Except that median income is now actually dirt poor. Inflation is absolutely the fault of government spending and fiat printing. We simply cannot compare the times we are in now to when you guys were getting into finance and happy for the opportunity.
I’ll get beat up for saying this but here it goes no such thing as fiat It’s all about confidence and trust in the system
Here is an amazing article to back up my point. Look at these house prices... Who is gonna buy them??? Not the young generation. I can't wait for everything to collapse. There is no point in young or poor people to even begin to want to cooperate in this economy. First we need a total collapse, and then let's see who is willing to work hard. https://www.zerohedge.com/personal-...rich-enough-buy-boomers-millions-unaffordable
i think the acute nature of this inflation (13 years of no inflation and then 2 years of BANG!) is a sign that it’s not government “printing”
That's fair, and I'm no expert here, but it's perhaps hidden in other ways. They say that we have been exporting our inflation to China and other places that buy our treasuries. Maybe once this slowed down, since China did slow purchases and are in fact net selling, this is when the inflation became more apparent. But I'm sure the debt and printing coiled up the spring somehow.
Correct. Just read about the history of money and this will be crystal clear. Chinese peasants used rice as fiat since there was no trust in the constantly collapsing Chinese Dynasties. Roman's used silver, gold & copper as fiat especially when they found new deposits.
how would we export our inflation? I remember reading a piece from a JPM economist in 2009 that he postulated that the GFC was so bad that if the government didn’t do QE and QE2 we would have such massive deflation it might have been unrecoverable.
Don't you mean it is a sign of government printing? I'm with Milton Friedman. Inflation is a monetary phenomenon
Through the trade deficits. We got stuff made cheap, and everyone else got dollars that just inflate away. So the theory now goes that once other countries stop buying our debt, and that is already happening if you look at the charts of who is buying it now, its mostly our banks and retail, then we have to deal with our own inflation. I've seen in many of my bitcoin podcasts that this is what has kept the US afloat for decades.... exporting our debt which hit many countries already but not us... till now. From what I've seen, that was our chance to fix it. It could have collapsed without all that intervention, but we would have been better off if it did. But at the time, there wasn't much else to go to. Now there is bitcoin, so the system can collapse no problem. Think of how good it will be if the entire world uses just one monetary system. The rules don't change, and nobody has control over it. Everyone is free to use it. When everything is standardized to one unit, like we do with distances or weights, this proves to be incredibly useless for the entire world. So much of the complexity of the financial system can be removed when we don't have these crazy and random monetary policies. Its of course so complex because they keep having to put bandaids on it whenever something breaks.