Is Hyperinflation On The Horizon?

[CountValentine]

Btw, I take offence to this. I don't see you banging on the door of the Treasury to hand back your stimulus money. I'm not sure where you get off trashing other people who are only taking money the government is telling them that they're entitled to.

You can take offense all you want. If you are not going back to work (the same job you had) because you are making more on UI my statement stands!!!

[Lurker]

You can take offense all you want. If you are not going back to work (the same job you had) because you are making more on UI my statement stands!!!

And if someone's not looking for a different job because UI money is good and free?

[CountValentine]

And if someone's not looking for a different job because UI money is good and free?

If they play by the rules I have no issue.

With all this back and forth I might have missed it. Did you post and stats to show UI is problem for a tight job market?

[ExGingi]

Ya, over 600k dead is just made up.

No. But it could be played/manipulated in various ways. The fact that with COVID-19 virtually non-existent in NY the overwhelming majority of people shopping at Costco are wearing masks when it is optional, shows that fear and hysteria were indeed ingrained into people's psyche.

You can't bring up the "over 600k dead" to a person that lived in a community that suffered deaths when there was virtually nothing to do about it as no-one was aware of it already being here, or how it spreads, but has since been living a virtually normal life for many months even before vaccines were available, and now that vaccines are available the entire community is living without any fear.

[CountValentine]

No. But it could be played/manipulated in various ways. The fact that with COVID-19 virtually non-existent in NY the overwhelming majority of people shopping at Costco are wearing masks when it is optional, shows that fear and hysteria were indeed ingrained into people's psyche.

What if they feel it is a good idea for many reasons? My daughter gets sick numerous times a year dealing with little kids. Zero times this past year. She feels it is beneficial. I am vaccinated and still wear a mask because it is no big deal and no downside.

[AsherO]

And if someone's not looking for a different job because UI money is good and free?

And in many states they aren’t required to be looking for employment either.

Another thing to factor is PUA recipients who are still collecting because they have partially gone back to work, but prefer to collect partial unemployment rather than go back to work full time and get nothing.

Lastly, that a fraction of 5.8% (or even 10%) of this country are “scumbags” (not my choice of words) shouldn’t surprise anyone at all, personally I’m surprised it isn’t higher.

[yelped]

https://www.cnbc.com/amp/2021/06/07/deutsche-bank-warns-of-global-time-bomb-coming-due-to-rising-inflation.html

[CountValentine]

https://www.cnbc.com/amp/2021/06/07/deutsche-bank-warns-of-global-time-bomb-coming-due-to-rising-inflation.html

1 - will savings interest rates also rise?
2 - will another stimulus check be needed to help the low income individuals?

[ExGingi]

https://www.cnbc.com/amp/2021/06/07/deutsche-bank-warns-of-global-time-bomb-coming-due-to-rising-inflation.html

The firm said interest rate hikes could "cause havoc in a debt-heavy world," with financial crises likely particularly in emerging economies where growth won't be able to overcome higher financing costs

How is this compatible with inflation?

[yelped]

How is this compatible with inflation?

Most likely the journalist didn't understand right which is par for the course.

[ExGingi]

Most likely the journalist didn't understand right which is par for the course.

Can we all agree that debt (especially excessive debt) is deflationary?

[Lurker]

Can we all agree that debt (especially excessive debt) is deflationary?

What if there is a high default rate on the debt? Or if the collection of the debt isn't being actively pursued? Wouldn't that negate the the deflationary aspects of debt?

[ExGingi]

What if there is a high default rate on the debt? Or if the collection of the debt isn't being actively pursued? Wouldn't that negate the the deflationary aspects of debt?

Were you around between 2008 and 2011?

[Lurker]

Were you around between 2008 and 2011?

Yes, but wasn't nearly as interested in this stuff then. Please explain.

[CountValentine]

Can we all agree that debt (especially excessive debt) is deflationary?

No 
With debt will the money supply increase?

[ExGingi]

Yes, but wasn't nearly as interested in this stuff then. Please explain.

Lots of defaults then. No inflation. Lending mostly froze, causing velocity to drop.

[ExGingi]

No 
With debt will the money supply increase?

What is that?

[Lurker]

Lots of defaults then. No inflation. Lending mostly froze, causing velocity to drop.

That I remember. But we're in very different circumstances now. We've frozen many debts without calling them defaults, we're printing money like no one's business, we've increased the national debt by ridiculous amounts, and we have forces pushing for higher wages on top of increased COG in many (if not most) sectors. Is it possible for the overall picture to "overpower" the deflationary influence of debt?

[ExGingi]

That I remember. But we're in very different circumstances now. We've frozen many debts without calling them defaults, we're printing money like no one's business, we've increased the national debt by ridiculous amounts, and we have forces pushing for higher wages on top of increased COG in many (if not most) sectors. Is it possible for the overall picture to "overpower" the deflationary influence of debt?

And you see all of these continuing ad infinitum?

[Lurker]

And you see all of these continuing ad infinitum?

Not forever, but long enough to cause serious issues. How we react to those problems can either reverse the course, or exacerbate them. With a government more focused on social justices issues than on making sure we're financially sound, can you not see scenarios where "debt is deflationary" isn't enough to overcome the lack of fundamentals?