality/
en.wikipedia.org/wiki/Money_creation
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The ignorance of goyim is the reason.

covert taxation, nothing more
ironically, the kikes that brought it into existence made their fortunes on gold and silver, actual money

inflation is a hidden tax
inflation keeps real wages low
inflation is ONLY created by govt
your paper is worthless goy

What is interesting to me is that the Koran and Torah both say lending/creating dept (which inflation does) is immoral. . .

So we have got these old books saying its a bad thing, yet no one questions it. .

Blows my mind desu

Government seignorage

there's immoral and there's illegal
morality has little to do with business outside of owner-decided ethos if there's any at all

In order to stimulate an economy, sometimes a government treasury will decide to print larger amounts of money, in accordance with central bank policies. The central bank, itself, will use this money to buy bonds (like treasury bonds) from the market, and this is how this "new money" enters into circulation.

The central bank can also lower the amount they charge to private banks to essentially store their money at the central bank. This allows these private banks to then carry the cost to the consumer, in the form of lowering borrowing costs (interest rates) to everyday people, and businesses. Mortgage rates are also reduced, this plays a significant role in increasing consumer spending.

This leads to increased borrowing (at lower costs), for investment by firms, and for spending by consumers, in this instance, inflation occurs because there's now more money chasing relatively fewer goods, causing the general price level to rise. This also leads to growth in the economy.

Another form of inflation can occur when production in an economy dwindles. This means there are less goods produced (and the money level is assumed to not really have changed), therefore, also leading to too much money chasing too few goods, except with this type of inflation there is now NO growth in the economy.

Inflation encourages spending.

inflation is good for winding up the markets. Instead of hiding the money away and trying to make the market slow, you try to spend everything, cause you will lose value, if you hold. Bad for investors, good for companys growth.

>gold and silver, actual money

historically speaking
nowadays they are an asset or hedge against kikery

>in this instance, inflation occurs because there's now more money chasing relatively fewer goods

So they say its an effect of the printing the money here.

>causing the general price level to rise
So your money has lost value

>This leads to growth in the economy
So people can take cheaper loans for more business startups and more mortgages.
This makes sense.

Still alot of words to simply say, money is now worth less so you will have to spend more. . .

This is why people argue its better to hold assets which will hold value through inflation.

Imo its more money then fiat, but I guess its all a matter of perspective anyway. . .

If people want to save instead of spend they should be able to without losing their savings value because some (((bancor))) decided that the economy needs some (((((((stimulation)))))))

If inflation is artificial price rise, then why is it bad? since all people now have more money and prices rise then nothing really changed right?

If everyone somehow got the appropriate amount of money to compensate for the loss in value they'd take, it would make the whole endeavour worthless. So what actually happens is the new money gets printed then sent to a bank who buys from the government. So the only people who benefit from inflation are the bankers and the government.

They hold the same amount of money but it is now worth less.

central planning is bad, goes against every principle of free markets

to expand: it's bad because entities within some territory are forced into mandatory currency monopoly and left without any influence over (((monetary policy decisions)))

Of course you could, like
said, with things that hold through inflation, but it's not a matter of "could", but a matter of laziness. Average people don't want to look for alternatives, so they're spending.
Big investors are of course more prone to saving with looking for alternatives, pumping their savings in companys or other things, that can make it big in a inflation.

That shouldn't even be a factor. What should happen is someone just wants to hold their money and keep it as money. Not as gold, or in a heavily manipulated and regulated market. Just as money. And not have to worry about it becoming worthless in 10 years because the interest rates were 10% yearly.

It has different causes.

In advanced economies, inflation almost doesn't occur naturally (anymore). Central banks usually generate an itty bit (2%) to prevent deflation, which is deadly.

In war-torn or simply weak economies, the lack of production makes the sparsely produced goods more expensive.

If prices rise by x percent and all incomes rise by x percent as well, it has no effect on real purchasing power.

However, what changes is that the money already owned becomes worth less. The Weimar hyperinflation, for example, wiped out the savings of the German (upper) middle classes.

>The central bank can also lower the amount they charge to private banks to essentially store their money at the central bank

I want to properly clarify this point in particular. This is one way of thinking about it (for a simpler explanation). However, what actually happens is that banks are required to hold a certain % of their depositors' money with the central bank. If this % goes down (as determined by the central bank), they have more money to lend out at a cheaper rate to people. If it goes up, they have less money available to lend out, and so charge more for borrowing.

This can be a little confusing for people, which is why I choose to explain it the way I did.

>since all people now have more money
Wages do not rise exactly as fast as inflation
thesimpledollar.com/a-dose-of-financial-reality/

Luckily for us we now have ways of storing our value digitally were it is in fact scarce.

This might be a silly question.
Why do central banks want to prevent deflation?
Is it because it causes people to start saving more?

>Why do central banks want to prevent deflation?

Actually, the goal of Central Banks is "price stability". So neither accelerating deflation, nor accelerating inflation. Why price stability? Because both deflation and inflation have unwanted effects.

>Is it because it causes people to start saving more?

Imagine running a business. You invest $1000 in a product, but due to 30% deflation, you can only sell it for $700 when it's produced. You lose by doing anything other than hoarding money. Economic activity comes to a standstill.

That's the theory. (It could never be observed, because each deflation was so devastating it led to War or other causes, overshadowing the economic impact.)

Price changes stagger at the point of inflated currency. With fed injections/easy credit, the original recipient of the injection/loan will get to use the money with the purchasing power pre-inflation, as prices haven't adjusted yet. As the money gets moved, the prices will continually adjust to the new/higher rates of bids towards the same bundle of goods. The further removed you are from those injections, the more you are going to be hit by the inflation.

It's your point of view. Nobody in the world knows what should be or what should not be, cause it varies from person to person. And the government's job is to create a state and community with rules. And securing your money and fortune is not their job. as long as it isn't illegally taken.

Storing the value digitally ( 1F8pLnRN336aqJJgJnVYYKHacCbqhjedVJ for Tips haha) is a risk, too. Everything could happen in the future and you could lose all your money digitally fast, too. I think the most secure way is gold, but even gold has sometimes problems.

Well deflation does the reverse things. Saving more, bear market. Of course most people don't want that. But yeah... at least you can start getting money from interests.

>deflation has unwanted effects
Increased purchasing power isn't an unwanted effect.
>not understanding anything about timed preferences
>creating a scenario that is unrealistic
>not having a grasp of history
The greatest boom in history was during a time of year over year deflation. Deflation was the norm until central banks. Economic activity never came to a standstill.
>deflation lead to war or other causes
Name literally one time this has happened. '

>sometimes a government treasury will decide to print larger amounts of money, in accordance with central bank policies

Also further detail: They don't actually "print" money, it starts getting quite complicated en.wikipedia.org/wiki/Money_creation

But that's the basic idea.

>Government has debt
>Unilaterally decides to take value from people's money towards to buy off debt
>This doesn't touch the problems that led to debt in the first place so sooner or later they have take people's money again to buy more debt
>This is good and leads to "growth" in the economy, trust us

Lmao.

Inflation is good for everybody turd. Imagine you have negative inflation lets say. Peoples will be sitting on bags of money and noone will buy anything besides food because keeping money means increase in value. Then only farmers will have the jobs and technology for example would suffer from not enough interest.
Now when you have inflation low enough to people not to loose trust in fiat but high enough to make them buy things instead of hoarding because their dollar will not be worth so much tomorrow, this kinda catalysate the whole economics of group/country.

un histoire vrai.

low productivity

Are you serious buddy? No one would just sit on a stack of cash forever, there's no point. And if it ever got to the point that everyone was hoarding it, people would stop accepting the currency and swap to something more liquid.

People will always need food and other commodities, why not leave the currency alone and let the free market decide whether they want to spend or save.

go away kike

>raises rising with inflation
>in america
HAAAAAAAAAAAAAAAAAAAAAAAAAAAHAHAHAHAHAHAHAHAHAHAHA

Low class would never save. Thats the point. The middle or upper class would take your money and keep them. All of my post was just a simplified theory behind what happens to market.
The simple use of monEy. Imagine paying for a car in apples or flour.
No. Just no

If the people decide not to buy things, you dont steal their money's value by printing more of it. If their decisions aren't fiscally savvy they deserve their comeuppance. Saving instead of constantly re-investing is a poor people meme.

>Then only farmers will have the jobs and technology for example would suffer from not enough interest.
Then the modern world will regress, people will be forced into agrarian life, families will become closer and society more traditionalist and the Jewish owned companies will no longer have the resources to spy on us. Oy vey, we must not let this happen, print some more money

You can have this kind of lifestyle already in most of India and Africa, but it's hardly a fun one. Civilization comes at a price.

>letting some greasy hook nose little kike watch you take a shit is just the price you have to pay to have a toilet to shit in!
That's what they want you to think. People were doing just fine a hundred years ago.

If the market doesn't want it, it shouldn't exist.

As I said, you can still have it today. There are still feudal/rural countries and self-sustaining communities in wealthy countries.

That said, these rural backwaters mostly prefer to move to metropolian areas, given half the chance.

come home slab man

No there aren't, spying devices and destructive anti-family values have spread like a cancer to every corner of the Earth. If those people in rural backwaters want to move to metropolitan areas it's because they don't know any better.

>Inflation is good for everybody turd.

History reveals that inflation isn't good at all. Rome's government gradually replaced gold in their coins with cheap metal and ended up causing problems with their economy. In modern times, inflation is accelerated. Income doesn't grow in proportion to inflation. Increasingly across all over America for many people, even if you "hoard" money it's not possible to buy a house. Spending your money quickly will only remove your safety net and you'll risk homeless if you lose your job during a economic downturn.

why wouldn't lower prices or more valuable money make people spend more to at least even out that 30% "loss"?
if money gained value over time then what once was a small savings is enough to pay for something I want and couldn't afford before, right?

>Inflation is good for everybody turd. Imagine you have negative inflation lets say.
>If we don't we have inflation we automatically must have massive deflation.

How about we allow the currency to simply float?

There are also many 1st world people who choose to set up ranches, hobby farms, and homesteads and flee from the metropolitan areas,many of whom hold traditionalist values about family and religion, especially in certain regions of the US.

>t. took econ 101 in college

People buy what they need and what they want. Inflation or deflation doesn't play a role in their decision-making, else everyone would put 100% of their spare money into assets appreciating with time.