RE: Secular Deflationary Cycle: Do Not Get Thrown By Short-Term Moves

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Cool art. Well, all I have to add is: Inflation and deflations work in ways you don't understand.

  1. As a Venezuelan, I can speak of how inflation-deflation works IRL for DAYS.

  2. As an accountant I can tell you that accounting will soon vanish and be replaced by software, white-collar arena is real, so real it's terrifying for most white-collar jobs...

  3. Frankenstein's dilemma is real. The fear of tech that goes beyond human "common knowledge" at its time of creation makes people change new tech to the old ways. The fact that bitcoin is used as a stockmarket bet and not as a currency is evidence of it. The original project was not meant to be worth 35k of USD. IT was supposed to be worth 1. Make usd obsolete for global trading, but People will just name the new 3.0 floating device, a flying car like they did with the automobile, based on the old pulling beast cars and down to the fucking neardentals and the first wheel.

Frankenstein's fear is what makes crypto a "market" instead of a common-use currency.

About inflation and deflation: they exist but at the same time, they do not exist. I'm talking as an economy school graduate, you can see them on books and economy markers, but they intrinsically are just "I don't trust in this money I have on hand" and "I fear this money is worthless in a couple of years". Deflation is just faith in the economy and distrust of other systems, which is a really "low grade" version of it but is the reason that makes Venezuela create national usd inflation. I mean, 4 years ago a kilogram of potatoes was 0.2$, now is 2$. There is no economic reason, the production is the same as 4 years ago, whatever marker that can actually explain inflation is useless for this case, is basically fear of inflation and "fear of civil war" that will never be real, that fear is a real thing and makes Venezuela Ducking day to day shet.

Sorry for the long text :P



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It certainly is true that both can exist simultaneously. Right now, oil prices are forcing energy and food higher. These are two areas where people cannot avoid. This causes a reduction in discretionary spending, potentially leading to deflation in those areas. None of this, of course, has anything to do with monetary policy.

That adds in another layer, one which VZ is dealing with as it Turkey. When that happened, then price increases tend to be across the board and sustained.

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That is a focused inflation, and mutually dependent one to boot... The excuse on food is the high cost of transport, the excuse for oil is the low production. They work as a circle and could make the whole economy hit a trent, but global economy is better. Turkey, venezuela a other countrys that have high inflation have problems in price increases on all areas as you say.

And monetary policy is just goverments triying to get a hold on a wild horse :S

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