Inflation or deflation ? in the economy ?

Off-topic
1

Just curious what some of you think about the recent confusion in the economy. :thinking: :):wink: Assuming it "sorta sorts out ok ", will the USA dollar inflate or deflate in the next year or so?

The shortage of capital in the USA economy should lower prices.

The USA gov can’t just “create” money, because the world economy is inter connected and based on trust between countries that their banks aren’t just doing shit.

Sadly, the constant massive trade deficit in the USA, and my country’s super consumption of oil, has proven to us the solidness of the dollar. The realness of the capital outflow from the USA will only be understood by my countryman, as it changes their lives.

So here is the question, dollar up or down in an inflationary sense? Could bread be cheaper next year in dollars, then it is today ?

2

All this “shennanigans” at the moment is “war by other means” - various nations and groups competing for the upperhand, and hurting themselves in the process.

A fairer world would have Americans nearer to the world’s average level of wealth than they have been. That means bread becomes more expensive, and the access to high-energy toys is reduced.

3

When economic problems hit, “cash is king.” People move to cash to cover their short term needs. This creates a temporary spike in the buying power of the dollar. How long that will last is unpredictable, but it will not last very long. With an unknown future economy, people are going to start reducing their spending and prepare for bad times. This results in companies reducing their future output goals. They will be selling their existing inventory at a lower cost due to the lower demand. This also makes the dollar have more buying power. Once inventory is cleared out with companies having adjusted their output to meet current demands, many companies will not be able to make a profit and stay in business.

The fed, with helicopter Ben in the cockpit, will keep rates low to give money to companies with unsustainable business plans. Ben Bernanke, who is said to be an expert on the Great Depression, is of the school of thought that the the Great Depression was caused by the Fed not having a loose enough monetary policy. But, in reality, the Great Depression was caused by the loose monetary policy of the 20s, which had lots of inflation in the money supply, and eventually the bills came due and the stock market crashed in 1929. Things would’ve adjusted quite quickly and the depression could have been over in a year, but the policies of Hoover, and then FDR, prolonged the depression to last over a decade. The government implemented price controls, trying to keep wages high and destroying crops to keep food prices high, resulting in mass unemployment and mass starvation.

Our incompentent government currently is throwing money at the problem, is propping up those who made poor choices in the past, and will probaby impose many controls on us. All this will prolong the crisis.

America is going on sale to the rest of the world. Our companies and assets are getting cheaper, and the rest of the world, who is losing confidence in our economy, and therefore our currency, will start buying us up, flooding our economy with dollars. In addition to the massive amount of money being created by the fed right now, this will likely push us into hyperinflation.

On the bright side, there is a good chance the empire will be ending. Hopefully the liberty-minded people are able to get the message out and overcome the heavy propoganda from the corporate media and the fascists currently in power.

So, to answer your question, in dollar terms, bread will be cheaper in the short term, but very expensive later on. The time scale is questionable.

So, how much does a loaf of bread cost right now?