You Can Really Feel the Inflation

I just landed in Chicago for the Christmas holidays from affordable Europe, and the inflation here hit me like a freight train. I'm not usually one to obsess over prices or nitpick my spending, but this time, every place I visited left me in shock. Prices seemed to have skyrocketed compared to my last visit a year ago. It's hardly surprising, given the recent trends. After all the Covid-related spending and sustained low interest rates, American inflation has been on a relentless upward march, month after month.

It’s finally starting to slow down. For the first time since early last year, food prices aren’t rising faster than overall inflation and no longer outweighing Americans’ wages. It’s not accelerating anymore.

But it's still a palpable hit for everyone. You can't just sidestep it. Certain safe havens don’t exist anymore. Think of the grocery store. It was the place for thrifty spenders. It used to be the go-to advice – tighten your belt, shop for groceries, cook at home, and you'll weather the financial storm. Not anymore. Even the grocery store has become a pricey venture, a shift so striking it's sparked its own viral meme.

But the grip of inflation extends beyond just the grocery aisles. People are taking to social media, showcasing their purchases. Take this one, for instance: a post about a simple latte paired with a ham and cheese croissant.

Or another one about paying for 2 drinks received 4 million views.

The Experience of Inflation

The constant visibility of prices has a psychological effect on us. Usually, we operate on auto-pilot, expecting prices to rise gradually over time. But when the price is prominently displayed, it draws our attention and makes us think more about it. This is especially true for gas prices. The common belief is that people care about gas prices because it's a necessary expense for their cars, and naturally, everyone wants to pay less for essentials.

However, I believe the real reason is the way gas prices are displayed. Along every mile of the road, signs prominently post these prices. As you drive, you can't help but notice them.

Now, imagine this, but for everything. That's inflation. It’s the creeping increase in the cost of your morning coffee, the subtle uptick in your monthly rent, the gradual rise in your grocery bill. These changes are stealthier, less blatant than the gas prices, but they're omnipresent and you notice.

In This Newsletter

1) Inflation In the Rest of the World: As bad as inflation is in the United States. It’s way worse in other countries.

2) Jesus Driving Out the Money Changers the Temple: Biblical parables, traditionally seen as moral and spiritual lessons, also remarkably align with modern behavioral science concepts, offering alternative explanations that validate eternal truths about human behavior. The traditional view is that Jesus was protesting the temple's commercialization and exploitation of worshippers. An alternative, less common theory suggests he acted against the money changers due to their involvement in debasing currency and causing inflation.

Let’s explore parables from the Bible to see if there are interpretations hiding underneath underneath the surface

Inflation In The Wider World

The reports of soaring inflation rates from various parts of the world are startling. Especially when you consider that the US is (successfully) lowering its own inflation by distributing it across the planet.

Christian Mischler bought one latte in Lebanon at 10:30 am and by the time he ordered his second at 1 pm the price had gone up by 9%!

Lebanon’s inflation rate last year was 162% and

Or take the case of Argentina. Inflation in Argentina is significantly high as of December 2023. The annual inflation rate is 160.92%. This is a substantial increase in prices and cost of living for Argentinians​​. Even the menus at restaurants don’t come with prices because the price rises so quickly.

It’s hard picturing menus without prices in America. People would freak out.

The Argentinians elected an eccentric Libertarian candidate as president, who threatened to gut the entire government and abolish the central bank. People outside of Argentina were shocked. Latin America has never elected a libertarian before. But I can understand it, I got spooked by inflation here in the US and it wasn’t even close to Argentinian levels.

Or take the example of Turkey. The head of the Turkish central bank, Hafize Gaye Erkan, is moving back in with her parents, into her room she lived in as a child due to excessively high inflation and rising rents in Turkey. Rents rose over 77%. Overall inflation this year is over 60% in Turkey.

The Money Changers in the Temple

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