Since you know what a reserve currency is, than define it. The only reason why countries accept our reserve currency status. Is by our information, industrial, agricultural, military, economical and nuclear dominance.
huge inflation without wage increases in vietnam - How?
- Thread starter elitist-trader
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Since you know what a reserve currency is, than define it. The only reason why countries accept our reserve currency status. Is by our information, industrial, agricultural, military, economical and nuclear dominance.
*sighs* the biggest form of inflation is the money multiplier effect caused by rapid consumption through the use of credit, by the people of a nation. It's not enough for a government to excessively borrow. It would need an increase in borrowing from the civilians that reside within a nation to debase a currency.
Borrowing in general debases a currency, so not only is the US government, or any government robbing others of purchasing power. We the citizens of any nation, that consumes on borrowed money. Is robbing the future purchasing power, for later generations. Again inflation is a natural process that happens over time. AS long as growth is perpetual. Borrowing can be a perpetual process.
Well if vietnam used the same methods that USA uses to calculate inflation (leaving out energy prices and food) then you would quickly see that vietnam only has about 2 or 3% inflation!!!
I have no idea where you got that idea.
Were hyper inflations caused by excessive borrowing from citizens or excessive printing?
1. Many countries can just turn on the printing presses without borrowing from their citizens to pay their bills. Quantitative easing is very similar to just turning on the printing presses without borrowing. If the govt spends more than it takes in, it will likely cause inflation. If it spends a lot more, it can and probably will lead to hyper inflation.
Huh?
come on, why feign ignorance.
haven't you seen jim rogers rant about inflation and how it is calculated for more than a decade.
or more importantly have you been to the grocery store to buy food or the gas station to buy beer or soda?
remember when you could get lunch for 5 bucks in the states.
a decade later its 10.
I order a buritto with beans and a coke yesterday...
$9.72. for lunch.
I wonder how people making 10 bucks an hour can eat.
haven't you seen jim rogers rant about inflation and how it is calculated for more than a decade.
or more importantly have you been to the grocery store to buy food or the gas station to buy beer or soda?
remember when you could get lunch for 5 bucks in the states.
a decade later its 10.
I order a buritto with beans and a coke yesterday...
$9.72. for lunch.
I wonder how people making 10 bucks an hour can eat.
And? What's your point? Jim Rogers can talk his book all he likes, it doesn't make what he says into the truth.
What peil says is simply false. You may disagree with the calculation methodology, but to claim food and energy prices are not included in the headline CPI is just silly.
Furthermore, the latest official headline CPI appears to be corroborated by the readings from the MIT Billion Prices Project (BPP). Official headline CPI-U for the month of June was 3.569% YoY. BPP reading (average of daily YoY numbers) was arnd 3.65%.
What peil says is simply false. You may disagree with the calculation methodology, but to claim food and energy prices are not included in the headline CPI is just silly.
Furthermore, the latest official headline CPI appears to be corroborated by the readings from the MIT Billion Prices Project (BPP). Official headline CPI-U for the month of June was 3.569% YoY. BPP reading (average of daily YoY numbers) was arnd 3.65%.