Why does inflation have to be inevitable? And why do I have to invest my money in such a way as to outpace inflation? Why can't I have a currency that does not result in inflation?

Just because there are ways to mitigate inflation, it does not mean it's not bad anymore. It's kind of like, I say, "Why are there criminals in our society and what can we do about it" and you answer, "Its OK, just move away from the criminals". You are not getting to the root of the problem, you just want to run away from it.

This post was edited by JessiWan on Mar 7 2024 12:49pm

Yes but how does one eliminate inflation without a world unified currency which isn't going to happen. So you take the next best step which is insulating yourself.

All ears open on how we eliminate all our geopolitical issues and come together.

This post was edited by SBD on Mar 7 2024 01:34pm

Prove that the only way to eliminate inflation is by having a world currency. You are shutting out any possibility before you even have a discussion.

This post was edited by JessiWan on Mar 7 2024 01:54pm

You're the one who must provide the solution given the context of this conversation. I'm telling you how you can combat average inflation and if you want proof of that I can happily supply you with average inflation adjusted returns over the past 100 years.

So please enlighten us. I think every single economist in the world is ready.

It is and it isn't.

9% inflation was transitory, 3% inflation a lot stickier than they expected. Getting down to 2% is going to be even tougher unless they strangle the economy, but they won't.

We are still experiencing high levels of inflation in commodities that matter. It's convenient for the bean counters to lump it all together, but if you isolate more essential things like retail food sales then it's not as downward as media and gov claiming. Inflation on essential foods and quality merchandise still bad.

Also, there is a large segment of population that hasn't even caught up to the new standard created by the last few years of inflation. So what used to be survivable at pre pandemic inflation rate is a much tighter margin now.

Definitely. I don't know if you have ever watched the show The Wire, but whenever our gov't report statistics these days it reminds me so much of that show.

That's why they like to use the core CPI in the US, because it strips out food & energy, (because those are 'volatile' as they say, and by volatile meaning they went up by a fuck ton in the last few years, so lets exclude the two most inflation heavy variables)

A lot of commodities are actually rolling over or have rolled over in 2023. Big reason is slowing global demand, but that just means prices aren't going up by the magnitudes they were due to Covid lockdowns. Rent inflation is a huge problem, especially in the largest metros and a huge component of how they calculate it. Inflation would continue to run hot if it wasn't that China is struggling with growth and Europe is basically in a recession. Those have led to slowing oil consumption and that's why we're seeing reasonably priced gasoline.

We in the US I would argue are on a better footing. China, Europe, UK even Canada are all objectively worse off than we are.

Yeah let's only report a general average at the wholesale level. Let's not report on how much it hits each individual service or retail sector at the end user level. Definitely wouldn't put a dent in consumer outlook. No sir.

It's like how they report on unemployment using a number based on unemployment checks going out and not the actual number of people really unemployed.

Fear mongering but in reverse

FTFY