INFLATION, Explained in 6 Minutes

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Published 2022-06-08
Why Everyone is Worried About Inflation
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I'm hearing a lot about inflation lately, so I want to break it down. What it is. Why it happens and it means for all of us. I hope this is helpful!

Thanks to all my macro Econ professors.

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All Comments (21)
  • @johnnyharris
    Thanks for being here everyone. to all the economist watching: I KNOW I KNOW I KNOW there's SOOO much more complexity and nuance to inflation. my purpose here is to give the broad intro into the root idea of inflation especially as it pertains to this round of inflation. condensing what could be 12 years of higher education into 6 minutes. -Johnny
  • Everything costs more, so I ask for a raise, but then companies raise prices to cover their costs, and here we go again!Feels like a hamster wheel, going nowhere fast.
  • I just want my money to keep outgrowing the inflation rate. That’s why I'm looking for companies now to put in $200k for a start. Just don't know strategies to employ in buying stocks to invest in
  • @RusuSilva
    It's sad how difficult things have become in the present generation. I was wondering how to utilise some money I had. I used some of it for e-commerce business, but that sank. I'm thinking of how to use what's left to invest, but I don't really know which way to go.
  • @MickyGlover
    Nice Jonny, if this inflation continues to be allowed to grow unimpeded then I foresee a recession lasting 2-3 years, and if inflation continues to surge, the Federal Reserve will likely raise interest rates soon. Inflation is causing various issues worldwide, such as food shortages, scarcities of diesel and heating fuel, and significant spikes in housing prices, leading to a potential financial market crash. This global downturn could have long-lasting repercussions. Given the current inflation rate of approximately 9%, my main worry is how to optimize my savings and retirement fund, which has remained stagnant at around $300,000, yielding almost no gains for quite some time.
  • @Peterl4290
    It's interesting that when central banks like the Fed start raising interest rates, inflation of more than 2% has been a concern. Since more investors would surely take their money out of the stock market as a result of the rising interest rate, I view this as a very significant problem. However, there are still some investors that I know of that make more than $360,000. I wish I could pull that off.
  • @vadardosky
    Johnny, one of the main reasons we watch your videos is that they're long. So please never think of that as an issue, it's a blessing for us that you really make sense out of huge topics in less than 30 minutes! Love everything you make!
  • @NicholasBall130
    The system is failing as a result of both government and federal policy. In the next days, the banking crisis would have to be epic and gigantic for the FED to decide not to raise interest rates. This won't happen; an increase and a crash are coming. There will be more negative portfolios this 2nd half of 2023 with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?Read more
  • @Riggsnic_co
    I'm not kidding when I say that the market crash and high inflation have me really stressed out and worried about retirement. I've been in the red for a while now and although people say these crisis has it perks, I'm losing my mind but I get it Investing is a long-term game, so focus on the long run.
  • @matty6244
    "What's inflation?" Me, an Argentinian: Finally, a topic I am an expert on! (pls help)
  • Me, an Argentinian reading the title: - You know, im a bit of a expert myself.
  • @shellylofgren
    The market and the Fed consistently underestimate the sticky nature of inflation. The markets are still unsure if the Federal Reserve will continue to its plan to raise interest rates until inflation is under control, despite the fact that bond yields are rising while stock prices are falling. What is the greatest strategy to take advantage of the current bear market while I'm still deciding whether to sell my $401k worth of stocks?
  • @AddilynTuffin
    Warren Buffet said, the S&P 500, if one sticks with it, outpaces inflation by many percentage points. I just want my money to keep outgrowing the inflation rate. That is why I'm looking for companies now to put in $80k for a start. Just don't know how to proceed
  • @botleydot
    One important thing missing from this explanation, is that one business raising its prices leads to increased costs for other business that they supply. So these business in turn have to raise prices in order to not lose money. It's a nasty feedback loop if it takes hold.
  • @user-xp6sc6su9c
    With inflation in the United States still excessive, most Federal Reserve officials expect to raise interest rates further this year, Chairman Jerome Powell has told a House of Representatives committee.
  • @Mr-sweeny
    Interesting how over 2% inflation has been a concern when central banks and the Fed begin to hike interest rates. I consider the rising interest rate to be a very serious issue since it will undoubtedly cause more investors to withdraw their money from the stock market. But then I'm still aware of certain investors that continue to earn over $365,000. Wish I could accomplish that.
  • @marcos_dv
    We have been dealing with inflation for decades here in Argentina, to the point where we joke saying that we have a degree in economics as we need to figure out how this works in order to overcome the situation. It's really amazing to see that the USA is dealing with the same problems we started to face long time ago. I really hope your goverment take the correct decisions to fix this before you find yourselves saving you money in another currency rather than the local one (as we actually do). As always, your content is brilliant. Keep it up!
  • @switch8428
    The older generation expects us to have a stable work, a high income, a family, a house in our early 20's because that's what all they achieve back in the day, not knowing that we all deal the consequences of the older generations actions.
  • @PotBellyPete69
    My spouse and I are diversifying our long-term investment portfolio by adding various stocks and ETFs. We've allocated $220k to begin with, focusing on inflation-indexed bonds and companies with strong cash flows. I think the current market presents a good opportunity for long-term gains, but I'm also interested in learning ways to make short-term profits.
  • Inflation is not creating food shortages; Politicians are. Look at the money being spent in the Ukraine alone; and, WEF cronies are insisting on ESG systems in which fertilizers are banned and food production is halved (Sri Lanka was their poster child for this and it miserably failed; they are now at the mercy of the World Banksters who will grab any value out of that country). Fuel shortages... again the result of political control and manipulation. Politicians are cutting production to please the WEF cronies (again with ESG), and blowing up gas lines under the North Sea. The financial system has been artificially pumped for over a decade to ensure big pockets were lined, i have been reading of investors making about $250k profit in this current crashing market, and I need ideas on how to achieve similar profits?