(Topic ID: 305303)

If the bubble bursts?

By playtwowin

2 years ago


Topic Heartbeat

Topic Stats

  • 67 posts
  • 40 Pinsiders participating
  • Latest reply 2 years ago by Gorgar666
  • Topic is favorited by 1 Pinsider

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    Topic poll

    “Will game prices continue to soar?”

    • Yes 67 votes
      47%
    • No 27 votes
      19%
    • Don't care stopped buying games. 49 votes
      34%

    (143 votes)

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    #51 2 years ago
    Quoted from Xenon75:

    No one seems to understand inflation - there is no bubble. There is however a devaluation of the dollar and other currencies by the fiscal policies being employed right now.
    25% of all dollars EVER created in the history of the country were created last year. Therefore at minimum you will see at 25% inflation in prices over the coming weeks/months/years. The only way to avoid it is to cull the money from the supply which there is no way in hell they are going to do that. It's the only thing keeping this illusion going.
    That is why the FED wants to stop using the term transitory inflation, it's not going away. We are nearing the precipice, you may want to read up on Venezuela and see what happened to them when their government had similar fiscal policies.

    I've been saying this and people just say "it's covid it will go away" as if somehow lifting the reserve requirements on bank lending is just every day business in America...

    #52 2 years ago
    Quoted from CrazyLevi:

    In 2021, is it possible to have a pinball pricing thread without an inflation rant?
    It's def a nice new wrinkle on a very old suit.
    Here's what I don't get...if pinball pricing explosion is due to inflation and bad economic management, which of course happened precisely the end of January, 2021, what explains the pinball pricing explosion during 2016-2020, when of course we all know everything was completely awesome with the economy?

    There's clearly more than one factor that impacts pricing. Pretending it's one thing and one thing only is silly.
    A rise in demand without an equal rise in supply would account for a lot of the increase but you cannot deny inflation at this point. The dollar is being printed at record levels, whatever dollars you own are worth a lot less than they were in 2016-2020.

    Quoted from NC_Pin:

    The US Money Supply tripled between 2000 and 2020, but prices did not triple.... prices went up 50% over that same period. You can not draw a straight line between MS growth and price growth there are way too many other factors at play.

    Why would you expect a perfectly linear relationship? That's not how it works. Inflation takes time to be priced in. The first person to spend a newly minted dollar spends it absent of inflation. Once that dollar starts to circulate the inflation takes effect.
    Either way though, the relationship between inflation and prices has never been 1 to 1 and would never be expected to be 1 to 1. Inflation is a measurement of the expanson of the money supply, not a measurement of end user costs. Costs would never rise 1 to 1 with inflation.

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