Comment on Inflation?
LibreHans@lemmy.world 2 months agoStores 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.
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.
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
Passerby6497@lemmy.world 2 months ago
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.
LibreHans@lemmy.world 2 months ago
Go look up net profit margins of retailers, they are going sideways.
thejoker954@lemmy.world 2 months ago
Thats because of how they define profits.
Every company wants ALL the money.
They make enough to pay all their bills and expand reasonably.
They are not happy with that.
Its always more more more.
LibreHans@lemmy.world 2 months ago
Obviously, because the money is always worth less less less.
Passerby6497@lemmy.world 2 months ago
And yet they can afford to advertise they’re dropping their prices 🤔