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A reader asks: What will the inflation rate be in the U.S. for the next two or three years?
The Committee says: "Price increases will vary from five to eight percent per year over the coming twenty four months, trending towards the upper end of this range, if the formulas used are not changed and money printing is not increased.
The urge to both alter the calculations, excluding higher price increases for certain goods and services, with a view to reporting a lower numbers, will be difficult to resist as elections in November 2022 approach. This is not guaranteed but likely.
If the money supply is increased, both from printing and maintenance of interest rates at or near current levels, which will be too low to contain rising prices, true inflation of prices could reach fifteen percent per year.
These decisions are not final. You now know the range."
Bear in mind: the size, reach & effect of the USA's economic activity plus the factors now causing inflation to occur, are not limited to the USA and US dollar monetary policy. These effects will reverberate worldwide.
Will there be financial relief for people and businesses that already are experiencing hardships or will it sort of be everyone for themselves
The only individual financial relief any one person can have from price inflation, is not to buy.
@Patrick yeah I should be more cynical about the government as there not much different than a company.
Government is the OPPOSITE of a company or business. Sellers of goods & services have to persuade customers and face competitors.
@Patrick i meant in terms of how they seem more concerned about getting our money while trying to do as little in return. I saw a headline the other day how Trudeau plans to restrict movement among other things for the unvaccinated so that sounds like we're not far from the aussies.
@ Scott2: Government is not concerned with getting money, they're only worried about getting re-elected. Government can confiscate as much money as officials want whenever wanted, but if tax rates are increased too much or collection methods seem too harsh, that can cause loss of support & votes. One answer has been to rig an election or just dispose of the process.
There is a new post from Matthew on thenewgoldenera.
Okay, folks get ready. A big step in The Shift will soon be coming to a street corner near you. What and however this happens, plus the following effects, you are privileged beyond nearly every human in knowing why the crude oil shortage will happen (more correctly, has happened, by the time everybody's aware).
Does anyone else have trouble opening the posts on The New Golden Era? Both my computer, and my husband's less-than-one-year old computer cannot open them in the format they are in...
Thank you for posting this, Linda--very appreciated! Yikes--this oil shock may make the plan-demic look like a picnic in the park!
It's not easy trying to explain any of this to anyone, but I think I'm getting better at it. How bout that full moon? Kind of snuck up on me this time around.
325 – Financial Implications of the Oil Shock 16102021
What about the strength or value of the U.S. dollar vs other currencies in the next few years? If inflation is happening worldwide, then the U.S. dollar wouldn't lose its value vs other currencies, correct? So wouldn't we (people earning U.S. dollaz) enjoy some purchasing power via a strong U.S. dollar? Or is the U.S. dollar going to crash? Or am I an idiot?!
Relative values between currencies, i.e. exchange rates, result from several factors, including 1. human reaction, 2. demand & supply of and for goods & services across national borders and 3. money supply.
Good morning to all, another volcano seems to have erupted:
Wow! Thanks, Jude--great slow-motion video...
Imagine being in THAT building, watching this eruption develop. Holy Excrement....
These people are having a really bad/exciting day at work.
A kind reminder that:
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