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Estonia clocks fastest inflation in the Eurozone at 20.1 percent

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Re: Estonia clocks fastest inflation in the Eurozone at 20.1 percent

#341
post #317
post #300

Earlier quoted context omitted.

Read somewhere that a litre of milk in northern Europe costs around a kW/h in energy to produce. Whatever the exact number, it should open your eyes to the importance of energy prices on all other prices. It's not "just" transports.

Money = energy (while credit being a promise on future energy). Cheap energy is how we've created our society. The (huge) problem we're facing is that our economy is based on the (incorrect) assessment that we will have an ever-increasing supply of energy. Barring some miracle invention/discovery (like fission, or a cheap way to produce hydrogen) it's rather the opposite, at least in terms of EROEI. The difference be…

> Cheap energy is how we've created our society.

Agree.

> The (huge) problem we're facing is that our economy is based on the (incorrect) assessment that we will have an ever-increasing supply of energy.

I'd add to that: the problem isn't so much that energy sources are currently running out. We've still got decades of fossil fuels left over to run the existing economy.

This makes the problem even harder to solve. We do have the energy. It sits right there, tempting states to grant permission to use it. But states ought to refrain from using it because the ecosphere/climate is in danger.

States globally switching to renewable energy would be much easier than it is (almost effortless), if we were truly running out of fossil energy.

As things are, states that undertake the enormous effort to make the transition to renewables, are at an economic disadvantage, at least in the short-term.

Thus the one big challenge is the political one, of setting up an international treaty that somehow turns this economic disadvantage into incentives for the transition.

Re: Estonia clocks fastest inflation in the Eurozone at 20.1 percent

#342
post #237
post #204

Earlier quoted context omitted.

>In theory water can run uphill. Sometimes it even does. But as a matter of overwhelming practice it is obvious that if the general price of goods is rising it is the government doing something. Otherwise there is nearly nothing that could cause a correlated rise of the price of everything. This caused general inflation of nearly everything https://en.wikipedia.org/wiki/1970s_energy_crisis There is never a perfectly…

Ah the 70s energy crisis. I remember it like it was ... half a century ago. In fact I don't remember it because I'm younger than 80. I wasn't even alive. Most people on this forum weren't even alive then. And we now live in an era where governments are inexplicably opposed to any of the easy options to secure energy. We should have been going nuclear in the 80s, 90s, 00s, 10s and now the 20s. So while I'm happy to sa…

> The anti-fuel drive of the last decade hasn't helped any either.

So either you're denying the claims that CO2 is causing climate change/catastrophe or you simply don't care about the future of civilisation/nature.

Which of these is it for you?

Re: Estonia clocks fastest inflation in the Eurozone at 20.1 percent

#343

Earlier quoted context omitted.

> No matter what anyone did, the currency would lose value week after week, month after month. Cannot one convert their money to dollars or gold and start getting profit from inflation? UPD: I forgot that in such cases governments usually impose large tax on currency conversion. Obviously you can't outsmart the government.

If everyone sells their currency to but dollars, the currency loses even more value faster compared to dollars, so currency controls are put in place, like Argentina did for a while: https://en.wikipedia.org/wiki/Argentine_currency_controls_(2...

What do you mean "for a while", Argentina has currency controls TODAY.

https://www.bloomberg.com/news/articles/2021-11-25/argentina...

Re: Estonia clocks fastest inflation in the Eurozone at 20.1 percent

#344
post #74

Earlier quoted context omitted.

> 1. a dilution of money. Let say a central bank injects a lot of new money, then all prices will be higher, but salary will be higher too, and the overall effect is neutral More money does not necessarily mean decreased buying power. If you have more people or if the money isn't in circulation, the buying power will stay the same, therefore not causing inflation.

Typically when we say “more money” we mean more money in circulation. What’s the point of any other meaning?

These claims are usually supported by graphs about how much USD/EUR/... are provided by the respective central banks, which does not measure money in circulation, but total money existing. It's important to distinguish between the two since they are easily confused and a lot of existing money not in circulation can lead to rapid inflation if something mobilizes this money, which might be what we're seeing right now.

Re: Estonia clocks fastest inflation in the Eurozone at 20.1 percent

#345

Earlier quoted context omitted.

If everyone sells their currency to but dollars, the currency loses even more value faster compared to dollars, so currency controls are put in place, like Argentina did for a while: https://en.wikipedia.org/wiki/Argentine_currency_controls_(2...

What do you mean "for a while", Argentina has currency controls TODAY. https://www.bloomberg.com/news/articles/2021-11-25/argentina...

It used to have currency controls. It still does, but it used to too.

Re: Estonia clocks fastest inflation in the Eurozone at 20.1 percent

#346

Earlier quoted context omitted.

Yeah, same in Austria. Energy prices on my provider are going up by 90%, many food items are up 50%+ since the start of the year, and outside of some grumbling in private conversations I've not heard much complaining.

> outside of some grumbling in private conversations I've not heard much complaining. I mean, where else would you hear about it? Are you expecting random strangers on the street to just angrily scream at you about increasing energy prices and inflation? Imho one of the biggest giveaways was when German supermarkets started mentioning "inflation" in their discount prospects, first saw that like 2 months ago.

there were huge protests against vaccines and mask mandates not too long ago (not making a moral judgment here, just saying people are definitely not afraid to voice their opinions loudly in public on some issues)

Re: Estonia clocks fastest inflation in the Eurozone at 20.1 percent

#347

Earlier quoted context omitted.

IIUC, Russian oil is roughly the same price as it was before the invasion: https://www.statista.com/statistics/1112243/urals-crude-oil-... Other oil has gone up so much because everyone is switching off Russian oil. Russian oil is not going up. So it's actually not a bad time to be a Russian oil consumer...

Russian oil and gas should actually be cheaper because demand has dropped sharply. Anyway it's a very bad time to be a Russian oil consumer, because you'll be funding an unprovoked invasion and the countries that have sanctioned Russia may not want to deal with you.

"and the countries that have sanctioned Russia may not want to deal with you."

Only in public media. Under the radar, they will still import Russian oil

Re: Estonia clocks fastest inflation in the Eurozone at 20.1 percent

#348
post #342
post #237

Earlier quoted context omitted.

Ah the 70s energy crisis. I remember it like it was ... half a century ago. In fact I don't remember it because I'm younger than 80. I wasn't even alive. Most people on this forum weren't even alive then. And we now live in an era where governments are inexplicably opposed to any of the easy options to secure energy. We should have been going nuclear in the 80s, 90s, 00s, 10s and now the 20s. So while I'm happy to sa…

> The anti-fuel drive of the last decade hasn't helped any either. So either you're denying the claims that CO2 is causing climate change/catastrophe or you simply don't care about the future of civilisation/nature. Which of these is it for you?

What, you can only think of 2 options?

It doesn't matter what effect CO2 is having on the climate, the future of civilisation will be more rosy if we maximise the availability of fossil fuels short term while transitioning to something more workable long term - like nuclear. Even renewable might work these days although it doesn't have the enviable technical profile of nuclear power.

Re: Estonia clocks fastest inflation in the Eurozone at 20.1 percent

#349

scare pepole, lock down everything, print all the money you can,,,,,,then act surprised when inflation hits humans..... :facepalm:

Surprise? Nobody thought there would be no economic consequences to lockdowns - you're painting a picture of some irrational social/political adversary, perhaps based on a cherry-picked opinion you've seen, or perhaps from whole cloth.
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