Author Topic: Is Hyperinflation On The Horizon?  (Read 82005 times)

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Re: Is Hyperinflation On The Horizon?
« Reply #40 on: April 02, 2021, 03:02:02 PM »
I don't think this money is going to be saved or invested responsibly,

The vast majority of it will end up in the pockets of those who have already made fortunes preying on the less savvy.
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Re: Is Hyperinflation On The Horizon?
« Reply #41 on: April 02, 2021, 03:02:40 PM »
Why won't they be spending on stuff to stimulate the economy? On the contrary, I would assume that a very large amount of the money they are gaining with no sweat, and is going to the lower income segment, which always spends a much larger percentage of its income on goods and services than the higher income segments do, will be going straight back into the economy in the form of personal consumption purchases.

I don't think this money is going to be saved or invested responsibly, nor do I think that doing so would be the intention of the stimulus bill.
I don't know if it's so much about the income bracket a kid grows up in or if it's more about the values they're taught, but they (and from what I've heard many of their friends) are planning on saving up so that they can eventually use it to purchase a home a few years down the line. Will it eventually end up back in circulation? Yes. Will it be within the next 2-3 years when it will probably be most important? I don't think so.
And if it doesn't go back into the economy in the next 2-3 years the damage could already be inflicted so that they'll have no reason to put it into the economy in the next 5-10 years either.

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Re: Is Hyperinflation On The Horizon?
« Reply #42 on: April 02, 2021, 03:05:38 PM »
I don't know if it's so much about the income bracket a kid grows up in or if it's more about the values they're taught, but they (and from what I've heard many of their friends) are planning on saving up so that they can eventually use it to purchase a home a few years down the line. Will it eventually end up back in circulation? Yes. Will it be within the next 2-3 years when it will probably be most important? I don't think so.
And if it doesn't go back into the economy in the next 2-3 years the damage could already be inflicted so that they'll have no reason to put it into the economy in the next 5-10 years either.

This is assuming they actually have that $50k+ in cash and they aren't still day trading and playing with crypto.
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Re: Is Hyperinflation On The Horizon?
« Reply #43 on: April 02, 2021, 03:07:15 PM »
I don't know if it's so much about the income bracket a kid grows up in or if it's more about the values they're taught, but they (and from what I've heard many of their friends) are planning on saving up so that they can eventually use it to purchase a home a few years down the line. Will it eventually end up back in circulation? Yes. Will it be within the next 2-3 years when it will probably be most important? I don't think so.
And if it doesn't go back into the economy in the next 2-3 years the damage could already be inflicted so that they'll have no reason to put it into the economy in the next 5-10 years either.

Those are responsible well raised young adults that will do well in life. That's a lot better than blowing it on a car or dream vacation because easy come easy go and YOLO, even though our stock market thrives on fiscal idiocy.

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Re: Is Hyperinflation On The Horizon?
« Reply #44 on: April 02, 2021, 03:34:01 PM »
I don't know if it's so much about the income bracket a kid grows up in or if it's more about the values they're taught, but they (and from what I've heard many of their friends) are planning on saving up so that they can eventually use it to purchase a home a few years down the line. Will it eventually end up back in circulation? Yes. Will it be within the next 2-3 years when it will probably be most important? I don't think so.
And if it doesn't go back into the economy in the next 2-3 years the damage could already be inflicted so that they'll have no reason to put it into the economy in the next 5-10 years either.

You've just explained why there's no concern of inflation. If anything the concern is the opposite.
I've been waiting over 5 years with bated breath for someone to say that!
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Re: Is Hyperinflation On The Horizon?
« Reply #45 on: April 02, 2021, 03:37:49 PM »
You've just explained why there's no concern of inflation. If anything the concern is the opposite.
There's a concern because of the mentality it comes with. These kids see themselves as "rich" and my first 50k just lost it's value- after all the guy next to me earned it by sitting home for 8 months doing nothing.

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Re: Is Hyperinflation On The Horizon?
« Reply #46 on: April 02, 2021, 03:59:15 PM »
There's a concern because of the mentality it comes with. These kids see themselves as "rich" and my first 50k just lost it's value- after all the guy next to me earned it by sitting home for 8 months doing nothing.

But savings is, by definition, disinflationary.

A rich person doesn't feel any need to save. Feeling or seeing oneself as rich is a mental state.

https://he.chabad.org/library/article_cdo/aid/3140172
« Last Edit: April 02, 2021, 04:02:28 PM by ExGingi »
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Re: Is Hyperinflation On The Horizon?
« Reply #47 on: April 02, 2021, 04:03:08 PM »
A rich person doesn't feel any need to save.
I disagree.

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Re: Is Hyperinflation On The Horizon?
« Reply #48 on: April 02, 2021, 04:07:54 PM »
I disagree.

If said person "needs" something, what makes that person rich?

Take a few moments to read, if not actually learn, the maamar linked above.

Also see Richard Russell's famous piece "Rich Man Poor Man".
« Last Edit: April 02, 2021, 06:35:49 PM by ExGingi »
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Re: Is Hyperinflation On The Horizon?
« Reply #49 on: April 04, 2021, 07:49:06 AM »
These kids aren't going to be spending their funds on stuff to stimulate the economy
Sure they are

״וזה כלל גדול: שישנא אדם כל דבר שקר. וכל מה שיוסיף שנאה לדרכי השקר – יוסיף אהבה לתורה.״ - אורחות צדיקים

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Re: Is Hyperinflation On The Horizon?
« Reply #50 on: April 04, 2021, 07:52:19 AM »
Debt financed spending is taking future spending and bringing it forward. As debt grows, a larger portion of money needs to go into servicing that debt, curtailing consumption. Debt servicing is a non-productive expenditure. Spending can either contribute to growth or be totally wasteful.
That would be true about real hard currency debt. The US (& other major powers like the EU & UK) owes paper, it's never going to pay it back. It will be inflated to oblivion, as it's been since the gold standard was cancelled to extract us from the Great Depression. 
״וזה כלל גדול: שישנא אדם כל דבר שקר. וכל מה שיוסיף שנאה לדרכי השקר – יוסיף אהבה לתורה.״ - אורחות צדיקים

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Re: Is Hyperinflation On The Horizon?
« Reply #51 on: April 04, 2021, 09:05:22 PM »
If said person "needs" something, what makes that person rich?
Feeling or seeing oneself as rich is a mental state.

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Re: Is Hyperinflation On The Horizon?
« Reply #52 on: April 04, 2021, 09:46:26 PM »

Exactly. And by definition, said mental state means that the person has everything he or she needs. Hence no need to save.
I've been waiting over 5 years with bated breath for someone to say that!
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Re: Is Hyperinflation On The Horizon?
« Reply #53 on: April 05, 2021, 09:15:55 AM »
Exactly. And by definition, said mental state means that the person has everything he or she needs. Hence no need to save.
You’re entitled to your definitions.

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Re: Is Hyperinflation On The Horizon?
« Reply #54 on: April 05, 2021, 09:57:21 AM »
Exactly. And by definition, said mental state means that the person has everything he or she needs. Hence no need to save.

Why does having everything you need mean you have no need to save for the future?
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Re: Is Hyperinflation On The Horizon?
« Reply #55 on: April 05, 2021, 10:21:21 AM »
Why does having everything you need mean you have no need to save for the future?

By definition, if you have everything you need, future (perceived) needs are included in that, hence no need to save.
I've been waiting over 5 years with bated breath for someone to say that!
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Re: Is Hyperinflation On The Horizon?
« Reply #56 on: April 05, 2021, 10:25:34 AM »
By definition, if you have everything you need, future (perceived) needs are included in that, hence no need to save.
Can someone be rich and also need a drink?
Feelings don't care about your facts

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Re: Is Hyperinflation On The Horizon?
« Reply #57 on: April 05, 2021, 10:27:33 AM »
By definition, if you have everything you need, future (perceived) needs are included in that, hence no need to save.
So a person is only “Rich” if they have enough money to last them and their family a life time?

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Re: Is Hyperinflation On The Horizon?
« Reply #58 on: April 05, 2021, 11:01:41 AM »
https://www.merriam-webster.com/dictionary/rich

Definition of rich (Entry 1 of 2)
1 : having abundant possessions and especially material wealth
2a : having high value or quality
b : well supplied or endowed
a city rich in traditions
״וזה כלל גדול: שישנא אדם כל דבר שקר. וכל מה שיוסיף שנאה לדרכי השקר – יוסיף אהבה לתורה.״ - אורחות צדיקים

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Re: Is Hyperinflation On The Horizon?
« Reply #59 on: April 05, 2021, 11:04:59 AM »
So a person is only “Rich” if they have enough money to last them and their family a life time?
No (based on my understanding of what @ExGingi is saying) since they will only have it if they save it.
Feelings don't care about your facts