Stores don’t look at inflation, inflation makes the stuff they sell more expensive to buy, so they have to sell it for more money or make losses.
Oh wow, stores must suddenly be buying their materials much cheaper recently when they realized they need to charge less, right?
Or did they just realize the market won’t bear what they’re charging, so they’re lowing their prices to get more business and lower the margin on their sales?
Hint, it’s the second one. Because stores are raising prices to increase profits, not to make up for increased ingredient costs.
So what makes the stuff stores buy more expensive? Like you can create a chain of price raising as far as you want but ultimately it’s just someone deciding to raise prices and that creating inflation.
Again, only a handful of countries own US debt and I don’t even know how US debt interest rates are going to connect to inflation in other countries. Like China and Japan are the largest debt holders and their inflation is vastly different.
Stores don’t look at inflation, inflation makes the stuff they sell more expensive to buy, so they have to sell it for more money or make losses.
Fed policies like interest rates directly affect almost all countries because they have USD debt.
Oh wow, stores must suddenly be buying their materials much cheaper recently when they realized they need to charge less, right?
Or did they just realize the market won’t bear what they’re charging, so they’re lowing their prices to get more business and lower the margin on their sales?
Hint, it’s the second one. Because stores are raising prices to increase profits, not to make up for increased ingredient costs.
Go look up net profit margins of retailers, they are going sideways.
And yet they can afford to advertise they’re dropping their prices 🤔
So what makes the stuff stores buy more expensive? Like you can create a chain of price raising as far as you want but ultimately it’s just someone deciding to raise prices and that creating inflation.
Again, only a handful of countries own US debt and I don’t even know how US debt interest rates are going to connect to inflation in other countries. Like China and Japan are the largest debt holders and their inflation is vastly different.
Nobody said US debt, it’s USD debt, this is basic international economics knowledge.
Inflation is the loss of purchasing power of money, not somebody raising prices. Inflating the money supply leads to loss of purchasing power.
Inflating money only loses purchasing power if it’s tied to the value of something else as I originally said. That was literally my original point.
And what do you mean by USD debt?
Money is always tied to the value of things, so according to you inflating the money supply always leads to money losing purchasing power.
Debt denominated in USD