Cyprus-Forum.com

[Maximus]

Inflation happens over time, especially after periods of quantitative easing.

Once central banks have increased the money supply, you end up with an economy with more money swirling about. Chasing the same or less goods and services.

So prices have to go up.

it's normal.

[Lordo]

Very interesting on how a person who seems normal can derive pleasure out of the demise of other people because he does not like their government.

What a world we live in.

You didn't understand. I don't just hate their Government, I hate everyone in Turkey who capitalises on our own expense. Which is all. The same is true for the TCs. I don't just hate the various Denktashes, Eroglus, and Tatars pseudo governments, I also hate the TCs who support them.
That's totally normal.
What's abnormal is to resent all GCs as if all the Gcs were Grivases, and Eoka Bs before 1974. That's how you decorated your Bekledim De Gelmedin song.
So, your mama Turka eventually came and saved you huh?
Time to enjoy her kisses.

And yet not a wrod for those who suffer who did not take part in activities at your expense. There are millions who are suffering who have not benefitted anything at your expense. Who actually benefitted really? I would hazard a guess and say about 5% of the TCs and 1 percent of the Turks. The 95% of the TCs lost rather than gain even though they accepted GC properties.

My did was not for all GCs either, I am refering to you boys in here. who even have the audacity to suggest that TC have themselves to blame for going into enclaves.

Anyway. it seems that was not enough to satisfy you boys here. here is another one.

[Lordo]

Ultimately it is the financial markets that decide what the value of the currency is and it is only when the vlaue drops that people lose. It seems it made no difference to the UK when they did their quantitative easing and the interest rates dropped to less than 1% at the same time.

Financial world has turned upside down.

[Maximus]

Why would they raise interest rates and then create a larger money supply through quantitative easing?

The government doesnt want to borrow money and pay higher interest and..

We all wish the monetary system would give us more money, encourage us to save it by paying us more in interest as well...

[Lordo]

In the UK the quantitative easing did not find itself in the pockets of people. The banks used it to pay themsleves huge bnnouses despite the fact that their financial dealing produce no results.
If the money does not end up in the pockets of people, why would inflation rise.

[Maximus]

In the UK the quantitative easing did not find itself in the pockets of people. The banks used it to pay themsleves huge bnnouses despite the fact that their financial dealing produce no results.
If the money does not end up in the pockets of people, why would inflation rise.

Inflation rises when people have got more money from increases in the money supply or if there is a reduction in goods or services available.

Inflation can go up from supply side issues, which is what is happening (at the moment) to the global economy.

Also because major economies have been printing money for a long time. That money does trickle in to the economy.

In the UK's case, low (<1%) interest rates and quantitative easing has been going on for over a decade.

[erolz66]

Inflation happens over time, especially after periods of quantitative easing.

Once central banks have increased the money supply, you end up with an economy with more money swirling about. Chasing the same or less goods and services.

So prices have to go up.

it's normal.

There is absolutely nothing normal with either the extent and duration with which all major central banks globally have been printing new money (QE) since 2008. It is entirely unprecedent in history. If it had led to real economic growth then it would have stopped years ago. It is smoke and mirrors , trying to prop up the unpropable and keep the whole circus running after the wheels have already come off. Reality is coming and its gonna be tough all round. Well except for bankers.

[Pyrpolizer]

https://www.theguardian.com/business/2021/nov/26/markets-warn-central-banks-get-grip-on-inflation-interest-rates

I am not sure this "massive money-printing schemes" is true.
Presumably (from what I remember from discussions with RH) today 90% of the money is electronic.
I think it's most probably in the form of credit to the Banks, who in turn just provide cheap loans to lenders.

Printing money just means creating more money, increasing the supply of it. Electronic or cash does not make any difference. Quantitative easing is just a way for central banks to create more new money (that means your money decreases in value as a result) once they have pushed their other 'growth' levers as far as they will go (interest rates to zero). The whole thing is a massive bubble and it is going to burst. Inflation is going to explode globally. What is happening in Turkey right now is what is coming everywhere.

https://www.investopedia.com/terms/q/qu ... sing%20(QE)%20is%20a,and%20encourage%20lending%20and%20investment.&text=Instead%2C%20a%20central%20bank%20can,amounts%20of%20assets%20to%20purchase.

I don't think inflation of about 4% Vs 2%+ growth is anything to worry.
Cyprus is more or less at same level as the Eurozone, the only bubble around is actually the rents, because construction of new homes was halted for a long period after the haircut in 2013.
We know where the inflation comes from, it's basically because of the break of the imported supply chains, and transport due to Covid.
https://tradingeconomics.com/cyprus/inflation-cpi

[Lordo]

The real problem is the investments in building being rented to corporarations. These investemnts are mainly pension funds. The pandemic has shown people there is a better way to work. If you can work from home at least some of the time if not all, it wil reduce the demand for space and the whole thing will collapse on our heads in a very short time.

[Maximus]

Inflation happens over time, especially after periods of quantitative easing.

Once central banks have increased the money supply, you end up with an economy with more money swirling about. Chasing the same or less goods and services.

So prices have to go up.

it's normal.

There is absolutely nothing normal with either the extent and duration with which all major central banks globally have been printing new money (QE) since 2008. It is entirely unprecedent in history. If it had led to real economic growth then it would have stopped years ago. It is smoke and mirrors , trying to prop up the unpropable and keep the whole circus running after the wheels have already come off. Reality is coming and its gonna be tough all round. Well except for bankers.

I was talking about inflation being normal.

You are talking about the duration of quantitative easing.

Trying to contrast what is happening elsewhere to what is happening in Turkey,

As if that is going to water the situation down over there.....