Quote from: BCwinning on Today at 04:29:34 PM

Quote from: Gyfts on Today at 04:17:45 PM

Quote from: Gozie51 on Today at 02:50:12 PM

Somehow it was looking as if the increased inflation rate in US would have an adverse effect on the economy and reflecting on the dollar but this has not been so. The Biden administration has been able to strengthen the dollar against most currency paired with and I have noticed the Euro exchange rate with the dollar, now having little or no difference unlike in the past. The economic indices of the US economy is still favourable to dollar.

Inflation is everywhere now due to the war. The U.S. inflation problem was partly due to money printing, but plenty of European countries themselves had borrowed too much from themselves in 2020 when they shut down their economies for COVID restrictions so they were bound for some inflation regardless of the war. The current supply chain issues and product shortages just compound a much more complicated issue.

This also highlights how important energy is. You can completely tank a currency by sending energy prices higher because it makes the country's ability to operate (ie ability to produce economic output) more expensive.

The revulsion I had for people, particularly the green climate change activists, who argued that the only effects of the war on Europe for countries choosing to avoid Russian oil was increased prices at the pump. Well, Europe is finding out that isn't particularly the case.

I think it is primarily about all the money they printed just recently and the money they printed off in 2008 that I don't believe they ever pulled back in.
It is coming, there is no doubt in that, I'd say it is here now but everyone is still drunk on spending and the hangover hasn't quite hit yet.

Well, all of the inflation was somewhat to be expected because of quantitative easing that happened years ago but it's not easy to tell exactly how much inflation is due to QE in combination with the COVID social welfare state countries decided to set up in combination with the war.

It's important to note that even in a bitcoin-only world that wars breaking out would cause you to lose purchasing power due to limited supply and either consistent or higher demand. But, price stabilization occurs once the war ends and production increases back up again, ie supply increases. When the war in Ukraine ends, it's not as if the purchasing power you have with EUR/USD or whatever currency will return back to pre-war days so your point is probably correct, but the real reason inflation is so absurdly high is because of the war so you can't minimize it's contribution.