The Great Inflation Migration

That word "Transitory", I do not think it means what you think it means.

tl;dr: Inflation is transitory. You just don’t know what transitory means.

You know the line by now, somebody said the inflation would be transitory, and since then it has has been repeated all over the sticky internet.

Nobody seems to understand this word, maybe not the person who famously uttered it, maybe not even the dictionaries. The true definitions must be described as it was meant by the speaker giving the codetalk. Such a description is what follows.

In the context of inflation, and definitely what the fedman was forecasting, the word transitory means that everything will will cross that transit, but not at the same time. Also, a transit is uni-directional. Literally the mainstream narrative is to not know what words means, and the later be shocked and suprised, or nonplussed.

Also, did they say, specifically, “hyper” inflation? This dispatch isn’t about the word inflation, but if it were, we’d say it really meant, in the moment, hyperinflation.

Now that the word “transitory” has been described, we can analyze and predict what was being communicated, instead of listening to people chant the obvious refrain that the inflation hasn’t been a temporary phenomenon. Imagine cycles of “temporary” hyper-inflation and hyper-delfation. That would be a roiling bubble, but for a whole currency. That would be Bitcoin in El Salvador, on a global scale.

In the setting of real markets and economies, the word transitory indicated that everything would pass through (hyper)inflation. Or shall we say “things will inflate”. When we talk about it as “going through” a phase, it begs the question what happens on the other side. Nothing, stuff gets inflated, and stays that way. The first to make the inflation migration was securities and assets/property, then comes goods and services, and finally wages will inflate so people can once again afford rent.

Ergo, nominal wage increases that may be won even now, will only be making the inflationary migration, after everything else, and will not represent actual gains against the wealth class. Arriving last, the wage class loses the race to inflation valuations on everything except for a few shitty consumer chains, and they will suffer the political grift needed to sell them the narrative that labor won.

Finally, decidedly, the word in question did not mean the inflation is “temporary”. When has inflation ever been temporary? The “hyper” part of inflation may be described as temporary, but any other duration would be the end of that regime and their currency.

The powers tend to keep inflation low-key continuous, because inflation is actually the rate we pay the megawealthy for debt economics (mic drop). Inflation is good for debt is what they tell you, but it is really necessary for a debt economy, and serves the megawealthy (the securitized asset-rich). They can only loan money if their underlying assets are becoming more valuable, or else they would loan the very money that buys the bank. So yes, inflation just made the rich hyper richer, has anyone made that point yet?

A low inflation rate is a pretty nice rake, if your table is the whole economy. But in 2020, the government had to dole out rent stamps to keep the economy from crumbling under the reality of how unstable it was becoming, and the false pretense that we had to shut down for a cold virus. Welfare alone would be a wealth transfer, so the megawealthy pay themselves back by raising the prices on everything while lending to themselves at 0% interest to buy and hoard as much as possible, right before the inflation begins!

To compare the current regime to Japan since the 90s is to conclude that the wealth class is going full imperial on its citizens, and plans to provide low grade welfare for all; you will need UBI just to be where you were before the great rift. Americans think they have power, as the prime citizens to this regime, but fail to comprehend just how much in league their bargain is with the global wealth elite, how sold out they really are, and have been, for over 60 years.