• 0 Posts
  • 52 Comments
Joined 1 year ago
cake
Cake day: August 27th, 2023

help-circle






  • The whole model they operate on is unsustainable. Either Blackrock and vanguard keep them afloat. Or they’ll take on personal loans, issue out corporate debt. Or find ways to downscale, either job losses shrinkflation. Or raise prices. These are all desperate measures and are signs of an unsustainable company.

    Losing the middle class (if that’s their target market) is a company’s biggest downfall.

    And I feel that the little people will start to lose hope cause it feels like it doesn’t matter… But it’s similar to someone on credit card debt. You can only do it so long before it starts to catch up.









  • We made the money printers to brrr for a very long time with almost no inflation

    You can’t print without consequences. The more you pump into circulation, the more currency you need to buy the same goods and services. You’re basically losing purchasing power.

    If you give everyone a million dollars, you’re going to see prices increase. If prices don’t rise, people could buy out entire stocks of goods and you’ll have supply problems. So you need prices to increase to adjust for the amount of currency circulating. That’s inflation.

    Chart on your purchasing power over the years:


  • Are these record profits adjusted for inflation? As in, are they earning more or is it nominally higher?

    My logic being, overhead gets more expensive as the currency diminishes. Companies raise prices (which you’re seeing) to offset that. And then nominally, yes they’d be making record numbers. Like Zimbabwe, they made record numbers when they had hyperinflation. Didn’t mean they were doing well.

    And yeah I mean it’s not just devalued currency, there are a lot of factors that go into inflation. But Id say it’s one of the biggest contributors for sure.

    Interest rates stayed low for too long and people borrowed up to their eyeballs (corporations included), pumping a lot of currency into the market. That’s got to account for something no?


  • Until they stop printing money and devaluing the dollar…

    Too many people think inflation only means price increases. That’s just a symptom. If banks and governments keep flooding the market with cheap loans and subsidies, you’re inflating the money supply, meaning you’re adding more money into circulation.

    The more money sloshing around the more you’ll need to purchase goods (hence why your dollar starts to devalue)… And hence price increases.

    And no government is doing enough to solve inflation, even with these rate hikes.