Twitter co-founder, Mark Zuckerberg, warned that ‘hyperinflation” could soon strike the US. It could ‘change everything.
Jack Dorsey (44), who is currently the CEO at Square and Twitter, warned about the rise in inflation in America over the weekend.
Dorsey took to Twitter Saturday to write: “Hyperinflation will change everything.” It’s happening.
Dorsey received a quick response from many of his 5.8million followers asking for more information. One person responded, and he stated: ‘It’ll happen in the US soon, so the rest of the world.
Jack Dorsey, 44 years old, is currently the CEO of Square and Twitter. He expressed his opinion on the rising inflation in America over the weekend
Dorsey took to Twitter Saturday to write: “Hyperinflation will change everything.” It’s happening.
Hyperinflation refers to a short-term period of high general price increases for everyday goods.
Hyperinflation is a condition where the rate at which inflation rises by 50 percent per month. In comparison, the rate has been around two percent per year since 2011, though it has increased by 5.4 percentage points in the last twelve months.
Hyperinflation monitors each day’s price changes, rather than standard inflation, which measures the increase in prices per month.
However, hyperinflation does not normally occur without an initial trigger such as a war, social uprising, or supply shock.
Dorsey’s warning about social media comes amid rising US inflation, which some experts claim may be partly due to the ongoing supply-chain crisis.
The Consumer Price Index measures the rate of inflation in America. Experts were surprised to see it increase by 0.4% last month.
The September consumer price index increased 5.4% compared to August’s 5.3% gain and matches the July and June increases.
The supply chain is struggling to stay above water due to a backlog in shipping at US ports. Pictured: File image of Port of Los Angeles in San Pedro (California) on September 29, 2021
This was 0.1% higher than expected and resulted a year-on–year increase of 5.4% compared to 2020.
The consumer price index compares the average prices of various consumer products and services like transport, food, and medical.
It is used to measure inflation, as it reflects a currency’s purchasing power over time or, more simply, the general increase in prices for everyday goods.
However, this figure shows that fuel and food prices have been the main contributors to the increase.
September saw a 3.3% increase in meat prices, while fuel oil saw an increase of 3.9%.
Bob Doll, chief investor officer at Crossmark Global Investments, stated that food and energy are more volatile, but that’s the problem.
“Hopefully, we can solve our supply problem. Inflation will not return to zero to 2 after the dust settles. [percent]It was the same place it was in the last decade.
The supply chain crisis has had a devastating impact on the US economy. This has led to consumers spending more money and purchasing more products, while businesses struggle to meet demand.
The supply chain is struggling to stay above water due to a backlog in shipping at US ports.
Treasury Secretary Janet Yellen assured Sunday that the US is not ‘losing control of inflation’ as she claimed rate should return to 2 per cent by the end of 2022
Particularly, significant ship traffic jams have been observed at the Port of Los Angeles where more than half of the shipping containers arrive in the U.S. Trucks are not arriving in time to load the huge number of shipping containers.
However, despite the current issues, Janet Yellen said on Sunday that the United States was not losing control of inflation, and that she expected inflation levels to return to normal by the end of 2022.
Yellen stated that she doesn’t believe we are about to lose control of inflation on CNN’s State of the Union.
She continued, “I agree, of course. We are going through an inflation period that’s higher than Americans’ have seen in a long while.” “And it’s something that’s clearly a concern and worrying them. We haven’t lost our control.
Yellen stated that inflation will return to a normal rate of around 2% sometime next year.
“On a 12-month basis the inflation rate will remain high through next year because of what has already happened. However, I expect improvement by next year’s middle to end – second half of next years,” Yellen stated.
As the US continues to experience high inflation, prices have risen on a wide variety of key goods.
Yellen also spoke on CNN Sunday morning and stated that President Joe Biden’s domestic infrastructure spending and Build Back Better programs would be allocated over 10 years.
However, she did not say if this would increase inflation.
The United States and other countries have been plagued by supply chain problems. Economic reopenings stimulate a surge of demand, and a massive labor shortage follows in the midst a prevailing pandemic.
‘As we continue to make progress on the pandemic I expect these bottlenecks will subside. She stated that Americans will return into the workforce as soon as conditions improve.