Quote from: RealMalatesta on December 05, 2021, 05:14:34 PM

Quote from: Poker Player on November 25, 2021, 07:38:06 AM

When we think of inflation we usually think of how much food, electricity or gasoline costs.

But there is another aspect as well: how much it costs us to buy financial assets.

As someone who lives in a nation with clear high inflation and not even debatable, I can tell you that even stocks do not go up when things goes to shit. Why? Because the value of money becomes so worthless and people become so poor that people can't even buy stuff from those companies who are in the stock market, which results with those companies losing customers and losing profits and that ends up with losing value in stock market.

So, imagine an inflation so high that, even stock market doesn't go up when money becomes worthless. That is the true inflation, and god forbids any other nation to have something like that and I hope we will never have it again.

This is true, at the early stages stocks go up as people have too much money which was printed by the government and they need to choose a place to put it, and many choose stocks to do this as for a time it seems it can outpace inflation, however eventually things get so bad that assets like that begin to perform poorly, governments try to rescue them by printing more money but this only makes the problem worse, eventually crashing the stock market and the whole economy with it.