Quote from: Gyfts on October 29, 2021, 08:19:42 PM

Quote from: jaysabi on October 17, 2021, 06:14:21 AM

It's historically not 5% per year, not even close. The inflation rate over the last 11 years averages 2% per year, and that's including the large increase in 2021. It's been remarkably stable despite the massive quantitative easing. And even assuming we used your wrong number of 5% per year, that would still be vastly superior as a currency to one that regularly depreciates 10% in a day. That's an unusable currency that doesn't allow for any type of long term planning because volatility is a terrible quality for a currency to have. The inability to plan long term is a death knell for any economy.

Year Annual Inflation Rate
2011 3.0%
2012 1.7%
2013 1.5%
2014 0.8%
2015 0.7%
2016 2.1%
2017 2.1%
2018 1.9%
2019 2.3%
2020 1.4%
2021 5.4%

Source: https://www.usinflationcalculator.com/inflation/current-inflation-rates/

Historically inflation for the US has not been this high, but also keep in mind the growth of the US economy, spending, federal reserve liabilities, and ratio of debt to GDP.

The US economic numbers were released recently and the economy is growing at 2 percent with a 5 percent inflation rate. So there is not enough money being generated to even being close to paying off any debt. The currency is going to balloon, compound this with the current labor shortage that exists in the US due to generous unemployment benefits.

2021 was of course unique due to the pandemic so previous inflation numbers won't be good in predicting future inflation numbers because of the permanent economic ramifications of shutting down entire pillars of the economy.

This is why I think the pandemic changed the game forever, up until now the economic growth was still enough to disguise the fundamentals problems of the economies of the world, but now those problems have been accelerated by all the money governments had to print and the reduction on the economic activity they caused by their policies, so I do not think all of those jobs that were lost are coming back and when we add all the money that was given to the population for free then this is making the situation even worst.