Are you concerned with inflation?

Rambo35

Corporal
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Right now inflation remains well contained and not a single central bank worries about the negative impact of inflation on the economy. We can all agree that monetary policy is very accommodative right now and will remain so for at least a few more years.

Are you concerned that inflation will bite the global economy rather hard and when least expected?

Inflation may be hard to generate for some countries (like Japan), but once it takes place it tends to increase rather fast while reducing inflation is a hard task and the only thing central banks can really do is increase interest rates and hope for the best. A hike in interest rates during stagnant economic growth or stagflation is every economies worst nightmare.

I start to wonder about inflation and think it may come lurking around the corner sooner than any economy can handle.
 
I don't know about other countries, but the US is playing games with the numbers to make inflation appear less than it really is. If you don't believe it, look at how much more you are spending (and/or how much less you are getting) at the grocery store.

There are 2 reasons for this:

1. Better looking numbers create the perception that all is well. Just relax people, we've got statistics to show that everything is fine, even if you and everyone you know is having economic issues.

2. The ever-growing Social Security debt bomb can be slowed if those inflation-adjusted cost of living increases can be reduced. It's still going to explode, but a major job of every US President is to make certain that the inevitable crisis occurs sometime after he's happily retired.
 
Better looking numbers create the perception that all is well. Just relax people, we've got statistics to show that everything is fine, even if you and everyone you know is having economic issues.
 
I don't know about other countries, but the US is playing games with the numbers to make inflation appear less than it really is. If you don't believe it, look at how much more you are spending (and/or how much less you are getting) at the grocery store.

There are 2 reasons for this:

1. Better looking numbers create the perception that all is well. Just relax people, we've got statistics to show that everything is fine, even if you and everyone you know is having economic issues.

2. The ever-growing Social Security debt bomb can be slowed if those inflation-adjusted cost of living increases can be reduced. It's still going to explode, but a major job of every US President is to make certain that the inevitable crisis occurs sometime after he's happily retired.

As far as I know this is similar for other countries as well. They manipulate numbers
 
Everyone is concerned with inflation.

Whenever inflation is benign, like it is now, I tend to stock up on groceries. :D
 
Yes, real inflation is grossly manipulated by government the world over.
BUT, happily, in the last few decades, people in developed and developing world have, consciously or unconsciously (probably the animal instinct) been steadily building up bodily reserves for the day when they have to live off their fat reserves. That accounts for obesity in our modern society.
 
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