The Price Of Everything, The Value Of Nothingwww.zerohedge.com/markets/price-everything-value-nothing
844 sats \ 9 comments \ @siggy47 20 Jun econ
In reality, three years is a very short time for a major currency to lose at least a quarter of its domestic purchasing power. In the postwar period, it took from the war’s end until 1965 for that to happen. This was also the loss from 1982 to 1992, from 1992 to 2000, and from 2001 to 2012.
Any purchasing power loss sets in motion a gravitational pull against living standards. It means working harder, scrambling more, adding income to the household revenue stream, and otherwise never quite getting ahead. It also eats into savings by punishing rather than rewarding thrift as should be the case.
In a complex modern economy with elaborate capital structures, prices serve as information-generating systems for the world that allow for rational use of resources throughout the whole of the production structure.
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85 sats \ 2 replies \ @0xbitcoiner 20 Jun
My friend's father built a large two-story concrete block house 35 years ago for 300 euros. insane!
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0 sats \ 1 reply \ @karanjajes 21 Jun
Hahahaha,for real. How much did it cost just to build it?
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100 sats \ 0 replies \ @0xbitcoiner 21 Jun
inflation, inflation everywhere!
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76 sats \ 0 replies \ @grayruby 20 Jun
Monetary debasement is nefarious and devastating to those that don’t assets that shield against it. The Fed did not want to raise rates so quickly but they were worried about riots in the streets if inflation got out of control. The problem is they haven’t cured the disease only treated it and it will come back over and over with more resistance to their treatments.
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75 sats \ 0 replies \ @Satosora 21 Jun
It used to be saving was a good idea. Now, its just means you are holding worthless money.
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54 sats \ 0 replies \ @BitcoinAbhi 20 Jun
Blowing up the price system and distorting it with inflationary pressures reduces its ability to make our lives better and eats away at productivity. It’s just another form of robbery.
Yes, it's another form of robbery.
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54 sats \ 0 replies \ @karanjajes 21 Jun
In my region cash comes with much hard work but it goes like wind. The ratio of income vs the cost of living is like 20:80
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54 sats \ 0 replies \ @SatsMate 21 Jun
I grew up with the conventional mind set with work hard, save money, and you will be set for retirement.
Now it is work smart/efficient, take on debt and invest money into bitcoin/assets.
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0 sats \ 0 replies \ @Bell_curve 21 Jun
The article discusses the critical role of prices in a modern economy and the negative impacts of inflation. Key points include:
Prices serve as information-generating systems that allow for rational resource allocation in complex economies[1]. Without accurate price signals, economic calculation and decision-making become extremely difficult.
Inflation distorts the price system, reducing its ability to convey useful information and guide economic activity[1]. This makes it harder for businesses and consumers to make rational economic choices.
The recent high inflation in the U.S. has been particularly damaging, with the dollar losing about 25% of its purchasing power in just 3 years - a more extreme loss than anything since the late 1970s[1].
This rapid inflation creates uncertainty and frustration for both consumers and businesses trying to navigate pricing decisions[1]. It turns shopping into an unpleasant experience as people struggle to determine if prices are reasonable.
The inflation disproportionately harms small businesses and those with thin profit margins, while benefiting larger, well-capitalized firms[1].
Overall, the article argues that the recent inflation represents a significant attack on economic vitality in the U.S., with negative consequences likely to persist for years[1]. It emphasizes the importance of price stability for a well-functioning economy.
Sources [1] The Price Of Everything, The Value Of Nothing https://www.zerohedge.com/markets/price-everything-value-nothing [2] Sick Of It All | ZeroHedge https://www.zerohedge.com/markets/sick-it-all [3] The Only Deep Value Left In This Bloated Circus Of A Market https://www.zerohedge.com/markets/only-deep-value-left-bloated-circus-market [4] We Can Be Lied To About Anything... - Zerohedge https://www.zerohedge.com/markets/we-can-be-lied-about-anything [5] Economics - Zerohedge https://www.zerohedge.com/economics
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