Post-pandemic surge in global inflation!

[johnlogan]

Depending on where you are in the world most of us are experiencing rapid / high inflation. The globe is also moving towards a depth crisis. Macroeconomic volatility and geopolitical tension is likely to persist into 2024/2025. We are also seeing the largest transfer of wealth in human history from governments (tax $) to private companies ( i.e. Vanguard & Blackrock )

How does the new reality affect you ?

 

[eBoy]

Moved this to the off-topic area.

I think it's a development that was quite predictable in the last 10 to 15 years leading up to this mess. Although I'm sure that even the most pessimistic economists didn't expect that it would be that bad. How does it affect me? Not as bad as others, but it's still frustrating to pay roughly twice as much for the weekly grocery haul than merely 4 years ago, while looking at partially empty shelves in the supermarket. Other COLEs are through the roof, electricity bill is ridiculous for example... But being on the more fortunate side of life, we do not struggle... Not yet, at least. But we are noticing people in our immediate circle of friends who definitely are struggling. Example: People in S. Europe with top college ed, he has a PhD, she a MS, both with high-paying jobs, but two kids in college and a recent real estate purchase... Now with massive liquidity issues due to this situation. It's frightening.

 

[Grapeshot]

I blame global warming.

 

[Reaps]

CMV : 2% interest rate was never sustainable and would eventually have led to inflation... but COVID and the Fed policy of printing a bazillion dollars didnt make things better

 

[Tim4682]

Governments put rates at zero and gave everyone free money (stimulus, loan payment deferrals, etc) and didnt think it would end poorly lol. Humans are predictable: they will feed their desires insatiably (like us w our watches) especially in the US where consumerism is part of life. If you dont have the cash to afford something use a credit card, if your card is maxed, get a loan, if u cant get a loan, use Buy now Pay later, but no matter WHAT you NEED to upgrade to the new Iphone (or whatever)...it is an absolute necessity to live lol

As far as impact...my wife and I are fortunate in that weve always had good jobs and always lived WELL below our means. We also have no kids (huge savings) or debt and didnt get caught up in the Covid bubble with crypto, NFTs, SPACs, crazy car and watch prices, etc. EVERYTHING is more expensive obviously (my avg Costco bill for 2 people now is $700+, flight prices are bonkers, dog food nearly tripled, etc), but we have a lot of assets in the bank and retirement accounts. Those assets are earning insane rates relative to the past 15+ years (4%+ on liquid zero risk savings) and that has WAY more than offset the higher costs we are faced with so net net for us all this inflation has been a big positive.

 

[Storm.]

Well, ECB finally got the inflation rate they wanted. That's all I'm gonna say about that.

 

[eBoy]

Well, ECB finally got the inflation rate they wanted. That's all I'm gonna say about that.

You're giving the ECB way too much credit for that "achievement" (pun intended).

 

[Feefo]

I buy gold.