Inflation is back in the news. In the last decade, the prices of the goods Americans buy has gone up faster than the salaries of the people who produce them. That’s likely to make the gap between earnings and prices even bigger in 2018.
Prices in the U.S. rose faster in May than they have since before the Great Recession, the Labor Department reported on Friday, kicking off a summer of anxiety about the health of the American economy.
The US is in the middle of a double-dip recession, and worse still, wages are falling. But despite all the doom and gloom surrounding the US economy, the price of Bitcoin is continuing to rise. This is thanks to a large part of Bitcoin’s price being derived from its use as an investment vehicle, a fact that should encourage people to use Bitcoin as a means of saving money, rather than spending it.. Read more about bitcoin all-time high 2021 and let us know what you think.Bitcoin (BTC) received even more free publicity this week when inflation data showed that prices were rising faster than even the experts had predicted. The most recent Bureau of Labor Statistics (BLS) report on the U.S. Consumer Price Index (CPI) of 10. June also showed that the average hourly earnings of American workers are at their lowest level in a century.
Inflation returns to 2008 levels
One of bitcoin’s best friends is inflation. Thanks to its deflationary nature, users can save for the future without fearing that inflation will destroy the value of their savings. Since the beginning of Covid-19, central banks have embarked on unprecedented money printing programs, and the consequences are now beginning to become alarming. In May 2021, 12 months after the global spread of the coronavirus outside China, the consumer price index in the U.S. rose 0.6%. This is 5% higher than in the same month last year and means that US inflation is now at its highest level since 2008, when the financial crisis broke out. The CPI report for May showed that opening-sensitive categories dominated price pressure for the second month in a row, Bloomberg analysts said in commenting on the report. U.S. CPI Chart. Source: BLS It’s no surprise that bitcoin supporters were quick to sound the alarm. Inflation in the United States has just reached its highest level in 13 years. This comes as a surprise to policymakers and economists, Dan Held, head of growth at the Kraken Exchange, wrote in a series of tweets. For a person of average intelligence, this was pretty intuitive, given the mass printing of money (stimulus) after COVID. Held noted that wages have not kept pace with the changes, meaning that American workers earn less per hour on average than at any other time in the 21st century. Wages have not kept pace with inflation, making workers poorer. Wages are more inflexible than prices, which can be adjusted much more easily, he concluded.
CPI hides true inflation
Other bitcoin figures have talked about inflation in recent years as a perfect example of how the system of fiat currency deceives those it forces into it. Although the CPI still appears relatively low in percentage terms, many assets are not included. These include goods and services that provide citizens with security for the future, such as real estate and school fees. Related: Bitcoin is a masterpiece of monetary engineering Michael Saylor tells Austin Davis Michael Saylor, CEO of MicroStrategy, and Cyphedean Ammus, author of Bitcoin Standard, spoke particularly on the topic of inequality. The CPI is the wrong measure of inflation, Sailor said in March. Volatility is the wrong measure of risk. The former distracts us from the problem and the latter distracts us from the solution.The Federal Reserve has decided that an inflation rate of 2 percent is about right for the US economy, but in some States, inflation is even higher. The San Francisco Bay Area is one of those areas, and it’s has hit the highest level in 13 years, according to data from the Bureau of Labor Statistics. The problem? The Federal Reserve is keeping interest rates low, which is a good thing for consumers, but bad news for businesses, according to the Economic Policy Institute.. Read more about u.s. inflation data today and let us know what you think.
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