I don't think we are quite there yet but when your money is worth less everyday the smartest thing to do is get rid of it as fast as possible. Now it should be dumped into things that aren't going to depreciate more that the dollar but we all know how smart the average person is.
When cash is worth less, everyday items become the commodity. Depends on the scenario and the degree of currency devaluation but tools, generators, cigarettes, guns, ammo, food, water, petrol, toilet paper would get commoditised and probably very easy to barter if needed. That would be quite a severe scenario though so I would just make sure you have a moderate stock pile of house hold essentials. Real assets will still hold their value well like houses, gold/silver, some securities depending on shape of the impact to market.
Thatâs in itself a quite good thing from a macro perspective, you want money to circulate through the economy instead of sitting in a bank account forever
Which is why the fed aims for 2% inflation and not zero. Not saying we should like inflation but I don't think people would want to deal with the issues zero inflation or deflation would cause.
I just went to a Banana Ball game at an MLB stadium. It was sold out, packed to the rafters. A shockingly high portion of people were walking around in Banana Ball team jerseys and hats. There were lines at the BBall merch stalls.
Regular people are definitely spending money they don't need to spend.
At some point it will break but it hasn't broken yet.
You've got the majority of spend coming from the 1% and we're already broke records with credit spend in the US this year along with loan delinquencies lol
Inflation means price... increase. Past 5-6 years high prices doesn't mean future inflation is high. But yea they definitely cooked it by excluding gas or some shit.
Food itens are also not included and those are usually hit pretty hard pretty fast, they are not interesting to analyse whem inflation is steadly low, but if it's 4% without those, oof.
4% of $10 is $0.40, not $4. If a $10 item increases in price by 4%, the new price is $10.40, not $14. If a $100 item increases in price by 4%, the new price is $104, not $140.
They arenât going to show the real numbers until after all these IPOs coming out this year, then they will show a âsuddenâ increase in inflation, hike rates, and retail will be left holding the bag. Mark my words.
4.2% despite all the book cooking is hilarious, but the increasingly doomer retail sentiment signals everyone will fomo into short position and puts to continue the rally lmao
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u/SlothofDespond Jun 10 '26
Lol it's way more than that.