I don't fully understand inflation

[SusanSharandon]

*High inflation to be more precise. I'm don't have a background in economy, but I've read some books mostly on free market economics plus some youtube-level keynesian theory and others. I do understand how concepts like quantitative easing or low interest rates can cause inflation, also how policies like price controls can cause a lack of equilibrium and lead to distrust in the currency.
What I fail to understand is how high inflation like in Venezuela or Turkey can happen. I used to imagine a crazy central banker printing money like in a Jerome Powel meme but I'm not sure that makes much sense. Why would they do that with such speed that the currency loses purchasing power hour after hour and people are rushing to the supermarket to instantly spend what they've earned? Even assuming bad intentions and evil conspiracies, wouldn't such entities be identified easily by looking at the balance sheet? Wouldn't they be pointed out or exposed by someone with opposite interests?
One possible explanation that I can find is some sort of reverse-tulip mania, where people lose trust in the currency at first due to logical reasons and then with an accelerating snowball effect and self fulfilling prophecy.
One thing that truly confuses me is that the Turkish lira downfall is attributed to the low interest rates(approx 14%), but the interest rate in USA is way lower(0.25!!!!) than that in Turkey. Am I googling these numbers in a wrong way? Please let me know.
No matter how much I think or try to educate myself on the topic, I always feel like something remains opaque and I can't put my finger on it.
Can someone recommend me some resources or shed some light on this topic? I know this is not an economical philosophy forum, but people here are more open minded and with a broader understanding of real life than the academics.

 

[369]

Turkey has a special role in their agenda.
I already mentioned a longer time ago keep an eye on turkey

Majority of people are dumb and lazy.As long as there will be a minimal standard for them they won't do anything even knowing the governemts are acting bad.
All you will hear is we can't do anything anyways.

To understand the monetary system you first need to understand their agenda.
With cheap money (which you could only get if you are in their club) they bought majority of assets in the world under their control (isn't difficult with an yearly interrest of 0.25%)
Once inflation starts its a hidden taxation of the public sucking out their wealth.
Since we have now high inflation people are moving their funds into "safe" assets which price are way over priced now like stocks,real estates etc (guess why ?)
Once they transferred their money into assets they will get milked via a bear market and dumping real estate prices from the people who bought these assets at cheap prices with cheap debt.
Once we get into bear market they will come with a new idea of virtual money with a negative interrest rate to officaly stimulate econemy (You can read already the implementation guideline on IMF's website)
Once this happens in 2022 people will flee with their remaining money to other assets (crypto,this will be the last bull run on current crypto and other assets)

Its basicly to suck out wealth and prepare the road to the final new monetary system

 

[SusanSharandon]

Once this happens in 2022 people will flee with their remaining money to other assets (crypto,this will be the last bull run on current crypto and other assets)

When you say last crypto bull, you mean they will regulate/ban it out of existence right? Because this is my gut feeling also. That soon it will be the last chance to cash it out.

 

[369]

current crypto are mostly ponzi schemes which works on greed.
they are promoted as anti government currencies which is a big lie.
All major crypto coins are under government influence and already accumulated at very cheap prices.
There are JPM reports which shows JPM already accumulated bitcoins in 2011 and plan to accumulate and distribute.
Based on their report in 2011 they planned a quick 2000% profit on bitcoins.
In my personal opinion bitcon was not planned to be so long alive but the plan of a new unipolar monetary system didn't worked out and they had to agree to BRICS on a tri polar monetary system where they first had CNY to prepare to become a world reserve currency.

When you say last crypto bull, you mean they will regulate/ban it out of existence right? Because this is my gut feeling also. That soon it will be the last chance to cash it out.

I don't think they need to ban it.New projects falls now under new regulations.
In my opinion we will see a big pump when CBDC's with negative interrest rate will be implemented like in the dot com area after which big majority will quickly crash to zero caused by the big institutions which accumulated these coins for peanuts.

New generation will be security tokens which will represent real value in a framework where such manipulation won't be possible anymore.

 

[wonderwhat]

You should def read about deflation too, because it's very very interesting

 

[troubled soul]

Hope this help

 

[Golden Fleece]

One possible explanation that I can find is some sort of reverse-tulip mania, where people lose trust in the currency at first due to logical reasons and then with an accelerating snowball effect and self fulfilling prophecy.

You've got it. In third world countries, that is exactly what happens. It is all about lack of trust in the local currency, which creates a snowball effect as people rush to buy goods before the currency depreciates even further. In first world nations, azb1's video explains the process very well. The U.S. is experiencing all three causes of inflation, as depicted in the video, right now. Stay away from Keynesian theory and stick to real economics. The Mises Institute is a great place for research on economics.

https://mises.org/

 

[SusanSharandon]

I found ones possible explanation here Turkey’s Inflation Problem | Robert Aro (thanks @Golden Fleece for reminding me to take a look at Mises again)
tl dr:

In early 2019, the government opened its own markets to sell cheap vegetables and fruits directly, cutting out retailers it accused at the time of jacking up prices.

'It’s possible the government’s intervention created problems with price signals and the production process, which now manifests through higher prices and/or supply shortages, unless one believes governments can effectively sell fresh fruit and vegetables at more effective and lower costs to the public than the free market.'
This might be the key, although I would be curious to know exactly: where are these stores? I would like to walk into one to see for myself.
Also, does the goverment own the land where it grows these vegetables? According to wikipedia, 'The Turkish government controls a high proportion of land, either directly, under the authority of the Undersecretariat of Treasury or indirectly through the inheritance and management of Ottoman foundations under the authority of the General Directorate for Foundations.'
I cannot find however how much precisely do they control and to what extent. Because if it's a great deal, I think it could have a snowball effect into the economy that could explain the current chaos.
What pisses me off are the empty platitudes of media( 'blah blah low interest rates' while in US they are way lower, 'blah blah price controls' exactly what product and what price?), even websites like ZeroHedge do nothing but criticize without actually providing the exact reasons.
Journalism looks dead(although I'm not sure if it was ever really alive).

 

[Golden Fleece]

Journalism looks dead(although I'm not sure if it was ever really alive).

Journalism was always biased, but now it rises to the level of outright propaganda (at least in the U.S.). The positive side is that the web now allows anyone who wishes to seek out the truth, but most voters are still too lazy and ignorant to even do that. The "pandemic" has proven that point once and for all. On December 26th, only 79 people died of COVID-19 in the U.S., while over 11,000 died of cancer and 12,000 died of heart disease. And none of the freaked-out herd knows this fact. BTW: simply eating healthy solves all three of those health issues.

 

[void]

Journalism was always biased, but now it rises to the level of outright propaganda (at least in the U.S.).

I can assure you that in Europe it's out of control too, not mentioning reports from my friends in Australia

proud followers of Joseph Goebbels' methods

 

[369]

I can assure you that in Europe it's out of control too, not mentioning reports from my friends in Australia

proud followers of Joseph Goebbels' methods

since when are they out of power (goebbels)?