Is lower inflation "transitory" too?

The world [i]transitory[/i] is such a warm and fuzzy word. Like when the dentist tells me the pain will be [i]transitory[/i] when he pulls my tooth out.

But should this word also be applied to the lower inflation we have experienced over the past few months? Will food and energy prices start their ascent once again when the cold weather sets in and Europeans need to heat their homes, and the poor Ukranian harvest caused by the war starts to be felt? Will the monetary authorities remain committed to their 2% goal right into the teeth of a global economic panic, or will they blink? Will Jerome fold like a cheap suit?

Janet Yellen seems to have forgotten about the word [i]transitory[/i] too. Perhaps what she primarily cares about is that this [i]transitory[/i] period lasts until the mid-terms.

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Grateful4you · M

I'm FAR from understanding economics, but it seems rather absurd and self defeating to print boatloads of paper money but no gold or silver to support it.

I remember saving the silver dollars I got on my birthday and feeling rich. Hand me a stack of hundred dollar bills and all I feel is that my hands are dirty.

whowasthatmaskedman · 70-79, M

@Grateful4you You are absolutely correct. There are good reasons under specific sets of pressures.. But America has been doing this solidly since the GFC with no aim in mind but to prevent a recession.. And no goal to the spending,😷

Grateful4you · M

@whowasthatmaskedman Thank YOU for further clarification.

Grateful4you · M

@whowasthatmaskedman Asking for a friend. Lately, my friend has been wondering the safest place to keep his money, he doesn't trust banks and while he does do a little of mutual funds he isn't into the stock market.

Given a respectable sum, where would you put it? Thanks bud.

whowasthatmaskedman · 70-79, M

@Grateful4you A question for the ages.. Spend your cash on consumer durables. and traditionally appreciating assets. and make you purchases with a view to the long term.. Now the conventional wisdom is Buy Gold, silver or Diamonds. But frankly the crowd got there ahead of you and drove the price up.. So. Pay off the house and set it right. And buy quality things you will need. Maybe look into solar panels if your area supports them.. And keep a reserve of maybe 6 months expenses in cash. Thats what I would be doing..😷

Grateful4you · M

@whowasthatmaskedman Wonderful advice I truly appreciate. I will do exactly as you advised. You see, this is much like when I had my little frozen yogurt and health food items cafe, "The Yogurt Man" other trades people in the area depended on trade or barter. I traded yogurt for herbs, bulk species from the health food store, a man with a greenhouse traded clover sprouts for yogurt, a girl made me veggie burgers since I allowed her to use my store at night to make her business legal.

I can seek consumer needs based on what were imperative type items during the "Great Depression" Things like silk stockings for women became a rare luxury item, so increased trade value.

Thanks for the great food for thought. YEAH!

whowasthatmaskedman · 70-79, M

@Grateful4you In the Great depression how you fared depended on a variety of things. Not everyone was on the breadline. Some made out like thieves. But a sharing support group would be a real asset..Ask yourself. "If the price of everything local doubled, and the price of everything imported trebled, what would I do without and how would I cope?" Hopefully it wont get that back.. But if it does you are prepared..😷