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In many European countries inflation is at 15%

If it reaches 20% that means every 3.5 years your cash reserve loses half its value

Mean someone correct me if I’m wrong I think that is astounding



I think people are underestimating how much the cost of energy impacts inflation.

It used to be primarily labor costs, and labor/wages is still a major part. However with automation some labor is being replaced by automation and thus converts what used to be labor cost to energy cost.

European countries are not in great shape from an energy POV.


And yet solar radiation falling on just 1% of Spain, Italy, & Greece - even in the Winter - can power >50% of Europe (and >100% in the Summer).

Europe already gets ~12% of its energy from Nuclear, ~5% from hydro.

Solar energy will not be a problem in the future - neither will sourcing the remaining 33% of energy from other renewables, nuclear, and fossil fuels.


I don’t understand how you can be so optimistic about energy security in Europe. They’re in the midst of an energy crisis right now…

The infrastructure they have now is literally insufficient.


As the other poster pointed out, that's primarily due to the energy costs and those will most likely come down. For a more accurate look at inflation, you should look at core CPI which excludes energy and food which can be volatile. This number is closer to around 5% in most of Europe.


Ah yes, inflation is just fine if you exclude housing, energy and food, the 3 things sustaining everybody's life.


Shelter is included in core inflation.

Where in my post does it say that inflation is just fine? The point is that the crazy 15% numbers we are seeing are mostly due to energy prices, which are extremely volatile.

We should strive to get an accurate picture of the current state of affairs, not be overly optimistic or pessimistic.


assuming that the inflation rate remains the same for the next 3.5 years. Which seems unlikely


It appears to be more like tectonic plates shifting. Sometimes they shift a bit, a few aftershocks and pretty much back to normal order. But sometimes it kills a few hundred thousand, changes the landscape that even after the aftershocks subside, it leaves behind quite a different world. 20% loss against dollar for 2 years without reversion will end up creating quite a different world.




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