• LibreHans@lemmy.world
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    3 months ago

    Stores 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.

    • FluffyPotato@lemm.ee
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      3 months ago

      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.

      • LibreHans@lemmy.world
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        3 months ago

        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.

        • FluffyPotato@lemm.ee
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          3 months ago

          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.

          And what do you mean by USD debt?