Is higher inflation cause for concern?
Inflation rates have been rising all over the world, surprising many economists. While the rich world is paying higher prices for durable goods such as cars, in emerging markets soaring food prices are a greater worry. What is causing this unexpected bout of inflation, and will it last?
00:00 - What’s happening with inflation?
00:53 - What is inflation?
01:42 - Inflation rates are rising
02:47 - How much is too much inflation?
03:13 - Inflation in the rich world
05:19 - Inflation in emerging markets
06:04 - How to curb inflation
07:27 - Why you shouldn’t worry
Find The Economist’s briefing on inflation: econ.st/3ofFxtJ
Read about the world economy’s shortage problem: econ.st/3FurKpy
How inflation is affecting emerging markets: econ.st/3AT8Eqp
Is the world economy going back to the 1970s? econ.st/2WW1p2c
The role used-car sales are having on US inflation: econ.st/3uoNUED
Read our special report on global trade: econ.st/3BnDoQp
Find The Economist’s most recent finance and economics coverage: econ.st/3mcfTTZ
Sign up to The Economist’s daily newsletter to keep up to date with our latest stories: econ.st/3gJBH8D
The Economist prides itself on producing compelling video journalism. But we’re always looking for new ways to improve. Take our audience survey to tell us how: econ.st/3oYeC61
You shouldn't pride yourselves at all after this video. That line about not expecting inflation is literally wilful ignorance or fiction. How am I meant to trust the Economist when I consume content about things I've never heard about now? You could just be feeding me fiction in the guise of expert analysis and I would be none the wiser.
If you pride yourselves just delete this video as soon as possible!
No one expected Inflation ? This is why Central Banks cannot be trusted...and now they are trying to make us believe that they will be able to fight inflation by raising rates...which is another lie
Tbf, expected inflation can also lead to actual inflation. It is tricky for the Economist since it has to balance educational content with a responsibility for influencing investor and consumer behaviour. If you read in-between the lines of much of the news then you'll notice there was always an inflationary worry, but if you just take these stories at face value (which many consumers will do) then you'll miss some of the hinted at info.
This is propaganda. Everyone predicted inflation. Huge amounts of money printing, cash being handed out, low interest rates and supply chain problems. Central banks around the world have publicly commited themselves to keeping interest rates low despite rising inflation out of fear that rising interest rates could harm business recovery. The propaganda element of this piece is that governments didn't have a hand in this and it was a surprise so we shouldn't hold them accountable. Huge inflation is our pay being reduced and our savings being spent by our governments. Our money is now WORTH LESS.
A failing U.S. economy and elevated global tensions reduce the likelihood of prolonged inflation or higher long-term Treasury yields. I've seen folks amass up to $1m amid crisis, and even pull it off easily in a favorable economy. Unequivocally, the bubble/collapse is getting somebody somewhere rich
I do not disagree, there are strategies that could be put in place for solid gains regardless of economy or markt condition, but such executions are usually carried out by investment experts or advisors I speak from experience.
True, I’m quite lucky exposed to personal finance at early age, started full time job 19, purchased first home 28, got laid-off work at 36 amid covid-outbreak, and at once consulted a well-qualified advisor to stay afloat. Thankfully, my portfolio has maintained steady growth ever since, amassing nearly $1m after subsequent investments to date.
this is great! think your advisor would get on the phone with an unknown? i'm in dire need of proper portfolio allocation
My investment advisor is “Natalie Lynn Fisk”, she's verifiable and I'm very sure you can find info about her on the internet, her qualifications speak for itself.
Thanks for this. could easily spot her website just after inputting her full name on my browser. she replied my inquiry and we scheduled a consulting session sometime tomorrow.
The system is failing as a result of both government and federal policy. In the next days, the banking crisis would have to be epic and gigantic for the FED to decide not to raise interest rates. This won't happen; an increase and a crash are coming. There will be more negative portfolios this 2nd half of 2024 with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?
Just ''buy the dip'' man. In the long term it will payoff. High interest rates usually mean lower stock prices, however investors should be cautious of the bull run, its best you connect with a well-qualified adviser to meet your growth goals and avoid blunder
Very true, you can be passively involved in the markets and still amass wealth-gains using an investment advisor. I first dabbled in stocks late 2019, just before the pandemic, and that same year gained over 150% with no prior investing experience, basically all I was doing was following directions of my advisor. We are working on a retirement ballpark of $3m and I’m certain my goal isn’t farfetched after subsequent investments and tremendous returns so far.
Mind if I ask you to recommend this particular coach you using their service?
Sonya lee Mitchell is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
Today's inflation is a result of corporate avarice, not only problems with the supply chain. We know that the money obtained by the higher prices isn't being transmitted along the supply chain since businesses are reporting record profits. More pricing result in increased revenue for businesses, which stays with them and goes into their pockets. We can rule out supply-related inflation because of this. If your stocks are extremely weak, now is an excellent opportunity to take a battered 401k and convert it to a Roth. Then, your Roth will be tax-free, and you will just have to pay taxes on the substantially reduced current values.
Precisely! The current scenario should be our primary concern; many people are making millions from the downturn in the market, but this kind of information isn't reported in the press
You are right! I diversified my $500K portfolio across various market with the guidance of an investment coach, I have been able to generate a little bit above $1m in net profit across high dividend yield stocks, ETF and equity during this red season in the market But the truth is that you cannot do that without a tested trading strategy
@@DavidRiggs-dc7jk How can I reach this coach of yours? because I'm seeking for a more effective investment approach on my savings?
@@EllenAbrex Yes, a Fidelity financial advisor named "Christine Jane Mclean" put an end to my fears about investing, and after making more investments, I was able to reach the high six-figure mark in less than 3 years. A licensing advisor satisfies the necessary security criteria; hence, reimbursement is guaranteed if I'm dissatisfied with the service, so I'm much better off hiring one.
@@DavidRiggs-dc7jk I searched her up online and checked out her credentials since I was so intrigued. Top-notch! I emailed her to inquire about accepting new clients.
Every economist seems to have spent this entire year talking about inflation, it didn't blindside anyone, everyone saw it coming.
The only one in denial was the FED while printing money causing the inflation.
@@sophieedel6324 The government printed 18% of all dollars in existance in 2020. This was followed by inflation, which nobody saw coming.
@@joefox9875 - Federal Reserve has a treasonous monopoly on fiat currency. Irresponsible of the private bank known as Federal Reserve. Stop insulting our intelligence.
Saw it coming years ago. 😂
The Economist itself published multiple articles about inflation as soon as we started spending money to combat the effects of lockdown. The Economist has several articles from mid 2020 about this exact issue. I don't know who wrote this script, but it is very hard to take this publication seriously if they ignore some of the most major news that not only has been taking the entire economics world by storm, but has also inspired several of their own articles. The writer and editors need a dressing down for this kind of fiction, if not, a firing. That is unacceptable from a world class publication.
“Almost no one saw it coming” 🤣 these people think we are idiots
lol jep indeed,
Print too much money
Well, most of us are, that's why central banks still exist.
You have to be careful, the economy is giving some serious mixed signals. With gold and the 10 year US treasury bonds rates going down. That's showing there is some serious ''Deflation''' and a lot companies declaring bankruptcy and they just suddenly disappearing and media will not talk about it.
@@marctemura2017 Yeah, I took a walk in my little downtown today and counted 3 long-time businesses out of business in a two-block stretch. Small business is being crucified [slowly].
"Almost no one saw it coming" ...C'mon, The Economist. You know better than that
They have to wait for approval from Wall Street before they post a story
Gotta support the narrative. thats all that matters. You think journalists these days are interested in truth????
no they can’t . They are the central banks Pravda
@@LuyahDunnit and Wall Street needs to wait for approval from the woke mob.
This took iden by surprise, it caught him out in left-field.
The United States is grappling with the challenging combination of inflation and recession. An alarming aspect of this recession is the surge in consumer credit card debt. In April alone, credit card debt escalated by 20%, and rates have doubled within a year. Inflation has reached such heights that consumers are resorting to debt for essential life necessities. The signs of a collapse are evident, and the prospect of more layoffs looms. This is why I am considering entering the market now, anticipating a recovery in the economy. I am in the process of constructing a $600k portfolio. Do you have any recommendations for stocks in this scenario?
Focus on two primary goals. Firstly, prioritize your safety by understanding the opportune moments to sell stocks, aiming to minimize losses and maximize gains. Secondly, prepare to capitalize on market shifts. I recommend seeking advice from a Certified Financial Planner (CFP) or another professional to guide you in achieving these objectives.
A few years back, I recall being let go from Airbnb. Despite the setback, I persevered and shifted my focus. Presently, I'm at the helm of a health tech startup, and the returns from the market now match my annual six-figure salary within months. I've delegated the investment aspect, allowing me to concentrate on advancing my startup. It's a testament to the idea that every setback can be a hidden blessing.
May I inquire about the investment firm you're currently associated with? I had previously invested through Goldman, but their offerings did not align with my preferences.
I steer clear of using firms as wealth managers because their extensive bureaucracies often hinder favorable returns. Instead, I opt for individual wealth managers with established track records. You might want to explore a couple of them. Personally, I collaborate with Stacey Lee Decker.
I lost all trust in the Economist when it said no one expected the inflation. Wow.
They hire journalists, not economists.
Exactly, I was shocked to hear that…
@@jacobmee the economists thinks the viewers are unintelligent 🐴
@@phoenix5054 Its pronounced 'activist', not journalist. 🙃
Regrettably it is just another lying liberal rag masquerading as a reputable journal.
No one saw it coming? They did so much QE and everyone was talking about inflation from the start...
Kind of like no one saw Delta coming even though it already killed millions of Indians back in December. So yea probably just more lies.
QE plays a part in this type of inflation but isn't the main factor of it. There are shortages on the supply side (both commodity and labor) and increased demand on the consumer side.... layer on transportation delays, you should expect inflation... if you don't see inflation, you have bigger problems in your economy.
Yea. But like. No one saw it coming. Didn't you hear that 😂😂😂😂 Wait until you see the jobs reports for the rest of the year. No one saw that coming either.
@@abercrombie4lyfe I get that's it's not only QE that is causing this. But people always connect QE and inflation because it's easy to understand this relation and to say that no one expected this is... weird I guess.
Inflation is the first thing anyone responds with when you bring up mass subsidisation. The Economist themselves published several articles about the incoming inflation as early as summer 2020. This video was written by a fraud and their editor is probably one too if they bothered to check this over. Absolute fiction.
Increased losses for portfolios this quarter are predicted by market drops, skyrocketing inflation, a major interest rate hike by the Fed, and rising treasury rates. How can I profit from the volatile market right now? I'm still considering whether to sell my million dollar bond and stock account.
Concentrate on two main goals. To start protecting yourself, learn when to sell stocks to reduce losses and maximize gains. Second, get ready to profit when the market recovers. I suggest having a conversation with a broker or financial advisor.
Yes, I've been in touch with a financial analyst ever since I covid. Investing in trending companies is relatively easy today; the trick is determining when to purchase and sell. I started with a $300K reserve that was initially dormant; my adviser decides when to enter and exit my portfolio; since then, I have accumulated over a million dollars.
@@danieljackson87 Can you leave your investment advisor's contact information here? I absolutely must have one.
@@michaelrenner3 Julie Anne Hoover, whom I discovered on a CNBC interview and contacted, is guiding me. She has since given me entry and exit points for the securities in which I am interested. You can look her up online if you require care supervision.
@@danieljackson87 Insightful... I was curious after reading what you shared, so I Googled her name. I came across her webpage.
Not sure I would agree that this inflation was unpredictable given the amount of money printing that has been going on in the last 18 months. Bizarre to suggest that it was a surprise.
I was thinking the same exact thing! There was tons of talk of inflation after the first stimulus package and thereafter.
more like neocons nonsense talk or central bank denials to say that there will no tsunami - reality say USA will have massive crash
"almost no one saw it coming" What!?!?!?!? Literally everyone saw it coming when they increased the amount of currency in circulation. It's literally textbook cause of inflation. You couldn't describe inflation more in an economics class.
It was highly predictable.
That’s the woke Economist for you
Year-over-year inflation stood at 6.5% in December 2022-the lowest that figure has been in more than a year. Inflation was in line with what economists expected and gave many of them a reason to believe that the peak of inflation may be behind us. I have approximately $150k stagnant in my port_folio that needs growth. What is the best way to take advantage of this downturn?
you’re right! The current market might give opportunities to maximize profit within a short term, but in order to execute such strategy , you must be a skilled practitioner
@Zahair O'Brian heard that this Is a great time to buy. But now that inflation is at an all time high, I have money sitting in my bank account that I would really like to use. Would it be okay if I looked up this coach you mentioned?
@Zahair O'Brian I've come across a lot of recommendations but this one stands out. Ingrid's resume is pretty sophisticated, and shows she was active during the last bear market, I also emailed her. Thanks for the info!
@@kimyoung8414 Interesting you all are scamming the public during their toughest times
Hows life in india? Do you swim in toxic waste?
We read news in the media that doom and gloom is coming and we just accept it, doom and gloom doesn’t always have to be coming, I’ve read numerous success stories of people that are pulling off tremendous gains of up to $250K within weeks in this crazy market and I just want to learn how to achieve such figures.
Well with the economy and stocks at where it is now, I'd be disappointed if people weren't making any error on their portfolio at this time, it was much easier to navigate during the bullrun, regardless I still see and read articles of people pulling over $225k by the weeks in trades, how come?
I noticed, a lot of folks are making huge 6figure killings in this downtrend, only just that such technques are mostly successfully executed by folks with indepth mrkt knowledge.
The US-Stock Mrkt had been on it’s longest bull-run in history, so the mass hysteria and panic is relatable, considering we’re not accustomed to such troubled mrkts, but there are avenues lurking around if you know where to look, I’ve netted over $850k in the past 10months and it wasn't some rocket-science strat. I applied , I just knew I needed a firm and reliable technque to navigate better in these times, so I hired a portfoilo advlsor.
@@martingiavarini That's impressive, my portfolio have been tanking all year, tried learning new strategies to gain in the current market but all of that flew right over head, please would you mind recommending the invt-adviser you're using?
@@Walter_hill_ Christine Jane Mclean is actuaIIy the one that guides me, she’s a hlghIy-sought out advlser, so I’m not certain she’s acceptlng new intakes, but you can give it a shot. It wouldn’t be proper to just Ieave her number Iying around, but she has a webpage you can look at if you googIe her name.
"The sharp increase in inflation blindsided many economists. Almost no one saw it coming" Uh.... I've heard nonstop talk of inflation for like a year and a half now, since the stimulus packages last year. Anyone paying attention to the recent extraordinary economic events has seen it coming lol
Yeah I think pretty much everyone knew this would happen coming out of the pandemic. Might have popped up a little faster than expected but surely nobody was surprised!?
I’m shocked i printed 10 trillion dollars and inflation went up!!! Media lied to me!!!!
The worst people to ask about anything to do with economics are economists. They live in theory world.
@@gorgthesalty It also may be due to the fact that an economy can be largely impacted by perception. i.e. economists were well aware that inflation would occur but released headlines to help downplay/mitigate such fears so that public panic doesn't in turn contribute to worse inflation
Noticed it at the grocery store back in January. Not sure how the professionals missed it, or rather I'm not sure that they actually did.
Market declines, soaring inflation, a significant increase in interest rates by the Fed, and rising Treasury yields all point to additional losses for portfolios this quarter. How can I profit from the present market turbulence? I'm still debating whether to sell my $125,000 ETF/Growth Stock portfolio.
Concentrate on two main objectives. First, keep yourself safe by knowing when to sell stocks in order to limit losses and maximize gains. Second, get ready to benefit from market changes. I advise consulting a CFP or other professional for advice.
Yes, I have been in touch with a CFP ever since the outbreak. Today, investing in hot stocks is quite easy; the difficult part is deciding when to buy and sell. With an initial starting reserve of $80k, my adviser chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
my 401k growth has been stagnant since the 2019. I wouldn't mind consulting the advisor who guides you, I really want to grow my retirement fund since I could retire in 3 years.
The stock market is without a doubt the awkward teenager with the most extreme mood swings! I started out with a commentator named “Eileen Ruth Sparks.” Her honest approach gives me complete ownership and control over my position, and her rates are incredibly affordable given my ROI.
Thanks, I just googled her and I'm really impressed with her credentials. I reached out to her since I need all the assistance I can get.
I'm a truck driver and I knew inflation was coming.
I'm a programmer and I knew inflation was coming. It has been a major topic of economics news for nearly two years. I'm shocked someone would write this and I'm more shocked that an editor would publish this, from a world renowned publication called the Economist, no less.
@@RamiAbdelal everything is fake now. Fake economists, fake scientists, fake doctors, fake president, fake money, I don't believe or trust anything these people say.
@@iscee8240 Agree with you fully
I am a kid and I saw inflation coming.
Wish iden would have been a truck-driver, then we might have not been in this pickle.
I always like how these misleading narratives always omit housing, healthcare and education from their ‘inflation calculation’. It’s borderline propaganda. In the last 12 months my suburb avg price up 35%, pvt health 25% and fuel 25%… etc
Well, who cares about the prices of things which people actually need? The only important factors to watch are the prices of iPhones and luxury cars.
What you mention is related to the final line by the guy. If people think inflation isn’t going to happen, then by in large it won’t. So what they are doing is lying to everyone that inflation is not an issue, so their expectations of higher inflation are subsided. So when you say it’s “borderline propaganda”. I would say it is propaganda.
When everyone panic buying, inflation will definitely happen. At least there will be no economic crisis right now
@@user-qp4eq1oj5r so you said " Not right now" eh?
Watch the equities, goods and services that rich people actually want. That's where inflation is going. The fact that the prices of everyday items for common folk aren't going up as much is a sign of the growing wealth gap.
What if instead of talking about 9.1% inflation, the media acknowledged the true rate of inflation of about 18%? American workers are experiencing unprecedented declines in their real incomes, which is why record numbers have been forced to work multiple jobs to make ends meet. I wish I had more time for trial and error, but I'll be 56 in October and I need ideas and advice on what investments to make to set myself up for retirement, especially with the looming inflation and recession; my goal is to have a portfolio of at least $500k at the age of 60.
There are a lot of strategies to make tongue-wetting profit especially in this down market, but such sophisticated trades can only be carried out by proper market experts.
@@joshspring7686 Yes, I've used such expert, an investment adviser at that, and she really worked magic on my portfolio, initially I was always in and out of the market, selling at a complete loss but for the past 2years I've been mostly in the green, earning steady profit irrespective of market movement thus gaining over $850k+ in the past 2years.
@@chrisbluebird5037 that's impressive!, I could really use the expertise of this advisors , my portfolio has been down bad....who’s the person guiding you?
@@pigsbark4173 My Financial Advisor is Jessica Meador Jones I found her on a CNBC interview where she was featured and reached out to her afterwards. She has since provide entry and exit points on the securities I focus on. You can look her up online if you care supervision. I basically follow her market moves and haven’t regretted doing so.
@@chrisbluebird5037 I curiously looked Jessica Meador Jones online and researched her accreditation. She seem very proficient, I wrote her detailing my Fin-market goals.
Just in case inflation gets too out of hand I've mentally prepared myself to eat my neighbor.
Eat the rich.
U sure the fork is in your hand??
If you aren't a vegetarian it shouldn't be too difficult, with the proper spices 😄
They may eat you first 😉
🤣😂🤣
"No one saw this coming." BULLSH!T Printing money helped people out of work but that money is still there and most are back at work. It doesn't take a genius to work out that money has less value if there's more of it!
Exactly. They crushed real goods and services with these shutdowns. Are firing WORKING people that worked throughout 2020-21 for these mandates while still printing massively for unproductive causes.
When the US prints trillions of dollars, even high school students know what the result will be.
@@honghuizheng3433 Well said
@@honghuizheng3433 thank you!
@Ella Minamono excellent point!
Collapse is generous 1st time in our history with a full generation that wasn't taught financial literacy, civics, Google fixes their problems if their parents don't do it for them. Reckoning for participation trophies is incoming
This period of inflation how ever long it may be takes away comfortable living in your twilight years. Not many people seem to be upset about that…
@@wiebeplatt4749 It is getting so bad that consumers are racking up credit card debt. In April alone, credit card debt went up 20% while rates have doubled in a year. Inflation is so high that consumers are literally taking debt for basic life necessities. Collapse is near.
@@Robertgriffinne The severity of the condition of our economic circumstances is beyond many peoples comprehension and many continue to deny its existence. People are working and there is little or nothing to show for it. everybody is basically working to sort out one bill or the other. no savings.
Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire. Personally I hired ‘’Nicole Ann Sabin ’’ a financial advisor who sets asset allocation that fits my tolerance and risk capacity, investment horizon, present and future goals.
@@Patriciacraig599 Thank you for this amazing tip. I just looked the name up, wrote her explaining my financial market goals and scheduled a call
Almost no one saw it coming? Seriously? You guys has been printing money the whole time and you say no one saw it coming?!
Been printing tons of money since 1980, the bigger influence on inflation is the velocity of the currency.
@@falconJB we haven’t ever printed this much money in the US in this short of time.
@@Jurmyhyle12 Sure but we printed more money in the 80s than we ever had before, but the increased concentration of wealth decreased the velocity of the currency, which prevented too much inflation. Our current inflation is not just because we are printing money, it is mostly because we are giving that money to middle and working class people which increases the velocity of the currency and increases inflation. If we took the strategy they did in the 80s of concentrating that money mostly into large corporations it would keep the velocity of the currency low and we wouldn't be seeing as much inflation.
@@falconJB I'm not saying you're wrong, I'm saying it'd be much easier if you just didn't print money to begin with.
@@nicolasconforti2604 Then either the economy would shrink every year or we would have to go back to taxing the rich like we did before the 80s.
Literally every single person in this video was lying to the camera.
Tbh inflation is coming harder in the next few months
America will not lie
@@user-qp4eq1oj5r then u must be crasy
@@darioperez5084 🤣
Either that or they are breath takingly naieve
7:44 “so long as central banks maintain their independence and their focus, we should be alright” hahahahhaha HAHAHAHAHAA
This vídeo is not about inflation, it's about propaganda.
I was dumbfounded when I heard this line.
That was absolutely ridiculous statement. They should have sharply risen the interest rates 6 months ago. (The FED and ECB that is, 3rd world country banks are surprisingly doing better job)
I stop watching when this clip says no one saw it coming. How hilarious it is. My empathy goes to the disadvantaged people and their children. Each QE has made wealth inequality worse.
They just don't want to admit it cuz inflation is the government's hidden tax. Inflation happens when a currencies value goes down because of government spending thru borrowing currency or printing money from thin air. In short, the more a government is in dept the more the currency devalues.
Wealth inequality has been out of control for 40 years, long before anybody even thought of QE. And we've been doing QE in the west ever since 2008, yet we didn't see high inflation throughout the 2010s, we saw the opposite.
@@makoy2689 you can’t see any differences between QE after 2008 and what’s going on now? How about supply chain disruptions from ineffective covid regulations and more stimulus checks? Combine that with the eviction moratorium and it’s a recipe for high inflation.
@@highbrass3749 And i even just realized, there are a bunch of people in this thread quoting internet investors and talking about buying up assets. The whole thing just seems....bizarre. I don't want to say they are bots or something, but there is some weird hysteria going on right now around crypto, commodities, nfts, and just investing in general.
@@makoy2689 I can only speak for myself. I don’t see this government allowing deflation anytime soon. I think they need inflation to help pay down the debt. If we enter another recession in the next few years I think the government will bail everyone out with stimulus. I see inflation continuing. That’s why I’m buying assets like stocks, crypto, gold, and silver. Just my opinion.
@5:53 "inflation is when prices rise" i prefer to say that inflation is when the value of money decreases.
They are trying to blatantly lie into our faces.
the elites who own all the capital want you to think otherwise... i can't wait until these people are eaten by their own.
Get point!
Tomato/tomato. ;)
one is cause (printing/ value of money decreasing) the other is effect (price rises)
Government: *massively inflates money supply* Inflation happens Government: *surprised pikachu face*
The greatest protection against inflation, from my point of view, is the acquisition of assets since their value is adjusted to it. Unfortunately our wages do not grow at the same rate as inflation, something to take into account as well.
To buy stocks and real estate, cryptocurrencies, precious metals!
I have already read two books by Lynch and I think I know enough to start investing (with a small capital obviously in the beginning). Any broker that you recommend for medium-long term investments? Taking into account that I am in Latin America but I have facilities to open accounts in the United States if necessary.
@@robinelise2886 That's one heck of a broker and a solid recommendation. She has been influential to the success of a lot of traders even here on KZhead.
Truth is Inflation got to get worse since Federal Reserve & Treasury Dept printed out around $ 6.5 TRILLIONS out of thin air in the past two years to help pay for stimulus checks.
Sorry buddy business view your salary increase as an inflationary pressure.
Here's my interpretation. This is all centered on the Housing Market: 1. Houses are treated like commodities. 2. Predator Businesses buy homes. And sell them for 10x what they're worth. 3. Or they use them as rental properties. Then increase the rent, whenever they think they're losing money. 4. All this profit goes to them. 5. They pay no taxes. 6. Less revenue for Local/State governments. 7. People's priority suddenly shifts to not wanting to get kicked out on the street. 8. They pull double time at work, but less money goes back into the economy. (Restaurants, Stores, Mechanics, etc.) Just like with Evergrande in China. One real estate company has that much influence on the rest of the economy. It's not a coincidence.
Also, lobbying makes everything worst.
I’m not worried about inflation, I’m worried about my wages not increasing accordingly because currently it’s not!
That's one of the impact that inflation brings. Product prices increase and your real wage would definitely decrease relatively.
@@godblesseveryone2646 depends on the inflation, (in this case your right) in some cases inflation occurs due to increase in wages.
If a government ever calls something "temporary" then expect it to be permanent.
Finally somebody knows to read. :)
yea, my food costs a fortune, i’m genuinely doubting if it’s worth having a job anymore, because nowadays it’s like i’m only working to survive, inflation is a very serious issue
Inflation is a tax that government charge without actually "charging " it .
aka theft
Yeah but it's really businesses investors that gained the most. It's not about government enrichment.
"No one, not even the economists saw it coming" - LIES! lol
propaganda
It’s actually comical that anyone could say they did not see this inflation coming. It was supremely obvious last year that this was on the way with a gargantuan amount of spending the governments were preparing to put into place along with the sheer amount of people not working. A lot of money but not a lot of goods equals inflation. It will be a miracle if this does not get a whole lot worse before it gets better.
Im from the Netherlands and housing, health care and education has skyrocketed in price over the years but are not projected in the 'official' inflation numbers. The metric doenst make sense.
Same everywhere. The living cost of my family went up 35% since the pandemic started, but the oficial inflation is "only" 12% here for the same period. Politicians are lying so they can continue their business of printing money for longer
Because if everyone knows inflation is high, it would only push it higher
Just the housing market has skyrocketed. Not healthcare or education
"As long as central bank maintain its independent, we will be alright." Since when Economist become snake oil guru? You really think federal reserve is going to do the right thing and cut QE and raise interest rate?
Not to mention they’ve been very quiet on the Fed insider trading
The media companies are no long profitable, they have to compete with small KZhead channels with almost no costs, the only solution is to ask money to the government
Even if the Fed raises rates; the interest will be unsustainable
@@exiledhebrew1994 2nd time the rest of the world ( after 2009 melt down) has to suffered from another round of high inflation in created by irresponsible monetary policy!! Poor country will suffer much more than developed country.
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Almost no one saw it coming? Supply cuts, increased demand on all fronts, soaring oil and natural gas prices, price of fruit, meat and vegetables, not to mention THE ELECTRIC BILL and the petrol shortages in the UK!
If your economist didn’t see inflation coming then they probably work at the economist and you should find a new economist to follow.
Always ridiculous to hear The Economist talk about the real economy!
0:30 "Almost noone saw it comming" - Literally everyone with basic economic knowledge anywhere on earth saw it coming.
People saw the inflation coming. I have been watching videos about inflation here for more than a year now. It stems from the excessive money given by d government to the citizens. Basic economics
And or disruptions and shortages in supply...
and too much money in rich peoples account. Tax the rich
@@entropicpedro7494 shortages in supply and disruptions to the supply chain caused by government incentivizing people not to work for almost an entire year.
@@lefthanded5473 with the alternative being letting your parents die for the economy right?
Oh, c’mon Elcomonist… so nobody saw it coming? On which planet have you lived for the last 18 months?!
Inflation means the money being printed (offer) is not being used enough (demand), meaning that it’s value (price) drops. Coming from an Argentinian, one of the countries with the worst inflation, you should definitely be worried.
The last part of inflation expectations doesn’t sound convincing at all. The statement that we’ll be fine with institutions doing their jobs is useless. Does that mean institutions’ promises could be solutions to all the problems?
How about corporate greed? 10% inflation does not justify 50% increase cost of goods and record corporate profits and increase in profit margins.
The price go up is just a characteristic of the inflattion. Inflation is the decreasing in the buying power of the currency
US CPI (Consumer Price Inflation) is correct only if you think substituting Beef for Chicken means there’s low inflation.
Cpi is manipulated also. Can't trust none of it. Smh.
"The basket of goods." You can record as much or as little inflation as you want to.
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Same here, My portfolio has been going down the drain while I try trading,l just don't know what I do wrong
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This is a great piece. A level-headed response to "THE SKY IS FALLING!" inflation pieces on Market Watch and similar.
Naive, very naive. I bet you think CPI is representative of real inflation. Yeah yeah....CPI basket 2021, electric cars and smart watches in & and gold chains out.
Sure. U work for a hedge fund or primary dealer right? Or stand to be enriched by the deficit spending.
Look up, dude. ;)
"No one saw it coming" is a level-headed response? Keep deluding yourself.
@@edselgreaves6503 yeah, I saw it coming last year....very obvious....have been all in on bullion & precious metal miners since Aug 2020.
I speak with small business owners on a regular basis. The five percent inflation rate quoted for the USA is a fraction of the real rate.
Not to be too worried. It is simply transitory. Have a great week. BTW, Every economist seems to have spent this entire year talking about inflation, it didn't blindside anyone, everyone saw it's coming. YES, it is coming in a big way.
Inflation was super predictable.. almost everyone i knew was talking about it even before covid struck
I'd like to see other economic perspectives on the cause of inflation.
economist is elitist propaganda
"No one saw it coming"?? Classic economic theory... increase the money supply and the dollar is worth less.
Money supply matters a lot less than the velocity of the money and we have seen that really increase because so much of the stimulus went to the middle and lower class.
they think we're morons.
@@falconJB ok you're right, but anyone could see when you mailed $1400 to every house in america AND gave them MORE than they make working on unemployment you'll experience inflation... give me a break, this is total propaganda.
@@stachowi They knew it would, that is why the Democrats are so worried about making sure the taxes get passed in the jobs bill, if you let the middle and working classes have more money the big corporations and the rich have to have less or you are going to get a lot of inflation.
Sharp dip in prices in 2020? Obviously you have not tried to buy any electronic products
There are products other than electronics.
With most governments printing money so much money during the pendemic, how can most economists not see a massive increase in inflation coming?
Right on! "An increase in the supply of money is the root cause of inflation." --Investopedia
Maybe because in the real world, the economy is a bit more complicated than that?
Over the last 18 months, practically all countries have sharply increased their money supply in order to help the people and companies who were affected by the pandemic. At the same time, there was a sharp decline in economic activities. Hence, there is currently an increased amount of money chasing too little products. This at first leads to shortages of goods, services and inputs, for example, shortages of microchips, energy (like coal, oil, etc.), etc. The shortages do not hit all products at the same time but in succession. These shortages will in turn lead to increases in the prices of all products, which are the causes of the inflationary pressure. This phenomenon will continue until the balance between the amount of money, the level of economic activities and the prices of goods and services is restored. If money supply has increased by 50% while the economic activities increase by 10%, balance will be restored when the prices have increased by approximately 40%.
Of course the inflation rate is "translatory". It is always translatory whether it's going up or down. The important question is if the real price inflation will stick or if we'll see price deflation?
This is such a limp and apologetic report on inflation. The economy running hot? What was that fuelled by? Are you telling me that was grilled by consumer spending? The Fed has fuelled inflation with its monetary policy. Stuffing the Stockmarket full of liquidity while interest rates were at all time lows has encouraged ridiculous bubbles that we see now.
What is important to mention is that in case central banks are going to raise interest rates, the debt burden on governments will grow, since they have to pay more interest. Some EU governments now borrow at negative interest rates. By raising interest rates, a lot of governments will not be able to pay the bills and might default. Debt ratio is extremely high at this moment.
they can tax overpriced assets
Oh yeah, everything is just fine
Thank you. Great info.
No one saw inflation coming? 🤡😂
"No one saw inflation coming" - you didn't give airtime to the economists raising the alarm years ago. No wonder your publication is in decline.
6:44 What ‘institutions’ is he referring to when he states them to be as less credible?? (Is he referring to actual corporations, or the financial institutions themselves?)
I think Government in general hahaha
Central banks and financial institutions of the poor world.
Economy is like a new receipe you come up with. You mess up, you fix it and cycle repeats. And everyone have their own taste. So it never settles.
Obviously something has to change. Over the last 2 years i have had to make several lifestyle changes because of rising prices. And I consider myself lucky to be fairly well off. I can't imagine how much worse others are struggling.
great reset is upon us, you will own nothing and be happy.
0:32 - *sarcasm* Literally *everyone* saw it coming with the stimulus checks.
Significant changes in purchasing behaviour following the end of the Furlough Scheme
“No one saw it comming” That makes me wonder if I should put my faith in The Economist words.
Funny, billionaires are getting richer while we're getting poorer. That probably explains why they want the pandemic to last forever.
7:36 "inflation expectations are self-fulfilling ... for the most part". Gosh, how simplistic and naive.
He's talking about cost-push inflation which is a real thing. However he failed to explain what that means and also that it is only _one_ of the effects on prices - and certainly not the main one, let alone the first-cause. In very basic terms it works like this: if you think high inflation is coming, you bring forward purchases hoping to beat the rises. That increases demand without necessarily increasing supply (and right now, it won't increase supply - because supply chains are struggling). Demand exceeding supply = inflation. Hence the _fear_ of inflation can bring price rises. But again it is a symptom (and one of many), not a cause.
Thank you for putting this togeter!
Great video, inflation is the enemy of investment result
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Business, governments and wealthy asset owners have become addicted to low interest rates and the rush from money printing. Like all addicts they will find any justification to continue receiving their fix. I am not sure that central banks and their boards are as independent of this addicted group as we would like to believe. I certainly hope they are.
Very disappointed to hear the analyst continue saying “rich” and “poor” world when referring to developing countries.
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A chinese, I thought this didn't exist in free media
@@digols1000 its mostly a propaganda of CIA
So my question is: isn't inflation measured as a rise year-to-year? So a large percentage jump like in 2021 would be expected after a large drop in production and prices in 2020. Prices are clearly up I think as a result of short supply but my understanding was this was completely expected coming out of (hopefully!) The pandemic?
Overall price level has already surpassed the pre-covid trend, and the momentum is not slowing down. Your question is valid and is what a lot of Economist are thinking a couple of month ago, but we are way above price recovery and everyone starts panicking.
Yeah stuff like the explosion in energy & natural gas prices (which feed into the price of everything else), and continuing supply chain issues mean that inflation will only continue, probably for a year or for years. Inflation isn't super bad now, but it doesn't seem transitory, and it may get a lot worse rather than returning to normal.
Literally everyone saw it coming, except PhD economists.
Even PhD economists, literally everyone has been talking about this.
@@falconJB not the Fed’s PhD economists it would seem
@@craigthebrute3262 Even they have been, their problem is that fear of inflation creates more inflation, so the Fed chairs write reports and detailed analyses about the inflation rare, and then to keep inflation under control they they have go on the news and give the masses their 30 second talking point stating that inflation is not a problem.
The classic definition of inflation is an increase in the money supply. I can't believe "The Economist" wouldn't say that. Prices increase as a result of the increased money supply.
It started when Sterling came to a low at 1.05. From there it's going up, and up, and up... I'm not sure whether I will be on the planet....
“Goodness gracious! We only printed 400 trillion dollars, and yet despite our conservatism, there seems to have been a bit of a hike in prices: that’s ludicrous!”,“The economist” …. I wonder who printed money to pay them to publish this nonsense..?
No one saw inflation incoming? Around 40% of USD in existence were printed in 12 months.
Print a bunch of money and let it float at the top. What could go wrong. Lets get some MBA's on this to endorse our policy
Greetings from Lebanon:p
A non-deflationary economy is immoral.
Correct!
"The test of our progress is not whether we add more to the abundance of those who have much it is whether we provide enough for those who have little." --Franklin D. Roosevelt
The question I have, will we see decrease in prices? Seems like everything is up, food, oil, gas, electricity, cars, building materials, etc. And the market is through the roof. What's the prediction on that?
What do you mean "no one saw it coming?" ....ppl have been talking about this for months because of the stimulus after covid and things opening up.. shortages in certain resources etc
Inflation is not about expectations its about an expansion of the monetary supply which a lot of countries did to keep paying people. It's a joke that they call themselves The Economist.
Inflation is related heavily on expectations. If you think the price is high now but expect it to decrease in the future, you will postpone spending if possible. If you think it is high now but expect it to rise, (if you have the financial resources) you will spend more now to save in the future.
It's all those greedy merchants trying to get back their loses.
You sound like a real expert.
With all the news about supply chain disruption, how did economists NOT see inflation coming???
Else than food crops, isn't there more relation between inflation and the living beings ?!
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Inflation has long been 4% a year. CPI is a lie. It's only an issue if you don't know how to invest your rapidly degrading fiat.
So it's only a problem for like 99% of the world then? Assuming you have something to invest in the first place...
@@102wingnut This is the way of the left. Print money, boost asset prices, debase currency and throw some crumbs to the poor people and say you're 'helping them' meanwhile they are getting destroyed by the invisible tax of inflation and the bigger the gov't is the worse the inflation will be. Too bad the entire left is economically illiterate.
@@michael2275 Monetary and Fiscal Policy get used by every politician. You'd be an idiot to not use the tools at your disposal to attempt to keep the economy as stable as possible. Not everything is some kind of political conspiracy. Calm down.
@@flarone Volatility cannot be eliminated and if you try to defer it it will come back later in a bigger way. That describes our entire fiat system. Stable with growing volatility potential by the day. It is mathematically certain to fail as debt continues to grow at 2-3x GDP globally. When it blows up it will be a spectacular bust and state and money will get separated again like they have been through most of history. Most are just blind in economic terms and cannot see what is obvious.
@@michael2275 yikes not where I was going AT ALL and still not sure what your rant has to do with the question. Yes there are a few people with enough on hand to out-invest normal inflation and even fewer who know how to successfully do so. I'm fortunate that my investments have done quite well considering. But not everyone has that option and it's those people who suffer the most when the price of ground beef goes up 50% in a month. Smugly assuming that people hurt by inflation brought it on themselves does nothing to help the situation nor advance the conversation.
“Almost no one saw it coming”. Nonsense. If we print paper for political reasons, not production or newfound values, you will devalue previously printed paper value. The only uncertainty is time. I hope it lasts longer than me. I think TSWHTF soon.