[heisenbit]

I strongly believe there is not one but there are two monetary systems today. One is for assets and the other for daily life consumption. They are only weakly coupled less than maybe in the past. This allowed raging inflation in the asset system for decades while daily life saw deflation or low inflation. And now we have exactly the opposite. There are a lot of reasons - many related to decision body captures - why transmission between the two sides slowed down. Any analysis looking at only one side and trying to explain the whole is bound to fail. Traditional methods work as long as they focus on one side only - influence from the other can be neglected.

[Nemi]

I agree. What we have seen over the past decade+ has been asset inflation. This is exactly the same as goods inflation (what we are seeing now), except that asset inflation seems like a good thing at first blush. People want their assets to go up in price. It makes them feel rich. But assets should be priced based on what they return to you in future dollars, and THAT return has been going down and down over the past decade. This is not a good thing.

What is happening now is that asset inflation is correcting and goods inflation (a related but distinct concept) is taking hold.

[bawana]

That distinction should be formalized and a simple law could fix the inequality- financial gains can only be spent/reinvested in Real world goods and services unrelated to finance. Real world money would have no restrictions